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CR key performance indicators.

  • CR KPIs are mandatory for all international subsidiaries.
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In order to manage its CR performance, Telekom uses seven key performance indicators (CR KPIs) that apply throughout the Group. These help us to systematically and transparently optimize our services on an ongoing basis. We are currently involved in international discussions with the aim of defining targets for our CR KPIs.

The CR KPIs are divided into two categories:

  • KPIs with targets standardized Group-wide, and
  • KPIs with specific targets per international subsidiary.
CR KPIs mandatory as of 2012.

Since January 1, 2012 all international subsidiaries have been obliged to determine their CR KPIs. The indicators that were still "voluntary" in the previous year are now mandatory.

The CR KPIs have a role similar to the financial KPIs that are used in the Annual Report. Among other things, they lay the foundation for us to be able to integrate our financial and CR reporting processes in the future. At the same time, they document our will to embed CR more firmly in Deutsche Telekom's core business. Telekom recorded the following CR KPIs in 2012:

We made the recording process for essential CR KPI data more systematic during the reporting period. We generally only record the Sustainable Investment and Sustainable Procurement indicators centrally; we use the employee survey to collect data for the CR Employee Satisfaction KPI. We used our central CR data collection system to calculate the values of the other four CR KPIs in 2012. We included all of our international subsidiaries in this process. However, we were not able to record comprehensive data for the Used Cell-Phone Collection and Social Commitment CR KPIs because not all of our international subsidiaries have begun conducting cell-phone collection campaigns and some of them have a different, country-specific definition of social commitment. However, we were able to considerably expand the data collection for both KPIs compared to the previous year. In 2012, we included three new international subsidiaries in data collection for our Used Cell-Phone Collection CR KPI and two new international subsidiaries for our Social Commitment CR KPI.

In view of our future plans to integrate our CR and annual reporting processes, we will be increasing the number of integrated processes used to record our CR and financial data and increasingly collaborate with the financial department when collecting CR KPI data. We published the Sustainable Procurement CR KPI for the first time in our 2012 Annual Report during this integration process.

CR KPIs with Group-wide targets.

We collect consolidated data for the entire Group for the following three CR KPIs:

  • We use our Sustainable Investment (SRI) CR KPI to measure our progress when it comes to sustainable investment. This KPI indicates the share of Deutsche Telekom AG stock that is owned by investors who show concern for environmental, social and governance criteria in their investment strategies.
  • The CR Employee Satisfaction CR KPI reflects our employees' satisfaction with Telekom's CR commitment. It is based on the employee survey, which we conduct every two years for each individual company.
  • 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. This also includes audits carried out with upstream suppliers. The CR KPI indicates the share of the total procurement volume that was subject to self-assessments, pre-qualification and/or audits.

We will not be using the Green Products CR KPI, which we announced in 2011, to measure the sustainability of our product portfolio for the time being due to the restructuring activities taking place at Group Headquarters. When it comes to green products, Group Headquarters will focus on strategic guidance and providing information on local implementation at the Group subsidiaries.

CR KPIs with country-specific targets.

Individual targets at the regional level apply to four of the seven CR KPIs. We take local as-is situations and the specific developments of each international subsidiary into consideration when planning targets.

  • We use the CO2 Emissions CR KPI to record the reduction in CO2 emissions compared to 2008. Our goal is to reduce our CO2 emissions by 30 percent compared to the levels recorded in 2008 by 2020.
  • The Energy Consumption CR KPI, which we use to measure our power consumption, is based on the Monetary Power Efficiency Indicator (MPEI). It shows the amount of electricity consumed compared to net revenue.
  • We use the Social Commitment CR KPI to measure the success of our social commitment based on how Telekom's CR activities are perceived by the public.
  • The Used Cell-Phone Collection CR KPI compares the mobile devices that were collected, measured in piece numbers, with the number of customers that Group company has.

Although recording the four CR KPIs mentioned above is mandatory for all international subsidiaries, not all of them were able to provide the information we needed to calculate the Used Cell-Phone Collection and Social Commitment KPIs. Some of our international subsidiaries have not yet set up a cell-phone recycling program or have a country-specific definition of "social commitment." However, we were able to record data for these two KPIs from a greater number of subsidiaries during the reporting period.