About this report

The 2023 CR Report is a Communication on Progress that looks at the key developments during the reporting period.

• The home page provides an overview of the most important KPIs and highlights relating to the report topics from the year 2023. From the home page, it is possible to navigate to the different sections of our “Management & Facts” Communication on Progress. This covers the four pillars of strategy, economy, environment, and social, and includes information relating to our sustainability strategy, targets, and progress from the reporting year. Under economy, environment, and social, we also provide a brief overview of the key progress and KPIs from the reporting year. The foreword is presented in the appropriate place in the strategy section. For the first time, the 2023 CR report includes information about progress and activities in the four operating segments Germany, United States, Europe, and Systems Solutions, which have been presented in separate Country profiles in previous CR Reports. This new, integrated presentation enables us to map out the Group structure better in the 2023 CR Report. In some topic areas, interested readers are able to contact Deutsche Telekom experts directly.
• Management & Facts is supplemented with an interactive benchmarking tool under “Key figures”, which enables users to put together customized sustainability KPIs. The KPIs are presented at both segment and unit level.
• Under Specials, we provide information in an easily understandable way for a wide range of readers. The content of the Specials is not part of the “Management & Facts” Communication on Progress. The Specials provide a general overview of relevant sustainability topics at Deutsche Telekom. Due to their general applicability, they continue to be valid, and have therefore not been updated for this reporting year. Some of the Specials are also available in simplified language.
• The report is supplemented by the new CR facts format, which individual Deutsche Telekom departments use to report directly on their sustainability-related projects and measures. This format is also not part of the Communication on Progress for the reporting year. Readers can access the CR facts section at any time by clicking on the link in the report’s footer.
• The report’s footer includes links to a download center, dialog functions, a glossary, and other relevant websites.

As a Group report, Deutsche Telekom’s “Management & Facts” Communication on Progress and the section on key figures with its interactive KPI  tool include the segments and many national companies. It covers – like the Annual Report – the period from January 1 to December 31, 2023. CR reporting is carried out each year, with the 2023 Communication on Progress following up on that of 2022. Any deviations are marked accordingly. The date of publication is March 26, 2024. This Communication on Progress has been compiled in line with the 2021 GRI Standards.

The CR Report pertains to the Group with its 56 German and 238 international, fully consolidated subsidiaries; any deviations are marked accordingly.

This report is specifically addressed to Deutsche Telekom stakeholders. These include analysts and investors; CR ranking and rating agencies; NGOs; customers, employees, and business partners; and representatives from the worlds of business, science, research, education, and politics.

For purposes of inclusion, we have used gender-neutral terms and pronouns.

The “Management & Facts” Communication on Progress and KPIs section comply with the internationally recognized guidelines (GRI Standards) of the Global Reporting Initiative (GRI). We also highlight our contribution to achieving the Sustainable Development Goals  in many places. In addition, we use a special index  to indicate which content in the 2023 CR Report contributes to meeting the criteria established by the Sustainability Accounting Standards Board (SASB). For the first time, the 2023 CR Report also highlights the negative effects (Principal Adverse Impacts, PAIs) from the Sustainable Finance Disclosure Regulation (SFDR) and the indicators of the Global System for Mobile Communication (GSM) sustainability standards with regard to the telecommunications industry. The latter standards aim to achieve better comparability in the telecommunications sector. In 2023, we published the latest Communication on Progress (CoP) for 2022 as part of the United Nations Global Compact.

Limited Assurance Report of the Independent Practitioner Regarding Sustainability Information

To Deutsche Telekom AG, Bonn/Germany

Our Engagement
We have performed a limited assurance engagement on the disclosures marked with the symbol  in the Corporate Responsibility Report (“sustainability report”) of Deutsche Telekom AG, Bonn/Germany (“the Company”), for the period from 1 January to 31 December 2023 (“sustainability information”). Our engagement solely covers the disclosures marked with the symbol .

Our engagement does not cover the paragraphs not marked with the symbol , or other disclosures in the sustainability report of the Company. 

Responsibilities of the Executive Directors
The executive directors of the Company are responsible for the preparation of the sustainability report in accordance with the principles stated in the Sustainability Reporting Standards of the Global Reporting Initiative (“Reporting Criteria”) and for the selection of the disclosures to be assessed.

