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Act responsibly. Enable sustainability.
  • 2020 Corporate Responsibility Report
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Climate strategy

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Climate strategy

Our contribution to the SDGs

We are helping to mitigate climate change and contributing to compliance with the Paris Climate Agreement. In 2013, we adopted a Group-wide climate protection target for the first time: By 2020, we planned to reduce CO2e emissions by 20 percent compared to the base year 2008 (excluding T-Mobile US). We have achieved this target. Our current climate targets for the period after 2020 were adopted by the Board of Management in 2019 and their ambition level was raised in March 2021:

  • By the end of 2021, we intend to source 100 percent of the electricity used by the Group from renewables (Scope 2). In Germany, we have already reached this goal by the end of 2020.
  • By the end of 2025, we want to achieve climate neutrality in the company. To achieve this, we want to reduce our CO2 emissions by up to 95 percent compared to 2017 (Scope 1 and 2) and offset remaining emissions through suitable offsetting measures. In addition to switching to renewably sourced electricity, we plan to achieve this especially by implementing energy efficiency measures.
  • Over 80 percent of our CO2 footprint arises from the production and use of our products. We plan to achieve a 25 percent reduction per customer in these emissions by 2030 (versus 2017) (Scope 3, categories: goods and services acquired, capital goods, use of sold products, rented or leased equipment). We maintain a close dialog with our suppliers in order to reduce the emissions generated during production and to ensure the products manufactured consume less energy during the utilization phase.
  • From 2040, we want to be net-zero and leave no carbon footprint across all three scopes.

These targets were developed on the basis of the “Science Based Targets initiative” (SBTi). The SBTi officially confirmed in May 2019 that we are the third DAX-listed company to contribute toward implementing the Paris Climate Agreement through our climate protection targets. We have thus followed our national companies in the United States and Hungary, whose targets were already endorsed by SBTi in 2018 and at the start of 2019, respectively.

Integrated climate strategy
Our integrated climate strategy is based on four pillars: Emissions from the value chain, renewable energy, energy efficiency, and enablement: positive climate protection effects for our customers. We have defined objectives and/or key performance indicators for each of the four pillars.

The four pillars of our integrated climate strategy

We record all direct and indirect emissions using the globally recognized “Greenhouse Gas (GHG)” Protocol. Most of our emissions are caused by the use of electricity. To reduce our emissions, our primary focus is on increasing the share of renewable energies in the electricity mix (see “Renewables”). We will also reduce emissions produced through the use of gas and oil, for instance. In addition, we will improve efficiency in areas with particularly high energy consumption, especially in our networks and data centers. This has already allowed us to reduce our emissions over the past few years – despite rapidly growing data volumes and the necessary network build-out. Indirect emissions from the upstream and downstream value chain (Scope 3 emissions) make up the largest share of our total emissions. We maintain a close dialog with our suppliers in order to reduce the emissions generated during production and to ensure the products manufactured consume less energy during the utilization phase.

Emissions from the
value chain

By the end of 2021, we will obtain all our electricity needs from renewable sources, and hence also convert the entire Deutsche Telekom network, across the entire gamut from mobile telecommunications to the high-speed DSL network, to use electricity entirely from renewable sources. To that end, we aim to expand our own production and conclude power purchase agreements (PPAs). In 2020, a PPA was signed in Germany for the first time for a wind farm in Mecklenburg-Western Pomerania. We are currently drawing up a guide for the entire Deutsche Telekom Group, the purpose of which is to support our various national companies in choosing the ideal solution for their individual needs by providing information on the various options they have available for the purchase of green electricity. We already sourced 100 percent of the electricity from renewable sources in 2020 in the following countries: Germany, Greece, Croatia, the Netherlands, Austria, and Hungary.

