Continued analysis of the sustainability benefits of our products
Climate & environment
One building block of our integrated climate strategy is to analyze the sustainability benefits of our product portfolio. In 2014 we began analyzing our portfolio together with external experts based on sustainability criteria [see analysis]. The current analysis for 2016 shows that the share of products and services with sustainability benefits is growing. The share was already at 39 percent in 2015, up from 37 percent in 2014 (excluding T-Mobile US).
Examples of sustainability benefits include reduced CO2 emissions thanks to virtual meetings instead of business trips, improved medical care by means of e-health solutions and conserving resources by replacing devices with digital solutions (e.g. phoning via a laptop instead of a fixed-line phone).
Overall, we have carried out in-depth analyses for 17 product groups with regard to their sustainability benefits and the corresponding business potential (as at end of 2016). We have illustrated the benefits of some selected products based on all three pillars of sustainability (ecological, social and economic).
We use the results of these analyses to advance our sustainable product portfolio. Future plans also include keeping our customers better informed of these sustainability benefits, thereby sharpening our competitive edge.
Recognition of leadership role in climate protection
Inclusion in CDPWe made it on the A list in the most significant international climate protection ranking, the CDP ranking, for the first time in ranking 2016. CDP commends companies that report their CO2 emissions extremely transparently and in detail. Within CDP, we have reported not only Scope 1 and Scope 2 emissions but also Scope 3 emissions from our business operations in Germany and almost all our international companies since 2014.
| German Awards for Excellence 2016 |
We received an award in the Carbon Footprint category at the 3rd Sustainability Conference held by DQS, The Audit Company, in June 2016. This honor was presented in recognition of our accomplishments in recording our emissions along the entire value chain, including involvement of our suppliers. The award is presented to organizations with exemplary sustainability management practices.
Good practice competition on Scope 3 emissionsWe received an award in 2016 in a competition entitled "Good practice of corporate climate management along the value chain." The competition was held by WWF (World Wildlife Fund) and CDP in cooperation with consultancy firm Ecofys. The German Global Compact network sponsored the competition as a partner. Fifteen companies received awards in the competition. Deutsche Telekom impressed the jury in category 13 (rented and leased equipment) with our rental plan for modems and routers and our router virtualization approach. This was featured as good practice in a publication put out especially for the competition.
Recording Scope 3 emissions
Indirect emissions along the value chain, or Scope 3 emissions , make up the majority of our total emissions. Recording these emissions helps us design targeted measures to reduce our carbon footprint at a corporate and product level.
CO2e-Emissionen (Scope 1-3)
6.606 kt CO2e
Transportation services, purchased products and services, capital goods, production waste, upstream energy and fuel supply chains, business travel, and employee commuting.
290 kt CO2eOperating the systems, buildings, and vehicles belonging to Deutsche Telekom.
3.130 kt CO2eGeneration of district electricity and heating purchased by Deutsche Telekom.
5.095 kt CO2eTransportation of products sold to customers, use of sold and rented products and disposal and recycling of sold products.
We have been fully disclosing the Scope 3 emissions generated throughout the Group since 2016. They came to 4,879,850 metric tons of CO2 equivalents in Germany, roughly 2.6 percent more than in the previous year. This slight increase can be attributed, among other things, to an increase in the number of devices being leased by our customers and higher investments in network expansion. As in previous years, most of these emissions were generated by the use of end devices sold or leased out by us (roughly 40 percent). Emissions generated by purchasing technology to expand our networks as well as the purchase of end devices and other goods and services were significant as well.
We have been publishing the emissions generated by our key European national companies since 2015, adding U.S. subsidiary T-Mobile US in 2016. Emissions sources at our national companies are similar to those identified in Germany. At national companies without any relevant fixed-line business such as those in Austria, Poland and the Netherlands, however, purchased products and services are the main source of Scope 3 emissions.
|Overview of Scope 3 emissions (t CO2e)|
|National company||2015||2016||Comparison year-on-year|
|Total||6 693 381||6 821 919|
Reduced CO2 emissions in data centers in Germany
We also keep our goal of reducing our carbon footprint in mind when planning and operating our data centers. To achieve this goal, T-Systems takes 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 key indicator of increased energy efficiency at our data centers is the PUET-Systems data centers in Germany from 1.85 to 1.54 between 2008 and 2016 (1.63 in 2015) due to ongoing data center consolidation measures. Applications from less efficient data centers are being migrated to new, highly efficiency data centers.factor. We were able to reduce the average PUE factor at the
The DC11@2018 program for improving processes throughout our global data center landscape has been up and running since 2013. The project combines physical data center consolidation (i.e., reducing data center space and sites) with logical consolidation (i.e., virtualizing data center infrastructure). The objective of the DC11@2018 program is to consolidate global data center capacity at FMO (future mode of operation) data centers using the latest IT technology. We effectively completed all of the steps necessary in this process in 2016.
