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  • 2018 Corporate Responsibility Report

2018 CR program

  • Objectives Scheduled completion date Measures Status
    Further development of 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
    • The Group Corporate Responsibility Policy has been introduced at the majority of European national subsidiaries. In close cooperation with T-Mobile US, we have also expanded collaboration there on CR topics in line with the policy.
    • Key ESG img KPIs reported in the non-financial statement.
    • Regular communication with Group Strategy and integration of CR development topics in the Group’s trend radar.
    • Honored as Germany’s most sustainable large company 2018 (German Sustainability Award 2018)
    Embrace corporate values, accompany the transformation process Ongoing
    • Promote new forms of collaboration at the Group
    • Participate in dialogue on topics relevant to society
    • Regularly review all KPIs for the benefits they provide, make them mandatory throughout the Group with target values
    • Develop guiding principles on the ethical use of artificial intelligence and other digitalization topics, such as big data and the Internet of Things
    • Regular Group-wide implementation of programs and formats – as virtual or face-to-face events – including the annual Guiding Principles Day
    • 19th CR manager meeting in May in Vienna and 20th CR manager meeting in October in Bonn. The main topics were the new climate strategy, the “Stop Wasting – Start Caring!” initiative and the expansion of the “1001 Truths” initiative.
    • Dialogue on digital responsibility with experts from business, science, politics and society expanded via telekom.com and social media.
    • Participation in social discourse on redesigned homepage for the CR Report
    • New ethics guidelines on using artificial intelligence (AI) introduced.
    Promote the Sustainable Development Goals (SDGs) Ongoing
    • Expand measures for SDG target achievement
    • Integrate key SDGs into CR processes and reporting
    • Intensify use of SDGs for dialogue with customers and employees, also in terms of product assignment
    • Set up impact measurement
  • Objectives Scheduled completion date Measures Status
    Ensure systematic stakeholder engagement Ongoing
    • Continue stakeholder engagement strategy based on the principles of the Global Reporting Initiative (GRI G4).
    • Stakeholders img included in various ways, including.
      • Dialogue with experts from the fields of business, science, politics and society regarding digital responsibility via Deutsche Telekom’s own YAM platform
      • International sustainability dialogue of the Joint Audit img Cooperation (JAC)
      • Supplier Development Program
      • We Care magazine
      • Magenta Security Congress
      • Cyber Security Summit
      • New 1001 Truths initiative on trust and opinion forming online
      • Revision of „Fakten zu Mobilfunk und Gesundheit” (“Facts about mobile communications and health”) brochure
      • SRI roadshows
    Establish a materiality process Ongoing
    • Conduct annual materiality analysis (materiality processes img)
    • Materiality img analysis conducted for 2018.
    • Materiality process img was expanded to include systematic document analysis.
  • Objectives 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
    • Launch new CO2 target for new car purchases
    • Continue migration of 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 in the field of renewable energies.
    • Change of method to calculate the climate target based on a market-based approach, in order to take renewables into account.
    • Around 20 million lines switched over to IP in Germany.
    • The PUE img value in T-Systems Deutschland data centers is 1.57.
    • New CO2 target for newly acquired cars (average of 95g CO2/km for newly acquired vehicles by 2020).
    Reduce Scope 1 and 2 CO2 emissions throughout the Group by 90 percent compared to 2017 (absolute figures)  2030
    • Review existing climate protection strategy
    • Introduce a target based on the Science-Based Targets method
    • Achieve 100 percent renewable energies by 2021
    • Set up a new monitoring process to systematically increase the share of electricity from renewable energies.
    • Revision of the currently integrated climate protection strategy was completed in 2018.
    • The new climate protection strategy and the new climate targets were adopted by the Board of Management.
    • Commitment made to the Science-Based Targets initiative.
    100 percent renewable energies 2021
    • Increase the proportion of self-generated renewable energy
    • Acquire guarantees of origin
    • Conclude Power Purchase Agreements (PPA)
    • The share of renewable energy Group-wide at the end of 2018 was 52 percent.
    • 2018 saw Greece (OTE), Hungary, Albania and the Netherlands use 100 percent electricity from renewable energy sources.
    Reduce emissions from the upstream and downstream value chain by 25 percent per customer compared to 2017 2030
    • Conduct joint workshops with key suppliers in order to lower emissions in the supply chain
    • Inform customers and raise awareness with regard to their usage behavior
    • In 2018, absolute emissions compared to 2017 rose slightly with an increasing number of customers – emissions per customer dropped by 2%.
    Standardize the method for calculating the enablement factor 2020
    • Identify and use business potential from climate-friendly services (“enabling”) as well as opportunities in terms of product development and offerings (establish sustainable product portfolio)
    • Determine relevant services and products for standardization
    • Enablement factor: In Germany we enabled our customers to generate around 85 percent less CO2 than the amount generated by our company (factor: 1.85:1). In Europe (including Germany), our customers’ savings potential remained at last year’s level with a factor of 1.2.
