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Our approach to sustainable procurement

Our Group-wide procurement strategy and derived implementation guidelines take full account of the issue of sustainability. These guidelines affect the entire procurement process. The strategy is put into action using internal and external performance indicators and management tools.

  • The responsibility for ensuring sustainability in procurement lies with the Finance Board department and the Group’s purchasing functions. Other departments and Corporate Responsibility provide support on specific topics.
  • The issue of sustainability is taken into account throughout the procurement process. Right from the onboarding process, suppliers must always adhere to our Supplier Code of Conduct. This includes our ambitious CR targets and requirements.
  • As part of tenders, we also generally apply a 20 percent weighting to our suppliers’ environmental objectives, their carbon footprint and, in the case of individual product groups, other social sustainability criteria. Particular importance is attached to the carbon footprint of our suppliers and their commitment to achieving ambitious climate targets; after all, the reduction of CO2 emissions in our supply chain (Scope 3) plays a key role in achieving our goal of being climate-neutral (net zero) by no later than 2040 along the entire value chain.
  • In close collaboration with the telecommunications company Orange we have developed, as part of our joint venture “BuyIn”, a set of common, product-specific criteria for IT and network/hardware products as well as for passive products such as fiber-optic img cables. Since the year under review, we have applied these criteria to tenders over EUR 10 million for IT/NT hardware products and fiber-optic cables/hardware products.
  • We monitor potential sustainability transgressions by our suppliers through third-party providers. In the event of a relevant violation of our requirements, we initiate a corresponding risk process in accordance with the Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG). The information is also used in the recurring risk analysis which we conduct with the involvement of the relevant Group units.
  • Our employees have received various sustainability information and training courses relating to the requirements of the Supply Chain Due Diligence Act; in addition, our Global Procurement Policy provides an overview of which CR criteria must be considered at which point in the procurement process.
  • We ensure business partners and suppliers are up to the mark by offering workshops on specific topics.

Corruption and bribery may cause long-term economic losses, prevent fair competition and needs-based investment, destroy jobs, and accentuate poverty and inequality in the population. As part of the impact analysis of our materiality assessment process, we have also analyzed in detail our suppliers’ sustainability performance. We identified a moderate risk here for the issues of corruption and bribery. We are therefore committed to promoting, among other things, the responsible procurement of minerals and do our utmost to substitute conflict materials. We also offer our suppliers e-learning img courses on compliance.

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Supplier Code of Conduct

Our Supplier Code of Conduct forms part of our General Terms and Conditions for Purchasing and must therefore be accepted by our suppliers. In line with our own Group Policies, ethical, social, and ecological principles as well as fundamental human rights are enshrined in the Code of Conduct:

  • Code of Conduct
  • Code of Human Rights

With our Supplier Code of Conduct, we have furthermore made a commitment to complying with the internationally recognized norms and standards such as the ones set forth by the International Labour Organization (ILO) and the Organisation for Economic Co-operation and Development, the Universal Declaration of Human Rights, and the UN Global Compact:

  • ILOand OECD guidelines
  • Universal Declaration of Human Rights
  • UN Global Compact
  • Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy (MNE Declaration)
  • United Nations Guiding Principles on Business and Human Rights (“Ruggie Principles”)

Furthermore, it also includes requirements relating to additional relevant issues such as data protection, corruption, and artificial intelligence. For our strategically important and particularly risk-prone suppliers, we have on-site audits conducted regularly by external auditors to verify compliance with the Supplier Code of Conduct. As of 2022, our Supplier Code of Conduct also meets the requirements set out in the Act on Corporate Due Diligence in Supply Chains (Lieferkettensorgfaltspflichtengesetz – LkSG).

Global Procurement Policy
Our sustainability principles for procurement are set out in the Group’s Global Procurement Policy.

Procurement guidelines
The Procurement guidelines provide specific instructions for procurement in Germany and serve as recommendations for our national companies.

Other policies
The Group Policy on Avoiding Corruption, the Statement on Extractives, and the list of prohibited materials are binding for our suppliers, too.

Implementation in the company

Our strategic decision to integrate sustainability into procurement is derived from our CR strategy and is anchored in the procurement processes used throughout our Group. The responsibility for ensuring sustainability in procurement lies with the Finance Board department and the Group’s purchasing functions. Other departments and Corporate Responsibility provide support on specific topics.

