Every two years we conduct our employee survey in order to obatin feedback from our employees, discover weaknesses, and implement suitable actions to eliminate those weaknesses. The analysis on team level and of other criteria (e.g. function, executives vs. leader vs. employee, gender, age group) support the derivation of fitting concrete improvement actions on all levels. Around 76% of all employees participated in the last employee survey, the share of men and woman - where gender was specified - complies approximately with gender proportion in the group (participation rate man around 67%, women around 32% and for the first time diverse around 1%).
In addition to the employee survey, we also gauge employee satisfaction every six months through a pulse survey. This helps us obtain a current snapshot of the mood at the company and verify whether the introduced actions have been successful. This lets us make quick adjustments if necessary. The pulse survey in November 2020 saw a 77% response rate among the group.
There is a strong need to predict and prepare for long term risks that could occur in the future. Although these risks are difficult to spot, they can have a significant impact on our company. It is therefore necessary to effectively identify and evaluate such adverse events early and develop mitigation strategies to protect our business and our customers against such risks. Having a comprehensive view of emerging risks for Deutsche Telekom is part of our risk management system, which systematically identifies, assesses, and manages relevant risks.
These emerging risks are categorized into political, economic, social, technological, environmental and regulatory/legal events that could occur. The assessment factors considered include velocity and novelty of the risk and relevance for our industry and business in the years ahead.The following emerging risks are on the rise:
Technological: Cybercrime is exploding. Digital transformation, expanding device adoption, machine learning and other applications of exponential increase in computing power are trying to outpace current security protection. As the number of entry points into organizations grows, and cybercrime becomes ever-more profitable, the number of cyberattacks will continue to rise.
Risks include hackers deploying ransomware that can block access to data and key systems (either by exploiting security holes in companies’ networks or using phishing emails to harvest credentials and gain entry), AI-powered cyber-attacks will become more autonomous and self-propagating, learning the target’s network environment rather than relying on known or common vulnerabilities.
Ongoing mitigation measures include creating a more robust IT control environment to increase prevention of these common attacks; deploying (Artificial Intelligence) machine learning techniques into network intrusion detection and strong effective reaction capabilities to defend against detected attacks; improving malware detection and secure user authentication and raising cyber awareness to reduce potential cyber breaches.
Economic: A pandemic crisis is impossible to predict, but historical data shows that in the past decades regional and global pandemics have been occurred more rapidly. A new pandemic can drastically reduce economic growth globally affecting multiple industries, supply chains and how we live and work.
Relating risks could be higher payment delays and defaults of our business and consumer customers increasing our bad debt. Possible lockdowns would force shops to close and travel restrictions would reduce our subscriber growth and the volume of roaming traffic. Additionally, companies could reduce their IT orders. Social distancing and homeschooling could lower overall efficiency or in the case of a severe pandemic temporarily or even permanently reduce our workforce. All of this could in turn, lead to a decline in revenue.
Our Group Situation Center monitors the development of any emerging pandemic. As part of our crisis management, they communicate pandemic guidelines and provide hygiene and safety equipment to all shops, offices and infrastructure sites to protect customers and employees. Other group wide mitigation measures include ramping up and stabilizing our networks to ensure our network can handle additional surges in voice and data traffic. To minimize the spread of a possible outbreak, employees may work from home and our sales and service teams can reallocate to meet changing demands.
Environmental: Natural Disasters such as flooding, severe storms, hail, heat waves, wildfires, hurricanes and earthquakes are occurring more often. The physical effects of our changing climate are leading to ocean warming, heat and humidity increase and increasing average temperatures and humidity levels. Therefore, these extreme weather scenarios are likely to intensify in the future.
As more natural disasters occur, specific areas will become more vulnerable to flooding, storms, or heat and could increase the number of network outages of our network infrastructure (direct damage) or affecting the relevant supply of power or water (indirect damage). This in turn could lead to loss of revenues or lower customer satisfaction.
Mitigation to reduce such network outages include analysis of previous and forecasting of possible future disasters to identify weak spots in areas that are more prone to stronger and more frequent disasters. Any identified weak spots in our network equipment would be upgraded to increase robustness against such disasters. Furthermore, detailed business continuity and disaster recovery plans are in place in case such events should occur.