  • Objectives Scheduled completion date Measures Status
    Implement an occupational health, safety and environmental management system in compliance with ISO 14001 and OHSAS 18001 img 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 98 percent of employees outside Germany work in a workplace that is ISO 45001 certified. Some 100 percent of employees in Germany are employed at an ISO 14001-certified workplace. Internationally, we are at 98 percent coverage.
  • Objectives 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
    • Embed the topic of sustainable products in company processes and develop an overarching strategy
    • Analyze products in terms of how they contribute to sustainability and what this can do for our business; include results in customer communication
    • Participate in industry-wide solutions to evaluate products and solutions in terms of sustainability
    • Overall, we have carried out in-depth analyses for 29 product groups with regard to their sustainability benefits and the corresponding business potential (as at end of 2018).
    • According to an analysis conducted in 2018, we generated 42 percent of our total revenue in 2017 with sustainable products (40 percent in 2016).
    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 dialogue 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 401 and Media Receiver 601 received the Blue Angel. The entire Media Receiver family now carries the Blue Angel label
    • Sustainability awards 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 environmentally harmful materials (not prohibited by law) contained in our products
    • Successful growth of leasing model usage for devices (e.g. Media Receiver) for the benefit of the recycling rate (e.g. Speedport PRO), duration of use, and more sustainable packaging
    • Workshops conducted with suppliers on the voluntary blacklist, which was developed in cooperation with the Fraunhofer Institute for Reliability and Microintegration (Fraunhofer IZM).
  • Objectives 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 hubraum
    • Since the establishment of hubraum, we have built up a strategic investment portfolio of more than 25 companies. Collaboration with approx. 300 startups from Europe and Israel in various areas relevant for digitalization
    • A prototype program was established by hubraum to promote the development of innovative 5G-capable use cases in Europe.
    • The first 5G field tests were conducted in Berlin and Hamburg with continued testing in 2019.
    • Internet of Things innovation programs being conducted
    • Promotion of innovations through our internal innovation program “UQBATE”
  • Objectives 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 img roadshows and in SRI calls
    • Improve communication with investors regarding our sustainability efforts
    • Included once again in the RobecoSAM img World and Europe Index, rated as Prime by oekom research and as Global Climate Change Leader (A list) and Supplier Change Leader (A list), and as a member of the Supplier Engagement Leader Board by the CDP
    • At the end of 2018 around 18 percent of T-Shares were owned by investors who consider “Socially Responsible Investment” (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, two “SRI roadshows” held in France and the Netherlands, and participation in SRI conferences; numerous direct queries from rating agencies, analysts and investors were answered
    • Deutsche Telekom’s combined non-financial statement is contained in the management report of the 2018 annual report and gives interested investors an overview of the key performance indicators for sustainability.
  • Objectives Scheduled completion date Measures Status
    Increasing the share of suppliers audited for sustainability Ongoing
    • Share of suppliers audited for sustainability in 2018: 80 percent
    • 157 suppliers participated in the CDP img Supply Chain program (this covers 71 percent of our procurement volume; target value for 2020 is 70% coverage)
    • Monitoring of sustainability risks from all suppliers by two external audit firms (RepRisk & BvD)
    • Inclusion of the supplier development program under the umbrella of the Global e-Sustainability Initiative img (GeSI img) ICT industry association and expansion as the industry-wide Sustainable Development Program (SDP)
    Increase the share of CR-classified suppliers among our TOP 200 suppliers Ongoing
    • Carry out self-assessments, audits, sustainability workshops for suppliers, and supplier development programs
    • The share of CR-classified suppliers among our TOP 200 suppliers was 86 percent in 2018 (target for 2020 is coverage of 75 percent).
    Implement a sustainable procurement strategy Ongoing
    •  Include commitment to protecting human rights and to the goals of the German National Action Plan on Business and Human Rights in 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" adapted and updated; used in the procurement joint venture “BuyIn”
    • Participation in a dialogue event on sustainability in supply chains held by the Joint Audit Cooperation
    • Sustainable Procurement ESG KPI is 81% for 2018 (target value for 2020 = 80%).
    • TOP 200 CR-qualified Suppliers ESG KPI is 86% for 2018 (target value for 2020 = 75%).
    • CDP Supply Chain ESG KPI is 71% for 2018 (target value for 2020 = 70%).
    Improve sustainability in our supply chain Ongoing
    • Set high ethical, social, ecological and human rights standards for suppliers through the Supplier Code of Conduct (also applicable for the BuyIn joint venture)
    • Expand the supplier development program throughout the industry
    • Carry out compliance training for suppliers
    • Inclusion of the supplier development program under the umbrella of the Global e-Sustainability Initiative (GeSI) ICT industry association and expansion as the industry-wide Sustainable Development Program (SDP). Program opened up for other ICT companies. Started as a pilot project with four suppliers in 2018.
