Energy consumption & efficiency

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Our approach to energy-efficient networks

We operate our own fixed-line and mobile networks in Europe and the United States. The majority of our energy requirements come from operating this network infrastructure. We are continuously increasing the capacity and performance of our networks to handle growing amounts of data and improve the speed and quality of data transmission. We are also aiming to stabilize our energy consumption and increase our energy efficiency by 2024, in spite of growing data traffic and our network expansion. In a Group-wide technology-innovation project, we are studying and developing new ways of making our network operations even more energy-efficient and sustainable. In the process, we are looking especially carefully at the areas of energy transport, energy availability, and energy efficiency. For example, we plan to optimize energy consumption in our mobile and fixed-network operations, and to develop innovative solutions for generating and storing renewable energy for use at cellular base stations.

In 2020, we published an energy guideline applicable throughout the Group. It helps our national companies implement our Climate Strategy. The guideline compiles selected measures and proposed solutions for better energy efficiency, including operational energy-saving functions, optimized energy management, decommissioning of legacy systems, and/or the use of more energy-efficient technologies.

We are pursuing various approaches to stabilize our energy consumption and increase energy efficiency:

  • We are updating our network infrastructure and investing on an ongoing basis in new and more efficient network technologies to this end. Legacy technology is being replaced as part of this process.
  • We have established specifications and requirements that firmly anchor energy efficiency within the architecture and design phase when selecting new technologies. This applies, for instance, to the lighting, monitoring and, above all, cooling of our plants.
  • We are expanding our use of photovoltaic systems at Deutsche Telekom locations. In the process, we are emphasizing use of power storage systems and intelligent load management img. Power & Air Solutions is testing innovative technologies such as fuel cells; energy generation from waste heat, via gas turbines; and ice-storage systems for support of mechanical cooling systems.
  • We are working with a telecommunications supplier in the renewable energy sector to enhance the sustainability and efficiency of the energy generation activities at our cellular base stations. Making integrated use of solar energy at these stations allows us to optimize energy consumption, as confirmed by initial tests. The first successful lab tests have also laid the foundation for using zero-emission fuel cells to supply climate-neutral energy to the cellular base stations. We are still in the pilot phase here.
  • Also, in the framework of our energy management in Germany, we are working to reduce the energy requirements of our buildings. We continuously monitor consumption values and use this data to identify potential for improving efficiency. The energy management practices of our internal energy service provider Power & Air Solutions have also been ISO 50001 img certified since 2013.

Impact assessment for our materiality analysis
In the impact assessment for our materiality analysis, we have identified energy-intensive processes along our value chain. The use of fossil-fuel energy in the upstream and downstream value chain is still widespread, making a particularly large contribution to global warming and placing pressures on humans and the environment. The disposal of electronic waste can also pose further problems for the environment and human health. At the same time, providing infrastructure for optimizing energy efficiency is a proven way of reducing the energy consumption of other industries and individuals.

In order to address these risks, we involve our suppliers in our environmental initiatives as part of our supplier management process.

 

Global Reporting Initiative (GRI)

  • GRI 302 3-3 (Management of material topics)
  • GRI 305 3-3 (Management of material topics)
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Germany segment: energy consumption and efficiency

The Germany segment img is working to successively increase energy efficiency and minimize energy consumption. Total energy consumption stood at 2.3 TWh in the year under review.

Increasing energy efficiency
The Germany segment has once again implemented several measures during the year under review to increase energy efficiency. One key aspect of these efforts was the use of power saving features to minimize energy consumption in mobile operations. The process for dismantling outdated Synchronous Digital Hierarchy img (SDH) platforms was accelerated. These measures supplement initiatives that have already been implemented, such as dismantlement of the obsolete Public Switched Telephone Network img (PSTN) to make way for the more advanced Integrated Services Digital Network (ISDN img), and optimization of technical infrastructure, including modernization of rectifiers img.

Energy-saving ideas from employees
During the year under review, Telekom Deutschland encouraged its employees to submit energy-saving ideas at MagentaG – the quarterly town hall meeting providing updates on activities within the segment. A total of 130 ideas were submitted, including practical proposals such as switching off PCs rather than putting them into standby mode, or installing motion sensors for reducing the electricity consumption of lighting.

