Our partners from parliaments, governments, and non-profit organizations need to uphold their independence and integrity. This principle is codified in Deutsche Telekom's Guiding Principles. Donations to political institutions, parties and political representatives are not allowed, for example. Instead, we place importance on factual communication, competence, credibility and integrity. As a result, politicians and stakeholders feel that the information we provide is authentic and credible and refer to this information when forming their own opinions. Deutsche Telekom is registered in the official transparency register for lobbyists in Brussels. Within the context of our collaboration efforts in associations and other bodies, we feel that we are under the obligation to comply with all ethical codes and legal provisions.
Consistent materiality process
Every year we identify which topics are of particular relevance in defining Deutsche Telekom's sustainability management and sustainability reporting focus from the perspective of our stakeholders as well as from an internal corporate perspective. We use previous year results as the basis and assess these in the light of recent developments.
This materiality process has been in place at our company since 2015 in compliance with the methodology of the Global e-Sustainability Initiative (GeSI). This methodology covers 55 topics that are material to the ICT industry. These can be placed in nine categories: digital inclusion, employee relationships, climate change, circular economy, sourcing and manufacturing, customer relationships, privacy and freedom of expression, governance, and local community and environment impacts. The advantage of using the GeSI methodology is that it allows us to focus on our core business as an ICT service provider. In addition, the materiality topics have been developed to pertain to a variety of companies and are therefore recognized in the industry.
You can find the analysis of our materiality process here.
Material topics from our stakeholders' perspective
Our online survey is always available for our stakeholders to weight topics based on their importance as well as, since 2016, our performance in the different areas. In the survey, stakeholders are asked to rate the topics that have been identified through our internal materiality process. This ongoing, logical process makes it possible to achieve comparable results. To help us identify which aspects are most material for our stakeholders, we assessed the results of the survey for the period from January 1, 2016, through December 31, 2016. You can find the online survey here. The assessment was based on evaluations submitted by 143 people:
- 53 customers
- 41 employees and potential employees or employee representatives
- 9 analysts and investors
- 10 participants from the worlds of science, research and education
- 12 NGO representatives
- 4 suppliers
- 3 representatives from regulatory authorities and political decision-makers
- 11 employees who associated themselves with none of the groups mentioned
In addition to giving stakeholders a chance to rate the importance of topics and assess our performance, the survey also includes questions open to comment. You can find our stakeholder feedback from the reporting period here.
Stakeholdersalso have the opportunity to assess our performance in different areas. Our stakeholders rate our performance high in the key areas of privacy, data security and cyber safety. However, they do see potential for improvement in the areas of sustainable product design and the socially relevant application of ICT products and services.
Material topics from the company perspective
We continue to reevaluate the importance of topics every year, conducting internal workshops to assist us in this process as needed. Most recently in November 2015, numerous experts from different departments, including Human Resources, Innovation and Communications, participated in one of these workshops. They went through the 55 GeSI topics and identified those that had the most impact on five key value drivers behind our business success from a corporate perspective (see below). These value drivers are also based on the GeSI methodology:
- Technology and innovation: Our customers' increasing demand for secure, encrypted services has made topics like data privacy and cyber security two of the most significant drivers of innovation at our company.
- Revenue growth: We are able to tap new markets and reach out to new customers through network expansion. High service quality is decisive when it comes to customer satisfaction and therefore has a direct impact on winning over customers and customer loyalty. Customer inquiries on sustainable products are still limited in number but continue to grow, which is why this topic has been identified as an important driver.
- Business operations: Which topics have a positive impact on business processes or help reduce costs? Extensive employee involvement and fundamental basics like data privacy, service quality, stakeholder involvement and compliance are particularly important.
- Employee relations: Talent acquisition, retention, development and staff reduction, employee involvement, employee health, safety and wellness and employee diversity and anti-discrimination all have a tremendous impact on employee satisfaction and productivity. Maintaining a service-oriented corporate culture (service quality), ethical business practices and transparency also have a positive impact on employee relations.
- Reputation: A high degree of transparency and extensive reporting create lasting trust in Deutsche Telekom. Topics such as business practices, service quality, privacy and supply chain labor standards, on the other hand, can pose risks to our reputation. If the media negatively reports on our brands, products or services in connection with these topics, this can damage our reputation.
Deutsche Telekom aims to be the leading telecommunications provider in Europe. This corporate vision is the basis for our approach as a responsible company (CR approach) and our CR mission. Our mission is:
We take responsibility. We enable sustainability...
… in our processes
… with and for our employees
… for our customers
… in society
Our Group CR strategy also provides our national companies with a framework for their sustainability measures. The central components are our three CR action areas:
- Connected life and work – enabling a sustainable lifestyle
- Connecting the unconnected
- Low-carbon society
These form the framework for the focal topics within our sustainability management: data security and data protection, digitization, sustainable supply chains, human rights, circular economy, resource conservation, and a responsible employer approach. Our CR program states which specific goals we wish to achieve with which measures. We monitor our progress using key performance indicators (KPIs).
An integrated governance structure helps us to closely interlink strategic management and operational implementation of our CR strategy throughout the Group. Overall responsibility for sustainability lies with the Deutsche Telekom Board of Management.
Current organizational structure
Our Corporate Responsibility (GCR) unit is a key driver for change within our company. Within the organization, it reports to the Chief Human Resources Officer. The duty of the GCR is to further develop our corporate culture with a focus on sustainable innovation 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 makes decisions on Group-wide policies and guidelines, CR positioning, and the strategic focus of the CR department. Members of the HR LT are managers from the level below the Chief Human Resources Officer.
In addition, the CR Board supports the CR department and the HR LT when it comes to CR management and strategy enhancement.
The CR managers from the different business units and national companies are responsible for implementing our CR strategy. They collaborate intensively within the international CR Manager Network where they coordinate their activities and share best practices.
CR Controlling helps steer our activities
Deutsche Telekom's CR Controlling department plays a key role in controlling our CR activities. Controlling has been supported by an IT-based data collection system for the past seven years. The system makes sure that ESG(environmental, social and governance) data and KPIs are transparently recorded and reported. It supports standardized, mandatory processes at the Group and national level and enables Group-wide benchmarks. This IT support lets us focus on content analysis of ESG data and helps us measure early on in the process to what extent we have reached our CR targets and if we need to make changes.
We especially use ESG data to calculate our ESG KPIs, with which we measure and control our CR performance throughout the Group. CR Controlling is also responsible for recording other performance indicators with sustainability relevance. These are published in the performance indicator section as well as in the CR report's interactive benchmarking tool.
We once again reviewed and added to our ESG KPIs in 2016. We now include two new efficiency KPIs in our report: The Energy Intensity ESG KPI and the Carbon Intensity ESG KPI. We also report the share of renewable energy as an ESG KPI for the first time in 2016. This will enable us to better assess our performance and comply with increasing external requirements on transparency in this area.