Steering tools

The ESG KPIs are an important steering tool for Procurement.

 

 

Global Reporting Initiative (GRI)

    GRI 205 3-3 (Management of material topics)

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Our contribution to the SDGs

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Supplier compliance

With our Supplier Code of Conduct, we place our suppliers under an obligation to uphold the principles and values anchored in our Code of Conduct and in the Code of Human Rights. As of 2020, suppliers of solutions involving artificial intelligence (AI) must also comply with the requirements of our AI guidelines. Deutsche Telekom suppliers are also under the obligation to do everything necessary to prevent active and passive forms of corruption. We expect our suppliers to impose the same requirements on their subcontractors too.

The Supplier Code of Conduct forms part of our General Terms and Conditions for Purchasing, but does not, of course, supersede the laws and regulations of countries in which our suppliers operate. Rather, it is designed to facilitate compliance with these laws and regulations and ensure that legal requirements are implemented faithfully and effectively. Since 2014, we have offered online compliance training for our suppliers.

When selecting business partners, we conduct integrity checks. In addition to suppliers, and development and joint venture partners, this applies in particular to certain groups of consultants whose use may be associated with compliance risks.

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ESG KPI “Procurement Volume Without CR Risk” KPI

The ESG img KPI img “Procurement Volume without CR Risk” – for which the target is 95 percent by 2025 – measures the procurement volume from direct business partners for whom, in the period under review, checks by an established external service provider turned up no negative media reports. It also includes suppliers for whom such reports were identified and who took suitable action to correct the issues involved. The procurement volume so assessed for risks accounted for a 99.98 percent share of the total relevant volume in 2023 (previous year: 99.6 percent). This ESG KPI, along with the ESG KPI “Procurement Volume Verified as Non-Critical”, is calculated with respect to the reviewed Group-wide procurement volume shown in the Group’s standardized procurement-report system (not including the category “Network Capacity” and not including T­Mobile US).

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ESG KPI “Procurement Volume Verified as Non-Critical” KPI

The ESG img KPI img “Procurement Volume Verified as Non-Critical” – target for 2025: 60 percent – measures the share accounted for by suppliers checked for social and ecological criteria by means of dedicated reviews – e.g., via EcoVadis img, the Carbon Disclosure Project (CDP img), social audits img, or supplier visits. In 2023, such CR-verified suppliers accounted for a share of 66.17 percent (previous year: 64.1 percent). This ESG KPI, along with the ESG KPI “Procurement Volume Without CR Risk”, is calculated with respect to the reviewed Group-wide procurement volume shown in the Group’s standardized procurement-report system (not including the category “Network Capacity” and not including T‑Mobile US).

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Supply chain management

Our contribution to the SDGs

To be able to enter into a business relationship with us, strategic suppliers have to register on our supplier portal and undergo a qualification process. The data provided gives us comprehensive information on our suppliers, including on their CO2 sustainability goals. Suppliers themselves also receive detailed information via the mandatory Supplier Code of Conduct on Deutsche Telekom’s fundamental principles and values - also regarding corporate responsibility and sustainability. In the year under review, we updated the Supplier Code of Conduct (SCoC) to allow us to meet the requirements of the German Supply Chain Due Diligence Act more effectively. In another effort in this context, we require our suppliers to guarantee compliance with the SCoC along their entire supply chain. As part of our adapting to new circumstances, we have also adopted the UN Guiding Principles on Business and Human Rights and also stipulated that our suppliers must provide complaint management.

When selecting suppliers, our procurement organization focuses on ensuring that we cooperate with efficient, reliable suppliers that work with sustainability in mind. This will allow us to safeguard our capacity to innovate and competitiveness over the long term. When selecting suppliers, we include sustainability criteria in the decision. CO2 emissions are generally weighted with 20 percent as part of tenders.

As part of supplier management, there are various processes that aim to minimize the risks in the supply chain and to increase its sustainable further development. We set out our minimum requirements for our suppliers in the SCoC to ensure compliance with the requirements along the value chain. With strategic procurement processes, suppliers are registered on our supplier portal. The supplier qualification then begins where suppliers are vetted in relation to various criteria.