The target average PUE factor at all FMO data centers will be 1.4 once the program has been completed in late 2018/early 2019. This requires a homogeneous IT landscape combined with optimum capacity utilization of data center infrastructure, IT hardware and the software running on the systems. We expect to see further significant reductions in CO2 emissions as a result. For the year 2020, the latest program plans indicate accumulated reductions in CO2 by up to 51 percent compared to 2012.
Our target PUE factor for our highly efficient data center in Biere is 1.3. By migrating data from outdated data centers to Biere, we were able to achieve a PUE factor of 1.46 by the end of 2016 and expect to record a PUE factor of 1.3 in Biere by late 2017.
New CHP plants up and running
With our energy management activities, we are planning to reduce our energy use and come a step closer to achieving our climate target.
We are increasingly using combined heat and power (CHP) plants in addition to the conventional power grid. The majority of 32 units in total (as of late 2016) power our network nodes. The CHP plants convert the energy supplied by gas into electricity and heat. We use the waste heat produced on site to heat our office buildings, which brings overall energy efficiency to a level of up to 90 percent. As a comparison, electricity generated by conventional sources and fed through the general German power grid has an efficiency level of roughly 40 percent. By using these plants, we have been able to reduce the CO2 emissions caused by network operation.
We put two new CHP plants in Berlin and one new unit in Frankfurt into operation in November 2016. Around 350 MWh of electricity and 500 MWh of heat was produced at these locations through the end of the year, reflecting a reduction in CO2 emissions of 97 metric tons. For comparison: An average two-person household uses around 3.1 MWh of electricity each year.
Innovative local energy concept
A local heating pipeline runs from our CHP unit in Berlin to a neighboring school. Waste heat from the unit heats the school and its gymnasiums throughout the year. Not only does this reduce costs, it also helps reduce CO2 emissions by up to 800 tons a year. The school was able to get rid of its old gas boiler and pays a reasonable price for the waste heat produced by the CHP unit. We received the Green Buddy Award from the City of Berlin in November 2016 for this innovate local energy concept.
Planned upgrading measures
We are planning to upgrade two other CHP plants in the cities of Ulm and Rottweil. Absorption chillers will be installed in both units to convert waste heat into cold air, which will then be used to cool network nodes. Additional, environmentally friendly dry coolers will also be installed in order to further reduce water consumption during the cooling process. Renovation is scheduled for completion in 2017.
We set a new target for climate-friendly mobility in 2016: to reduce the average CO2 emissions produced by all new car purchases (company cars and service vehicles) to 95 g CO2/km by 2020. This new target is based on our previous target (110g CO2/km by the end of 2015), which we successfully achieved.
We pursue a three-pillar strategy to ensure a climate-friendly fleet management strategy:
- Rightsize: selecting appropriately sized, energy-efficient, low-emissions cars. By introducing our Green Car Policy we have also created incentives for drivers of company cars to select smaller, more efficient cars.
- Economize: encouraging a fuel-efficient, low-emissions driving style with driver training courses
- Substitute: piloting and testing alternative mobility concepts.
We can further reduce our fleet's carbon footprint by purchasing vehicles with alternative engines and fuel systems. We have been turning to natural gas and electric vehicles for some time now to help us achieve this goal. For us, low-emissions natural gas engines are a good step on the road to climate-friendly mobility in principle. This technology is able to effectively reduce pollutants and CO2 emissions, particularly if renewable resources such as biogas obtained from bi-products and waste are used. However, long-range use of natural gas vehicles is still very limited due to an insufficient number of natural gas filling stations. We find the limited offer of suitable compact cars available from manufacturers particularly restrictive. Nevertheless we continue to use natural gas vehicles as both company cars and service vehicles. We are especially planning to continue to keep tabs on developments in electric mobility and employ electric cars effectively.
Extensive choice of mobility options
We also encourage our commuting employees to actively protect the climate by enabling them to buy discount season tickets for local and regional public transportation. We also rely on other modern forms of mobility including our shuttle service, which we have been offering at a variety of locations for ten years, rental bikes for getting around in the city and rental cars. Our employees benefit from the attractive option of buying bicycles and e-bikes through a salary sacrificing scheme. The offer has been well-received by our employees. More than 1,300 bikes were acquired via the salary sacrificing scheme by the end of 2016.
Carbon intensity ESG KPI Deutsche Telekom Group EU
The Carbon Intensity ESG KPI2 Emissions ESG KPI, the new ESG KPI shows the CO2 emissions in proportion to the transmitted data volumes. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks.was a new addition to the reporting this year. In contrast to the existing CO
The ESG KPI figure also takes into account total CO2 emissions for all energy sources – fuel, gas, district heating and electricity, The data volume is composed of the transmitted IP data volumes (including Voice over IP, Internet, IP-TV).Reporting against standards
The Carbon Intensity ESG KPIG4-EN18 (Greenhouse Gas Emissions Intensity). This information is relevant for EFFAS KPI E02-01 (Greenhouse gas emissions Scope 1-3). It is furthermore relevant for criterion 13 (Climate-relevant emissions and objectives) of the German Sustainability Codex. It is also used for reporting on the Global Compact principles 7 (Precautionary approach) and 8 (Promoting environmental responsibility).is relevant for the GRI indicator