In this 2016 CR Report, we also cover the Enablement Factor ESG KPI for the first time. The share of revenue with sustainability relevance, which we reported for the first time last year, has also been included under our ESG KPIs in this year's report. The performance indicator section is complemented by an innovative look at total emissions at Deutsche Telekom. An interactive graphic illustrates the source of all Scope 1-3 emissions and shows related data at Group level.
Socially Responsible Investment (SRI) ESG KPI
At the end of 2016 around 20 percent of T-Shares were owned by investors who consider SRI criteria in their investment decisions at least to some extent. Two percent of T-Shares were held by investors who give priority to SRI aspects when managing their funds.
Investor communication expanded
We have been publishing relevant Deutsche Telekom ESG KPIs in our Annual Report for several years now, also providing forecasts regarding their future development. Financial market players interested in sustainability can also review ESG information in the Socially Responsible Investment (SRI) section on our investor relations portal. Interested parties can find additional information on these topics in the SRI facts info box provided as a supplement to this CR report.
In addition to our reporting activities, we also engage in targeted dialog with investors. Our CR and Investor Relations (IR) departments conducted two joint SRI roadshows in 2016, for example, one of which took place in the U.S. for the first time. We also held conference calls to keep interested investors informed and responded to numerous direct requests for information. We covered the entire spectrum of ESG criteria, from governance structure, corporate responsibility controlling and a sustainable supply chain to climate protection and our refugee aid efforts.
We use fifteen Group-wide ESGkey performance indicators (KPIs) to steer our CR performance.
- Socially Responsible Investment (SRI) ESG KPI
- Sustainable Procurement ESG KPI
- Sustainable Revenue Share ESG KPI
- Carbon Intensity ESG KPI
- CO2 Emissions ESG KPI
- Energy Intensity ESG KPI
- Energy Consumption ESG KPI
- Renewable Energy ESG KPI
- Enablement Factor ESG KPI
- Used Cell-Phone Collection ESG KPI
- Community Investment ESG KPI
- Beneficiaries ESG KPI
- Media Literacy ESG KPI
- Social Commitment ESG KPI
- Employee Identification with CR Commitment ESG KPI
All of Deutsche Telekom's national companies that participate in the CR data collection process are under the obligation to record our Group-wide ESG KPIs. These national companies represent 99 percent of the Group's net revenue.
Calculation of the Employee Identification with CR Commitment ESG KPI is based on an employee survey that is conducted every two years. The next survey is scheduled for spring 2017, which is why no values are available for 2016.
All ESG KPIs were systematically reviewed in 2016, just like they were last in 2014. We analyzed any need for adjustment based on changing internal and external general conditions. The internal analysis particularly focuses on three factors: relevance to our core business, contribution to implementation of our strategy and relevance to steering our performance, all questions as to how effective each ESG KPI will be in supporting our key sustainability efforts in the future. In 2016 we also analyzed the extent to which the UN Sustainable Development Goals (SDGs) relevant to our company are already covered by our ESG KPIs. In cases where we found coverage lacking, we looked into defining a new KPI and including it in our external reporting activities.
Based on this review, we decided to include five new ESG KPIs in our external reporting.
- Two new energy efficiency KPIs – the Energy Intensity ESG KPI and the Carbon Intensity ESG KPI – now supplement our Energy Consumption ESG KPI and will fully replace it in the medium-term. The two new ESG KPIs look at data volume instead of revenue. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks,
- In our 2016 CR Report we also report for the first time on the Renewable Energy ESG KPI, the Enablement Factor ESG KPI and the Sustainable Products and Services ESG KPI.
We are also planning to expand our Sustainable Procurement ESG KPI in the medium-term since we already achieved and even exceeded the target associated with this KPI as planned for 2015.
Current position in rankings and ratings
Deutsche Telekom's ESGT-Share was again listed on leading sustainability indexes such as the DJSI World and the DJSI Europe Index from RobecoSAM in 2016. In addition, rating agency oekom singled us out as the world's best telecommunications company in terms of ecological and social performance. We qualified for the A list of internationally leading companies in the CDP climate protection ranking (previously Carbon Disclosure Project) for the first time in 2016. CDP commends companies that report their CO2 emissions extremely transparently and in detail. In addition to making it onto the A list, we were also included in the STOXX Global Climate Change Leaders Index. The STOXX Global ESG Leaders Index listed Deutsche Telekom for the sixth year in a row. Once again, our share was listed on the FTSE4Good index and the UN Global Compact 100 index in the reporting year.(environmental, social and governance) performance is assessed within the scope of CR ratings, which provide investors with valuable information for their investment decisions. As in previous years, the
Our contribution to the UN's Sustainable Development Goals
The member states of the United Nations (UN) adopted the 2030 Agenda for Sustainable Development at their General Assembly in September 2015. The aim is to enable economic development and prosperity – in line with social justice and taking account of the ecological limits of global economic growth. The Agenda applies equally to all nations of the world. All emerging and developing economies as well as industrial nations must play their part.
The core of the 2030 Agenda comprises 17 sustainable development goals (SDGs). They officially went into effect in January 2016. The SDGs cover all three dimensions of sustainable development – the social, environmental and economic dimension – for the first time. Implementing the ambitious SDGs will require everyone to work together: policy makers, civil society, and business. As such, companies are also called upon to make concrete contributions.
We are answering this call. Many of our products, services and activities contribute to achieving the SDGs. Our customers can use our smart home solutions, for example, to more effectively monitor, control and reduce their energy consumption (SDG 13). Our broadband expansion gives many people access to digital education media (SDG 4). Our e-health services help improve medical care (SDG 3). And our cloud solutions make it possible to reduce energy consumption and conserve other resources as well (SDG 13). Our 2016 Annual Report describes our commitment to putting the SDGs into practice. Sections in our management report (a component of the annual report) that are relevant to the SDGs are marked with a symbol for ease of reference. These topics are then addressed in greater detail in our Corporate Responsibility Report.
We have identified those SDGs that Deutsche Telekom's stakeholders, e.g., investors, find particularly relevant and those to which we can contribute significantly with our business model. Below you will find an overview of the results of this relevance analysis. In 2017 we are planning to further advance this analysis process, e.g., by placing a stronger focus on essential SDGs in our CR processes and reporting. We we will also use the SDGs to prioritize measures in place at our company. SDGs can also be useful in helping us illustrate the sustainability advantages of our products, services and activities in our dialog with customers and employees
In 2016 we compared our KPIs with the prioritized SDGs as part of our 2016 ESG KPI review in order to enable our progress to be measured. All of these SDGs are already effectively covered by our ESG KPIs or supplemental indicators, and we are planning to align them even more in the future.