We also use the following Group-wide ESG img KPIs as additional monitoring and control tools:

To improve sustainability performance in our supply chain, we implement a specially designed development program in close cooperation with selected suppliers. In 2020, the program was transferred to the Joint Alliance for CSR (JAC). We also hold regular workshops with selected suppliers on relevant sustainability topics. The topics covered by the workshops included emissions management, avoiding hazardous substances and using alternative materials in products, extending the product life span, reducing electrical scrap and launching take-back programs, as well as designing for greater sustainability and innovation.

We also provide our suppliers with an external training video, which can be accessed freely via the Deutsche Telekom website.

The main objective of our sustainable supply chain management is to minimize potential risks while generating long-term economic benefit for all parties involved.

 

Global Reporting Initiative (GRI)

  • GRI 2-6 (General Disclosures)
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German Supply Chain Due Diligence Act risk process

Our corporate procurement organization conducts annual risk analyses of direct suppliers with all companies affected by the German Supply Chain Due Diligence Act. Suppliers also undergo ad-hoc analyses where there is well-founded knowledge of transgressions. These two measures help identify and mitigate risks and transgressions. If a supplier cannot meet the sustainability requirements anchored in our Supplier Code of Conduct to our satisfaction or there are specific transgressions, we ask the supplier to provide an explanation. We also look to talk to the supplier concerned and set out our requirements for suitable measures in these discussions.

If the discussions held on various levels and the derived measures do not lead to the shortcomings being remedied, the responsible decision-makers consult with each other to reach agreement about how to proceed with the supplier. In the worst case, this could lead to the business relationship with the supplier being terminated.

Everyone who identifies irregularities in our supply chain regarding compliance with laws, internal guidelines, and standards of conduct, can report these – and can do so anonymously if they wish – using our TellMe portal. We also receive information on possible irregularities via the audits img as part of the cross-industry Joint Alliance for CSR (JAC) or the media.

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Receipt of violations through recurrent risk analyses or via reporting channels
The corporate procurement organization conducts annual risk analyses for direct suppliers connected with the system. An ad hoc analysis is also conducted where violations are substantiated, i.e., considering evidence that gives credence to a potential breach of human rights or environmental obligations. These analyses identify high-risk suppliers.

We acquire substantiated knowledge through the following sources: the TellMe whistleblower portal, information in the media (including via external data providers), civil society reports, the Joint Alliance for CSR (JAC), or reports from employees. Identified transgressions against objects of protection under the Supply Chain Due Diligence Act are then transferred to the expert committee. This committee comprises representatives from the Sustainability and Compliance functions and is coordinated by the corporate procurement organization.
Documentation of the risk event
The person reporting the transgression uses a document created specifically for this purpose to prepare details of the incident for the members of the expert committee. The corporate procurement organization coordinates the provisioning of information by the person reporting the transgression and presents this information to the expert committee at regular meetings.
Determination of the risk’s relevance
The expert committee produces a recommendation or takes a decision regarding the relevance of risks presented by the respective violation reports. They stipulate what action to take next accordingly. Where necessary, decisions on preventive and remedial action are taken at this point.
Supplier’s statement
Depending on the decision, the expert committee commissions the unit to obtain a statement from the supplier using a supplied template. This includes a description of the incident and questions on mitigation measures and other aspects. The statement must be submitted within 14 days (or as decided earlier in the expert committee). If no response is received by then, a reminder is sent.
Derivation of measures based on the statement
The expert committee and the relevant functions discuss the supplier’s statement and derive effective mitigation measures. The unit agrees the timetable for implementing the measures individually with the supplier and passes this information onto the expert committee that documents the measures. Either Deutsche Telekom stipulates the measures that the supplier must accept or, alternatively, the supplier can stipulate its own mitigation measures.
Confirmation and notification regarding successful implementation of measures
If the statement including confirmation of the mitigation measures proves sufficient, an implementation timetable is agreed and the implementation must be confirmed. The unit is responsible for following up on the remedial measures, including the involvement of the expert committee where any anomalies arise in subsequent months.
Insufficient measures and, where applicable, escalation to the LkSG Risk Board
If the statement including confirmation of the mitigation measures proves insufficient, the unit contacts the supplier again. If the feedback remains unsatisfactory, the expert committee escalates the case to the LkSG Risk Board.
Determination of the risk’s relevance and further action
The LkSG Risk Board produces a recommendation regarding the relevance of the risk presented by the transgression and the particular supplier. The unit then decides how to proceed in respect of the supplier, whether to continue or terminate the business relationship, for instance.
Final documentation of the incident
The unit informs all involved stakeholders img about the final decision and the corporate procurement organization finalizes its documentation of the incident.
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Risk monitoring

