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  • 2017 Corporate Responsibility Report

2017 CR program

  • Goals Scheduled completion date Measures Status
    Advance CR governance Ongoing
    • Gradually implement the Group Corporate Responsibility Policy at the national companies
    • Drive the integration of CR into the Group's central business processes
    • Integrate CR into the Group strategy
    • Group Corporate Responsibility Policy introduced at the majority of European national subsidiaries. Implementation of the CR Policy in the USA is slated for 2018.
    • Ten key ESG img KPIs reported in the non-financial statement
    • Four new ESG KPIs established:
      • CR-Qualified Top 200 Suppliers ESG KPI
      • CDP img Supply Chain Coverage ESG KPI
      • Social Innovation ESG KPI
      • PUE img value also shown as KPI img for the first time and complemented by a target value
    • Awarded the German Sustainability Award 2017
    Embrace corporate values, accompany the transformation process Ongoing
    • Promote new forms of collaboration at the Group
    • Participate in dialog on topics relevant to society
    • Regularly review all KPIs for the benefits they provide, make them mandatory throughout the Group with target values
    • Group-wide implementation of programs and formats - virtually or as face-to-face events, including the annual "Guiding Principles Day"
    • 18 CR manager meeting held in Bonn as part of the UN Climate Conference.
    • Dialog on digital responsibility with experts from business, science, politics and society expanded via telekom.com and social media
    Promote the Sustainable Development Goals (SDGs) Ongoing
    • Expand measures for SDG target achievement
    • Integrate key SDGs into CR processes and reporting
    • Use of SDGs for dialog with customers and employees intensified, also in terms of product assignment
    • Set up impact measurement
  • Goals Scheduled completion date Measures Status
    Ensure systematic stakeholder  engagement Ongoing
    • Stakeholder engagement strategy based on the principles of the Global Reporting Initiative (GRI G4).
    • Stakeholders img involved through different formats, including dialog with experts from business, science, politics and society on digital responsibility via Deutsche Telekom's YAM platform; international sustainability dialog held by the Joint Audit img Corporation (JAC); the supplier development program; the "We Care" magazine; the Magenta Security Congress; the Cyber Security Summit; the "1001 truths - trust and opinion-forming online” activity day; revision of the "Fakten zu Mobilfunk und Gesundheit” (Facts about Mobile Communications and Health") brochure; SRI img roadshows and the in-house climate conference as part of COP23 at our Service Headquarters in Bonn 
    Establish a materiality process Ongoing
    • Conduct annual materiality analysis (materiality processes img)
    • Materiality img analysis conducted for 2017
    • Materiality process img further developed pursuant to the Global e-Sustainability Initiative img (GeSI img) methodology.
  • Goals Scheduled completion date Measures Status
    Reduce CO2 emissions throughout the Group by 20 percent compared to 2008 (absolute figures) 2020
    • Roll out climate protection activities internationally
    • Introduce Group-wide monitoring
    • New CO2 target for newly acquired cars (average of 95g CO2/km for newly acquired vehicles by 2020)
    • Migrate network infrastructure to energy-efficient IP img technology
    • Consolidate data centers
    • Group-wide climate protection target approved by Group Board of Management in 2013
    • Annual status report to Board of Management implemented
    • Emissions from networks in Germany are higher than projected; we will analyze the effects and other measures to meet our target; already on track: an expansion of our commitment to renewable energy
    • Change of method to calculate the climate target based on a market-based approach, in order to take renewables into account
    • Around twelve million lines switched over to IP in Germany.
    • The PUE value in T-Systems Deutschland data centers is 1.54.
    Develop an integrated climate protection strategy and adapt it to climate change developments 2020
    • Reduction of CO2emissions
    • Increased share of renewable energy
    • Increase energy efficiency and introduce two new KPIs to show the ratio between our energy consumption and carbon footprint to transported data volume
    • Identify and use business potential from climate-friendly services ("enabling") as well as opportunities in terms of product development and offers (establish sustainable product portfolio)
    • In 2017 we showed the PUE value as a KPI for the first time and complemented it with a target value.
    • 2017 saw Greece (OTE), Hungary, Albania, Austria and the Netherlands use 100 percent electricity from renewable energy sources
    • The share of electricity from renewable energy sources came to an average of 10 percent above the relevant country mix throughout the Group in 2017.
