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  • 2017 Corporate Responsibility Report

GRI index

The 2017 CR Report of Deutsche Telekom was created in line with the Global Reporting Initiative (GRI) guidelines and in compliance with the "Core" option.

In the GRI content index below we refer to content pertaining to general and specific standard disclosures and explain this content when necessary. The standard disclosures are based on the very relevant aspects identified in our materiality process. Selected content from different action areas and information on the materiality process was subjected to an assurance engagement and are identified with a  in the index. The index also contains links and explanations to other GRI aspects that are included in the report.

GRI 102: General Disclosures

Organization profile

GRI-Indicator
Inquiry
Reference Page
102-1
Name of the organization
102-2
Primary brands, products and services

There were no prohibitions on products and/or services in any countries in 2017.

102-3
Headquarters
102-4
Countries where the organization operates
102-5
G4-7 Nature of ownership and legal form
102-8
Total workforce

In 2017 a total of 33 executives throughout Germany were working part-time. Deutsche Telekom also made a similar voluntary commitment regarding employees covered by collective agreements and civil servants. Currently, 13.6 percent of employees covered by collective agreements and 20.4 percent of Deutsche Telekom civil servants throughout Germany are working part-time.

102-9
Supply chain
102-11
Precautionary Principle

Risk management, compliance management and the ESG KPIs provide approaches for preventive action at Deutsche Telekom.

102-13
Memberships of associations and advocacy organizations

Due to reasons of confidentiality it is not possible to list our memberships and collaborations based on strategic aspects. Our policy on political advocacy applies to our involvement in committees and associations.

Ethics and integrity

GRI-Indicator
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Reference Page
102-16
Values, principles, standards and norms of behavior
102-17
Internal and external procedures on ethical and lawful conduct and procedures for reporting concerns regarding non-ethical or unlawful conduct

Governance

GRI-Indicator
Inquiry
Reference Page
102-18
Governance structure
102-19
Delegating authority
102-20
Responsibility for sustainability topics
102-24
Selection processes for the highest governance body and its committees

All skills and abilities required and useful in effectively enacting the responsibilities of a position are taken into consideration during the selection process. The requirements of a position are identified using a skills list.

The selection process is conducted by the Supervisory Board, which acts in the interests of stakeholders and shareholders.

    Stakeholder engagement

    GRI-Indicator
    Inquiry
    Reference Page
    102-41
    Employees covered by collective bargaining agreements

    Collective bargaining plays an important role and has a long tradition at our company, a fact made clear by the percentage of employees covered by collective agreements. As of December 31, 2016, some 69 percent of employees in Germany were covered by collective agreements. Group-wide this number was 56 percent.

      102-42
      Identification and selection of stakeholders
      102-43
      Approach to Stakeholder Engagement

      We work with various feedback formats which can only be classified with difficulty due to their variety. Because we have informal discussions with our stakeholders at dialog events, the feedback cannot be broken down according to the stakeholder groups.

      102-44
      Key topics and concerns raised by stakeholders

      Identified material aspects and boundaries

      GRI-Indicator
      Inquiry
      Reference Page
      102-45
      Entities included in the consolidated financial statements
      102-46
      Defining report content and topic boundaries
      102-48
      Restatements of Information

      There was no cause to restate information within the reporting period.

        102-49
        Changes in Reporting

        There were no changes in reporting in the reporting period.

          GRI 203: Indirect Economic Impacts

          GRI 103: Management Approach

          103-1
          103-2
          103-3
          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
          GRI-Indicator
          Inquiry
          Reference Page
          203-1
          Infrastructure investments and services supported

          GRI 204: Procurement Practices

          GRI 103: Management Approach

          103-1
          103-2
          103-3
          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
          GRI-Indicator
          Inquiry
          Reference Page
          204-1
          Proportion of spending on local suppliers at significant locations of operation

          As an ICT company, Deutsche Telekom works with suppliers worldwide. This is why there can be no Group-wide guidelines on the preference of local suppliers.

            GRI 205: Anti-corruption

            GRI 103: Management Approach

            103-1
            103-2
            103-3
            Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
            GRI-Indicator
            Inquiry
            Reference Page
            205-1
            Total number and percentage of operations assessed for risks related to corruption and the significant risks identified

            The following risks of corruption were identified as the most likely within the scope of our risk analysis:

            1. A benefit is granted to a business partner’s employee or representative in connection with a specific forthcoming business decision in order to gain an unfair competitive advantage (e.g., inviting a decision-maker on the customer side to a prestigious sports event in order to sway them into renewing the existing framework agreement that is coming up for renewal.)

            2. A benefit is granted to a member of the public sector in connection with an official action (e.g., giving high-end devices to a public official who is responsible for the tendering process).