In Procurement, we work with a comprehensive supplier risk monitoring scheme. We first conduct a risk assessment of all material groups at a predefined material group level and subject suppliers to comprehensive risk analysis. Specialized companies evaluate all suppliers with regard to financial, CR, and compliance risks.

The German Supply Chain Due Diligence Act requirements have given rise to the following classifications of material groups for the year under review:

  • High-risk material groups: 32
  • Medium-risk material groups: 22
  • Low-risk material groups: 53

With selected strategic and high-risk suppliers, supplier assessments are also conducted in addition to the risk analysis. For this purpose we use EcoVadis img, the platform for ESG img ratings for businesses. Where specific infringements of our sustainability requirements or an increased predisposition for risk are found, we also directly conduct audits img on location. Our primary aim is to address deficits together with the supplier and take appropriate corrective action. Only if no solutions are possible do we have to cut ties with suppliers.

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Supplier sustainability reviews (excl. T-Mobile US) KPI

In 2023, we conducted a total of 150 supplier reviews – 137 of which were on-site reviews (social audits img) and 13 mobile surveys. 62 direct and 88 indirect suppliers were involved in the checks.

For the on-site reviews, we let the supplier know the approximate time of our visit in advance (“semi-announced audit img”). This is necessary to make sure that relevant contacts in key functions are present for the audit. The mobile surveys give our suppliers’ employees the opportunity to provide anonymous information about the social and ecological situation at their company. The surveys are primarily used to gain an initial impression of the local working conditions in order to then initiate further measures as needed, such as specific on-site reviews (social audits).

  Number of reviews Number of findings Number of completed finding
Social audits (by external audit firms) 137 890 365*
Mobile surveys ** 13 - -
EcoVadis img (2014–2023) 418 - -
CDP img supply chain *** 219 - -
Total 787 - -

* Due to a change of service provider in the reporting year, the completed findings from previous audits are no longer provided.
** Mobile surveys with selected suppliers, in particular to assess the situation of workers at the operating sites.
*** CDP’s supply chain program is used for direct suppliers with high emission intensity.
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Auditing procedures

We focus our audit img activities on strategically important and particularly risky suppliers. They are routinely audited img every two to three years. This group includes roughly 250 of our over 20 000 active suppliers. Together, they cover around 80 percent of our procurement volume. These audits img give us transparency about the risks in large parts of our supply chain. We also collaborate as partners with selected suppliers to constantly improve their sustainability performance. Our previous Supplier Development Program, which we used to encourage the continued development of strategically relevant suppliers in key sustainability issues such as environmental protection, working hours regulations, and health and safety, was transitioned to the Joint Alliance for CSR (JAC) industry initiative in the reporting year. The program is currently being refined in the JAC.

We hosted the JAC Initiative General Assembly in the year under review where we participated in an industry dialog with other telecommunications companies. Issues discussed in the dialog included the further development of auditing requirements, improvements in transparency, and the effective identification of measures for telecommunications-specific industry risks. One outcome of this dialog was the establishment of dedicated working groups, in which Deutsche Telekom AG will participate in 2024.

The majority of our audits are conducted within the scope of the JAC. The audits cover the following areas:

The JAC Guidelines require, among other things, that our suppliers:

  • Pay a fair wage that enables employees to enjoy a decent standard of living;
  • Respect the right to freedom of association and collective bargaining, and provide a healthy, safe working environment and
  • Do not exceed a 48-hour working week and a weekly maximum of twelve hours’ overtime, and grant at least one free day after six consecutive days of working.

The graphic shows the areas in which we audit the suppliers participating in our program.