Internet access on planes
Together with satellite company Inmarsat, Deutsche Telekom is offering the fastest inflight broadband service for European travelers.
The European Aviation Network (EAN) has been developed by Inmarsat and Deutsche Telekom in partnership with leading European companies such as Thales, Nokia, Airbus, Cobham and Eclipse Technics. It marks a paradigm shift in the airline passenger experience, with incomparable speeds, uninterrupted coverage and significantly lower latency than any other inflight Wi-Fi network in the continent.
The award-winning connectivity solution has been available to over 20 million passengers to date, travelling on more than 200,000 flights throughout Europe, covering key destinations such as London, Madrid, Barcelona, Geneva and Rome. It is currently available with British Airways, Iberia and Vueling, which are all part of International Airlines Group (IAG).
Digital health care system: Deutsche Telekom as a project partner
We are helping shape the digital health care system with numerous pilot projects.
• We are involved as a project partner in developing a solution for antibiotic treatment consultation at the St. Georg Hospital in Leipzig. The primary goal is to enable fast, secure data exchange between doctors, patients, and health insurers. The State of Saxony sponsored the project with over 1.2 million euros at the beginning of 2017. It will initially run until mid-2019.
• The main objective of the “Psychological Trauma Telehealth Network for Saxony (Tele-NePS)” project is to sustainably improve the integrated treatment chain for post-traumatic stress disorders. The goal is to enable those affected to access the treatment network, make expertise universally available, and guarantee cross-institution documentation and coordination. The EU and the State of Saxony will be funding the project, which will run until 2020, with 1.4 million euros.
• Under the auspices of a 10-year partnership, we are helping Kliniken Essen-Mitte (KEM) to drive forward the digitalization of its hospitals. By January 1, 2019, we had replaced the existing hospital information system with our iMedOne solution at two of the clinic’s locations.
Achieving more together: international collaboration
How can international corporations put sustainability strategies into practice across borders? Deutsche Telekom employs CR managers for the relevant business segments and national companies to reach this goal. They use the CR Manager Network to regularly share best practices and discuss new challenges, thereby jointly promoting essential CR issues. The central Group Corporate Responsibility (GCR) department is responsible for managing the network.
Due to the Corona situation, the CR Manager Network focused 2020 solely on virtual meetings. Starting point in February was the supplement "Act responsibly" to the Groups strategy and the implications for CR-Managers. The virtual meeting in May had a special section on the Corona activities in the respective national companies and focused otherwise mostly on the progress made in the "We care for our planet" program, followed by several national workshops to foster international roll-out of the program. At the autmn-meeting, members of the network learned among other things about the current status of the climate targets, digital inclusion and continued with information on "we care for our planet".
Measurable success: Reduced CO2 generation at data centers
We keep our goal of reducing our carbon footprint in mind when planning and operating our data centers. To achieve this goal, we take a two-step approach. It starts with optimizing energy consumption at each data center site and then continues with improving processes throughout the global data center landscape.
The PUE (Power Usage Effectiveness) figure is the key indicator for their energy efficiency. Since 2008, we have succeeded in reducing the average PUE factor at the T-Systems data centers in Germany from 1.85 to 1.56.
|Data Center Energy Usage||2016||2017||2018||2019|
|Total energy used in data centers (MWh)||535,282||837,265||735,800||647,162|
|Percentage of renewable energy (of total energy)||35||41||52||64|
Our aim is to increase the share of renewable energy on a yearly basis. Therefore our reported target is to increase our share in comparison to the previous year.
Principles for donations in the political arena
The Deutsche Telekom Group is subject to special statutory restrictions regarding donations to political parties and holders of offices due to the Federal Republic's stake in the company:
Donations to political parties
- The Deutsche Telekom Group is not permitted to make donations to political parties, as the government's stake in the Deutsche Telekom Group is currently over 25 %. The calculation of the government's stake includes both the stake held by the Federal Republic and the stake held by the Reconstruction Loan Corporation [KfW]. Donations for this purpose include both monetary payments and non-cash benefits.
- So-called genuine sponsoring does not represent a donation, i.e., a donation in return for a demonstrably adequate consideration. The consideration may, for example, be advertising for the company or its products at party conferences. The consideration must be adequate – i.e., at usual market level – in proportion to the benefit. Genuine sponsoring as part of party events does not represent a donation to the party as defined by the Political Parties Act and is thus generally permitted in the Deutsche Telekom Group.
