CR governance

Deutsche Telekom has created an integrated governance structure for CR in order to closely link strategic management and operational implementation throughout the Group. The Deutsche Telekom Board of Management carries general responsibility for CR. The Group has developed this structure to make sure that sustainability is part and parcel of all business activities, emphasizing its commitment to society.

Current organizational structure

As one of the innovation drivers at our company, the CR unit is part of Group Transformational Change & Corporate Responsibility (GCCR). GCCR, which directly reports to the Member of the Board of Management responsible for Human Resources, is responsible for advancing our corporate culture with a focus on innovation, individual responsibility, entrepreneurship, and social responsibility.

Another pillar of our CR governance structure is the HR Leadership Team (HR LT). The team is an advisory and decision-making body for the Human Resources (HR) Board department. It is made up of managers reporting directly to the Board Member for HR and makes decisions regarding Group-wide policies and guidelines, CR positioning and the strategic focus of the CR department.

The CR unit and the HR LT are advised and supported by the CR Board when it comes to CR management and strategy enhancement.

The CR managers from the different business units and international subsidiaries are responsible for operational implementation of the CR strategy. They collaborate intensively within the international CR Manager Network where they coordinate their activities and share best practices.

We want to make sustainability a component of all our business processes and of our employees' everyday lives. Our health, safety and environment (HSE ) management system helps us make this possible. The system is based on the international standards OHSAS 18001 for occupational health and safety and ISO 14001 for environmental management. Around 72 percent of our employees across the Group are currently employed at an ISO 14001-certified company (as of February 2015). Around two-thirds of our employees outside Germany work at an OHSAS 18001-certified company. Through our compliance with legal regulations, we meet the essential requirements for OHSAS 18001 certification in Germany. In order to get as many employees as possible involved in our HSE  management activities, our goal is to have all of our companies located outside of Germany with more than 50 employees certified in compliance with both standards by the end of 2015.

Deutsche Telekom's CR controlling system plays a key role when it comes to steering our CR activities. It has been supported by an IT-based data collection system for the past five years. The system guarantees transparent reporting on ESG  (environmental, social, and governance) data and KPIs. It supports standardized, mandatory processes at the Group and national level and enables Group-wide benchmarks. This IT support gives us additional capacities to conduct extensive analyses of ESG  data. For example, it makes it easier for us to assess whether we have achieved our CR targets. Ten additional T-Systems international subsidiaries collected ESG  data for the first time during the reporting period. The first step for them was to report on the energy data relevant for the climate protection target. The entities covered by the Energy Consumption and CO2 Emissions ESG  KPIs represent 99 percent of the Group's net revenue.

We use the data to calculate our ESG  KPIs, which we then use to measure our CR performance throughout the Group. In 2014, we reviewed the KPIs in terms of their suitability for managing and reporting our CR activities and adjusted them where necessary. As part of the review, we also worked on preparations for introducing new KPIs. In order to improve the significance of the Energy Consumption ESG  KPI , we are planning to map our energy consumption in relation to the average consumption per product group ("customer equivalent"). We are also planning to introduce three new KPIs to gauge the effectiveness of our social commitment activities. These are scheduled to be included in our reporting processes as of 2015 and will reflect our efforts, the activities we support, and their results.

Reporting on ESG  KPIs outside the CR report
We also use the Energy Consumption and CO2 Emissions ESG  KPIs as important performance indicators in our internal reports. These KPIs are included in two reports addressed to the entire Board of Management. Once every quarter, relevant CR information is included in the DT Group HR Management Report using these two KPIs. As of 2015, we will also be using an annual climate protection report and a controlling report, which will be issued several times a year, to inform the Group Board of Management of our progress in achieving our climate protection target.

We have also integrated ESG  KPIs into our Annual Report within the scope of gradually combining our financial and CR reporting processes. Further information on this can be found in the Finance section.