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  • Act responsibly. Enable sustainability.
  • 2016 Corporate Responsibility Report
2016 Corporate Responsibility Report

Specific standard disclosures

Economic

Indirect economic impacts

G4-DMA

Expanding our infrastructure

G4-EC7 Development and impact of infrastructure investments and services supported

Responsible infrastructure expansion

Environmental

Energy

G4-DMA

Protecting the climate
Operating energy-efficient networks
Making our buildings energy-efficient
Our climate-friendly mobility efforts

G4-EN3 Energy consumption within the organization

Total energy consumption indicator

Energy consumption at Deutsche Telekom primarily pertains to the consumption of electricity, district heating, fossil fuels and fuel for our vehicle fleet. The amount of energy sold by Deutsche Telekom is not significant and generally not included in our energy and fuel consumption values.

G4-EN5 Energy intensity

Energy Consumption ESG KPI

Social: Labor practices and decent work

Employment

G4-DMA

Shaping employee relations as a responsible employer
Improving sustainability in the supply chain

G4-LA1 New employee hires and employee turnover

Headcount development worldwide
Fluctuation rate
Percentage of civil servants employed at the Deutsche Telekom Group
Vivento employees

The number of employees entering retirement, an important component of natural employee turnover, is not recorded within the scope of the annual workforce structure report. We therefore cannot provide a breakdown of natural turnover according to gender and age. The time and effort involved in more detailed data collection would exceed any benefit from the results.

Labor/management relations

G4-DMA

Shaping employee relations as a responsible employer

G4-LA4 Minimum notice periods regarding operational changes

This indicator cannot be used for Deutsche Telekom as a global corporation because of the extensive effort involved in compiling all country-specific regulations, an effort that exceeds the benefit of such activities. The relevant works council committees are informed on significant operational changes and involved according to the legally applicable provisions such as the German Works Constitution Act [Betriebsverfassungsgesetz]. We also regularly engage in dialog with employee representatives at a national and European level.

Occupational health and safety

G4-DMA

Health and Safety Management Approach

Deutsche Telekom supports its employees or their family members with special programs in case of need, for example during a serious illness. These include:

  • Individual counseling in case of professional and private issues or conflicts offered by psychosocial experts of the Employee and Executive Advisory Service by external service provider B.A.D.
  • Assistance for low-income families: The Post/Postbank/Telekom welfare service provides support in case of emergencies, such as natural disasters.
  • Deutsche Telekom Social Fund: We provide fast financial aid to employees who are unable to find a way out of financial difficulties they are facing through no fault of their own. The Family Fund provides support to families in need.
  • Dance therapy for women with cancer in collaboration with the Post Postbank Telekom e.V. recreation service.
  • Offers in cooperation with the AWO service for families and parents: consulting on and arranging childcare, care of relatives, home help for the elderly and other personal and household services, nursing and care seminars and emergency childcare.
  • We enable flexible working models for an improved work-life balance. Deutsche Telekom offers various models for working schedules. These enable flexible working hours, part-time work, phased retirement, parental leave, family care leave and leave of absence without pay.

G4-LA5 Percentage of total workforce represented in formal joint management–worker health and safety committees

We have created different steering levels at Deutsche Telekom in Germany to implement our occupational health and safety management activities:

  • The first level is the Central Health Working Group, comprised of employer representatives from the Group and Group companies as well as employee representatives, occupational health and safety experts and representatives of employees with disabilities.
  • The second level comprises the Health Working Groups at Deutsche Telekom subsidiaries in Germany.
  • The third level is comprised of local, on-site working groups responsible for implementing occupational health and safety management locally; there are at least 110 of these.

All of our employees in Germany are represented by these committees. The national companies are responsible for their own occupational health and safety management. Step by step, however, all Deutsche Telekom employees are being entered into one certified health, safety and environmental management system, which guarantees compliance with Group-wide standards. Around 77.5 percent of employees at an international level are already covered by this management system (as of the end of 2016). 
Occupational health and safety management across all German Group companies was audited in 2016 in order to ensure complete certification of the collaborating companies. All audited units were awarded the certificate, increasing coverage in Germany from 2 percent to 62 percent.

G4-LA6 Types of injury and rates of injury at the organization

Health rate
Work accidents in Germany

Training and development

G4-DMA

Investing in training and development

G4-LA9 Average hours of training per year per employee by gender and by employee category

Training (Group in Germany)

  Total hours in 2016 Female Male
Apprentices 10,911,200* 4,364,480* 6,546,720*
Students in cooperative degree programs 3,125,424* 1,062,644* 2,062,780*
Sum 14,036,624* 5,427,124* 8,609,500*

(* Average values were used to calculate the figures.)

