strAtegy & mAnAgement Risk AnD oppoRTuniTy mAnAGemenT 53 risk and opportunity manaGement for us, comprehensive risk and opportunities management also means considering the opportunities and risks arising from ecological or social aspects or from the management of our Company. To this end, we actively and systematically involve all relevant stakeholders in the pro- cess of identifying current and potential risks and opportunities. we also participate in a number of working groups and committees. in par- allel with our ongoing monitoring of ecological, social and governance issues, we systematically determine our stakeholders’ positions on these issues. The key tools we use here are: our year-round open online materiality survey for all stakeholders our bi-monthly nGo report, which systematically analyzes press publications of the nGos relevant for us; our involvement in working groups and committees, countless national and international business associations and social organizations, e.g., Gesi img, bitkom, econsense, and bAGso; stakeholder dialog formats organized by us, such as the CR forum and Dialog Days on sustainabil- ity in procurement; and our various publications, such as the press review and newsletter. we have identified the following as our main sus- tainability management issues. Reputation how we deal with sustainability issues also entails both opportunities and risks for our reputation. A high level of service quality is one of the most important factors for improving customer perception. Customer satisfaction has been embedded in our Group management as a non- financial performance indicator to underline the importance of this issue. Transparency and reporting help to promote the trust of other external stakeholders in our Group. our annual and CR reports also serve this purpose. however, issues such as business practices, data protection, or work standards in the supply chain also entail reputational risks: if our brands, products, or services are connected with such issues in negative media reports, this can cause substantial damage to our reputation. As part of our sustainability management activities, we continuously review such potential risks and take measures to minimize them. climate pRotection we pursue an integrated climate strategy, which means focusing not only on the risks that climate change poses for us and our stakeholders, but also on the opportunities it presents. iCT products and services offer the potential to save up to ten times as much in Co other industries as the iCT sector itself generates (according to the Gesi smARTer2030 study). This creates an opportunity to save 20 percent of global Co emissions in 2030, and to maintain worldwide emissions at the level of 2015 with simultaneous economic growth. The additional revenue potential here amounts to usD 6.5 trillion, usD 2.0 trillion of which is for the iCT industry alone. further, iCT solutions can save a emissions in 2 2 total of usD 4.9 trillion in costs. To give a specific example: The broad- band roll-out in Germany has the potential to save an aggregate amount of 19 million metric tons of Co between 2012 and 2020. what is more, the economic momentum triggered by rolling out broadband can create an aggregate number of 162,000 new jobs and increase GDp by euR 47 billion between 2015 and 2020. we are supporting this trend by evaluating our product portfolio to identify sustainability benefits. 2 2 emissions, Among the risks that climate change harbors, meteorological extremes are one we are already experiencing. This is having a direct effect on our stakeholders, e.g., our customers, suppliers, andemployees. we can take preventive action in this area by reducing our own Co which is one of the reasons we set ourselves the goal of achieving a 20-percent reduction in our Group-wide emissions – leaving aside our united states operating segment – by 2020 (baseline: 2008). Climate protection also carries financial risks, whether from the introduction of a levy on Co emissions or an increase in energy costs. The measures we are taking to counter these risks include measuring our own energy efficiency and finding ways to improve it. beyond that, in 2015 three of our subsidiaries (magyar Telekom in hungary, oTe s. A. in Greece, and T-mobile netherlands) covered 100percent of their electricity require- ments with renewables, thus actively reducing climate risks. 2 supplieRs we see more sustainability in our supply chain as an opportunity – for our reputation and our business success. Thus through a development program, we help strategic suppliers to introduce business practices that are socially and ecologically acceptable and economically efficient. The program showed measurable successes again in the reportingyear. better working conditions at our suppliers reduce the number of work- related accidents and the turnover rate. This increases productivity, while at the same time lowering costs for recruitment and training. Thus not only do we strengthen CR performance at our suppliers, we also significantly reduce identified risks. As part of our global procure- ment activities, we can be exposed to country- and supplier-specific risks. These include, for example, the use of child labor, the conscious acceptance of environmental damage or inadequate local working and safety conditions. however, the reporting of nGos or media can give rise to risks to the Company’s reputation, but also to supply risks. we reduce these risks by systematically reviewing our suppliers. in the renowned RobecosAm sustainability rating we scored 98 out of 100 points for our supply chain management in the reportingyear, fivepoints higher than in the prioryear. our partnerships with suppliers that comply with international sustainability standards ensure a high level of product quality and reliable procurement. Deutsche Telekom - Corporate Responsibility Report 2016