CSR Requirements

Social
Health & Safety
Ethics
Environment
Social
  • Child Labour
  • Forced Labour
  • Freedom of Association
  • Discrimination
  • Disciplinary Measures
  • Working Hours
  • Wages
Health & Safety
  • Occupational Safety
  • Emergency Preparedness
  • Machinery Safeguard
  • Industry Hygiene
  • Sanitation, Food and Housing
Ethics
  • Corruption and Bribery
  • Intellectual Property
  • CSR Engagement in Supply Chain
  • Responsible Sourcing
Environment
  • Energy Consumption
  • Water
  • Local Pollution Prevention
  • Material and Chemical Waste
For more information, please click on the segments

Compliance with all these requirements is reviewed regularly during our on-site audits and the findings are documented to assess the effectiveness of the measures. This also includes inspection of the features and quality of the working, sleeping, and cafeteria areas.

Deutsche Telekom does not require its suppliers to obtain external environmental or social certification. But if suppliers cannot show any environmental and social responsibility certificates, we do expect equivalent management systems to be used. Our auditing experience shows, however, that the majority of our relevant manufacturing suppliers have an external certificate or equivalent management systems.

Verification of important social and ecological aspects as well as fundamental human rights during our audits is in line with internationally recognized guidelines and standards such as the ILO img core labor standards, the UN Guiding Principles on Business and Human Rights, and the OECD img Guidelines for Multinational Enterprises.

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Audit results KPI

In the audit img program, which has been established and is controlled at Group level, a total of 150 on-site audits img were carried out in 2023.

As in previous years, we concentrated our auditing activities on suppliers in Asia, Europe, Latin America, Oceania, and Africa.

Audited suppliers included manufacturers in the areas of IT hardware, software and services as well as networks and devices.

All violations identified in the course of such audits enter into a correction and measures plan, and the timely implementation of measures is regularly monitored. In the audits carried out in the period under review, no serious transgressions in the areas of working conditions and other basic infringements of human rights – such as discrimination, forced labor, and child labor – were found. In addition, no cases of bribery or corruption, and no critical violations of general compliance rules, such as rules governing the right to intellectual property, were found.

  • Of the 150 suppliers we audited img in 2023 (14 of which were in accordance with the validated audit processes of the Responsible Business Alliance img), around 41 percent (62 audits) were direct suppliers and 59 percent (88 audits) were tier 2 and 3 suppliers – that is, indirect suppliers.
  • The audits carried out in 2023 revealed a total of 890 violations of Deutsche Telekom’s supplier requirements. These findings break down as follows: 394 cases regarding occupational health and safety, 157 cases regarding working hours, 102 cases regarding environmental protection, 53 cases regarding working conditions, 87 cases regarding wages and remuneration, 58 cases regarding corporate ethics, 21 cases regarding freedom of association, eight cases regarding disciplinary measures, and 10 cases regarding discrimination. In addition, the violations included 120 transgressions that needed to be addressed on a priority basis and an additional 546 serious findings. A total of 365 violations were corrected in 2023, including several open improvement measures from previous years. Examples of critical violations in 2023 and improvement measures can be found in the table below. As in previous years, most violations (44 percent) were linked to occupational health and safety (2022: 42 percent), followed by violations linked to working hours at 18 percent (2022: 12 percent). At 11 percent, environmental violations constituted the third-biggest issue (2022: 19 percent).
Areas Findings at suppliers Initiated improvements Status (end of 2023)

Environment

A factory that experienced an incident involving pollutant emissions from a power generator failed to submit a control report because it had not carried out any controls.

The factory has identified the factors that led to the pollutant emissions, and it has commissioned an external company to check the system annually for emissions. In addition, a plant inspection was carried out to determine whether the plant has additional emission sources that also need to be checked annually.

complete

Business ethics

A supplier lacked procedures for assessing bribery risks throughout all the activities within its sphere of influence.

The risk and opportunity assessments for potential bribery cases are now reviewed every six months.

complete

A factory failed to conduct reviews of its system for managing compliance with proper business ethics.

The company introduced regular reviews of its system for business-ethics management, and it continually follows up on the results of such reviews.

complete

Forced labor

A supplier’s employment contracts with workers exposed to occupational health risks failed to address the areas of occupational health and safety, working conditions, and protection against occupational hazards.

The employment contracts were amended to include suitable provisions on the areas of occupational health and safety, working conditions, and protection against occupational hazards. The supplier’s procedures for managing occupational health and safety issues in the workplace were suitably revised, and extended to cover the areas of occupational risks and protective measures.

complete

Occupational health and safety


 

In its employee sleeping areas, a factory lacked illuminated emergency exit signs for its escape-route stairs.