Continuing education (Group in Germany)
Our employees spent an average of around 21.7 hours attending continuing education events in 2016. All employees generally have equal access to continuing education opportunities (regardless of gender, cross-hierarchy). It is therefore not possible to differentiate at Deutsche Telekom.
Telekom Training continuing education program
Apprentices and vocational training programs

G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Programs for life-long learning
Training and development

Managing career endings
Depending on the situation, we use different tools to make it easier for employees to manage ending their career at the Group in a socially compatible way. This includes options such as outplacement consulting and severance payments. Vivento, the service provider for Deutsche Telekom’s personnel restructuring in Germany, also provides our employees with a wide range of new perspectives within and outside Deutsche Telekom. They receive support and individual consulting on every aspect of career changes, including suitable job vacancies from federal, state or local authorities and via thewww.interamt.dejob portal operated by Vivento as well as job application training, targeted skills development and information on financial change incentives and offers by the Group.

The Post/Telekom welfare service offers seminars on "Getting ready for retirement" in which Deutsche Telekom employees are invited to participate. Participants work on ways in which they will be able to fill their retirement years with meaningful activities and enjoy their retirement for years to come.
Telekom Training continuing education program

G4-LA11 Percentage of employees receiving regular performance and career development reviews

We use various tools to assess the performance and career development of our employees. The Compass tool is used for employees covered by collective agreements and for civil servants in Germany, while the Performance & Potential Review (PPR) is for employees not covered by collective agreements in Germany and for employees at the national companies. Furthermore, in 2014 we launched Performance Dialog, a new tool for assessing the performance of top-level managers.

Performance management tools and employee category Number and percentage of employees whose performance and career development were assessed
Compass (employees covered by collective agreements in Germany) 77,000 employees (81 percent of the target group)
Performance & Potential Review (employees not covered by collective agreements in Germany) 9,000 employees (96 percent of the target group)
Performance & Potential Review (employees at national companies) 21,000 employees (tool is used in many National companies)
Performance Dialog (top-level managers throughout the Group) 2,500 employees (93 percent of the target group; June 2016)

In each case, the performance management tools apply for entire employee groups and therefore cover male and female employees in equal measure.

Employee diversity and equal opportunities

G4-DMA

Supporting diversity

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity

Women at the Group
People with disabilities
Age structure

Deutsche Telekom is an international corporation that holds no more than a majority interest in some of its national companies. For that reason it is not possible to break down these values based on employee category.

Equal remuneration for women and men

G4-DMA

Supporting diversity

G4-LA13 Ratio of basic salary and remuneration of women to men

We have been comparing the pay of male and female employees for several years now. We were unable to identify any significant, gender-based differences in pay for our employees in Germany. Our Logib-D and eg-check certifications confirm that men and women receive equal pay for the same work. It was not possible to record the pay of our male and female employees at all of our international locations due to data unavailability, relevance to competition and the time and effort involved.

Supplier assessment for labor practices

G4-DMA

Managing sustainability in procurement processes
Improving sustainability in the supply chain
2016 audit results

G4-LA14 Percentage of new suppliers that were screened using labor practices criteria

We are currently unable to provide information regarding the percentage of new suppliers that have been evaluated based on sustainability criteria (e.g., through self-assessments, the EcoVadis platform or social audits). Group-wide roll out of our supplier portal is scheduled for 2017 and we expect to be able to provide exact data in 2018. The general requirement for any supplier relationship with Deutsche Telekom is passing a pre-qualification process, which includes 18 questions regarding sustainability.

G4-LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken

2016 audit results

Social: Human rights

Non-discrimination

G4-DMA

Protecting human rights

G4-HR2 Total hours of employee training on human rights policies or procedures

Multiple specific training sessions took place focused exclusively on human rights. Participants involved in these training sessions included employees in particular who hold strategic responsibility for the issue of human rights.

G4-HR3 Total number of incidents of discrimination and corrective actions taken

Reports received by the Contact Point for Human Rights

Freedom of association and collective bargaining

G4-DMA

Protecting human rights

G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated, and measures taken to support these rights

2016 audit results

To our knowledge there are no cases of this nature. Deutsche Telekom recognizes the fundamental right to freedom of association and the right to collective bargaining within the scope of national regulations and existing agreements. These principles form an integral part of the Social Charter img, are binding for the entire Group, and must be confirmed in writing annually by the Group companies.

Supplier human rights assessment

G4-DMA

Managing sustainability in procurement processes
Improving sustainability in the supply chain
2016 audit results

G4-HR10 Percentage of new suppliers that were screened using human rights criteria

We are currently unable to provide information regarding the percentage of new suppliers that have been evaluated based on sustainability criteria (e.g., through self-assessments, the EcoVadis platform or social audits). Group-wide roll out of our supplier portal is scheduled for 2017 and we expect to be able to provide exact data in 2018. The general requirement for any supplier relationship with Deutsche Telekom is passing a pre-qualification process, which includes 18 questions regarding sustainability.