The following overview illustrates our contribution to the SDGs and refers to specific examples from the current CR report.
Ensuring integrity and compliance
We have clearly expressed our commitment to complying with ethical principles and current legal standards. This commitment has been incorporated in our Guiding Principles and Code of Conduct. We have introduced a comprehensive compliance management system: this is a way to combat risks effectively and make sure conduct throughout the Group is based on integrity and complies with our principles and regulations. All activities related to compliance management fulfill legal regulations and our Binding Corporate Rules on Privacy. This policy regulates how personal data is handled at Deutsche Telekom. Responsibility for the compliance management system lies with the top management level at Deutsche Telekom in the Board department for Data Privacy, Legal Affairs and Compliance. In addition, there is a member in each company of Deutsche Telekom on the Management or Board level who is responsible for compliance. The Chief Compliance Officer of Deutsche Telekom AG is responsible for the Group-wide structure, advancement and implementation of the compliance management system. This individual also heads up the Group Compliance unit. We also have compliance officers at each of our operating segments and national companies These individuals are responsible for ensuring that the compliance management system and our compliant goals are implemented on site.
Goals of the compliance management system (CMS)
At Deutsche Telekom, compliance refers to following the rules and doing the "right thing," which means compliance requires all employees to act with integrity. Within the meaning of our five Guiding Principles and Code of Conduct, integrity, and therefore compliance, forms the basis of all our business decisions and activities. It defines the behavior of all our employees when dealing with customers, employees and colleagues, investors, managers and Deutsche Telekom's general environment.
The goals of our compliance activities are based on these principles, the relevant regulations and legal standards as well as on our strategic objective of becoming the leading European telecommunications provider. Concretely, the purpose is to avoid compliance violations and business decisions that are not made with integrity. In addition, compliance should be integrated early on and permanently into business processes. This reduces liability risks for the company. Furthermore, compliance contributes to ensuring that our customers perceive us as a reliable partner. We ensure implementation of our overarching compliance goals in business activities by systematically applying the compliance management system in the areas of prevention, identification and response.
Focus on prevention
Each year, we carry out a Group-wide Compliance Risk Assessment. This helps us identify and assess our compliance risks and define focal points for conducting effective preventative measures, which are compiled in our compliance program.
The goal is to make sure that the conduct of our employees is ethical and compliant at all times, which is why we have set forth clear expectations on employee conduct in our Code of Conduct. We have introduced compliance-related Group policies for this purpose, such as regulations on anti-corruption measures, gifts, invitations, and events, as well as on handling consultants and agents. A policy database makes it easy for our employees to access and follow our policies (Group-wide implementation of the Code of Conduct).
Besides regular compliance training sessions, we also carry out comprehensive anti-corruption training. We specifically address managers to act as multipliers to further raise awareness of compliance. Their feedback is analyzed carefully and used to initiate additional training sessions or other measures if necessary.
Employees can also visit the "Ask me!" portal to have their compliance questions answered and find reliable information on laws, internal policies and codes of conduct relevant to their daily activities.
Finally, we established a variety of communication measures to promote a "compliance culture" in the company.
Identification and monitoring
Despite the best preventative measures, we are not always able to prevent breaches of law or serious violations of internal regulations at the company. We have created the Tell me! whistleblower portal to uncover non-compliant conduct. Our employees as well as external parties, e.g., business partners or customers, can use the portal to report misconduct (Protecting whistleblowers). Deutsche Telekom thoroughly investigates all reports within the limits of the legal framework and punishes such activity appropriately. We have introduced a Group-wide reporting process to control and monitor these activities, including regular internal and external audits of our compliance management activities.
Compliant interaction with business partners and suppliers
Our Code of Conduct specifies proper conduct for all of our employees. With our Social Charter we make a commitment to protecting and promoting human rights including compliance and other issues with the ILO's core labor standards. Our suppliers are expected to comply with the obligations, principles and values set forth therein and we do our part to place our suppliers under the obligation to do so. We also expect our suppliers to require the same of their sub-suppliers. Our General Terms and Conditions for Purchasing include a corporate social responsibility and anti-corruption clause that places suppliers under the obligation to take all steps necessary to prevent and punish active and passive forms of corruption. We have been offering regular e-learning and face-to-face compliance training to our suppliers since 2014 and provide them with a compliance guideline as well (see GRI index).
We select our business partners based on compliance criteria and conduct risk-oriented compliance business assessments. This applies to customers and suppliers as well as consultants (Consultant Policy), sales agents, development partners, and joint venture partners.
Renewed compliance management certification
In 2016, we once again had our compliance management system certified with a focus on anti-corruption measures. This enables us to ensure we can confront risks consistently and that we have established effective processes in the company. Ten companies in Germany were under review; 13 companies in other countries will follow in 2017.
The certification focused on processes in procurement, sales, HR, and mergers & acquisitions, as well as the topics of events, donations, and sponsorships. The potential danger of corruption is greatest in these areas. Auditors completed their audit of the effectiveness of our compliance management system (CMS) and the system passed with flying colors. We document details regarding audit content and corporate departments that have undergone anti-corruption audits in our audit report.
Certificates and audit assessments play an ever growing role, for instance, in bidding processes and decisions to award bids, offering a clear advantage whenever we are in competition with other companies. External auditors have previously certified our compliance management system (CMS) with a focus on anti-corruption measures and anti-trust law in 2010 and 2013.
"Tell me!" portal: 121 reports received
In 2016, 121 compliance-related reports were made to Deutsche Telekom via the "Tell me!" portal (120 reports were made in the previous year). 14 of those are still being reviewed for plausibility and investigations are being made into 60 plausible reports (as at: January 2017). 20 of these were confirmed as actual misconduct and were punished accordingly. 26 cases are still in the investigation phase. In confirmed cases, we impose systematic sanctions that are proportionate to the act and the guilt of the perpetrator and are in line with applicable legal provisions. Overall, most reports made in 2016 related to potential cases of embezzlement, theft, and fraud, commission fraud, and manipulation of targets.
How we protect human rights
Our contribution to the SDGs
Deutsche Telekom has made an express commitment to the UN Guiding Principles on Business and Human Rights published by the United Nations Human Rights Council in 2011. These principles require businesses to systematically identify the impact their operations have on human rights, and to prevent, mitigate or compensate these where necessary. In order to meet these requirements, we have developed an extensive program to implement the UN Guiding Principles and introduced an ongoing process comprised of several interconnected measures and tools (see diagram).
The obligation to respect human rights is anchored in the basic policies of Telekom, the Guiding Principles, the Code of Conduct, and the Social Charter. The Employee Relations Policy and the Diversity Policy of Telekom are also important in this context.