Illuminated emergency exit signs for the escape-route stairs were installed in employee sleeping areas.

complete

In its plant area for storage and usage of corrosive chemicals, a supplier had installed neither an eye-washing station nor an emergency shower.

Such equipment was installed for employees exposed to risks of eye and skin contact with chemicals.

complete

A factory had failed to affix safety labels on containers with hazardous chemicals. In addition, hazardous chemicals were not being stored in leakproof containers.

All hazardous chemicals were stored in leakproof containers, and all containers containing hazardous chemicals were marked with suitable safety labels.

complete

Working hours

A supplier’s factory granted its employees only 98 days of paid maternity leave and only 10 days of paternity leave. The laws of the country in which the supplier is located require that employees receive 178 days of maternity leave and 15 days of paternity leave, however.

The supplier’s provisions on leave for employees were suitably revised and the changes were communicated to the employees. In addition, the supplier developed a new employee handbook that covers the relevant country’s legal requirements.

complete

Wages & salaries

In review of a supplier’s records, and via a survey of its management, the supplier was found to have been delaying final salary payments for employees who had left the company, with the delays ranging from 4 to 30 days after the employees’ employment relationships had ended.

A suitable system for final salary payments for employees who leave the company was put in place. The system is designed to ensure that such employees receive their final salary payments within three days after their employment relationships have ended.

complete

 

 

Global Reporting Initiative (GRI)

  • GRI 407-1 (Freedom of Association and Collective Bargaining)
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Expenditure analysis 2023

Our suppliers come from various industries and countries. To capture the diversity of our more than 20 000 suppliers, the following graphic depicts the types of suppliers we commission; the overview includes the share of our expenditure (CapEx img and OpEx) attributable to them and their geographical distribution.

2023 (not including T-Mobile US)
Supplier Category Number of Consolidated Suppliers Number of domestic subsidiary suppliers Number of foreign subsidiary suppliers Number of critical subsidiary suppliers Number of risky subsidiary suppliers
Building, facilities, furniture, and rel. services 1 661 1 942 1 423 58 1
Civil works 4 284 5 117 1 134 156 0
Consulting, contracting, temp. labor, and service centers 737 837 519 13 0
Electrical household appliances 84 95 64 5 0
Enduser communication technology and equipment 1 010 1 305 929 42 0
Energy, fuel, gas, water 107 112 80 5 0
Financial services, insur, fees, investig, cert. 777 935 710 27 1
Fleet and travel 629 682 476 25 0
Food and catering 333 364 294 15 0
HR services, training, and translation 2 450 2 717 1 527 45 0
Information technology 5 060 6 745 4 581 178 1
Logistics and mail 584 683 403 13 0
Marketing, media, content, print, fairs 5 302 5 930 3 346 128 1
Network capacity 886 1 349 1 201 42 0
Network infrastructure 2 137 2 884 1 976 82 4
Office equipment, office technology and stationery 550 628 360 12 0
Service platforms 681 828 506 28 0
SIM cards 39 62 22 2 0
Tools and protection equipment 493 553 346 13 0
Undefined/Undefined 1 376 1 481 1 021 41 0
TOTAL       930 8
  Unique consolidated suppliers: 20 692 Unique local/
subsidiary
suppliers: 27 138		   In total with no regards to the corresponding category In total with no regards to the corresponding category

Definitions and examples

  • Consolidated supplier = Group level
  • Domestic subsidiary of the supplier = Subsidiary of the relevant company with headquarters in Germany
  • International subsidiary of the supplier = Number of subsidiaries of the supplier that have their headquarters outside of Germany
  • Consolidated suppliers are counted once, at the Group level; local suppliers are counted more than once in cases in which they have multiple plants/locations
  • Critical supplier: Supplier with compliance, financial, and resilience risks
  • Supplier with CR risk: Compliance risk with regard to defined ethical, ecological, and social requirements
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CDP Supply Chain Program KPI

Since as early as 2016, we have been disclosing our activities to bring on board suppliers as part of CDP img’s supplier engagement rating. This rating assesses how well companies have been able to integrate the topic of climate protection into their supply chain. In 2023, we made it onto the Climate Leader A List, as in the previous year. This has secured our place on the Supplier Engagement Leader Board. An important step in achieving this was calculating the supplier-specific emission intensities based on supplier responses to the CDP Supply Chain Program. This involved calculating the ratio between a supplier’s overall emissions (Scopes 1 and 2 and Scope 3 for the upstream supply chain) and the supplier’s overall sales.