Sustainable Procurement ESG KPI
Supplier relationships

G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken

2016 audit results

Social: Society

Anti-corruption

G4-DMA

Management approach (Compliance)

G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

The following risks of corruption were identified as the most likely within the scope of our risk analysis:

  1. Favoring an employee or business partner’s employee or agent in terms of a specific future business decision resulting in unfair favoritism in competition
     
  2. Acceptance of a benefit aimed at securing a specific business decision
     
  3. Employee develops selection criteria to be in favor of a supplier/consultant, leaving the buyer with no choice; employee influences an auction/bid in favor of a bidder and receives a benefit in return
     
  4. When awarding contracts for services, an employee/buyer agrees to conditions that are to the detriment of the company in return for money or other benefits from the contractor/consultant
     
  5. Employee agrees to a 10 percent higher invoice amount with a supplier; the supplier reimburses half of the excess amount to the employee through a private account

Each year, we carry out a Group-wide compliance risk assessment (CRA) to determine compliance risks and develop tailored compliance measures. In 2016, the CRA included 79 companies and thus covered around 97 percent (based on the number of employees).

G4-SO4 Communication and training on anti-corruption policies and procedures

Classroom training sessions were conducted on anti-corruption in 2012/2013. All members of the Group Board of Management and the first reporting level attended the training. We also conducted risk-specific classroom training sessions at the IT, Sales, Procurement, Services, Production, Technical Services, Marketing, Technology and Finance departments. More than 3,400 employees attended the training. Members of the Managing Boards and members of risk groups were trained internationally (3,800 participants). Almost 16,000 employees participated in an e-learning offer in Germany. This e-learning offer was rolled out at 26 companies internationally. Additional topic and risk-specific trainings were conducted in 2014. In the Delivery unit at T-Systems International, for example,1,221 employees in Germany attended 72 classroom training sessions; internationally 1,120 employees attended such training sessions.

A training campaign was completed as part of preparations for certification in 2015/2016.

E-learning img training in Germany
In 2015 and 2016, 17,480 employees in high-risk positions (sales, procurement) in Germany and 18,302 other employees completed the anti-corruption e-learning course; 17,818 employees received a certificate for completing a compliance e-learning course; 40,560 employees participated in an e-quiz on gifts and 1,138 employees took the e-learning course on consultant services. 7,977 employees completed the e-learning training on anti-trust law.

Face-to-face training in Germany and internationally
In 2016, approx. 1,600 employees (Germany) and approx. 3,000 employees (internationally) from the T-Systems segment participated in face-to-face training on compliance and anti-corruption. In the Europe segment approx. 1,000 employees were trained, along with approx. 200 employees in the Germany segment and roughly 100 employees in GHS.

Implementation of Group policy throughout the Group
Deutsche Telekom has introduced the Group Policy on Avoiding Corruption and Other Conflicts of Interest, which sets out the relevant responsibilities and duties and includes a list of possible conflicts of interest. We also introduced our Group Policy on Accepting and Granting of Benefits, which clearly specifies which benefits may be granted to and accepted from business partners.

Providing information and training to business partners
Our business partners are required to accept the Deutsche Telekom General Terms and Conditions for Purchasing before entering into a business relationship with us. These include an anti-corruption clause. In addition, we ask our business partners questions regarding their compliance management systems as part of supplier self-assessment process. Deutsche Telekom has been offering compliance training to external business partners and suppliers since September 2014. The training offer particularly focuses on small and medium-sized German business partners and suppliers. With face-to-face training offers and an online training program, Deutsche Telekom encourages its partners to conduct their business ethically and in compliance with relevant laws and regulations. The training addresses specific compliance-relevant topics such as corruption prevention, anti-trust law and sustainability and introduces Deutsche Telekom's compliance management system.

G4-SO5 Confirmed incidents of corruption and actions taken

Deutsche Telekom engages in extensive compliance management activities to prevent and fight corruption Any violations we uncover during our investigation are punished appropriately. In some cases employment relationships have even been terminated for good cause. The total number of punished incidents of corruption is confidential.

Compliance

G4-DMA

Ensuring integrity and compliance

G4-SO8 Fines for non-compliance with laws and regulations

Major ongoing litigation

Social: Product responsibility

Customer health and safety

G4-DMA

Protecting consumers and young people
Protecting our infrastructure
Striving for secure mobile communications
Developing sustainable products and services

G4-PR2 Fines for non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services

Major ongoing litigation

Product and service labeling

G4-DMA

Ensuring excellent service quality

G4-PR5 Results of surveys measuring customer satisfaction

Measurable success with "C1 – Customers first."

Customer privacy

G4-DMA

Laying the foundation for effective data privacy
Protecting consumers and young people
Protecting our infrastructure

G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

Major ongoing litigation