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?
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 investmentBut 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.