            3. A sales agent/consultant uses a part of their fee as a bribe in order to win a contract

            4. An employee of a business partner is offered a benefit in order to bring about favorable treatment when procuring goods, although there is no consent for this on the part of the company and this situation would constitute a breach of duty towards the company. Distortion of competition is not necessary!

            5. Following a merger/acquisition of a company, cases of corruption (e.g., in connection with consultants) from before the acquisition come to light and are attributed to Deutsche Telekom.

            Each year, we carry out a Group-wide compliance risk assessment (CRA) to determine compliance risks and develop tailored compliance measures. In 2017, the CRA included 73 companies and thus covered around 97 percent (based on the number of employees).

              205-2
              Communication and training on anti-corruption policies and procedures

              We use regular training measures to inform and raise awareness among our employees about compliance. These take place every 3 years. In addition to classroom courses, we also use various interactive e-learning formats. In addition, customized classroom courses on compliance and anti-corruption are given to members of the management boards and executives. Managers are addressed about their extraordinary responsibility and informed about trends and changes in the law.

              E-learning training in Germany

              In 2016 and 2017, more than 18,000 employees in high-risk positions (sales, procurement) in Germany completed the anti-corruption e-learning course; almost 14,000 employees received a certificate for completing a compliance e-learning course; 41,000 employees participated in an e-quiz on gifts, and more than 1,500 employees took the e-learning course on consultant services. Some 16,500 employees completed the e-learning training on anti-trust law.

              Implementation of Group policy throughout the Group

              Deutsche Telekom has introduced the Group Policy on Avoiding Corruption and Other Conflicts of Interest, which sets out the relevant responsibilities and duties and includes a list of possible conflicts of interest. We also introduced our Group Policy on Accepting and Granting of Benefits, which clearly specifies which benefits may be granted to and accepted from business partners.

              Both policies have been rolled out and communicated throughout the Group and approved by the managing boards at the various companies.

              Providing information and training to business partners

              Our business partners are required to accept the Deutsche Telekom General Terms and Conditions for Purchasing before entering into a business relationship with us. These include an anti-corruption clause. In addition, we ask our business partners questions regarding their compliance management systems as part of supplier self-assessment process. Deutsche Telekom has been offering online compliance training to external business partners and suppliers since September 2014. The training offer particularly focuses on small and medium-sized German business partners and suppliers. This offer encourages our partners even more to conduct their business ethically and in compliance with relevant laws and regulations. The training addresses specific compliance-relevant topics such as corruption prevention, anti-trust law and sustainability and introduces Deutsche Telekom’s compliance management system.

                205-3
                Confirmed incidents of corruption and actions taken

                Deutsche Telekom engages in extensive compliance management activities to prevent and fight corruption Any violations we uncover during our investigation are punished appropriately. In some cases employment relationships have even been terminated for good cause. The total number of sanctioned incidents of corruption is confidential.

                  GRI 302: Energy

                  GRI 103: Management Approach

                  103-1
                  103-2
                  103-3
                  Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                  GRI-Indicator
                  Inquiry
                  Reference Page
                  302-1
                  Energy consumption within the organization

                  Energy consumption at Deutsche Telekom primarily pertains to the consumption of electricity, district heating, fossil fuels and fuel for our vehicle fleet. The amount of energy sold by Deutsche Telekom is not significant and generally not included in our energy and fuel consumption values.

                  302-3
                  Energy intensity

                  GRI 305: Emissions

                  GRI 103: Management Approach

                  103-1
                  103-2
                  103-3
                  Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                  GRI-Indicator
                  Inquiry
                  Reference Page
                  305-3
                  Other indirect GHG emissions (Scope 3)

                  GRI 401: Employment

                  GRI 103: Management Approach

                  103-1
                  103-2
                  103-3
                  Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                  GRI-Indicator
                  Inquiry
                  Reference Page
                  401-1
                  New employee hires and employee turnover

                  The number of employees entering retirement, an important component of natural employee turnover, is not recorded within the scope of the annual workforce structure report. We therefore cannot provide a breakdown of natural turnover according to gender and age. The time and effort involved in more detailed data collection would exceed any benefit from the results.

                  GRI 402: Labor/Management Relations

                  GRI 103: Management Approach

                  103-1
                  103-2
                  103-3
                  Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                  GRI-Indicator
                  Inquiry
                  Reference Page
                  402-1
                  Minimum notice periods regarding operational changes

                  This indicator cannot be used for Deutsche Telekom as a global corporation because of the extensive effort involved in compiling all country-specific regulations, an effort that exceeds the benefit of such activities. The relevant works council committees are informed on significant operational changes and involved according to the legally applicable provisions such as the German Works Constitution Act (Betriebsverfassungsgesetz). We also regularly engage in dialog with employee representatives at a national and European level.