Donations to holders of offices
- The Deutsche Telekom Group is also not permitted to make monetary donations to members of the Bundestag, where the government's (Federal Republic and Reconstruction Loan Corporation [KfW]) stake in the company is over 25 %. Non-cash benefits to members of the Bundestag are also generally not permitted.
Donations to holders of public offices
- Donations shall not be offered, promised or granted to holders of public offices for the performance of the duties of such offices or for specific actions performed while in such offices.
Measures must also be taken to ensure that the Deutsche Telekom Group only makes correct, politically unimpeachable donations in the political arena. Those acting on behalf of the Deutsche Telekom Group therefore observe the applicable legal framework conditions for donations and benefits in the political arena in Germany and abroad. In addition, the Deutsche Telekom Group has defined various additional procedures and processes that must be followed in connection with sponsoring party conventions, event invitations and the procedure in each individual case.
Sponsoring of party conventions
- The Deutsche Telekom Group is only permitted to sponsor a party convention by granting a political party a monetary payment or non-cash benefit if the donation is in return for a demonstrably adequate (i.e., at usual market level) and permitted consideration.
- The consideration may, for example, be that Deutsche Telekom is permitted to carry out valuable advertising activities and PR measures/ sales promotion at the party convention (presentation space, etc.).
- Inquiries regarding the sponsoring of party conventions must be treated in a uniform and politically balanced manner. This requires conduct that is coordinated throughout the Group in addition to the legal review of each individual case. The Deutsche Telekom Group does not support any extremist political parties.
Invitations to events
- Deutsche Telekom is only permitted to issue invitations to events that are subject to charge to political parties in the case of genuine sponsoring. The same applies to members of parliament unless these non-cash benefits are granted “for participation in events to present the position of the Bundestag or that of (one of) the parliamentary groups within the Bundestag“. Invitations to holders of domestic and foreign public offices, foreign members of parliament and holders of offices in international organizations should be refrained.
Information und decisions on individual cases
- Before donations are made in the political arena each individual case must be reviewed. Legal interpretation or issues of doubt (including those reaching beyond the legal aspects discussed above) should be submitted to DT Law & Integrity, and political issues of doubt to DT GPRA for a decision.
Implementation of the EU General Data Protection Regulation
After being enacted in May 2016, the EU General Data Protection Regulation (GDPR) has had a binding effect since May 25, 2018. Deutsche Telekom implemented the requirements contained therein in a three-stage, EU-wide project:
- Preparation: Group Privacy drew up a set of standardized rules, known as Binding Interpretations, that apply to the entire Group. They were developed in collaboration with the national companies. The Binding Interpretations include specific recommendations and best practice examples to implement the EU regulation.
- Implementation: From January 2017 to May 25, 2018, the new requirements based on the Binding Interpretations were introduced throughout the Group. This involved checking and, where necessary, adjusting all the IT systems. All employees were made aware of the General Data Protection Regulation, and more than 10,000 experts received intensive training.
- Evaluation: The implementation period was followed by a review phase during which all affected Group entities were asked whether they had put all relevant requirements into action. In addition to this, GDPR compliance was randomly inspected at 28 companies.
Collaboration for the protection of minors
We want to create a safe and positive online experience for children and young people. We offer them attractive, exciting content on age-appropriate websites.
Supporting standardized child protection offers
We became a member of the non-profit organization JusProg e.V. in 2016. Its software protects children and young people on the internet by blocking certain content.
This software has been officially recognized as a general child protection program in Germany in accordance with statutory requirements (JMStV). The software was most recently evaluated in March 2017.
We donated the rights to the program codes behind our child protection software (Windows) and our child protection app, Surfgarten, (iPhone/iPad) to JusProg e.V.
Commitment to FSM
We are a founding member and part of the executive board of FSM, the Association for the Voluntary Self-Monitoring for Multimedia Service Providers. The association published the “Index for Youth Media Protection” for the first time in 2017. The 2018 youth media protection report specifically addressed teachers and educational specialists.
Digital health care system: Our solutions
In addition to customer projects, we are also developing our own solutions for digital health care.