Renewable energy

Because the operation of our network infrastructure calls for a considerable amount of energy, we are also investing in energy-efficient technology to reduce CO2 emissions. For instance, we are migrating our network infrastructure to IP technology, which is not only more powerful, but also consumes less electricity than existing technologies. The migration is 99.8 percent complete. In addition, we are working to process data traffic from no more than a few, particularly efficient data centers. The PUE factor serves as an indicator for enhancing the energy efficiency in our data centers. We determine this metric using the method recommended by The Green Grid Association, In order to measure our progress, we use also the key performance indicators (KPIs) Energy Intensity and Carbon Intensity.

Energy efficiency

Many of our products and services provide sustainability advantages. They can help reduce energy consumption and CO2 emissions, improve healthcare and make logistics more efficient. In addition to our own carbon footprint, we also calculate the positive CO2 effects facilitated for our customers through using our products and solutions. We assess both variables in relation to the “Enablement Factor” ESG KPI. This helps us evaluate our overall performance in relation to climate protection. By increasing sales of sustainable products and solutions and reducing our own emissions, we aim to further improve the enablement factor in the future.

Enablement: Positive
climate protection
effects for
our customers

Alignment with core business
We see ourselves as a responsible company and have made that a core element of our Group strategy. Our Corporate Responsibility strategy is derived from this and covers three fields of action. The climate protection strategy specifies the “Low-carbon society” field of action. This is how we ensure that climate protection measures are closely connected with our core business.

To support the climate protection strategy and achieve the ambitious Group targets, the national companies have developed and implemented their own climate protection strategies, concepts and measures. These can be viewed in the relevant profiles.

Reporting against standards

 

Global Reporting Initiative (GRI)

  • GRI 305-5 (Emissions)

Task Force on Climate-related Financial Disclosures (TCFD)

  • The most important key figures for measuring and managing climate-related opportunities and risks
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Our approach to measuring our progress with regard to climate protection

We calculate our emissions for our climate targets along the entire value chain according to the market-based method of the internationally recognized Greenhouse Gas (GHG) Protocol. We have broken down all our CO2e emissions in detail here.

The emissions make up various KPIs that we use to measure our contribution to climate protection and make our progress transparent. The Carbon Intensity and Energy Intensity KPIs are used to analyze the relationship between our CO2e emissions or energy use and the transmitted data volume. Using data volume as a reference parameter makes it possible to create a direct link to the performance of our networks. The Enablement Factor, PUE, and Renewable Energy KPIs also improve the management and transparency of climate protection issues.

Indirect emissions along our value chain, or Scope 3 emissions img, make up the majority of our total emissions. By recording them, we lay the foundation for reducing emissions in our value chains through targeted measures together with our suppliers and customers.

The Board of Management is informed each year in detail by the Group Corporate Responsibility (GCR) unit about the status of the programs we have implemented to achieve our climate targets. In 2020, as in the previous years, we succeeded in further reducing our emissions.

Andreas Kröhling

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Climate target achievement KPI

The achievement of the climate targets was at the forecasted level at the end of the year. Base year emissions were recalculated based on the merger of T-Mobile US and Sprint and are therefore above the 2017 level communicated in the last report.

Our targets foresee reducing Scope 1 and Scope 2 emissions img by up to 95 percent  already by 2025 compared to 2017 and compensating for remaining emissions through appropriate offsetting measures in order to achieve climate neutrality in our own operations.

Over 80 percent of our CO2 footprint arises from the production and use of our products. We plan to achieve a 25 percent reduction per customer in these emissions by 2030 (versus 2017) (Scope 3, categories: goods and services acquired, capital goods, use of sold products, rented or leased equipment).

We also aim to achieve net-zero emissions across all three scopes by 2040. The goal is to remove all emissions that have not yet been reduced from the atmosphere throughout the entire value chain.