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United States segment: energy management

The approach adopted by T-Mobile US to sustainable energy management includes investing in energy efficiency measures to conserve energy where possible and purchasing renewable energy to account for the electricity consumed. Mobilizing its resources, people, and partnerships to support a thriving planet is one of the four pillars of the ESG img approach at T-Mobile US.

As customers’ data consumption continues to grow, T-Mobile’s aim is to power its network more efficiently and avoid a corresponding increase in its energy consumption. To track this, the segment set a bold goal of reducing its energy consumption by 95 percent per petabyte of data traffic by 2030 from a 2019 baseline.

T-Mobile US is committed to minimizing the environmental impact from its energy use. In early 2018, the segment joined RE100, a global corporate renewable energy initiative, and set out to source all of its electricity from renewable energy by 2021 — another US wireless first. T-Mobile US has achieved this goal on schedule since 20211 , and remains committed to maintaining this position while exploring new renewable energy projects to further diversify its portfolio.

Innovating for resilience
Investing in renewable energy at scale helps the segment to diversify its energy portfolio, reduce the potential of price fluctuations in the future, and promote the adoption of more sustainable energy sources. At the end of 2023, the renewable energy profile operated by T-Mobile US included eight large wind and solar farm projects through Virtual Power Purchase Agreements img (VPPAs) across the country and Puget Sound Energy’s Green Direct program. T-Mobile US has also continued to expand our portfolio of long-term community solar agreements across the US. Supporting these projects enables the company to use its electricity purchasing power for good, bolstering their financial viability and sending clean energy to local utility grids.

T-Mobile US also has shorter-term Retail Renewable Agreements with the remaining portion of its portfolio matched with unbundled Renewable Energy Certificates (RECs).

The company has three on-site solar energy projects in development with the first one due to become operational in 2024.

Smarter buildings
Renovations at several of the company’s corporate offices and Customer Experience Centers provided an opportunity for T-Mobile US to create greener buildings by switching to LED and motion-activated lights, as well as touchless faucets in bathrooms.

 

1   For T-Mobile’s 100% renewable electricity commitment, T-Mobile matches its own annual electrical usage with renewable energy from a portfolio of sources including: virtual power purchase agreements, a "Green Direct" program, renewable retail agreements, community solar agreements, and unbundled REC purchases.

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Europe segment: energy efficiency

We improved our energy efficiency by around 20 percent in the Europe segment during the year under review, with data volume growing faster than the consumption of energy used to provide services. This has been made possible by investments in modern technology, as well as the deactivation of legacy network technologies.

Our networks account for around 70 percent of our total energy requirements in the Europe segment, approximately 50 percent for mobile and 20 percent for fixed network. The expansion of these networks has led to an increase in our energy demand, which the national companies have offset by implementing modernization, modification, and other savings measures in mobile and fixed-network operations.

For example, the Greek OTE Group has successfully tested an AI-based tool, which has delivered savings in the mobile network. Some 15 GWh of savings were achieved in 2023. Energy savings were also made in the mobile sector as a result of deactivating the 3G img networks in North Macedonia, Montenegro, and Slovakia. Additionally, a network partnership concluded with O2 in Slovakia in 2023 is enabling significant reductions in energy consumption in the mobile network.

The switch from copper to fiber-optic img cables in the fixed network is helping to achieve faster and more efficient data transmission and thus to reduce energy consumption. We have made progress on this front in many countries.

We also cut our energy consumption by making more efficient use of office buildings. This involved consolidating our locations by subletting and selling vacant space. Air-conditioning units and heating systems were run in economy mode at the remaining locations. Additionally, we introduced AI- and other software-based savings measures. The Hungarian national company successfully tested an AI-based application at its headquarters during the year under review. This application uses sensors to detect when employees enter the building and adjusts the heating or air-conditioning accordingly. This software enabled Magyar Telekom to optimize the use of its building in 2023, delivering some 1.78 GWh in energy savings. One of the OTE Group’s buildings in Attica, Greece was also certified “good” under the Building Research Establishment Environmental Assessment Method (BREEAM) during the year under review; prior to this, it had been renovated in accordance with international environmental and energy standards.

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System Solutions segment: energy efficiency throughout the value chain

As part of Deutsche Telekom, the System Solutions segment has also committed itself to the Group-wide climate targets. The segment set up its own program to this end in 2020, with a focus on two areas: its own processes on the one hand and its product offering and business customer enablement on the other.