Tools for assessing potential impact on human rights
We use two tools to assess compliance with our Social Charter : first, each year we prepare a central Social Performance Report, in which 104 fully-consolidated companies of Telekom participate. This report did not record any violations of our Social Charter during the period from October 2014 to September 2016. We have also been offering a central Contact Point for Human Rights since 2013. This contact point can be reached via various channels, for example the public e-mail address email@example.com. Others use our anonymous whistleblower system, which allows them to submit their information anonymously. All contact options are listed on our Tell me! whistleblower portal, the purpose of which is to resolve violations of legal regulations and internal policies. We look into all tip-offs and reports received and introduce countermeasures as soon as the information is identified as plausible. You can find out how we handled the reports we received in 2016 here.
We also continued the process launched in 2013 to integrate human rights issues into the due diligence activities conducted in the context of mergers and acquisitions. In addition, we introduced special evaluation processes to assess employer-employee relations as part of implementing our Employee Relations Policy.
Used cell-phone collection
Too many used cell phones and smartphones are stuck in drawers or disposed of illegally with the household waste. Germany's recycling and reuse rate for small electronic appliances is much too low. Used cell phones, smartphones and tablets should be refurbished and reused or properly recycled to help us conserve valuable resources. We have been offering different ways for people to hand in their devices since 2003.
Customers have been able to return their used, high-end cell phones and smartphones to Telekom Shops under a buyback program since 2013. They receive store credit from the Telekom Shop reflecting their old device's current value, which they can use to purchase a new device, or they can choose to have the amount booked to their customer account. In collaboration with Teqcycle Solutions and Deutsche Umwelthilfe (DUH), we also operate the Handysammelcenter (cell-phone collection center) online portal, which was redone in 2016. The new website provides an overview of our partners and collection campaigns. Companies can use the portal to properly and safely dispose of their used cell phones and smartphones free of charge and receive a certificate as confirmation. Authorities, associations and other organizations can use the portal to launch their own collection campaigns.
Our contribution to the SDGs
In 2016, we collected 273 079 used cell phones and smartphones throughout Germany and either reused them or had them properly recycled. The entire cell-phone collection process is DEKRA certified and complies with strict data privacy standards. The joint cell-phone collection system run by Telekom Deutschland and DUH entered its thirteenth year in 2016. More than 2 million used cell phones have been collected so far.
Support for different collection campaigns
As in previous years, we supported the Die Handyaktion campaign conducted by different church-affiliated groups in the state of Baden-Württemberg in 2016. The campiagn is going to be expanded in collaboration with the Baden-Württemberg Ministry of the Environment.
The "Responsibility and sustainability. Join in!" collection campaign in Saarland, which we have been supporting since 2014, was extended due to ongoing interest. The Netzwerk Entwicklungspolitik im Saarland e.V. (NES) network took over the project's office activities in 2016. We are still a cooperation partner to the campaign, which focuses on projects such as providing special course material on the topics of cell-phone collection and resource efficiency. The campaign was acknowledged as a Werkstatt N project by the federal government's Council for Sustainable Development in 2016. That makes it one of Germany's 100 most innovative sustainable projects.
Woche der Umwelt expert forum
In 2016 Telekom Deutschland organized an expert forum in collaboration with DUH at the Woche der Umwelt (Environment Week) trade fair held on the park grounds at Bellevue Palace, the official residence of the president of Germany. Guests had the opportunity to ask questions about cell-phone collection and recycling processes. Woche der Umwelt is a trade fair for innovative environmental protection technologies and products. Around 13,000 people attended the event at the invitation of the German President and the German Federal Environmental Foundation (DBU).
Product certification: Blue Angel for speedphones
Sustainable products are a key factor in competition at our company. We keep our customers informed regarding environmental aspects and manufacturer specifications and give tips on how to use their devices in a way that is secure, energy-efficient and appropriate. We also tell them about ways to dispose of their devices that help conserve resources. We use well-known environmental labels when communicating with our customers.
Blue Angel for Deutsche Telekom products
95 percent of Telekom Deutschland's fixed-network devices are certified with the renowned Blue Angel environmental label. All of our DECT phones in our Sinus series and all phones in our Speedphone series bear this familiar symbol. Our speedphones are particularly energy-efficient, low-radiation and come with replaceable batteries. A new feature lets users configure the transmission power individually and thereby save energy. Updates can directly be transferred to the Speedphone, making the devices easy to update, extending their useful lives and reducing their carbon footprint.
In 2016, our Fairphone 2 became the first smartphone in our offer in Austria to bear the Blue Angel label. It is available at T-Mobile Austria.
TÜV Certified Green Products
In addition to the Blue Angel we are increasingly focusing on the TÜV Certified Green Product environmental label. This label exceeds the Blue Angel criteria in ways such as requiring inspections of working conditions at production sites. A number of our routers, including the Speedport Neo, have already been certified by this environmental label.
Developing sustainable products and services
We wish to systematically use the sustainability potential of ICT. That is why we continue to expand our range of products that contribute to sustainable development. Our primary focus in these efforts is on machine2machine communication, smart home technology and e-health. Sustainable products are an important pillar of our integrated climate strategy.
Managing the issue of sustainable products calls for systematic measures to be implemented throughout the supply chain. As we do not produce our products ourselves but receive them from suppliers, our measures already start with procurement. This is how we make sure that sustainability criteria are complied with along our supply chain. We aim to have our products certified by recognized environmental labels such as the Blue Angel and the TÜV "Certified Green Product“ label. The strict requirements of these labels help us see how we can further improve our products. They also help us inform our customers of the benefits of choosing sustainable products. At the end of a product's life cycle, we contribute to its recycling or proper disposal. For example, we regularly carry out used cell-phone collection campaigns.
Our contribution to the SDGs
When developing new, sustainable ICTexchange ideas with our stakeholders.solutions, we cooperate with various partners and
Making progress measurable
We measure our progress by means of various indicators. In 2014 we started measuring the share in sales of products and services that are classified as sustainable based on a risk-benefit analysis. 39 percent of our overall sales was generated with such products in 2015. We have defined performance goals, e.g., sales goals, as internal monitoring tools in certain fields such as e-health and Smart Home. We measure the impact of our collection campaigns with our Used Cell-Phone Collection ESG KPI.
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.