These responsibilities of the executive directors of the Company include the selection and application of appropriate methods for sustainability reporting and the use of assumptions and estimates for individual sustainability disclosures which are reasonable under the given circumstances. In addition, the executive directors are responsible for such internal control as they have determined necessary to enable the preparation of a sustainability report that is free from material misstatement, whether due to fraud (i.e. fraudulent sustainability report) or error.

The preciseness and completeness of environmental data in the sustainability report is subject to inherent restrictions resulting from the way in which the data was collected and calculated and from assumptions made.

Independence and Quality Assurance of the Independent Practitioner’s Firm
We have complied with the German professional requirements on independence as well as other professional conduct requirements.

Our audit  firm applies the national legal rules and professional pronouncements – in particular the Profes-sional Code of Conduct for German Public Auditors and Sworn Auditors (BS WP/vBP) and of the Quality Management Standards issued by the Institute of Public Auditors in Germany (IDW), and accordingly maintains a comprehensive quality management system that includes documented policies and procedures with regard to compliance with professional ethical requirements, professional standards, as well as relevant statutory and other legal requirements.

Responsibilities of the Independent Practitioner
Our responsibility is to express a conclusion on the disclosures marked with the symbol  in the sustainability report based on our work performed within our limited assurance engagement.

Our engagement does not cover the paragraphs not marked with the symbol , or other disclosures in the sustainability report of the Company. 

We conducted our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised): “Assurance Engagements other than Audits  or Reviews of Historical Financial Information”, issued by the IAASB. This Standard requires that we plan and perform the assurance engagement so that we can assess with limited assurance whether matters have come to our attention that cause us to believe that the disclosures marked with the symbol  in the Company’s sustainability report for the period from 1 January to 31 December 2023 have not been prepared, in all material respects, in accordance with the Reporting Criteria. We do not, however, provide a separate conclusion on each marked disclosure.

The procedures performed in a limited assurance engagement are less in extent than for a reasonable as-surance engagement; consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance en-gagement been performed. The choice of assurance work is subject to the independent practitioner’s pro-fessional judgement.

Within the scope of our assurance engagement, which we mostly performed between October 2023 and March 2024, we performed, among other things, the following assurance procedures and other activities:

• Gaining an understanding of the structure of the Group’s sustainability organisation and stakeholder  engagement,
• Inquiries of relevant personnel involved in the preparation process about the preparation process, about the internal control relating to this process and about disclosures in the sustainability report, 
• Identification of likely risks of material misstatements in the sustainability report,
• Analytical evaluation of selected disclosures in the sustainability report,
• Examination of processes for collecting, controlling, analysing and aggregating selected data from different locations of the Company on a sample basis,
• Reconciliation of selected disclosures with the corresponding data in the consolidated financial statements and combined management report,
• Evaluation of the presentation of the sustainability report.

Practitioner’s Conclusion
Based on the work performed and the evidence obtained, nothing has come to our attention that causes us to believe that the disclosures marked with the symbol  in the Company’s sustainability report for the period from 1 January to 31 December 2023 have not been prepared, in all material respects, in accordance with the relevant Reporting Criteria.

Restriction of Use
We issue this report as stipulated in the engagement letter agreed with the Company (including the “General Engagement Terms for Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (German Public Auditors and Public Audit Firms)” dated 1 January 2017 promulgated by the Institut der Wirtschaftsprüfer (IDW)). We draw attention to the fact that the assurance engagement was conducted for the Company’s purposes and that the report is intended solely to inform the Company about the result of the assurance engagement. Consequently, it may not be suitable for any other purpose than the aforementioned. Accordingly, the report is not intended to be used by third parties for making (financial) decisions based on it. 

Our responsibility is to the Company alone. We assume no responsibility with regard to any third parties. Our conclusion is not modified in this respect.