    • Enablement factor: In Germany we enabled our customers to generate around 70 percent less CO2 than the amount generated by our company (factor: 1.7:1). In Europe (including Germany), our customers' potential savings in 2017 were significantly higher than in the previous year (factor 1.2, 2016: 0.95).
    • According to an analysis conducted in 2017, we generated 40 percent of our total revenue in 2016 with sustainable products (39 percent in 2015)
    Record Scope 3 emissions img throughout the Group 2016
    • Develop methods to measure company and product-related CO2 emissions and integrate these into the reporting process
    • Scope 3 emissions fully recorded and reported for business in Germany and almost all national companies (since 2015); in 2017 also reported for T-Systems
  • Goals Scheduled completion date Measures Status
    Implement an occupational health, safety and environmental management system in compliance with ISO 14001  and OHSAS 18001  at all national companies with more than 50 employees. Ongoing
    • Implement an integrated management system based on both standards and harmonize the different management process levels at the national companies
    • 100 percent of employees in Germany and 99 percent of employees outside Germany work in a workplace that is OHSAS 18001 img certified. Some 93 percent of employees in Germany are employed at an ISO 14001-certified workplace. Internationally, we are at 83 percent coverage. Furthermore, we have additional certificates outside of Germany for our health, safety and environmental management systems, with which we cover 99 percent of our international employees.
  • Goals Scheduled completion date Measures Status
    Evaluate products and solutions regarding their contribution to sustainability Ongoing
    • Implement the criteria and indicators developed in collaboration with external and internal stakeholders in company processes
    • Integrate product-based sustainability controlling in business processes and ensure Group-wide harmonization
    • Integrate the topic of sustainable products into corporate processes and develop a comprehensive strategy
    • Analyze products in terms of how they contribute to sustainability and what this can do for our business; include results in customer communication
    • Participated in industry-wide solutions to evaluate products and solutions in terms of sustainability
    • 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 2017).
    • According to an analysis conducted in 2017, we generated 40 percent of our total revenue in 2016 with sustainable products (39 percent in 2015);
    Ensure stakeholder  engagement and customer information 2020
    • Conduct regular stakeholder dialog on specific topics
    • Develop sustainability-related customer orientation policies
    • Drive international standardization, e.g., via seals of quality or certification in the ICT img sector
    • Get more products certified with the Blue Angel and TÜV Green Certified Product environmental labels
    • Regular stakeholder dialog on specific topics conducted
    • All DECT img phones from our Sinus series as well as all phones from the Speedphone series bear the Blue Angel environmental label.
    • The Media Receiver Entry and Media Receiver 201 received the Blue Angel.
    • Sustainability award for our commitment and role as pioneer and multiplier for climate protection
    Integrate life cycle assessment and usage behavior (sustainable consumption) 2020
    • Tap efficiency potential in the product life cycle and enhance products and solutions to include sustainability criteria
    • Blacklist on environmentally harmful materials (not prohibited by law) contained in our products
    • Successful advancement of lease model for devices (e.g., Media Receiver) to increase recycling share and length of use
    • Workshops conducted with suppliers on the voluntary materials blacklist, which was developed in cooperation with the Fraunhofer Institute for Reliability and Microintegration (Fraunhofer IZM)
  • Goals Scheduled completion date Measures Status
    Develop innovative, sustainable business models 2020
    • Establish general requirements to promote innovation in the sustainability field and identify and evaluate young companies and start-ups (partnering)
    • Promote innovative business ideas through hub:raum program
    • In 2017 hub:raum invested up to 300,000 euros in six start-ups (seed funding). Prototype program launched by hub:raum to promote the development of innovative 5G use cases in Europe.
    • Promotion of innovations through our internal innovation program „UQBATE
  • Goals Scheduled completion date Measures Status
    Increase share of socially responsible investors in freely tradable stock Ongoing
    • Further enhance rating results
    • Direct dialog with investors at SRI roadshows and in SRI calls
    • Improve communication with investors regarding our sustainability efforts
    • Again included in RobecoSAM img World and Europe Index
    • Two "Socially Responsible Investment (SRI)" roadshows held in France and the US
    • At the end of 2017 around 18 percent of T-Shares were owned by investorswho consider SRI criteria in their investment decisions at least to some extent. Three percent of T-Shares were held by investors who give priority to SRI aspects when managing their funds.