Mobile communication and health
Striving for secure mobile communications
Our contribution to the SDGs
We want to make our mobile communications infrastructure and our new products, as well as the processes on which they are based, as resource-efficient, secure and safe for health as possible. In Germany these activities are based in particular on voluntary commitments by mobile communications providers and an agreement with local authorities' associations. Compliance with these voluntary commitments is reviewed every two years. We recently submitted our annual expert report to the German Federal Government in 2016. In collaboration with Telefónica, we also support the information portal www.informationszentrum-mobilfunk.de
Our Group-wide EMF 2004, plays a pivotal role. The policy specifies standardized minimum requirements in the area of mobile communications and health, requirements that by far exceed those set forth by national laws. Our policy provides our national companies with a mandatory framework that makes sure that the topic of mobile communications and health is addressed in a consistent, responsible way throughout the Group. All of our national companies have officially accepted the EMF Policy and implemented most of the required measures.Policy, which we adopted in
Our EMF Policy stipulates the following principles and measures:
We place importance on discussing issues involved in mobile communications openly. We make all relevant information regarding our mobile communications equipment in Germany accessible to the public, e.g., on the EMF database operated by the German Federal Network Agency.
We provide consumer information that is easy to understand and pursue a fact-based, sound information policy. On our Group website we provide the latest information to those interested. We also provide our customers with information on the SAR levels of their devices. In addition, customers can get information on SAR levels at many of our shops, via our free environmental hotline or via e-mail.
We rely on close collaboration and constructive dialog with all those involved, including communities, when it comes to network expansion. Our goal is to find amicable solutions and negotiate acceptable compromises, which can only be achieved by responding fairly to critical arguments and being ready to learn from mistakes.
Promoting science & partnerships
Our guidelines call for promoting targeted research, scientific excellence, transparency, objectivity and intelligibility.
We conduct ongoing reviews of compliance with our EMF Policy. The findings are used to improve individual aspects and develop solutions in different working groups such as our EMF Core Team and the EMF Technical Working Group.
Evaluating and implementing the EMF Policy
We want to seamlessly implement our EMFPolicy throughout the Group. We help our national companies do this by providing specific tools. We developed standardized policies for funding research, for example, and published these on the Deutsche Telekom website. Our national companies are using these policies in their own funding programs. We also rely on our national companies' own initiative and encourage them to continue to improve their measures even after they have fully implemented the EMF Policy. The dialog conducted by the Deutsche Telekom national companies with other network providers and with consumers, politicians and scientists plays a central role in this context.
Regular reviews show us that the EMF Policy is being implemented in all of our action areas. We are also working on expanding our country-specific activities.
- In 2016 we introduced Small Cells, an innovative, high-performing mobile communications technology. Small cells add additional capacity to our mobile communications network in places with high traffic volumes. Small cells generally emit weaker electromagnetic fields than traditional macrocells as they are used in mobile communications networks. With small cells we can reduce cell phone transmission levels because the distances are so small. Because cell phone transmission levels are often the main source of electromagnetic fields in our immediate environment, reducing these is a particularly effective way to reduce EMF exposure. To guarantee the safety of the technology, we have conducted a series of projects in collaboration with RWTH Aachen, including projects to minimize emissions. Emphasizing transparency, we then discussed the results with stakeholders from the worlds of politics and science as well as with various associations. The results were incorporated into a pilot project launched in 2016 focused on setting up small cells in Munich. The project was approved by the Munich City Council.
- In Austria, the citizens' mobile communications forum gave interested citizens the opportunity to pose questions about mobile communications directly and online. The citizens' mobile communications forum is an initiative sponsored by the industry association Forum Mobilkommunikation (FMK). The goal over time is to turn the forum into a knowledge platform where people can go to to get their questions answered.
Helping refugees: from first aid to job market integration
Our contribution to the SDGs
Our commitment to refugee aid began in2015. Our initial focus was on first aid. Measures included supplying Wi-Fi to refugee reception centers, providing accommodation and recruiting civil servants for the Federal Office for Migration and Refugees (BAMF). More than 700 employees provided temporary aid to BAMF in working with refugees. More than 130 civil servants employed with Deutsche Telekom transferred to BAMF.
The refugees.telekom.de online portal, which we set up in 2015, was further developed in collaboration with partners during the reporting period. We relaunched it in 2017 under the name "Handbook Germany". The online portal provides information on topics like jobs, education and life and living in Germany. handbookgermany.de addresses refugees in the place where they communicate most – social networks. Content is circulated on a number of social media channels. The platform can also be used on smartphones.
We also restructured our other activities in2016 and are planning to focus on integrating refugees into the job market. We are extending our offer of internships for entering the job market and focusing on longer-term offers such as training openings, entry-level training and scholarships at our in-house University of Applied Sciences. We are also developing new pilot initiatives like the "Internship PLUS direct entry" program, for which we joined forces with Deutsche Post DHL Group, Henkel and the Federal Employment Agency. The program's main target group is refugees with professional experience that don't have credentials recognized in Germany. We want to help these people improve their career prospects. To start with - and to help them find their way around - they participate in two phases of practical training (internships). We subsequently hire them for a limited period of two years. During this time, the refugees are given the opportunity to take part in integration and language courses. Many of our employees have been involved in refugee aid right from the start and have been supported by Deutsche Telekom in their efforts. In future, we intend to channel their efforts into supporting new colleagues who are starting work at Deutsche Telekom.
Support for refugees
Integration into employment
Refugee Online Portal
* German Federal Office for Migration and Refugees
Signing the Charter of Digital Networking
The Charter of Digital Networking is an initiative that spans companies, industries and associations, and was founded at the instigation of the National IT Summit. Beside Deutsche Telekom, its initiators include other business enterprises, associations and academic institutions. The charter comprises ten principles regarding the social and economic potential of digital networking and dealings with data, infrastructures and standards. Companies that sign the charter commit themselves to these principles and, in doing so, show that they intend to contribute toward Germany's future-minded digital development. The charter stands for a shared set of values and sense of responsibility. The object is to hold a forward-looking dialog across all social levels and to create a common understanding as we move toward a digital society. Together, topical questions on digital transformation are addressed, answers developed and an exchange of experiences organized on the implementation of corporate digital responsibility.
Taking responsibility in our society
Our contribution to the SDGs
We contribute to society in a number of ways with our corporate citizenship program, engagement@telekom. engagement@telekom is based on two pillars:
- Long-term partnerships with non-profit organizations
- Corporate volunteering (supporting our employees in their volunteering activities) and corporate giving (our donation activities)
In times of digital transformation, we want to be a trusted partner to society. We contribute our core expertise and the commitment of our employees to these efforts.
We give our employees the opportunity to volunteer for social projects or the environment within the scope of our Social Days. Examples include our participation in Civic Involvement Week sponsored by the National Network for Civil Society. Our social commitment often takes the form of longstanding partnerships like our partnership with Nummer gegen Kummer, the Telefonseelsorge crisis helpline, the Lebenshilfe aid organization and DKMS, the German Bone Marrow Donor Center.