The ESG KPI img “CDP Supply Chain Program” indicates the degree to which our procurement volume from carbon-intensive suppliers is covered by the CDP Supply Chain Program. In 2023, around 51 percent of the procurement volume was covered by the CDP Supply Chain Program.

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Supplier relationships KPI

The percentage of audited img procurement volume increased slightly from 21.1 percent in the previous year to 22.3 percent in 2023. At the same time, the percentage of procurement volume covered by EcoVadis img increased slightly to 43.6 percent.

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Responsible procurement of raw materials

Our contribution to the SDGs

We require our suppliers to protect the environment and use resources responsibly. This requirement is enshrined both in our Code of Human Rights and in our Supplier Code of Conduct, which sets out requirements that must generally be accepted by all suppliers.

In the case of relevant material/product groups, the use of hazardous materials and conflict materials is checked and assessed as part of the supplier and product selection. In the case of critical suppliers in particular, we request disclosure of information about their activities (via EcoVadis img and CDP img) and we perform supplier audits img in the form of social audits. In these audits, we check whether our suppliers use an environmental management system, including a waste management system, and review how they manage their energy and water consumption.

In addition, we always check whether there is a management system in place to address the issue of conflict resources. When selecting suppliers and products, we review and evaluate, for example, the use of hazardous and conflict materials as well as rare-earth metals – especially in light of the OECD img Due Diligence Guidance for Responsible Supply Chains.

In the period under review, we readjusted the requirements placed on our suppliers and tightened them up significantly, particularly in relation to environmentally responsible action, including against the background of the Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz – LkSG) that came into effect in the year under review. Since then, contributions to environmental protection and climate change, responsible waste management, and the handling of that only degrade very slowly in the environment, have been enshrined in our Supplier Code of Conduct along with a ban on manufacturing any products containing mercury.

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Economy

  • Sustainable finance Suppliers Sustainable & innovative products Network expansion Customer satisfaction Consumer protection Data protection & data security Financial performance indicators Financial personnel indicators

    • Highlights

    At Deutsche Telekom, everything starts with

    the network. Having access to state-of-the-art

    technologies is a precondition for economic

    performance and participation in a

    knowledge and information society.

    At Deutsche Telekom, everything starts with the network. Having access to state-of-the-art technologies is a precondition for economic performance and participation in a knowledge and information society.

    That is why we are continuing to rapidly expand our infrastructure and improve transmission speeds with new, secure technology. We invested more than EUR 16 billion Group-wide in 2023, primarily in setting up and operating networks. This is in addition to the investments that we make in acquiring mobile spectrum.

    At Deutsche Telekom we put people front and center, especially our customers and our employees. Worldwide, Deutsche Telekom employees ensure that our networks run smoothly and our customers receive the best service. In this way, we made it into the top 10 of the world’s most valuable brands in 2023. When it comes to telecommunications companies, we occupy the number 1 spot worldwide, remaining Europe’s most valuable corporate brand.

    When rating agencies give high marks to our social and ecological commitment, the T-Share is included in the financial market’s sustainability indexes. In 2023, the T-Share was once again listed in indices such as the renowned CSA-based DJSI World and DJSI Europe.

    Further detailed examples of the progress we made in 2023 can be found in the subchapters – from the Group’s perspective and from that of our segments.

    Highlight numbers

    Highlight numbers

    Progress of selected KPIs in  2023

    • 2022 2023
    • Investments in building and operating networks Group-wide 21bn. 16bn.
    • Customer satisfaction TRI*M 75.0 points 76.2 points
    • Sustainable revenue share 42% 43%
    • Proportion of T-Shares held by investors with ESG criteria 31.3% 32%
    • Procurement volume verified as non-critical 64.1% 66.2%

    Topic overview

    Sustainable finance Suppliers Sustainable & innovative products Network expansion Customer satisfaction Consumer protection Data protection & data security Financial performance indicators Financial personnel indicators

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