Data center energy efficiency
T-Systems is gradually making its data centers more energy-efficient, with the aid of innovative technologies and artificial intelligence. As an operator, T-Systems is careful to use energy-efficient server and storage hardware. As part of its Data Center Next program, launched in 2019, it is making use of efficiency-enhancing measures, such as selective cooling of individual areas, and operating temperature increases within possible ranges – always in conformance with defined thresholds. Testing is being carried out with regard to gradually raising the operating temperature at data centers, with a one degree increase corresponding to an energy efficiency gain of approximately 1 percent.  Software features which allow unused hardware to be switched off entirely without affecting currently running applications will be used for further optimizations. The medium- to long-term goal is to refine the cloud applications to meet energy efficiency requirements (green coding). T-Systems continue to work on optimizing energy efficiency in all data centers. Since launching the Data Center Next program, we have already reduced energy consumption in our data centers by over 37 percent.

T-Systems has participated in the EU Code of Conduct on Data Centre Energy Efficiency (EU DC CoC) since 2014. EU DC CoC is voluntary in nature and aims to motivate operators and owners of data centers to reduce energy consumption and hence their negative impact on the environment, the economy, and energy supply security. The initiative refers to this type of involvement as “participation.” The related European Commission page provides transparent, detailed information about the participation of individual data centers. T-Systems also joined the Climate Neutral Data Centre Pact (CNDCP) in 2021. With this move, it has committed to making all of its own data centers, and the externally operated data centers within its sphere, climate neutral by 2030 at the latest. T-Systems were certified as an official member by the CNDCP in 2023, following an audit img of the following five areas: energy efficiency, renewable energy use, water efficiency, circular economy for electronics, and circular economy for heat. T-Systems’ data centers around the world have been running on 100 percent renewable energy since 2021. To this end, renewable energy is sourced directly wherever it is available. Where this is not possible electricity requirements are covered by concluding power purchase agreements (PPAs img), generating our own energy, or purchasing guarantees of origin. You can find more information on renewable energy at Deutsche Telekom here.

The European Commission presented the T-Systems data center in Biere with the European Code of Conduct Award in 2023. The award recognized the data center for its PUE img score, best practices and energy-efficiency methods, among other things. With a PUE of 1.3, the data center in Biere is one of the most energy-efficient in Europe.

At the end of 2023, T-Systems operated a total of 16 FMO (Future Mode of Operation) twin-core data centers in Europe at eight sites – eight for internal and eight for external processing – in addition to four local customer-specific data centers. Seven of the eight internal European FMO twin-core data centers, plus one external FMO twin-core data center, have been included in the EU Code of Conduct list since 2023. By taking part in the “EU Code of Conduct”, T-Systems meets an important criterion for achieving taxonomy alignment under the EU Taxonomy img for sustainable activities (EU Taxonomy). More information about the commitment within the framework of the EU Taxonomy is available here.

Data centers are becoming more energy-efficient

Raising awareness among employees
The company’s employees, at all of its production sites and in all countries in which it is located, are being made more aware of the need to think and act with sustainability in mind ( for instance, by promoting alternative mobility solutions, participating in “campaign days” focused on sustainability, participating in sustainability-oriented workshops, and providing information about ways to reduce power and resource consumption). The susTain Roadshow was held for the first time during the year under review, with 120 colleagues in four German cities using the opportunity to find out about T-Systems’ sustainability activities. There were presentations as well as opportunities for attendees get involved.

These activities were supplemented by an open call to raise awareness of sustainability issues among employees around the world as well. 377 participants dialed in to learn more and engage in dialog. We also ran formal dialog events and smaller learning units with our international subsidiaries in which we provided information on sustainability and support for implementing the measures locally.

T-Systems supports relevant employee initiatives, such as the Green Pioneers in Germany. Moreover, Sustainability is an integral part of the onboarding program for all new T-Systems employees. An employee training course was developed in 2022 to train up staff members as sustainability ambassadors. Over 600 employees have already completed the course. In the year under review, T-Systems and Deutsche Telekom began to develop a digital Deutsche Telekom Sustainability Campus for all employees, which will comprise three competence levels. The first module is set to be made available during the first six months of 2024.