Corporate volunteeringResponsibility wins!".is also an important component of our training and development activities. The volunteer efforts of our apprentices are given special recognition in our Group competition, "
Our corporate giving concept includes donations for aid organizations worldwide, preferably those with which we have longstanding partnerships, and fast disaster relief. Our Group Donation Policy lays out the guidelines for these activities. For example, we have been collaborating with Germany's Relief Coalition, Aktion Deutschland Hilft, for 13 years now.
When it comes to our corporate volunteering, we collaborate closely across country borders and share experiences and best practices. We use a set of KPIs to measure our success:
- The Social Commitment ESG KPI reflects our performance.
- The Community Investment ESG KPI reflects our social commitment in terms of financial, human, and material resources.
- The Beneficiaries ESG KPI measures the huge number of active contributors as well as the broad target groups they reach.
- The Media Literacy ESG KPI highlights the high percentage of projects and activities promoting the competent handling of media. It is highly relevant to us as it correlates closely with our core business.
In 2016 we have analyzed the impact of our engagement with the SDGs. The results show that our corporate citizen strategy is a large contributor in achieving the goals, with emphasis on SDG #4, #5, #10 and #17. For 2017 we are planning to further strengthen the connection between our corporate citizenship program and the SDGs - focusing on core activities (e.g. inclusion by broadband expansion and innovation) as well as our focal topic “digital literacy”.
Teachtoday – Initiative for safe, competent media use
Our contribution to the SDGs
Teachtoday is our initiative for teaching people how to use media safely and competently. It supports children, young people, parents and grandparents as well as teachers by offering hands-on tips and material. Our homepage, teachtoday.de, is available in German, English, Romanian, Polish and Croatian.
Around 150 children talked about data privacy and participated in eventful workshops at the Teachtoday Summit for Kids in November 2016. The highlight of the event was the awards ceremony for the "Media, sure! But secure." competition. The jury presented awards to eight projects including a cross-border media workshop entitled "Das ist unser Netz! – To jest nasza siec!“ by Aktion Kinder- und Jugendschutz Brandenburg e.V. At the workshops, German and Polish kids have the opportunity to learn more about their own media use.
The Teachtoday media obstacle course toured Germany again in 2016. The goal of the obstacle course is to the raise awareness of children between the ages of 9 and 12 when it comes to secure media use. Among other destinations, the obstacle course paid a visit to the Schlingel children's film festival in Chemnitz. Teachtoday is a partner of the festival, which attracts more than 18,000 visitors and currently features more than 150 films from all over the world for children and young people.
Two issues of our Scroller media magazine were published in 2016. The issues focused on social networks and data privacy. The magazine targets children between the ages of 9 and 12 and provides parents and teachers with information in special supplements. Scroller is available online and as a free print version. It encourages children to think about how they use media and learn to co-create the digital world. The scroller.de portal is available in German and English. We also published the first interactive issue in German and Arabic in October 2016.
Digital education was on the agenda at the 2016 National IT Summit held in Saarbrücken. One central focal point was secure, competent media use by children, young people and adults. Teachtoday spoke with German Chancellor Angela Merkel at the event. Her credo for the future of digital education: targeted media education for all and intensified communication with each other. Teachtoday also interviewed Timotheus Höttges, Chairman of the Board of Management at Deutsche Telekom, about the digitization of society, the significance of data privacy and how to turn young people into responsible Internet users.
The Teachtoday initiative received a number of awards in 2016. We received four Fox Awards, which recognize effective and efficient marketing and communication solutions. The Gold Fox Award went to our communication concept and we received the Fox Visuals Gold Award for our visual presentation. The Scroller media magazine received the Silver Fox Award and the Fox Visuals Silver Award. Teachtoday also received three Comenius EduMedia Seals presented by the scientific association Gesellschaft für Pädagogik und Information (GPI). The entire initiative was recognized in the "didactic multimedia products" category, the obstacle course in the "computer games that encourage competence" category, and Scroller magazine in the "general multimedia products" category. Scroller was also recommended by Stiftung Lesen, the German Reading Foundation, to promote safe, competent media use.
More than 200 new projects for the "Yes, I can!" initiative
Our contribution to the SDGs
Our "Yes, I can!" initiative teaches young people key skills to enable them to act independently and with self-confidence. In doing so, it promotes equal opportunities within our society. In the reporting year, more than 200 new projects went live with funding totaling over 850,000 euros. The focal topic for 2016 was "Competence knows no borders," and integration was at the top of the agenda. As a result, the initiative upped its support for projects promoting participation in society, creating space for encounters and involving activities shared by children and young people from different ethnic backgrounds. The "Yes, I can!" project has sponsored more than 1,100 projects throughout Germany with a total of almost 6 million euros since it was launched seven years ago.
The "Media workshops" pilot project got off the ground in Berlin in November 2016. The 6-month focus is teaching media skills at public institutions for children and young people. Educators from four Berlin-based institutions are participating and using what they learn in their own teaching activities. The media workshops focus on topics like "Making & Repair," "Computer, Internet & Social Media", "Film & Photo" and "Programming & Robotics." The goal of the project is to improve the skills of children and young people when it comes to the digital world.
The "Yes, I can!" initiative was integrated into the Deutsche Telekom Stiftung foundation in January 2017. The initiative's new focus will be on teaching media skills. The goal will be the long-term sponsorship and development of projects.
Innovative solutions to social challenges
Technology can also be used to address social challenges, which is why we supported the development of a variety of digital solutions and educational offers during the reporting period:
Our contribution to the SDGs
Play to fight dementia: the Sea Hero Quest app
The mobile game Sea Hero Quest in Deutsche Telekom's Game for Good initiative paves the way for the world's biggest baseline study in dementia research. The object of the study is to help recognize signs of dementia at an early stage and to obtain information on the effectiveness of therapies. One of the first effects of dementia is the loss of spatial orientation. Although researchers have data from dementia sufferers, hardly any comparative data are available from healthy individuals. Sea Hero Quest therefore collects anonymous data on the orientation patterns of people playing the game. Players can also provide information on their age, gender and nationality to further contribute to the research. This data helps scientists understand exactly which abilities are affected in the early stages of dementia. All of the data is transmitted twice per second, stored at our high-security data center in Germany and then made available to scientists.
So far, over 2.7 million people have played Sea Hero Quest and, in doing so, have made their contribution to dementia research. 13 of our European subsidiaries flanked the game with communication measures, ads, media and public relations work, and thus helped "Play to fight dementia" on the way to success. Standard data on the spatial orientation of healthy people in all age groups is now available for the very first time. This standard data is seen as a key step in the development of new methods that will make timely dementia diagnosis possible.