 

Reporting against standards

 

Task Force on Climate-related Financial Disclosures (TCFD)

  • The most important key figures for measuring and managing climate-related opportunities and risks
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Alignment with the recommendations of the TCFD

The United Nations Climate Change Conference hosted in Paris in 2015 saw the launch of the “Task Force on Climate-related Financial Disclosures” (TCFD img), which sets out to develop voluntary, consistent climate-related financial risk disclosures. In 2017, the TCFD published specific recommendations for putting these disclosures into practice, which companies can use as a guideline to inform investors, lenders, insurers, and other interest groups about the risks climate change presents for their business model.

Deutsche Telekom welcomes the aims behind the TCFD. Among the risks that climate change harbors, meteorological extremes are one we are already experiencing. This is having a direct effect on our stakeholders, e.g., our customers, suppliers, and employees. The risk is assessed in relation to the continuation of operations as part of risk management and is managed at an operational level in the business units. In addition, we evaluate internally how reporting on climate-related financial risks and opportunities can be aligned with the recommendations of the “Task Force on Climate-related Financial Disclosures” (TCFD). This should build on the existing approaches for strategy, controlling, and risk management.


 

Governance
Strategy
Risk Management
Metrics and Targets
Governance
Disclosures   Guidance   Input
a) Describe the Board’s oversight of climate-related risks and opportunities.  
  • Processes and frequency by which the Board is informed about climate-related issues.
  • Does the Board consider climate-related issues when
    • reviewing and guiding strategy, major plans of action, risk management policies, annual budgets, and business plans?
    • setting the organization’s performance objectives?
    • monitoring implementation and performance?
    • overseeing major capital expenditure, acquisitions, and divestitures?
  • How the Board monitors and oversees progress against goals and targets for addressing climate-related issues.
  
  • Deutsche Telekom’s Board of Management is informed every year about the status of the company’s climate target achievement and climate protection issues in the Climate Target Monitoring Board Report.
  • Deutsche Telekom’s risk management unit reports on a quarterly basis. If any unforeseen risks arise outside the regular reporting of key risks and opportunities, they are recorded as appropriate.
    • The identified relevant risks are reported to the Board of Management of DT. The DT Board of Management informs the Supervisory Board accordingly.
    • Leading climate protection KPIs (Energy Intensity, Carbon Intensity) are part of the quarterly reporting to the responsible Board member (CHRO).
  • The Audit img Committee of the Supervisory Board appraises the risks at its meetings, and the main relevant risks for the Deutsche Telekom Group are also integrated into our Annual Report.
  • The CR-Board is informed about climate protection issues based on requirements.
  • Risk reporting will be expanded to encompass even more comprehensive inclusion of long-term climate-related risks.
  • Financial implications have been integrated into business planning; further management instruments are evaluated for integrating climate protection into investment decision-making (e.g. internal price on carbon).
  • Deutsche Telekom’s Board of Management decided on a new climate protection strategy for 2030 including a Science-Based Target.
  • The overarching corporate strategy was extended at the end of 2019 by “acting responsibly”. This puts a major focus on CO2 and resource reduction as part of Telekom’s strategic direction.
  • As part of our „we care for our planet“ initiative, we have examined our value chain for opportunities to achieve greater resource efficiency and CO2 reduction. Ten areas for action have been identified and these were approved by the Board of Management.   
b) Describe management’s role in assessing and managing climate-related risks and opportunities.  
  • Has the organization assigned climate-related responsibilities to management-level positions or committees?
  • And, if so:
    • Do such management positions or committees report to the Board?
    • Do those responsibilities include assessing and/or managing climate-related issues?
  • Description of the associated organizational structure(s).
  • Processes by which management is informed about climate-related issues.
  • How management (through specific positions and/or management committees) monitors climate-related issues.
  
  • Deutsche Telekom’s current organizational CR structure can be found in the CR Report
  • At DT, the responsibility for CR includes oversight of climate-related issues.
Strategy
Disclosures   Guidance   Input
a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term.  
  • Description of what they consider to be the relevant short, medium, and long-term time horizons.
  • Taking into consideration the useful life of the organization’s assets or infrastructure and the fact that climate-related issues often manifest themselves over the medium and longer term.
  • Description of the specific climate-related issues for each time horizon that could have a material financial impact on the organization.
  • Description of the process used to determine which risks and opportunities could have a material financial impact on the organization.
  
