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2022 Corporate Responsibility Report

Sustainable capital investments & bond issues

Our contribution to the SDGs

In the past years, sustainability criteria have become increasingly important, both politically and economically, with respect to capital investments. And we are among those seeking to make our capital investments increasingly sustainability-oriented. This applies both to money that we invest and to bonds that we issue for the purpose of raising borrowed capital for investments. To this end, we regularly evaluate financing models that are attractive and sustainable, working in close consultation with our Group units Corporate Responsibility and Treasury (financial management).

Sustainable capital investments
Since 2019, Deutsche Telekom’s capital investments (DT Trust) have been geared toward ecological and social standards. The DT Trust is based on the criteria for the Government Pension Fund Norway (Norges Bank). Among other things, we exclude companies that violate human rights, manufacture certain weapons, or whose core business is considered harmful to the environment.

Sustainable bond issues
As early as 2021, our Board of Management approved a framework for sustainability-oriented bond issues – the “Sustainability-Linked Bond Framework.” This financing instrument will enable us to offer investors the opportunity to support our commitment in the fight against climate change. The interest rates for bonds that fall within the Framework are tied to the achievement of the pertinent defined climate targets: In cases in which we do not achieve our targets, we promise to pay higher interest rates.