Year of voluntary social/digital work: second round
The "Year of voluntary social/digital work" (FSJ Digital) pilot project, which is being conducted in the city of Halle in Saxony-Anhalt, moved into its second year. Under the FSJ Digital program, young people between the ages of 16 and 26 with an interest in modern media can work on digital projects or help people learn how to use new media at non-profit organizations, such as facilities for seniors and people with disabilities, day-care centers and clinics. Volunteers receive media teaching support during their entire time in the program. The concept is being tested at 25 facilities in Saxony-Anhalt. The program offers a wide spectrum of activities ranging from digital storytelling to creating accessible web content. The project is sponsored by the German Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ) and supported by Deutsche Telekom and NrEins.de AG. The project will be evaluated after completing its second year.
Fast, safe response to sports injuries – the GET app
We contributed to the development of the GET app in 2016. GET stands for the German equivalent of "concussion test app.“ Athletes can use this interactive tool to find out whether they have a concussion after a fall or collision with another player. The app identifies signs of a concussion within three to four minutes. In addition to having access to information on concussions, users can conduct a quick test and check their response times and eye function. The app is provided by the "Protect your head" initiative of the ZNS – Hannelore Kohl Stiftung foundation.
MyShake app turns smartphones into an early warning system for earthquakes
Researchers from UC Berkeley are working together with Deutsche Telekom on a smartphone-based earthquake early warning system. The general idea is smartphones that use an accelerometer to read earth movement. If the data correspond with the vibrational profile of an earthquake, the MyShake app sends the time, location and strength of the tremor to the Berkeley Seismological Laboratory for further analysis. An earthquake is confirmed if at least four phones register the movement. We are currently looking for more people to use the MyShake app in order to create a network with better coverage. The plan is to begin sending earthquake warnings to users following a one-year pilot phase.
Shared Heartbeat app
The Shared Heartbeat app is a joint project of Magyar Telekom and Isobar Budapest and was launched in April 2016. The app enables newborn babies to hear their mother’s heartbeat. The heartbeat of a mother is a defining factor in an infant’s life but this sound moves away after birth. We aim to use technology to connect people in ways previously unimaginable and enhance the most natural bonds through this app.
Cheering Heart app
The Cheering Heart app allowed anyone in Hungary to express support and cheer athletes and teams participating at the Olympics, helping them to excel in their discipline. Athletes were provided with a heart that vibrates and flashes once a heartbeat is sent to them, indicating that lots of people at home are thinking about them. A heartbeat can be sent in numerous ways: using #egyekvagyunk, by sending a message or clicking a button on the Internet site egyekvagyunk.hu, as well as by shaking their smartphones. The hearts have been used at the Olympic Games, the Paralympic Games and other major sport events. So far, more than 2 million heartbeats have been sent to athletes.
Navigation stick for the visually impaired
As a socially responsible company, T-Mobile Czech Republic aims to support visually impaired people. We have been cooperating with the Czech Technical University to develop a unique navigation solution for the blind. Connecting up global navigation satellite systems (GNSS) and wireless data transfer networks has created one of the most advanced orientation solutions for visually impaired people. T-Mobile Czech Republic has supported the development of this navigation solution by providing connectivity in 3G and 4G, data SIM cards and modems. The newly developed navigation stick for blind people is connected to a smartphone and the navigation center. Based on a 2G-4G app, the service enables navigation data, voice communication and images to be transferred. It also utilizes a camera for orientation in buildings where GNSS does not work. Currently, the solution is in the final testing phase and will be launched in 2017. We will be offering the technology and a special tariff to blind people who have been trained to use this tool.
Four new additions to supplier development program
We collaborate as partners with our suppliers to make sure they are able to meet our high sustainability criteria with measures like our development program for key strategic suppliers. In this program we work together to come up with solutions for topics such as environmental protection, working hour regulations and occupational health and safety. It is a clear win-win situation for us as well as our suppliers because better working conditions have a positive influence on employee loyalty and motivation, raise productivity and improve the quality of products. In 2016 we added four new suppliers to the program; it now comprises a total of eleven suppliers.
The program's success is tangible. The following improvements have been made at Chinese suppliers, for example:
- Work hours at one of our suppliers have dropped from 68 to 48 hours a week.
- Another supplier upped its productivity by 12 percent thanks to improved production processes.
- Waste at the main facility of another supplier was reduced by 16 percent thanks to a waste analysis.
- One supplier now generates 16,902 metric tons less CO2 per year, equivalent to the CO2 emissions of 10 fully booked flights from Berlin to New York.
The diagram shows the areas in which we audit the suppliers participating in our program. Using the results, we work with them to develop a plan for remedying any issues. Suppliers receive support from Deutsche Telekom experts as well as professional external consultants in applying these measures. All activities and results are documented so that we can gauge the effectiveness of the measures employed. Adjustments are then made as needed.
We conducted a pilot online survey during the reporting period to assess the effectiveness of corrective measures following social audits. Supplier employees had the opportunity to anonymously rate improvements in nine different areas. We analyzed the results of the survey and introduced additional improvement measures where necessary.
We are planning to use such surveys as a standard tool in the future to assure the quality of improvement measures introduced in social audits and in our supplier development program.
We also developed training content for our suppliers. This content will be made available via an online tool in 2017 and suppliers will be able to use it independently. We are hoping this will help us reach even more suppliers.
Improving sustainability in the supply chain
Our contribution to the SDGs
Depending on the development phase of the supplier relationship, we use different tools to make our supply chain more sustainable. A ten-percent sustainability-weighting factor is included in all bids for proposals. This creates strong incentives for suppliers to offer more sustainable products and services.
We also use a four-level approach to minimize risks and encourage our suppliers to improve their practices. The funnel chart illustrates the process. Via our supply chain management system we initially ask all potential suppliers with an annual order volume of more than 100,000 euros about 18 sustainability-related aspects (phase 1). These aspects relate to human rights and corruption as well as environmental protection and occupational health and safety. All suppliers are subject to mandatory re-qualification after three years.
As the business relationship proceeds, we ask strategically relevant and/or high-risk suppliers to enter extensive information about their practices in the E-TASCsocial audits (phase 2). In doing so, we focus not only on direct suppliers of Deutsche Telekom but also on downstream suppliers as far as possible. We also boost the effectiveness of our audits by collaborating with thirteen other companies in the Joint Audit Cooperation (JAC). The increase in the number of JAC members means that the number of suppliers that do business with several members of the cooperation is growing. This prevents audit redundancies.(Electronics Tool for Accountable Supply Chains powered by EcoVadis) information system. Experts evaluate these statements on the basis of additional background information and targeted research. We take things a step further in our relationships to some suppliers that exhibit a higher CR risk and conduct on-site
Based on the information obtained from suppliers and on audit results we classify and evaluate suppliers according to CR criteria (phase 3). This is done using supplier scorecards, which let us assess a supplier's sustainability performance and compare them with other suppliers at a glance. All available sustainability information (from the E-TASC information system, our own research, audits and pre-qualification results) are included in our assessments of top suppliers.