  • ICT img solutions have the potential to facilitate the transformation to a decarbonized society. DT is therefore participating in the studies of the GeSI (Global e-Sustainability Initiative img) so as to systematically evaluate potential. For more details, please refer to the latest issue of the study.
  • We are currently evaluating internally how reporting on climate-related financial risks and opportunities can be aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This is to be based on the existing approaches to strategy, controlling and risk management.
  • In 2020, we held various workshops with experts from technology, purchasing, and strategy & risk management to define the main climate-related opportunities and risks and to make an initial weighting. On the one hand, we considered the consequences for our business activities that could result from the physical effects of progressive climate change. We also analyzed the impact of political, technological and social developments that could accompany the transition to a low-carbon economy. Further Details can be found in the CR-Report.
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning.  
  • What is the impact on the business and strategy in the following areas:
    • products and services
    • supply chain and/or value chain
    • adaptation and mitigation activities
    • investment in research and development
    • operations (including types of operation and location of facilities).
  • Description of
    • how climate-related issues serve as an input to their financial planning process
    • the time period(s) used
    • how these risks and opportunities are prioritized.
  • The impact on financial planning in the following areas:
    • operating costs and revenues
    • capital expenditure and capital allocation
    • acquisitions or divestments
    • access to capital.
  • Description of climate-related scenarios, if they were used to inform the organization’s strategy and financial planning.
  
  • Considerations of physical risks to network infrastructure, e.g. due to extreme weather, are part of our Business Continuity Management, Technical Planning and Telekom Security, as well as the regular planning process for networking.
  • Dialog is held with major suppliers on climate protection issues (e.g. Scope 3 emissions img) and energy efficiency. Telekom was also repeatedly included in the CDP A List.
  • Several programs have been launched to improve energy efficiency at our sites and operations.
  • As part of our "We Care for our Planet" initiative, we have examined our value chain for opportunities relating to greater resource efficiency and CO2 reduction. Ten key areas for action have been identified for future measures leading to a more sustainable company in general.
    • As part of that program, the #GoodMagenta and #GreenMagenta label is awarded to products that have been approved by a committee of internal experts. This label is intended to help customers to identify customer-facing examples in our sustainability program.
  • The impact on our R&D budget follows the “win with partners approach”, using suppliers and especially start-ups to develop new innovative sustainable products and services in order to help our customers reduce their carbon emissions.

Please note: We are currently evaluating internally how reporting on climate-related financial risks and opportunities can be aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This is to be based on the existing approaches to strategy, controlling and risk management.
c) Please note: We are currently evaluating internally how reporting on climate-related financial risks and opportunities can be aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This is to be based on the existing approaches to strategy, controlling and risk management.  
  • Description of
    • how resilient their strategies are to climate-related risks and opportunities (taking into consideration a transition to a lower-carbon economy consistent with a 2°C or lower scenario) and
    • scenarios consistent with increased physical climate-related risks.
  • Organizations should consider discussing:
    • where they believe their strategies may be affected by climate-related risks and opportunities
    • how their strategies might change to address such potential risks and opportunities and
    • the climate-related scenarios and associated time horizon(s) considered.
  