Expanding the green fleet
In January 2023, Deutsche Telekom issued an internal directive in Germany to only order company cars with electric drive systems going forward. This requirement has been applicable internationally for the Systems Solutions segment since 2022. T-Systems had a total of 1 959 company cars in its fleet at the end of 2023, 382 of which were electric vehicles. At this same time, most of our Meet & Connect Hubs had been fitted with charging stations. Meet & Connect Hubs are the central locations of T-Systems and are designed to offer the ideal environment for working in teams. They provide collaboration rooms and innovative spaces that cover a whole range of requirements and uses.

More sustainable buildings
T-Systems was able to reduce its building capacity in Germany by more than half during the year under review, which also reduced heating and district heating. T-Systems also plans to offset CO2 emissions through the use of neutralization technologies such as vertical farming, with a pilot project set to launch at its data center site in Biere in 2024.

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ESG KPI “Energy Intensity” DT Group KPI

This year sees us reporting our energy intensity on the basis of two different indicators: data volume and revenue. Both KPI img figures take into account total energy consumption for all energy sources – electricity, fuel, gas, and district heating.

We began to report our energy consumption in proportion to our managed data volumes in 2016 in the form of the ESG KPI “Energy Consumption” – data volume. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks. The data volume is composed of the transmitted IP img data volumes (including Voice over IP, Internet, IP-TV).

Our ambition in this connection: reduce the KPI

ESG KPI „Energy Intensity“ data volume Deutsche Telekom Konzern

  Data assured by Deloitte. Data is partly based on estimates, assumptions and projections. 

There has been a steady reduction in energy intensity, relative to data volume.

In preparation for future reporting in accordance with the CSRD img, we are this year reporting not only energy intensity in proportion to data volume, but also energy intensity in proportion to revenue. This allows us to measure our progress in reducing our energy consumption within the context of our economic performance.

ESG KPI „Energy Intensity“ Turnover Deutsche Telekom Konzern

To enable better comparison between this indicator and the ratio of energy intensity to data volume, we slightly modified the calculation methodology for the Group’s values in 2023. Starting in 2023, we now include the energy consumption of all segments, including those outside our fixed-network and mobile business segments (such as cloud business).

 

Global Reporting Initiative (GRI)

  • GRI 302-3 (Energy)

Task Force on Climate-related Financial Disclosures (TCFD)

  • The most important key figures for measuring and managing climate-related opportunities and risks

Principle Adverse Impacts (PAIs)

  • Greenhouse Gas Emissions

Indicators for telecommunications providers from the GSM Association (GSMA)

  • GSMA-ENV-03 (Energy Consumption)
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ESG KPI “Energy Intensity” in segments KPI

This year sees us reporting our energy intensity on the basis of two different indicators: data volume and revenue. Both KPI img figures take into account total energy consumption for all energy sources – electricity, fuel, gas and district heating.

We began to report our energy consumption in proportion to our managed data volumes in 2016 in the form of the ESG KPI “Energy Consumption” – data volume. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks. The data volume is composed of the transmitted IP img data volumes (including Voice over IP, Internet, IP-TV).

In preparation for future reporting in accordance with the CSRD img, we are this year reporting not only energy intensity in proportion to data volume, but also energy intensity in proportion to revenue. This allows us to measure our progress in reducing our energy consumption within the context of our economic performance.

Our ambition in this connection: reduce the KPI

Germany segment
In the reporting year, the energy intensity in relation to the data volume for the Germany segment img amounted to around 28 kWh/terabyte.

ESG KPI „Energy Intensity“ data volume: Segment Germany

   Data assured by Deloitte. Data is partly based on estimates, assumptions and extrapolations.

The energy intensity over time in relation to data volume shows a steady reduction in the Germany segment.

   

In the reporting year, the energy intensity in relation to sales for the Germany segment amounted to around 90 kWh/million euros.

ESG KPI „Energy Intensity“ turnover: Segment Germany

United States segment
In the reporting year, the energy intensity in relation to the data volume for the United States segment amounted to around 154 kWh/terabyte.

ESG KPI „Energy Intensity“ data volume: Segment USA

In the reporting year, the energy intensity in relation to sales for the United States segment amounted to around 106 kWh/million euros.

ESG KPI „Energy Intensity“ turnover: Segment USA

Europe segment
IIn the reporting year, the energy intensity in relation to the data volume for the Europe segment amounted to around 40 kWh/terabyte.

ESG KPI „Energy Intensity“ data volume: Segment Europe

In the reporting year, the energy intensity in relation to sales for the Europe segment amounted to around 148 kWh/million euros.

