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Act responsibly. Enable sustainability.

Green money?

Climate risk is investment risk – this was the message Larry Fink, CEO of BlackRock, the world’s largest asset manager, wrote at the start of 2020 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. Moving forward, other investors would also prefer to invest their money in companies that act sustainably.


11500

The UN estimates that it will cost 11,500 billion U.S. dollars to achieve all UN Sustainable Development Goals (SDGs).

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.

Investing sustainably – here’s how

Let us assume that an investor wants to invest their money sustainably and, of course, also make a return on it. They consider investing part of their money in Deutsche Telekom shares. How can they find out whether an investment in T-Shares is also a good idea in terms of sustainability?

Expert assessments

Sustainability indices img and special ratings img 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 2020 and achieved good positions in rankings and ratings. Here are some examples:

1
ISS-oekom:

The rating agency oekom has singled us out for over a decade as the world’s best telecommunications company in terms of ecological and social performance.

2
Carbon Disclosure Project (CDP):

In 2020, 8,000 companies were reviewed, and we once again qualified for the list of companies that report their CO2 emissions in a particularly transparent way (Climate Engagement Index and Supplier Engagement A list) in the most important CDP international climate protection ranking.

3
Dow Jones Sustainability Index:

In 2020, the T-Share was listed for the sixth 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 2020 FINANCIAL YEAR

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. Besides the CR report, Deutsche Telekom’s updated annual report also provides detailed information about our progress in terms of sustainability and long-term strategies. You can access our non-financial statement here.

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 ESG analysts particularly look at whether a company is making measurable progress in terms of sustainability – but also what its long-term strategies look like. Detailed information on this topic can be found in our CR report on this website and in Deutsche Telekom’s annual report. In our reporting, 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, and 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. In addition, analysts 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 Deutsche Telekom invest for its employee pension scheme?

We too invest sustainably: We invest the assets for our employee pension scheme in line with our sustainability principles. In doing so, we also take account of ESG criteria and additionally use the criteria of the Government Pension Fund of Norway as a guide. Because we know that with sustainable investments we can not only achieve a return for our employees but also for our planet. In this way, all employees are contributing to a more sustainable future with their pension.