    • Interested investors were informed through dedicated conference calls and participation in SRI conferences; numerous direct queries from rating agencies, analysts and investors were answered
  • Goals Scheduled completion date Measures Status
    Increase the share of suppliers that will be audited for sustainability Ongoing
    • Weighting sustainability aspects at 10 percent for bids
    • Supplier Code of Conduct (SCoC)
    • Supplier risk analysis
    • Supplier surveys and self-assessments
    • Supplier evaluation and development
    • Escalation process img for violations
    • Target of increasing the share of suppliers audited for sustainability to 80 percent by 2020 was already achieved in 2016
    • Share of suppliers audited for sustainability in 2017: 81 percent
    • 109 suppliers participated in the CDP Supply Chain program (this covers 66.4 percent of our procurement volume)
    • CR-Qualified TOP 200 Suppliers ESG KPI and CDP Supply Chain Coverage ESG KPI further developed
    • Supplier Code of Conduct revised, widening its scope by coordinating with and using Orange S.A. above and beyond our procurement joint venture "BuyIn"
    Increase the share of CR-classified suppliers among our TOP 200 suppliers Ongoing
    • Use self-assessments, audits, sustainability workshops for suppliers, and supplier development programs
    • CR-Qualified TOP 200 Suppliers ESG KPI developed as a management tool
    Implement a sustainable procurement strategy Ongoing
    • Develop our Social Charter img into the Code of Human Rights & Social Principles
    • Incorporate sustainability principles into the Group's Global Procurement Policy
    • Stakeholder engagement
    • Established escalation procedure for serious cases
    • Group-wide implementation by the Sustainable Procurement Working Group (SPWG img)
    • Employee training courses
    • E-learning img tool "Sustainability in procurement" revised and updated; used in the procurement joint venture "BuyIn"
    • Participation in a dialog event on sustainability in supply chains held by the Joint Audit Cooperation
    • Share of suppliers audited for sustainability in 2017: 81 percent
    Improve sustainability in our supply chain Ongoing
    • Introduce the Supplier Code of Conduct (also applicable for the "BuyIn" joint venture)
    • Continue the supplier development program
    • Anti-corruption training for suppliers in Germany
    • Supplier development program expanded from 11 to 14 companies
  • Goals Scheduled completion date Measures Status
    Integrate people into the knowledge and information society Ongoing
    • Expand efforts to promote media literacy and the responsible use of media
    • Teachtoday flagship project continued.
      Results:

      • Relaunch of the medienabersicher.de website, showing all of the initiatives to improve media literacy
      • Teachtoday media obstacle course on tour again in Germany.
      • "Media, sure! But secure." competition on the theme of "Do the media influence opinion?"
      • Teachtoday activities day run on "Safer Internet Day", teaching 60 schoolchildren about security, data protection, duration of cell phone use and cyberbullying
      • Training for media scouts run by Teachtoday at the "Media 2017" German Youth Conference in Rostock
      • Further internationalization of the Teachtoday online platform. The platform is currently available in the following languages: German, English, Romanian, Polish and Croatian. Two issues of new "Scroller" magazine for children published in German and English; first interactive issue published in German and Arabic.
    • Continue to expand "Yes, I can!" initiative as a flagship project
    • In 2017, 82 open youth work projects fostering digital skills were funded through the initiative. Total funding in 2017: around 600,000 euros.
    • "Yes, I can!" initiative: more than 1,200 projects funded since 2009 with a volume of more than 6 million euros.
    • The initiative was taken on by the Deutsche Telekom Stiftung foundation in January 2017
    • Offer work integration programs for refugees
    • Involvement in refugee aid refocused toward integration on the job market:

      • Deutsche Telekom offered up to 100 training positions, and places on entry-level training schemes and cooperative Bachelor's and Master's programs.
      • Six applicant days held for future interns
      • Through recruiting measures, collaboration with the Federal Employment Agency, communication via social media, volunteer workers and refugees who already work for the company, we have increased the ratio of applicants to job offers from roughly 2:1 to 5:1.
      • “Internship PLUS direct entry" initiative continued: 38 places offered. Four of the new employees on this program are supporting customer service with their Arabic language skills as part of the "Telekom hilft!” (Telekom helps!) team or by answering questions through the Arabic Twitter img hotline that was established in this context.
      • "Welcome" scholarship program run by Deutsche Universitätsstiftung supported to help students seeking refuge in Germany.
      • Ongoing provision of free WiFi img to refugee reception centers.