                    GRI 403: Occupational Health and Safety

                    GRI 103: Management Approach

                    103-1
                    103-2
                    103-3
                    Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.

                    Deutsche Telekom supports its employees and their family members with special programs in case of need, for example during a serious illness. These include the following:

                    • Individual counseling in case of professional and private issues or conflicts offered by psychosocial experts of the Employee and Executive Advisory Service by external service provider B.A.D.
                    • Assistance for low-income families: The Post/Postbank/Telekom welfare service provides support in case of emergencies, such as natural disasters.
                    • Deutsche Telekom Social Fund: We provide fast financial aid to employees who are unable to find a way out of financial difficulties they are facing through no fault of their own. The Family Fund provides support to families in need.
                    • Dance therapy for women with cancer in collaboration with the Post Postbank Telekom e.V. recreation service.
                    • Offers in cooperation with the AWO service for families and parents: consulting on and arranging of childcare, care for relatives, home help for the elderly, household services, nursing and care seminars, and emergency childcare.

                    We enable flexible working models for an improved work-life balance. Deutsche Telekom offers various models for working schedules. These enable flexible working hours, part-time work, phased retirement, parental leave, family care leave, and leave of absence without pay.

                    GRI-Indicator
                    Inquiry
                    Reference Page
                    403-1
                    Workers representation in formal joint management-worker health and safety committees

                    We have created different steering levels at Deutsche Telekom in Germany to implement our occupational health and safety management activities.

                    • The first level is the Central Health Working Group, comprised of employer representatives from the Group and Group companies as well as employee representatives, occupational health and safety experts and representatives of employees with disabilities.
                    • The second level comprises the Health Working Groups at Deutsche Telekom subsidiaries in Germany.
                    • The third level is comprised of local, on-site working groups responsible for implementing occupational health and safety management locally; there are at least 110 of these.

                    All of our employees in Germany are represented by these committees. The national companies are responsible for their own occupational health and safety management. However, all Deutsche Telekom employees will be gradually involved in a certified health, safety, and environmental management system that is based on the international standards OHSAS 18001 for occupational health and safety and ISO 14001 for environmental management and that safeguards Group-wide standards. One hundred percent of our employees in Germany and 99 percent of our employees outside of Germany have occupational health and safety certificates. At the same time, 93 percent of our employees in Germany and 83 percent of our employees outside of Germany are covered by environmental protection certificates. (Last revised: December 31, 2017).

                      403-2
                      Types of injury and rates of injury at the organization

                      GRI 404: Training and Education

                      GRI 103: Management Approach

                      103-1
                      103-2
                      103-3
                      Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                      103-1
                      103-2
                      103-3
                      Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                      GRI-Indicator
                      Inquiry
                      Reference Page
                      404-1
                      Average hours of training per year per employee by gender and by employee category

                      Vocational training (Group in Germany)

                      Total hours 2017WomenMen
                      Apprentices8,743,680 *3,497,472 *5,246,208 *
                      Students on cooperative study programs3,008,308 *932,575 *2,075,733 *
                      Total11,751,988 *4,430,047 *7,321,941 *

                      * Calculations based on average values.

                      Continuing education (Group - international without USA)

                      Our employees spent an average of around 25.2 hours attending continuing education events in 2017. All employees generally have equal access to continuing education opportunities (regardless of gender, cross-hierarchy). It is therefore not possible to differentiate at Deutsche Telekom.

                      Telekom Training continuing education program Apprentices and vocational training programs

                      404-2
                      Programs for upgrading employee skills and transition assistance programs

                      Programs for life-long learning

                      Departure from the company and career perspectives

                      Depending on the situation, we use various tools to help affected employees leave their job at the Group in a socially acceptable manner. This includes options such as outplacement consulting and severance payments. In addition, Vivento, the service provider for staff restructuring in Germany, offers assistance to civil servants when transferring to a public-sector employer. In many cases, the job change can be accompanied by financial incentives. Civil servants can find suitable federal, state and local positions through the Vivento job portal www.interamt.de.

                      The Post/Telekom welfare service offers seminars on "Getting ready for retirement" in which Deutsche Telekom employees are invited to participate. Participants work on ways in which they will be able to fill their retirement years with meaningful activities and enjoy their retirement for years to come.

                      404-3
                      Percentage of employees receiving regular performance and career development reviews

                      We use various tools to assess the performance and career development of our employees. The Compass tool is used for employees covered by collective agreements and for civil servants in Germany, while the Performance & Potential Review (PPR) is for employees not covered by collective agreements in Germany and for employees at the national companies. Furthermore, in 2014 we launched Performance Dialog, a new tool for assessing the performance of top-level managers.