  • DT set a Science-Based Target that is consistent with a 1.5°C scenario (for Scope 1+2) and  signed the UN Global Compact net zero pledge.
  • We are currently evaluating internally how reporting on climate-related financial risks and opportunities can be aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This will build on the existing approaches to strategy, controlling and risk management.
  • In 2020, we analyzed - initially as an example - 500 Deutsche Telekom AG sites in Germany with regard to their physical climate risks. The risk exposure for the respective sites was considered in two climate scenarios of the Intergovernmental Panel on Climate Change (IPCC): a business-as-usual scenario (RCP 4.5), in which the global temperature increase will be over two degrees, and a 4-degree scenario (RCP 8.5). Further details can be found here in the CR Report.
Risk Management
Disclosures   Guidance   Input
a) Describe the organization’s processes for identifying and assessing climate-related risks.  
  • Risk management processes for identifying and assessing climate-related risks.
  • Determining the relative significance of climate-related risks in relation to other risks.
  • The consideration of existing and emerging regulatory requirements related to climate change (e.g. limits on emissions) as well as other relevant factors.
  • Processes for assessing the potential size and scope of identified climate-related risks.
  • Definitions of risk terminology or references to existing risk classification frameworks used.
  
  • In 2020, we held various workshops with experts from technology, purchasing, and strategy & risk management to define the main climate-related opportunities and risks and to make an initial weighting. On the one hand, we considered the consequences for our business activities that could result from the physical effects of progressive climate change. On the other hand, we have also analyzed the impacts that could result from political, technological and social developments associated with the initiated transition to a low-carbon economy. Further details can be found here in the CR Report.
  • The process for the identification of climate change related risks and opportunities includes:
    • screening media and NGO publications
    • actively supporting the work of various industry associations dealing with climate change, e.g. GeSI, econsense, 2-Degree Foundation, ICC, GSMA, ETNO
    • participation & initiation of climate change related stakeholder dialogs
    • analysis of the responses to the CDP img supply chain program
    • analysis of changes in information requests from ratings such as SAM, CDP, Sustainalytics, and others
    • quarterly assessment of relevant data.
       
  • The process for the assessment of climate change related risks and opportunities includes:
    • identification & quantification of the relevant developments
    • calculation of the impact on operations
    • analysis of impact on value chain.
       
  • Furthermore, Telekom’s processes for identifying and assessing climate-related risks are integrated into multi-disciplinary company-wide risk identification, assessment, and management processes.
     
  • Current regulation is relevant and always considered, owing to the need to comply with statutory regulations. DT (in Germany) therefore uses the WEKRA database, which is assessed by CR specialists, to track changes in the regulatory environment. DT also uses its internal capacities (e.g. policy and regulatory affairs) for assessing and evaluating the impact of existing regulations, like ETNO, BDI, bitkom, econsense, etc.
  • Emerging regulation is considered whenever it is relevant and can be anticipated. DT is also aware of upcoming regulations by actively working within various industry associations, e.g. GeSI, econsense or bitkom and intensive stakeholder dialogues with NGOs, e.g. WWF.
b) Describe the organization’s processes for managing climate-related risks.  
  • Processes for managing climate-related risks, such as
    • how decisions are made to mitigate, transfer, accept, or control those risks
    • which processes are available for prioritizing climate-related risks
    • how materiality determinations are made within the organization.
  
  • DT manages (climate-related) risks and opportunities, identified by intensive risk screening and assessed on the basis of market research and expert knowledge, according to the process described above and published in our Annual Report.
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management.  
  • How the processes for identifying, assessing, and managing climate-related risks are integrated into overall risk management.
  
  • In 2020, we held various workshops with experts from technology, purchasing, and strategy & risk management to define the main climate-related opportunities and risks and to make an initial weighting. On the one hand, we considered the consequences for our business activities that could result from the physical effects of progressive climate change. On the other hand, we have also analyzed the impacts that could result from political, technological and social developments associated with the initiated transition to a low-carbon economy. Further details can be found here in the CR Report.
  • In the future, we plan to analyze the opportunities and risks identified as material in the various climate scenarios.
Metrics and Targets
Disclosures   Guidance   Input
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process.  
  • Key metrics used to measure and manage climate-related risks and opportunities.
  • Metrics on climate-related risks associated with water, energy, land use, and waste management (where relevant).
  • Description of whether and how related performance metrics are incorporated into remuneration policies.
  • Where relevant:
    • the internal carbon price
    • climate-related opportunity metrics (e.g. revenue from products and services designed for a lower-carbon economy).
  • Metrics for historical periods to allow for trend analysis
  • Description of the methodologies used to calculate or estimate climate-related metrics (where not apparent).
  
b) Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks.  
  • Scope 1 and Scope 2 emissions
  • Scope 3 emissions and the related risks.
  • Calculation of GHG emissions in line with the GHG Protocol img methodology to allow for aggregation and comparability across organizations and jurisdictions.
  • As appropriate, related, generally accepted industry-specific GHG efficiency ratios.
  • GHG emissions and associated metrics for historical periods to allow for trend analysis.
  • Description of the methodologies used to calculate or estimate the metrics (where not apparent).
  
  • Telekom annually discloses Scope 1-3 emissions in its CR Report and Annual Report.
  • Scope 1 and 2 emissions are calculated in line with the GHG protocol. The Scope 3 emissions calculation is based on the GHG protocol.
  • Carbon Intensity ratios are also published annually in the CR Report and Annual Report. It puts CO2 emissions in relation to the volume of data handled.
  • Historical emission data for all DT subsidies can be found in the CR-report’s interactive benchmarking tool.
c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets.  
  • Description of the key climate-related targets (e.g. those based on GHG emissions, water usage, energy usage, etc.) in line with anticipated regulatory requirements, market constraints, or other goals.
  • Other goals may include:
    • efficiency or financial goals
    • financial loss tolerances
    • GHG emissions avoided throughout the entire product life cycle
    • net revenue goals for products and services designed for a lower-carbon economy.
  • A description of the targets should include the following:
    • a definition of the target as absolute or intensity based
    • timeframes over which the target applies
    • the base year from which progress is measured
    • key performance indicators used to assess progress against targets.
  • A description of the methodologies used to calculate targets and measures (where not apparent).
  
For more information, please click on the segments

 

Reporting against standards

 

Task Force on Climate-related Financial Disclosures (TCFD)

  • The most important key figures for measuring and managing climate-related opportunities and risks
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Progress in implementing the TCFD recommendations

Deutsche Telekom welcomes the TCFD img recommendations and is committed to implement the goals. As a first step, we conducted a gap analysis to see to what extent our measures already comply with the TCFD recommendations (see here). In various workshops with experts from technology, purchasing, strategy and risk management, we defined the material climate-related risks and opportunities and carried out an initial weighting. On the one hand, we considered the consequences for our business activities that could result from the physical impacts of progressing climate change. On the other hand, we have also analyzed the effects that could result from political, technological and social developments associated with the transition to a low-carbon economy.

A key climate-related risk is the potential failure of network infrastructure due to damaged secondary infrastructure (power outages, e.g.) or failed cooling equipment. Another risk is the possible damage to or failure of the network due to damage to the network infrastructure itself, which may occur as a result of climatic events or changes in climatic conditions. In contrast, we identified the increasing use of energy-efficient technologies (in grid operation, e.g.) and the growing demand for climate-friendly products and services as significant climate-related opportunities.

In the next step, we analyzed - on an initial exemplary basis - 500 Deutsche Telekom AG sites in Germany with regard to their physical climate risks. This climate risk analysis was prepared using the "Climate Change Edition" of the "Location Risk Intelligence" software from reinsurer Munich Re. The analysis comprises eight indices (see graphic). We consider the risk exposure for the respective locations in two climate scenarios of the Intergovernmental Panel on Climate Change (IPCC): a business-as-usual scenario (RCP 4.5), in which the global temperature increase will be more than two degrees, and a four-degree scenario (RCP 8.5). In addition to the climate scenarios, we also examine the risk exposure in different time frames: current, for the year 2050, and for 2100.