      • Ongoing provision of buildings as refugee accommodation and to as offices for the German Federal Office for Migration and Refugees.
      • More than 500 civil servants working for the Group temporarily supported the German Federal Office for Migration and Refugees (BAMF).
      • DTAG employees involved in volunteer refugee work, e.g. the eStart program of cooperation partner Volunteer Vision, received support. As of December 2017: 63 Deutsche Telekom employees supported one refugee each as la
      • nguage tutors.
    • Ongoing evaluation of engagement@telekom activities
    • 379 volunteering projects completed, involving 28,477 employees and 58,660 hours volunteered
    • Continue to improve transparency regarding the effectiveness of our social commitment by conducting ongoing effectiveness measurements
    • Effectiveness of social commitment measured through the Social Commitment ESG KPI, Community Investment ESG KPI, Beneficiaries ESG KPI and Media Literacy ESG KPI
  • Goals Scheduled completion date Measures Status
    Provide broadband to around 80 percent of the German population. 2018/19 (target adjusted)
    • Expand fiber optics infrastructure and equip/upgrade street cabinets with vectoring technology
    • Expansion of vectoring structure continued
    • October 2017: The first two of 7,600 nearshore areas in Germany were converted to fast vectoring technology (Moitin near Rostock and Bad Grund in the Harz region).
    Provide LTE coverage to 95 percent of the population in Germany 2018
    • Set up additional base stations
    • Continue LTE 1800 and LTE 800 network build-out
    • LTE coverage Provided for 94 percent of the population in Germany (by the end of 2017)
    • Network coverage provided for around 93 percent of the population (by the end of 2017)
    • Around 75 percent of European transmitter masts equipped with LTE Two or more frequency bands are active in almost every fourth LTE location (ensuring more extensive reach and higher speeds).
    Ensure that migration to IP in Germany is largely completed by the end of 2018 2018
    • VDSL vectoring build-out
    • Migration to IP technology
    • Around 70,000 lines weekly migrated to IP.
    • The IP rate for business customer lines was significantly more than 50 percent by the end of 2017.
    • Thanks to the use of IP-based vectoring technology, 3.5 million households in almost 50 cities could enjoy speeds of up to 100 MBit/s by the end of 2017.
    • Around 16.5 million households in Germany (69 percent) had switched to IP technology by the end of 2017
    • As well as Croatia, Montenegro, FYRO Macedonia and Slovakia, 100 percent migration to IP has now also been completed in Hungary.
  • Goals Scheduled completion date Measures Status
    Establish human resources policies adjusted to different life phases Ongoing
    • Continue to improve work-life balance offer
    • Promote part-time study programs (Bologna@Telekom)
    • Enhanced support for employees caring for family members through new advisory services and arrangement of assistance;
    • 20 parent-and-child offices installed at a total of 15 locations
    • Flexible working hours models expanded; lifetime work account offer expanded to all employees. 9,000 lifetime work accounts set up by the end of 2017.
    Be the first DAX-30 company to achieve a quota of 30 percent for women in middle and upper management 2020
    • Ensure equal opportunity, freedom from discrimination and competitiveness
    • Introduce target quotas along the entire talent pipeline
    • Design and implement Managing Diversity module for manager training
    • Improve work-life balance
    • Percentage of women in managerial positions throughout the Group increased from 19 percent (February 2010) to 25.4 percent (December 2017)
    • Quota development monitored, measures aligned, evaluated and redesigned where necessary
    • Mentoring program to prepare employees for positions on the supervisory boards of German and international affiliated companies continued. Ten out of a total of 64 participants were appointed to supervisory board positions;
    • Mentoring program for experts and managers during parental leave: successful start of third round with a total of 31 experts and managers (by the end of 2017)
    Provide room for development and advancement Ongoing
    • Introduce new forms of internal and external collaboration, agile work and improved service orientation and encourage entrepreneurial thinking and action
    • Participate in the discourse on relevant topics within society in a structured way
    • Group-wide Future Work program to establish a pioneering concept for a communicative work environment that promotes innovative strength and agility further advanced
    • Digital learning formats expanded, e.g. MagentaEINS; 37 percent of all training hours were completed online;
    • Continuation of communities of practice as a form of collaboration that spans across functions and hierarchies; 30 communities established at T-Systems to date
    • Advanced training to become a Cyber Security Professional: altogether, eleven graduates successfully completed this training in the first year. The fourth round started at the end of September 2017 with twelve participants.