Assessment of Deutsche Telekom's sustainability portfolio

One of the four pillars of Deutsche Telekom’s integrated climate strategy is increasing the share of more sustainable products in our product portfolio. A product can be classified as part of the company’s “sustainability-related product portfolio” if it most likely or definitely does not involve risks and offers at least one sustainability advantage.
The assessment of the more sustainable product portfolio and associated documentation of evidence was completed in Q1 2020. The results showed that around 43 percent of our total revenue (2019 fiscal year, excluding USA) was generated with sustainability-related products and services.

The T-Systems product portfolio is constantly updated, as was also the case in 2019. Compared to 2018, there were several adjustments to the portfolio that were taken into account in examining the share of sustainable revenue. Following the change to the portfolio, four product portfolios were combined in two modules. This change explains the reduction in the number of product and service categories analyzed – from 29 to 27.

Overview:

Criteria for scope of assessment	In scope	Outside scope
Financial basis for calculation	2019 fiscal year, excluding USA
Region	Europe	United States
Services	Market-oriented core products for B2C and B2B (including B2G) Broadband for fixed network, mobile, and wholesale TV Value-added services Market-oriented, non-core products for B2C and B2B, e.g., hosting services Corporate solutions for B2B (including B2G)	Internal services such as consulting, facility management, and transactions with national companies Financial assets
Physical products	Hardware components for mobile services, e.g., IoT sensors ICT infrastructures such as data centers	Physical facilities required for corporate functions, e.g., buildings

Defining the relevant landscape
Risk and benefit filter
Methods and content	Methodological analysis and assessment of the ecological and social advantages of DT products and services based on defined risks (7) and benefits (7) Inclusion of products that most likely or definitely do not involve risks and offer at least one sustainability-related advantage in addition to the cost-saving effect Calculation of the Sustainable Revenue Quota KPI (share of revenue from sustainability-related DT products and services compared to overall revenue)
2019 assessment findings (base: 2019 fiscal year, excluding USA)	Around 43 percent of total revenue was generated with sustainability-related products and services