ESG KPI „Energy Intensity“ turnover: Segment Europe

 

Global Reporting Initiative (GRI)

  • GRI 302-3 (Energy)

Task Force on Climate-related Financial Disclosures (TCFD )

  • The most important key figures for measuring and managing climate-related opportunities and risks
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Total energy consumption KPI

Total energy consumption decreased by 7.64 percent year-on-year.

Further details on all segments can be found in the key figures tool.

Data verified by Deloitte. Data is partly based on estimates, assumptions and projections. Some of the data originates from external service providers.

 

Global Reporting Initiative (GRI)

  • GRI 302-1 (Energy)
  • GRI 302-2 (Energy)

Task Force on Climate-related Financial Disclosures (TCFD)

  • The most important key figures for measuring and managing climate-related opportunities and risks

Sustainability Accounting Standards Board (SASB)

  • Code TC-TL-130a.1 (Environmental Footprint of Operations)

Indicators for telecommunications providers from the GSM Association (GSMA)

  • GSMA-ENV-03 (Energy Consumption)
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“PUE” ESG KPI: lower carbon emissions in data centers KPI

We are continually improving the energy efficiency of our data centers through a range of measures. The Power Usage Effectiveness (PUE) metric serves as one indicator for energy-efficiency enhancements in our data centers. We determine this metric using the method recommended by the standard EN 50600 for data centers, which has to take the total energy consumed by data centers into account – and not only that used to operate the servers. The PUE factor img is calculated using the ratio between the total electrical energy consumed by the data center and the amount of electrical energy consumed by IT.

In 2023, the average global PUE score for our T‑Systems data centers was 1.53. For our data centers in Germany, we reduced the PUE from 1.85 in 2008 to 1.52 in 2023; this value is significantly below the average for all data centers in Germany, which is around 1.70. Our most-efficient high-availability data center has a PUE of 1.24. This will allow us to compensate, in part, for increases in IT systems’ energy requirements as a result of growing volumes of data. Energy consumption is also reduced relative to the increasing processing power of the IT systems as a result of the positive effect on energy efficiency and, by extension, the PUE score. The energy needs of our T-Systems data centers are met entirely using renewable sources.

 

Sustainability Accounting Standards Board (SASB)

  • Code TC-TL-130a.1 (Environmental Footprint of Operations)

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Environment

  • Highlights

    Day after day, we work to

    develop climate-neutral business

    practices and establish circularity

    Day after day, we work to develop climate-neutral business practices and establish circularity

    In ramping up our climate targets, we have fulfilled the stringent criteria of the Science Based Targets initiative and become the first DAX-40 company to have a recognized, science-based net-zero climate target.

    For the first time, we are outlining our route to net zero here in the form of a climate transition plan. We are already implementing the key measures set out in the plan. We achieved significant improvements in our KPI “Energy Intensity” by introducing efficiency measures in our networks and data centers.

    To reduce Scope 3 emissions, we set up a task force that works closely with suppliers to explore new approaches to recording CO₂ emissions. Other sustainability criteria are applied to procurement decisions to create an economic incentive. One of the main criteria is the requirement to observe the principle of circularity for network technology and devices from the design and procurement stage onwards. When it comes to devices in particular, circularity can only be achieved in cooperation with customers. We addressed these stakeholders directly in 2023 by means of programs to purchase used devices, special initiatives, and our infotainment magazine “Heute retten wir die Welt! Ein bisschen.” (English: “Today we save the world! A little bit.”) on MagentaTV.

    We support our customers in their efforts to adopt a more climate-friendly lifestyle. Our products and solutions generated positive CO₂ effects for our customers amounting to 16.9 million metric tons in Germany alone in 2023.

    Further examples of our progress in 2023, from the perspective of the Group and that of our segments, can be found in the subchapters.

    Highlight numbers

    Highlight numbers

    Progress of selected KPIs in  2023

    • 2022 2023 Progress

    • CO₂e emissions Scope 1&2 for the DT Group (in kt of CO₂e) 233 217 -7%

    • CO₂e emissions Scope 1–3 for the DT Group (in kt of CO₂e) 11 811 10 476 -11%

    • CPE Take-Back and Mobile Device Take Back for the DT Group (without TMUS) 4.5m. 4.8m. +7%

    • Enablement factor 3.76 4.78 +27%

    • Energy intensity 91 70 -23%

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