Suppliers.

CR KPI „Sustainable Procurement“.

The Sustainable Procurement CR KPI measures the share of procurement volume we obtain from suppliers where one or several companies of the corporate group have been audited for compliance with our social and environmental standards. Key in this context is the industry information system, Electronics Tool for Accountable Supply Chains (E-TASC). We were able to considerably increase the procurement volume reviewed according to sustainability criteria by 16 percent to a total of 54 percent in 2012.

CR KPI „Sustainable Procurement" Deutsche Telekom Group.

In percent.

This increase can in part be attributed to the fact that since 2012 we have been using additional supplier data from our Supplier Management Portal in our CR KPI calculation. In this way, we focus above all on suppliers who are of strategic relevance and have a higher CR risk. Other measures introduced in 2012 contributed to this result as well. For example, we increased the number of suppliers that we require to undergo a prequalification process. This process is now mandatory for all suppliers with whom we expect an order volume of more than EUR 100,000. We have also developed a matrix that categorizes suppliers according to specific, risk‐relevant criteria including procurement volume, country, material group and strategic significance for Telekom. The matrix helps us identify potential suppliers for audits as well as those suppliers who we would like to provide us with a self‐assessment.

Reporting against standards.
The Sustainable Procurement CR KPI together with information about our strategic approach fully covers the HR 1 (Human rights), HR 2 (Suppliers and human rights) and HR 10 (Impact assessments) GRI performance indicators. By providing this information, we cover the V28-04 EFFAS indicators (Supply chain). It is also relevant for criteria 1 (Opportunities and risks), 3 (Sustainability goals), 4 (Value added chain), 6 (Rules and processes), 7 (Performance indicators) and 17 (Human rights) of the German Sustainability Code. It is also used for reporting in accordance with the Global Compact  principles 1 (Supporting and respecting human rights), 2 (No complicity in human rights abuses) and 5 (Effective abolition of child labor).

Supplier relationships.

The percentage of procurement volume generated with companies registered in the industry information tool E-TASC (Electronics Tool for Accountable Supply Chains) decreased significantly from 38 percent in the previous year to just under 15.7 percent in 2012. The percentage of procurement volume generated with audited companies increased from 5 percent to around 36 percent. We were able to further expand the auditing practices conducted by the Joint Audit Cooperation during the reporting period. For the first time, companies were also assessed through prequalification via the Supplier Management Portal (SMP). Prequalification is now also mandatory for suppliers with whom we expect to place orders totaling at over EUR 100,000.

Risk management for supplier relationships at the Deutsche Telekom Group.

 

Reporting against standards.
The Sustainable Procurement CR KPI together with information about our strategic approach fully covers the HR 1 (Human rights), HR 2 (Suppliers and human rights) and HR 10 (Impact assessments) GRI performance indicators. By providing this information, we cover the V28-04 EFFAS indicators (Supply chain). It is also relevant for criteria 1 (Opportunities and risks), 3 (Sustainability goals), 4 (Value added chain), 6 (Rules and processes), 7 (Performance indicators) and 17 (Human rights) of the German Sustainability Code. It is also used for reporting in accordance with the Global Compact  principles 1 (Supporting and respecting human rights), 2 (No complicity in human rights abuses) and 5 (Effective abolition of child labor).