Further information on supply chain management
We work closely with our suppliers to address any acute problems that are identified. We have set up a continuous process to help these suppliers improve their sustainability for the long-term. Our supplier development program (phase 4) and sustainability workshops are key elements of this process. We held workshops with four suppliers in 2016. In cases of significant disregard of our requirements, we initiate an escalation process to effect fast resolution in accordance with the Deutsche Telekom sustainability standards. The results of the supplier evaluations and the measures taken to solve the problems are recorded centrally.
Protecting the climate
"We assume responsibility for a low-carbon society" is one of the key action areas of our CR strategy. We intend to keep this promise with the help of our Group-wide climate protection target, which was adopted in 2013: We are planning to reduce our CO2 emissions by 20 percent by 2020 compared with 2008 (excluding T-Mobile USA). We have specified a variety of measures and developed measurement tools to help us reach this goal.
Measurable success in climate protection
We use different key performance indicators (KPIs) to measure the effectiveness of our climate protection efforts. KPIs also provide transparency to shareholders regarding our progress in realizing our climate target. We have been recording two new KPIs since 2016: Carbon Intensity and Energy Intensity. These KPIs express the ratio between our CO2 emissions or energy consumption and the data volumes we transport. They will be replacing our Energy Consumption KPI, which creates a correlation between energy consumption and revenue. In contrast, these new KPIs provide a clear depiction of developments in the energy and emissions efficiency of our network, thereby underlining the relationship between these developments and our core business.
Direct and indirect emissions
We use the internationally recognized GHG protocol to measure our CO2 emissions. This standard distinguishes between three CO2 emissions categories (Scope 1, 2 and 3). We use Scope 1 and Scope 2 emissions to calculate our CO2 Emissions KPI. We have also been recording all relevant Scope 3 emissions pertaining to our business in Germany since 2013 as well as the emissions generated by various national companies since 2015.
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|
More green energy at European national companies
Our contribution to the SDGs
We have encouraged our European national companies to work toward a share of renewable energy in total electricity consumption that is at least 10 percent above the national energy mix. Indeed, our national companies further increased their shares of electricity from renewable energy, coming to a total group-wide average of almost 33 percent by the end of 2016.
On average our group-wide share of electricity from renewable energies was 10 percent above national energy mixes*. To this end, our national companies also use renewable energy certificates (guarantees of origin ). Despite our efforts, however, we were unable to achieve our target values at some of our national companies. Other national companies such as Magyar Telekom, T-Mobile Netherlands and OTE in Greece are setting a great example and are already using 100 percent renewable energy to meet their electricity needs.
* In calculating the share of renewable energy in the electricity we consume, we take the country mix as a basis as no data is available regarding the share of renewable energy in the residual mix. The share of renewable energy in the residual mix is typically lower than the country mix. For Germany, the EEG surcharge paid is taken into account when calculating the share of renewable energy.
Operating energy-efficient networks
Our contribution to the SDGs
We operate our own fixed-line and mobile networks in Europe and the U.S. Much of our energy requirements come from operating this network infrastructure. In the interest of our customers, we continue to increase the capacity and performance of our networks so that we can handle growing amounts of data and improve the speed and quality of data transmission. However, this also means higher energy requirements. We pursue three different approaches to reduce our energy needs:
- We update our network infrastructure, e.g., by migrating to IP technology, installing highly efficient air conditioning units and systematically removing equipment we no longer need.
- We optimize energy generation and supply with the help of technical innovation.
- We use more energy-efficient technology for lighting, monitoring and above all cooling our facilities.
Our internal energy service provider, Power & Air Solutions, which provides energy for our Group companies in Germany, plays a key role in these activities. Power & Air Solutions' energy management practices have been ISO 50001 certified since 2013.
Measuring and controlling energy consumption
The PUE (Power Usage Effectiveness) factor is measured annually and is an important performance indicator for managing our climate protection measures. We are planning to reduce the PUE factor of our fixed-line network in Germany to 1.4 by the year 2020. We expect to see this value continue to fall over the next few years and are confident that we will reach our goal. This will allow us in part to compensate for increasing energy requirements due to growing volumes of data and new features.
Researching efficient network technologies
We successfully wrapped up the EARNI research project in 2016. The project's goal was to improve network capacity utilization and energy efficiency by using multipurpose technologies.
Our aim is to promote and benefit from the diversity of our employees as a source of creativity and innovation. That is why we offer our employees numerous opportunities to grow personally and professionally, regardless of their gender, age, sexual preference, health situation, ethnic background or culture.
We are particulalry concerned with increasing the number of women in expert and management careers at our company. We want to be the first DAX-30 company to have 30 percent women in middle and senior management positions. To this end, we launched the Fair Share initiative.
Our contribution to the SDGs
We have been encouraging our employees to value diversity at the Group since 2015 with our unconscious bias campaign. We used explanatory videos and practice-oriented workshops to show to our employees how an unconscious bias influences thoughts, feelings and actions and how such behavioral patterns can be overcome. We held more than 90 workshops (face-to-face or online) in Germany in 2016 alone. We offer multiplier and mentor programs to establish managers as role models and ambassadors who encourage diversity. Many of our employees have become actively involved in addressing various aspects of diversity, for example as members of internal initiatives such as queerbeet, a network of lesbian, gay, bisexual and transsexual employees, or of the numerous women's networks that have been established within the Group. These measures are heavily based on our Diversity Policy, Guiding Principles and our Employee Relations Policy as well as the Deutsche Telekom Social Charter. We are also a founding member of the Diversity Charter association. Click here for more information for investors and rating agencies.
As early as during the hiring process we emphasize diversity and consider options other than just traditional educational routes. One good example is our entry-level training scheme for young people who are disadvantaged in terms of their social and educational background and our part-time apprenticeships/degree programs for single parents.
We support an effective work-life balance with extensive offerings to allow our employees to work at their best. This includes daycare offers and assistance with caregiving, offers which exceed legal requirements. Examples include different options for reducing working hours and the guaranteed return to full-time work. All employees can return to their full weekly hours whenever they want. In 2016 we also introduced lifetime work accounts, which can be used by our employees to take limited time off, for example.
We regularly assess the effectiveness of our measures for encouraging diversity and publish the findings on platforms such as Fair Share and the Deutsche Telekom work-life report. The share of women on our Group's Supervisory Board has meanwhile risen to more than 40 percent. And the proportion of part-time employees at our company continues to increase as well. 13.4 percent of employees covered by collective agreements and 20.7 percent of Deutsche Telekom civil servants throughout Germany are currently working part-time. The number of disabled employees working for us in Germany puts us well over the statutory quota of 5 percent.