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2022 Corporate Responsibility Report

Analysis of our products’ sustainability benefits KPI

To date, there is no industry-wide established system that provides sustainability information about ICT img products and services. Since 2014 at Deutsche Telekom, we have been using an in-house analysis method to assess the sustainability of our products. This includes, for example, examining the safety of the products, or how well they can be recycled.

We inform our customers about how our products are contributing to sustainability. The results of our analyses also allow us to position ourselves as a responsible company with respect to the competition. In the year under review, our analysis included a review of selected products in light of EU Taxonomy img criteria.

Correlation with SDGs
In the year under review, we reviewed – with support from internal experts – the sustainability benefits of a number of our products in light of the Sustainable Development Goals img (SDGs). The degree of detail depended on the revenue generated with the product under review. If revenues were high, we considered the impact on all SDGs. Where revenues were limited, we only took the impact on the most relevant SDG into account.

Results of the analysis
In the year under review (2022), we studied 35 product groups in detail, analyzing both their contribution to sustainability and their business potential (as of the end of 2022).

We measure the result of this analysis with the Sustainable Revenue Share ESG img KPI. The share of revenue from more-sustainable products was around 42 percent in 2022 (excluding T-Mobile US). The share thus remained constant compared to the prior year (42 percent in 2021). A key reason for the slight percentage decrease seen in this area is that total revenue (not including revenue in the United States) grew more strongly than did sustainability-related revenue. In addition, we have made our assessment methods more stringent. Now, intensified use of renewable energies no longer counts as a positive aspect that makes a portfolio element, as assessed, “more-sustainable.” This change reflects the fact that the entire Group is now using renewable energies. Also, and as in previous years, potential cost savings are simply seen as additional information, and not as significant criteria for a sustainability assessment.

The #GoodMagenta and #GreenMagenta labels
We use our #GreenMagenta and #GoodMagenta labels as a way of highlighting our products and initiatives that offer sustainability benefits. The #GreenMagenta label highlights products, services, projects, measures, and initiatives that are especially noteworthy in the areas of climate action and responsible use of resources. #GoodMagenta is applied to projects, actions, and initiatives that make a positive contribution to overcoming social and societal challenges in the digital world. Awarding of the two labels is subject to strict rules of our own definition. In each case, the product or effort, etc., has to show proven sustainability benefits. For awards of the #GreenMagenta label, for example, we carry out extensive impact assessments. In cases in which societal or ecological impacts emerge that are clearly adverse, the #GreenMagenta and #GoodMagenta labels may not be awarded, regardless of whatever benefits the product or effort provides. To date, over 35 products from Germany, and from several European national companies, such as Magenta Telekom in Austria and Makedonski Telekom in North Macedonia, have been awarded one of the two labels. For example, our green network – which since 2021 is being operated worldwide with 100 percent renewable energy – and our Speedport Smart 4 router carry the #GreenMagenta label.

Jonas Kowalski

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Jonas Kowalski