                      Performance management tools and employee categoryNumber and percentage of employees whose performance and career development were assessed
                      Compass (employees covered by collective agreements in Germany)About 72,000 employees (82 percent of the target group)
                      Performance & Potential Review (employees not covered by collective agreements in Germany)About 9,000 employees (97 percent of the target group)
                      Performance & Potential Review (employees at national companies)21,000 employees (tool is being used at many national companies)
                      Performance Dialog Lead2Win (top-level managers throughout the Group)2,400 employees (98 percent of the target group)

                      In each case, the performance management tools apply for entire employee groups and therefore cover male and female employees in equal measure.

                        405-1
                        Diversity of governance bodies and employees: Percentage of individuals within the organization’s governance bodies in each of the following diversity categories: gender, age group, other indicators of diversity where relevant (such as minority or other vulnerable groups)

                        Deutsche Telekom is an international corporation that holds no more than a majority interest in some of its national companies. For that reason it is not possible to break down these values based on employee category.

                        405-2
                        Ratio of basic salary and remuneration of women to men

                        We have been comparing the pay of male and female employees for several years now. We were unable to identify any significant, gender-based differences in pay for our employees in Germany. In the past, studies (e.g. Logib-D) confirmed that women and men who do the same job receive the same pay. It was not possible to record the pay of our male and female employees at all of our international locations due to data unavailability, relevance to competition and the time and effort involved.

                          GRI 407: Freedom of Association and Collective Bargaining

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          407-1
                          Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk, and corrective actions taken

                          To our knowledge there are no cases of this nature. Deutsche Telekom recognizes the fundamental right to freedom of association and the right to collective bargaining within the scope of national regulations and existing agreements. These principles form an integral part of the Code of Human Rights & Social Principles, are binding for the entire Group and must be confirmed in writing annually by the Group companies.

                          GRI 409: Forced or Compulsory Labor

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          409-1
                          Operations and suppliers at significant risk for incidents of forced or compulsory labor, and corrective actions taken

                          Risks related to forced labor are combated by auditing selected strategic and particularly high-risk suppliers. No significant risk of forced or compulsory labor was identified at our direct business facilities.

                          GRI 414: Supplier Social Assessment

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          414-1
                          New suppliers that were screened using social criteria

                          In 2017, 83 percent of our suppliers were assessed for social and environmental criteria. This also includes human rights criteria. Such an examination is also carried out for all of our future suppliers.

                          414-2
                          Negative social impacts in the supply chain and actions taken

                          GRI 416: Customer Health and Safety

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          416-2
                          Incidents of non-compliance concerning the health and safety impacts of products and services

                          GRI 418: Customer Privacy

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          418-1
                          Substantiated complaints regarding breaches of customer privacy and losses of customer data

                          GRI 419: Socioeconomic Compliance

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          419-1
                          Non-compliance with laws and regulations in the social and economic area

                          GRI 201: Economic Performance

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          201-1
                          Direct economic value generated and distributed
                          201-3
                          Defined benefit plan obligations

                          GRI 306: Effluents and Waste

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          Further GRI aspects reported
                          Waste by type and disposal method

                          Deutsche Telekom has a Group-wide waste management policy in place (e.g., for recycling copper) to handle the major types of waste produced by its business activities. We also use our Used Mobile Device Collection ESG KPI to determine the relationship between the number of mobile devices such as smartphones and tablets brought to market and the number returned to us (returned mobile devices in thousands / number of mobile devices brought to market in millions). Functional devices are reused, hence having a longer life span. Cell phones that are no longer functional are properly recycled in an environmentally friendly manner. Data collection regarding disposal methods is complex, and the amount of time and work involved could not be reasonably justified based on the benefit this type of data collection would bring.

                          We comply with all legal requirements in all countries when disposing of hazardous waste.

                          We are a service company with correspondingly low waste water volumes. We do not record our waste water, as the amount of time and work involved could not be reasonably justified based on the benefit this would bring.

                          GRI 308: Supplier Environmental Assessment

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          308-1
                          Percentage of new suppliers that were screened using environmental criteria

                          In 2017, 83 percent of our suppliers were assessed for social and environmental criteria. This also includes human rights criteria. Such an examination is also carried out for all of our future suppliers.

                          308-2
                          Significant actual and potential negative environmental impacts in the supply chain and actions taken

                          GRI 408: Child Labor

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page
                          408-1
                          Operations and suppliers at significant risk for incidents of child labor, and corrective actions taken

                          No significant risk of child labor was identified at our direct business facilities.

                          GRI 415: Public Policy

                          GRI 103: Management Approach

                          103-1
                          103-2
                          103-3
                          Explain why the topic is material and provide its boundary. Explain how the organization manages the topic. Explain how the organization evaluates the management approach.
                          GRI-Indicator
                          Inquiry
                          Reference Page