    • Three workshops conducted on sustainability topics with relevant smartphone manufacturers
    • 117 social audits performed.
    • 18 mobile surveys performed at suppliers.
  • Objectives 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
    Two company initiatives, Teachtoday and 1001 Truths, implemented and included as part of the new online platform, Media, sure! But secure. to promote safe and competent media use. Teachtoday further established as a flagship project. Results:
    • Teachtoday media obstacle course continues tour in Germany, course translated into simple language.
    • “Media, sure! But secure.” competition held on the topic of “Responsibility online”.
    • Teachtoday campaign day takes place on Safer Internet Day, teaching 50 schoolchildren about responsibility on the web.
    • Training for over 300 media scouts run by Teachtoday at the “Media 2018” 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, Croatian, Montenegrin and Hungarian. Scroller media magazine for children published twice in German and English.
    • Relaunch of Scroller magazine’s first edition, “Mobile ready” for display in T-Shops.
    • Held Summit for Kids, the final event in the “Media, sure! But secure.” competition.
    • Launch of 1001 Truths initiative – an online platform with teaching and learning materials – addressing trust and opinion forming on the web as a way to contribute to digitalization in society.
    The first two events were held in 2018 with the new Code+Design Camps format. Results:
    • Some 150 young people attending these camps – who may or may not have any prior experience with programming – learned about new technologies and developed their digital skills under the guidance of professional mentors.
    Continued growth of longstanding collaborations with our partners for secure and competent media use
      Ongoing
    • Offer work integration programs for refugees
    Involvement in refugee aid continued with the focus on integration in the job market:
    • Provided a total of approx. 440 job offers for refugees.
    • These included up to 100 training positions, places on entry-level training schemes and cooperative Bachelor’s and Master’s programs.
    • Five applicant days held for future interns
    • Continuation of the “Internship PLUS direct entry” initiative: 38 places were granted with prospects for follow-up employment in the “Ready for the German labor market” training to support long-term integration in the German labor market.
    • Welcome” grant program run by the Deutsche Universitätsstiftung supported to help students seeking refuge in Germany
    • Ongoing provision of free Wi-Fi to refugee reception centers: 56 WiFi hotspots img were established in refugee reception centers as of the end of 2018.
    • 34 buildings provided as refugee accommodation and as offices for the German Federal Office for Migration and Refugees.
    • Deutsche Telekom employees involved in volunteer refugee work, e.g., the eStart program of cooperation partner Volunteer Vision, received support. As of the end of 2018: 112 Deutsche Telekom employees supported one refugee each as language tutors.
       
    • Evaluate “engagement@telekom” activities on an ongoing basis
    • 655 volunteering projects completed, involving 35,836 employees and 68,403 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
  • Objectives 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
    • The online ticker provides information on the number of connected households.
    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
    • Around 97 percent LTE coverage already achieved in Germany and Europe (end of 2018)
    By the end of 2019 switch to IP in Germany for consumer,
    by the end of 2020 switch to IP in Germany for business completed
    2019 for consumer,
    2020 for business
    • VDSL  vectoring  build-out
    • Migration to IP technology
    • Around 400,000 lines monthly migrated to IP.
    • By late 2018, more than 86 percent of existing customer lines had been implemented based on IP technology (i.e., around 95 percent of consumer broadband lines).
    • 4.7 million lines switched to IP in 2018.
  • Objectives 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
    • 25 parent-and-child offices set up at a total of 19 locations
    • Flexible working time models expanded; lifetime work accounts for employees and civil servants available. A total of more than 11,000 lifetime work accounts were set up by the end of 2018.
    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 2018)
    • 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. 22 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 (end of the round: January 2019).
    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
    • Start of the #Neues Arbeiten (New Way of Working) initiative (formerly Future Work) to experiment with and strengthen new types of collaboration
    • Start of Agile Blueprint, the Group-wide initiative to facilitate a cultural shift toward an agile company
    • Skills management program skillsUP! for revising existing job profiles.
    • New leadership program levelUP! for executives: More than 1,400 managers from Deutsche Telekom took part in levelUP! in 2017 and 2018.
    • Expanded digital learning formats, e.g., MagentaEINS; about 41 percent of all formal training hours were completed online; third MOOC (Massive Open Online Course) on design thinking was held with 4,500 participants from 32 countries.
    • Part-time Cyber Security Professional training program: Training was opened up to employees from other companies; ten Deutsche Telekom employees and five employees from other companies took part in 2018. The Cyber Security Professional profile serves as an incentive to amend the list of existing skilled occupations in the IT segment in Germany.