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 Policy: International roll-out continues
Our CR Policy provides the mandatory framework for the sustainability management activities at all Group units. After rolling out the policy at Group Headquarters, Telekom Deutschland and T-Systems in 2014, we introduced the policy at other major European national companies in 2015, including OTE in Greece, Magyar Telekom in Hungary, Hrvatski Telekom in Croatia and T-Mobile Poland. Further national companies of T-Systems will follow in 2016.
BE SMARTER! - New sustainability strategy 2016 - 2020 from Magyar Telekom
Our company aims to make sustainability an integral part of our business. We therefore developed a new sustainability strategy for the period from 2016 to 2020 that was influenced by the expectations of responsible investors, EU directives, industrial and corporate trends, local conditions, and consumption patterns. Climate protection, education, and digitally enabled sustainability will be the major focus of the strategy until 2020.
Our goal is to help our customers become climate conscious. Our ambitious objective is to generate revenue from our climate protection activities while at the same time reducing our actual CO2 emissions below 100,000 tons. This enables us to enhance our emission-decreasing activities and specifically build on our “green” services.
Our goal is to directly or indirectly reach 100,000 people in Hungary through our training program by 2020 with the aim of educating the public and our customers. We primarily focus on programs aimed at eliminating the digital gap and expanding the succession pool in industry.
Digitally enabled sustainability
As a sustainable digital company, Magyar Telekom enables its customers to use sustainable digital services. We strive to pursue responsible marketing and activities that enable and inspire others. Awareness of Magyar Telekom as a sustainable company is projected to reach 50 %.
Certified health, safety, and environmental system: almost all workplaces covered
We want to make sustainability a component of all our business processes and of our employees' everyday lives. Our health, safety and environment (HSE 18001 for occupational health and safety and ISO 14001 for environmental management.) management system helps us make this possible. The system is based on the international standards OHSAS
Through our compliance with legal regulations, we meet the essential requirements for OHSAS 18001 certification in Germany. Outside of Germany, 99 percent of our employees work at offices and facilities covered by a certified health, safety and environmental (HSE) management system. Therefore, we have not yet fully reached our goal of having all national companies outside of Germany with more than 50 employees certified. Certifications in China, India, and Italy are planned for 2017 in order to reach the full 100 percent mark. We verify certifications with umbrella certificates and with separate certificates as well. (See graphic.)
An HSE management system calls for systematic planning, implementation and improvement of operational processes in the areas of health, safety and environment. This promotes the health of our employees and has a positive effect on their performance. It is also beneficial when it comes to bidding on new projects since an increasing number of potential customers now require their suppliers to provide HSE certificates.
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.
Achieving more together: international collaboration
How can international corporations put sustainability strategies into practice across borders? Deutsche Telekom employs CR managers for the relevant business segments and national companies to reach this goal. Through the CR Manager Network, CR managers have been attending regular face-to-face and online meetings since 2008 to share ideas and promote essential CR topics.
At the 2015 CR Manager Meeting, participants resolved to improve international and virtual collaboration in working groups. We began implementing this goal in 2016: working groups set up regular web meetings to work together on promoting key topics. The 16th CR Manager Meeting took place on April 25 and 26, 2016 at The Hague. Under the motto of "Achieve more together," participants discussed the key issues of "joint crisis management" and "handling environmental impacts," among other issues, in working groups. The second day focused on the Sustainable Development Goals (SDGs) of the United Nations and Deutsche Telekom's contribution to implementing them.
We have offered an e-learning training unit on the issue of data collection since December of 2016. CR Managers from our national companies can use the training unit to gain information on the most frequent challenges they face in data collection and commenting and obtain valuable tips.
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.