Our telehealth platform is being used by increasing numbers of participants in Germany. The platform is based on the first Europe-wide open, trans-regional network, East Saxony CCS Telehealth (THOS). It allows patients, doctors, hospitals, nursing staff, pharmacies, and health insurers in a given region to exchange information over a specially encrypted data network. In April 2018, we presented the new “Teleneurologie Parkinson” application at the world’s largest health care IT trade fair ConhIT: In addition to the family doctor or neurologist, the new solution also allows patients suffering from Parkinson’s disease to consult with a teleneurologist.
Our Telekom Healthcare Cloud (THC) provides health professionals with a reliable and simple path toward the digital transformation of their work structures. One of our customers in this area is Gesundheit Nordhessen Holding (GNH). We support the group of hospitals by providing our cloud for its daily work.
Rapid entry into Smart Home business: QIVICON
We have set up the open, vendor-neutral smart home platform QIVICON. This platform gives consumers the option of combining devices from different companies simply and individually.
We were able to further increase the number of devices that are compatible with the QIVICON platform during the reporting period. Even today they can choose from among several hundred different smart home appliances.
In 2019, we commissioned the testing institute AV-TEST GmbH for the fifth time to check how secure the QIVICON Smart Home platform and the Magenta Smart Home app are. Once again, the rating was “very good protection”. The next test by AV-Test GmbH is planned for the beginning of 2020.
Digital Solutions: AUTOPILOT – autonomous driving services to boost efficiency
The EU’s AUTOPILOT project is trialing services of this kind on the market, including self-driving vehicles in local public transportation, self-parking cars, and real-time car sharing. Such solutions are particularly efficient and environmentally friendly, resulting in an estimated 10 percent fewer CO2 emissions compared to conventional driving practices. The project launched in 2017 and will run until 2019. Thereafter the services will be incorporated into regular operations. T-Systems is the project partner of AUTOPILOT and supports analyses on the feasibility and market launch of the new services. The project has successfully been finalized in 2019, a follow-up project has already been won and the work has been started.
Digital Solutions: Connected Car – preventing traffic jams with connected cars
T-Systems has been developing and operating Daimler’s Connected Car platform (Daimler vehicle backend) worldwide since 2013. The platform is the technical basis for the Live Traffic service, which provides drivers with real-time traffic information, Live Traffic prevents about 30 percent of traffic jams per vehicle. This means the approximately 12 million vehicles equipped with Live Traffic consumed about 13 million liters less fuel. This translates into CO2 savings of around 32,500 metric tons.
The Internet of Things
Machines and products are constantly becoming smarter. The technologies that make these developments possible are bundled under the term Internet of Things, or IoT.
IoT can help ideally coordinate the processes of various devices, vehicles, and entire industrial facilities. This increases industrial productivity and ensures efficient logistics, thus helping reduce energy consumption and conserve resources.
We also support the German federal government’s Industry 4.0 initiative through our involvement in IoT. The initiative’s objective is to maintain Germany’s competitive edge in the technology sector.
Supporting start-ups: Creating space for ideas
As the leading startup program of Deutsche Telekom, the telcotech incubator hubraum connects external startups with business units in our group to jointly offer innovative products for our private and business customers. In addition, hubraum offers startups early-stage financing from their own investment fund and targeted innovation programs with a view to the strategic growth areas and technologies of Deutsche Telekom.
Since the founding of hubraum in 2012, hubraum has built up a strategic investment portfolio of over 25 companies and closely collaborated with over 300 start-ups from Europe and Israel in areas such as Future Connectivity (e.g. 5G, Edge Cloud, AI, NBIoT), Connected Life and Work (e.g. smart home, AR/VR, industrial IoT) and the "Next Next" (e.g. blockchain). The hubraum Campus in Berlin has been expanded with one of the first 5G networks in Europe and edge cloud infrastructure. In addition to co-working office space and mentoring, startups can now also have exclusive access to Deutsche Telekom's networks, product platforms and test data to accelerate their business development.
In 2019, 16 projects from our Edge and 5G prototyping programs were implemented on the new infrastructure. These will be continued in 2020.
In the same period, five projects of the consumer IoT eSIM program have been implemented. They will be marketed in 2020 as products of the national companies of DT.