The following graph shows a sample of the results: The risks for the year 2050 according to the 4-degree scenario:

img img
Tropical Cyclones
Maximum intensity of cyclones with a probability of exceedance of 10 % in ten years (corresponds to a return period of 100 years).
Sea Level Rise**
Hazard zones derived from statistical data on sea level rise and altitude data for the respective projection year and scenario.
Fire Weather Stress Index
The Fire Stress Index describes current meteorological fire conditions based on fire hazard models. These combine inflammation probability, speed and spread probability, and fuel availability into a combined metric. The Fire Stress Index includes information on the length of the fire season and extreme fire danger days, for example.
Precipitation Stress Index
The Precipitation Stress Index describes the current meteorological threat of heavy precipitation. The threat is derived from information about e.g. one-day heavy precipitation events and long-lasting precipitation events.
Drought Stress Index
The Drought Stress Index describes the change in water balance derived from the modelled standardised precipitation evapotranspiration index (SPEI). This multi-scale drought index is based on climatic data and is used to determine the duration, intensity and severity of drought conditions compared to normal conditions (in reference periods).
Heat Stress Index
The Heat Stress Index describes the current meteorological threat from heat. The threat is derived from information on e.g. heat waves, annual maximum temperature and tropical nights.
River Flood (undefended)
Areas at risk of extreme floods with return periods of 100 or 500 years. Does not take into account dikes.
River Flood (defended)
Areas at risk of extreme floods with return periods of 100 or 500 years. Flood protection is taken into account.

In the future, we intend to analyze the risks and opportunities identified as material in the different climate scenarios. We also plan to extend the physical climate risk analysis to further countries.

 

Reporting against standards

 

Task Force on Climate-related Financial Disclosures (TCFD)

  • The most important key figures for measuring and managing climate-related opportunities and risks
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Addressing climate risks

In the context of our integrated climate strategy, we determine climate-related risks and opportunities both for us as a company and for our stakeholders. Our Board of Management is informed quarterly about current climate risks in a Group Risk Report. You will find more information on risk management in the “Risk and opportunity management” section of our annual report.

Physical risks
Extreme weather conditions as a consequence of climate change will have a negative impact on our business processes and will inevitably lead to incidents or even network outages. Among the effects of such breakdowns is their massive impact on the management of rescue operations, for example, sometimes even rendering such emergency efforts entirely impossible. In order to be able to react appropriately in these cases, we have defined the necessary responsibilities, processes, and measures in our internal “Group Policy on Continuity and Situation Management”. The policy also outlines how to handle emergency and crisis situations like floods.

We also take possible consequences of climate change into account when planning our future business activities. For example, our network infrastructure is set up to be better protected from storm conditions, changes in temperature, and high winds.

Financial risks
Climate change also carries financial risks, whether from levies on CO2 emissions or an increase in energy costs. Our contribution to the mitigation of these risks includes measuring our own energy efficiency and developing measures for improvement. To prevent infrastructure failure due to extreme weather events, additional investment in a more robust infrastructure might be necessary.

Prevention
We also help our customers reduce their own carbon footprint, thus helping to mitigate climate change, by providing them with innovative solutions. Possible examples include projects in the area of sustainable urban development and mobility, and also a real-time solution for agriculture (“Precise Positioning”). It can be used, for instance, to correct GPS img data that is often too inaccurate for agricultural purposes and transmit precise location data in real time – using 5G mobile technology. Our low-threshold, comparatively inexpensive solution helps farmers deploy their machinery with greater precision to reduce emissions, dose fertilizer and seeds more accurately, and increase their yields. That way we can also make an indirect contribution to achieving the second sustainable development goal (SDG) of “zero hunger”.

We also help our customers deal with the adverse effects of climate change (adaptation). In the event of an imminent catastrophe, our infrastructure can be used, for example, to send alerts via early warning apps.

Reporting against standards

 

Task Force on Climate-related Financial Disclosures (TCFD)

  • The most important key figures for measuring and managing climate-related opportunities and risks
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