Düsseldorf/Germany, 22 March 2024

Deloitte GmbH
Wirtschaftsprüfungsgesellschaft

Dr Tim Hoffmann                                   Dr Matthias Schmidt
Wirtschaftsprüfer
(German Public Auditor)

Limited and reasonable assurance report of the independent practitioner regarding the combined non-financial statement for the financial year from 1 January to 31 December 2023

To Deutsche Telekom AG, Bonn/Germany

Engagement

We have performed a limited and reasonable assurance engagement on the consolidated non-financial statement of Deutsche Telekom AG, Bonn/Germany, (hereafter referred to as “the Company”), which has been combined with the non-financial statement of the Company, and which is contained in the combined management report of the parent and the group, for the financial year from 1 January to 31 December 2023 (hereafter referred to as “combined non-financial statement”). As requested, we have performed a reasonable assurance engagement on the indicators “energy consumption” and “CO2 emissions (Scope 1 and 2)” presented in the combined non-financial statement (hereafter referred to as the “indicators”) and a limited assurance engagement on all other disclosures contained in the combined non-financial statement.

Our engagement does not cover the external sources of documentation and expert opinions stated in the combined non-financial statement nor the references to the United Nations Sustainable Development Goals  (SDG) marked with the SDG symbol.

Responsibilities of the Executive Directors

The executive directors of the Company are responsible for the preparation of the combined non-financial statement in accordance with Sections 289c to 289e German Commercial Code (HGB), Sections 315c in conjunction with 289c to 289e HGB and Article 8 of Regulation (EU) 2020/852 of the European Parliament and the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (hereafter referred to as “EU Taxonomy  Regulation”) and the delegated acts adopted thereunder, as well as with the interpretation of the wording and terminology contained in the EU Taxonomy Regulation and the delegated acts adopted thereunder by the executive directors, as is presented in section “Compliance with the EU taxonomy transparency requirements” of the combined non-financial statement (hereafter referred to as “interpretation”).

These responsibilities of the executive directors of the Company include the selection and application of appropriate methods regarding the combined non-financial statement and the use of assumptions and estimates for individual non-financial disclosures of the Group which are reasonable under the given circumstances. In addition, the executive directors are responsible for such internal control as they have determined necessary to enable the preparation of a combined non-financial statement that is free from material misstatement, whether due to fraud (i.e. fraudulent combined non-financial statement) or error.

Some of the wording and terminology contained in the EU Taxonomy Regulation and the delegated acts adopted thereunder are still subject to considerable interpretation uncertainty and have not yet been officially clarified. Therefore, the executive directors have laid down their own interpretation of the EU Taxonomy Regulation and of the delegated acts adopted thereunder in the section “Compliance with the EU taxonomy transparency requirements” of the combined non-financial statement. They are responsible for the reasonableness of this interpretation. As there is the immanent risk that indefinite legal concepts may allow for various interpretations, the legal conformity of the interpretation is prone to uncertainty.

The preciseness and completeness of environmental data of the combined non-financial statement, which include the indicators, is subject to inherent restrictions resulting from the way in which the data was collected and calculated and from the assumptions made.

Independence and Quality Assurance of the Audit  Firm

We have fulfilled the requirements of German professional law on independence and further professional rules of conduct.

Our firm applies the national statutory rules and professional announcements – particularly of the “Professional Charter for German Public Auditors and German Sworn Auditors” (BS WP/vBP) and of the Quality Management Standards promulgated by the Institut der Wirtschaftsprüfer (IDW), and accordingly maintains a comprehensive quality management system that includes documented policies and procedures with regard to compliance with professional ethical requirements, professional standards as well as relevant statutory and other legal requirements.

Responsibilities of the Independent Practitioner
Our responsibility in each case is to express a conclusion on the indicators “energy consumption” and “CO2 emissions (Scope 1 and 2)” presented in the combined non-financial statement based on our work performed within our reasonable assurance engagement as well as to express a conclusion on all other disclosures contained in the combined non-financial statement based on our work performed within our limited assurance engagement.

We conducted our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised): Assurance Engagements Other than Audits or Reviews of Historical Financial Information, issued by the IAASB. This standard requires that we plan and perform the assurance engagement so that we

• obtain reasonable assurance to conclude whether the indicators presented in the combined non-financial statement for the period from 1 January to 31 December 2023 have been stated by the executive directors, in all material respects, in accordance with Sections 289c to 289e, Sections 315c in conjunction with 289c to 289e HGB; we do not, however, provide a separate conclusion for each indicator; and
• obtain limited assurance to conclude whether matters have come to our attention to cause us to believe that all other disclosures contained in the combined non-financial statement, with the exception of the external sources of documentation and expert opinions stated therein and the references to the United Nations Sustainable Development Goals (SDG) marked with the SDG symbol, have not been prepared, in all material respects, in accordance with Sections 289c to 289e HGB, Sections 315c in conjunction with 289c to 289e HGB, and the EU Taxonomy Regulation and the delegated acts adopted thereunder, as well as the interpretation by the executive directors disclosed in the section “Compliance with the EU taxonomy transparency requirements” of the combined non-financial statement.

