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Act responsibly. Enable sustainability.

Green money?

Climate risk is investment risk – as the CEO of BlackRock, the world’s largest asset manager, wrote in mid-January in a letter to the CEOs of key corporations. He announced that BlackRock would withdraw from investments that present high environmental risks - as in coal production, for instance. Other investors would also prefer to invest their money in future in companies that act sustainably.

11500

It costs11,500 billion U.S. dollars to achieve all the UN Sustainable Development Goals (SDGs) according to the UN.

How much does sustainability cost?

What is clear is that mankind needs money – and lots of it – if it wants to solve global ecological and social challenges. According to the United Nations, it will cost 11.5 trillion U.S. dollars to achieve all 17 Sustainable Development Goals (SDGs) worldwide. By comparison: That’s almost double the combined amount that all EU member states spend in a year. That’s why it’s good news that more and more private individuals, but more importantly also companies or entire countries are investing their money sustainably. Take Norway as an example: The sovereign wealth fund, which manages pensions for all Norwegians, now only invests in companies with sustainable business practices. These investments boost the incentive for companies to align their business to sustainability – and can, as a result, speed up the development of new and more sustainable solutions and technologies.

Sustainable investment - how it works

Let us assume that an investor wants to invest his money sustainably and at the same time generate a return of course. He is considering investing part of his money in Telekom shares. How can he find out whether an investment in the T-share is also a good idea from a sustainability point of view?

Expert evaluation

Sustainability indices and special ratings and rankings provide valuable information. They are compiled by analysts who evaluate the sustainability performance of companies. The T-Shares were also listed once again in key sustainability indices in 2019 and achieved good positions in rankings and ratings. Here are some examples:

1
oekom:

The rating agency oekom has singled us out for the past ten years now as the world’s best telecommunications company in terms of ecological and social performance.

2
CDP:

In 2019, 8,000 companies were reviewed, and we once again qualified for the list of companies that report their CO2 emissions extremely transparently (A list) in the prominent CDP international climate protection ranking.

3
Dow Jones Sustainability Index:

In 2019, the T-Shares were listed for the fifth year in a row in the renowned Dow Jones sustainability indices “DJSI Europe” and “DJSI World”.

4
Global Compact Index:

In 2013, the UN Global Compact launched the UN Global Compact Index 100 together with the rating agency Sustainalytics. The T-Shares have been listed there from the beginning.

5
FTSE4Good:

FTSE4Good is a group of share indices that analyze the sustainability performance of companies. We have been listed in this renowned index for many years.

6
Vigeo Eiris:

The Vigeo Eiris rating agency from France added us to its Euronext indices in 2019. The indices identify especially good sustainability performance by companies.


THE FINANCIAL YEAR 2019

In addition to the CR report, Telekom's current annual report also provides detailed information on our sustainability progress and long-term strategies. Find more information in our non-financial declaration.

A sustainable investment

But what criteria do analysts actually use to assess how sustainable a company is? To achieve a good rating companies must pass an audit conducted in accordance with ESG criteria. ESG stands for “Environmental, Social and Governance”, in other words, ecological, social and ethical aspects. The analysts look in particular at whether a company achieves measurable sustainability progress – but also what its long-term strategies look like. Detailed information on this can be found throughout the CR Report, but mainly in the “Management & facts” section and in Deutsche Telekom’s annual report. Here we also publish ESG key performance indicators: For example, we specify what share of our revenue is generated by products offering a sustainability advantage, how our CO2 emissions are developing, or how many people we are reaching with our media literacy projects. The goals we set ourselves and measures we carry out to achieve the goals are also included. Analysts also use detailed questionnaires covering specific sustainability aspects. All this information produces a picture for the rating agencies for them to compare us with our competitors and make their assessment.

And how does Telekom invest with regards to the employee pension scheme?

Sustainably: We invest our employees' retirement assets in accordance with our sustainability principles. We also take ESG criteria into account and follow the exclusion list of the Norwegian pension fund. We do this because we know that with sustainable investments we do not just generate a return for our employees, but also for our planet.