The procedures performed in that part of our engagement to obtain limited assurance are less in extent than for a reasonable assurance engagement; consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. The choice of assurance work is subject to the practitioner’s professional judgement.

Within the scope of our assurance engagement, which we mostly performed between October 2023 and February 2024, we performed, among others, the following assurance procedures and other work:

• Gaining an understanding of the structure of the Group’s sustainability organisation and stakeholders  engagement,
• Inquiries of relevant employees involved in the preparation of the combined non-financial statement about the preparation process, about the internal control relating to this process and about disclosures in the combined non-financial statement,
• Identification of potential risks of material misstatement in the combined non-financial statement,
• Analytical evaluation of selected disclosures in the combined non-financial statement,
• Comparison of selected disclosures with corresponding data in the consolidated and annual financial statements and the combined management report,
• Evaluation of the presentation of the combined non-financial statement,
• Evaluation of the process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the combined non-financial statement.

In addition to the above, we performed the following procedures and other work within the scope of that part of our assurance engagement performed to obtain reasonable assurance regarding the indicators presented in the combined non-financial statement of the Company:

• Evaluation of the design and implementation of the systems and processes for determining, processing and monitoring the disclosures relating to the indicators,
• Risk evaluation,
• Tests of details on a sample basis.

In determining the disclosures in accordance with Article 8 of the EU Taxonomy Regulation, the executive directors are required to interpret undefined legal terms. Due to the immanent risk that undefined legal terms may be interpreted differently, the legal conformity of their interpretation and, accordingly, our assurance engagement thereon are subject to uncertainties. This uncertainty, in particular, also affects the quantification of performance indicators in measuring and/or evaluating these performance indicators.

Practitioner’s Conclusions

We conclude that the indicators “energy consumption” and “CO2 emissions (Scope 1 and 2)” presented in the combined non-financial statement for the period from 1 January to 31 December 2023 have been stated by the executive directors, in all material respects, in accordance with Sections 289c to 289e, Sections 315c in conjunction with 289c to 289e HGB.

Based on the work performed and the evidence obtained, nothing has come to our attention that causes us to believe that all other disclosures in the combined non-financial statement for the financial year from 1 January to 31 December 2023 have not been prepared, in all material respects, in accordance with the Sections 289c to 289e HGB, Sections 315c in conjunction with 289c to 289e HGB and the EU Taxonomy Regulation and the delegated acts adopted thereunder, as well as with the interpretation by the executive directors presented in section “Compliance with the EU taxonomy transparency requirements” of the combined non-financial statement.

We do not express a conclusion on the external sources of documentation or expert opinions stated in the combined non-financial statement nor on the references to the United Nations Sustainable Development Goals (SDG) marked with the SDG symbol.

Restriction of Use

We issue this report as stipulated in the engagement letter agreed with the Company (including the “General Engagement Terms for Wirtschaftsprüfer and Wirtschaftsprüfungsgesellschaften (German Public Auditors and Public Audit Firms)” as of 1 January 2017 promulgated by the Institut der Wirtschaftsprüfer (IDW)). We draw attention to the fact that the assurance engagement was conducted for the Company’s purposes and that the report is intended solely to inform the Company about the result of the assurance engagement. Consequently, it may not be suitable for any other purpose than the aforementioned. Accordingly, the report is not intended to be used by third parties for making (financial) decisions based on it.

We are liable solely to the Company. We assume no responsibility with regard to any third parties. Our conclusion was not modified in this respect.

Düsseldorf/Germany, February 21, 2024

Deloitte GmbH
Wirtschaftsprüfungsgesellschaft

Signed:                                                                Signed:
Dr. Tim Hoffmann                                                  Dr. Matthias Schmidt
Wirtschaftsprüfer
(German Public Auditor)