RATING

Outlook

Positive

SECTOR

Telecommunications activities

Chief Sustainability Officer

Birgit Klesper – Senior Vice President, Group Corporate Responsibility & Sustainability, for Deutsche Telekom AG. Birgit Klesper retired as of January 1, 2022, and handed over the leadership of GCR to Michael Hagspihl

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Stock Exchange and Ticker

ETR: DTE

Website

Telekom

Contact

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E.mail: N/A

Listing

Listed on STOXX Global ESG Leaders Index
Regularly listed in the FTSE4Good Index and UN Global Compact 100 Index
“Dow Jones Sustainability Index World” (DJSI World)
“Dow Jones Sustainability Index Europe (DJSI Europe)
Bloomberg Gender Equality Index (GEI)
listed in the top 10 of the Digital Inclusion Benchmark’s listing of the world’s 150 most influential tech companies on digital inclusion
CDP A List sixth year in a row

Awards

- CDP, Climate Change – A
- - CDP Climate Disclosure Leadership Index (CDLI) 99/100 points
- The “Service King” distinction awarded by the trade magazine Focus Money;
- - “best broadband / fixed-network and mobile-network hotlines” in connect magazine’s 2021 hotline test;
  - “best mobile communications shop” in connect magazine‘s 2021 mobile communications shop test;
  - “Excellence Group” rating in the “Top Service Deutschland” ratings
  - “Supplier Engagement Leader Board” for the third time in a row in 2021
  - FOCUS “Top climate-protection commitment in 2021” (“Top-Klima Engagement 2021”)
- “Speed Home WLAN” router received the Plastics Recycling Award Europe
- - Readers of the magazines Autobild and Computerbild chose the “Digital Guardian Angel” app as the winner of the Connected Car Award 2021 in the “Safety” category
- Awarded the “DigitalPakt Alter” seal of approval
- - Best European telco in the S&P Assessment
- “Institutional Assets Awards 2020 & 2021”
- - Gold at THE BEST AGENCY 2021
  - Best national media strategy: Deutscher Mediapreis 2021
- Deutscher Digital Award 2021: Silver
- Gold at the Radio Advertising Awards 2021
- Effie Germany Awards: Bronze
- - 1st place in the Boston Consulting Group’s Gender Diversity Index
- Female Allstar Board: Award for Board of Management member Claudia Nemat
- - Best employer, according to the magazine “Brigitte”
- Forbes’ Strategy Awards 44 “Best Employers for Diversity 2021.”
- - “connect” hotline test: Fixed network 2021
  - “connect” hotline test: Mobile communications 2021
  - “connect” survey: Customer satisfaction – internet providers B2B 2021
  - “connect” mobile communications shop test 2021
  - CHIP mobile communications: Best range of digital services in 2021
  - CHIP hosting providers: Best range of digital services in 2021
  - CHIP TV & VoD providers: Best range of digital services in 2021
  - CHIP fixed-network and internet providers: Best range of digital services in 2021
  - Computer Bild: Top Digital Assistent 2021
  - Chosen “King of Service” 2021 by “Focus Money”
  - Top Service Deutschland 2021
  - “Mobile Network Test” of CHIP trade magazine
  - “2021 Mobile Network Test” of “connect” magazine
  - Test winner in CHIP’s fixed network compariso
  - Connect test: First place for our fixed network
  - Most attractive employer for career starters by Universum
- HR Excellence Award for virtual student internship
- Potentialpark’s 2021 Talent Communication Rankings First place for career website
- second-place honors in the “Azubi-Communication-Studie 2021”
- Deutsche Preis für Onlinekommunikation (German Award for Online Communication), 2020 CR report was awarded first place in the “CSR & Annual Report.”
- “Best Sustainability Reporting: Technology & Telecoms.”
- CR report in the “Cover/Homepage: CSR Report” category, the report won silver, and in the “Interactive Annual Report: CSR Report” category, it won bronze
- CR report received the PR Report Award 2021 in the category “Sustainability and CSR.”
- NetFederation’s CSR Benchmark, honored Telecom for having the best sustainability communication
MERCURY Awards 2021/2022, Corporate Responsibility Report was twice awarded best report and won silver in both the “Corporate Social Responsibility” and “Interactive” categories

Revenue

€108.8 B

Market Capitalisation

€94.41 B

Employees

216,500

Content source

Deutsche Telekom Sustainability Report

Evaluation of Deutsche Telekom

Deutsche Telekom is truly a pioneer when it comes to sustainability. Starting with its sustainability report, which is lengthy but not overwhelming, it provides all the necessary and factual information regarding the company’s sustainability activity. The list of targets is impressive, including both general and factual goals for the near future. The most impressive is the goal of climate neutrality across the whole value chain by 2040. We only wished more companies were performing as well, in order to halt our emissions fast, before it’s too late. Telekom uses only renewable energy across the group and has reduced its emission by a staggering 91% since 2017. Now that’s called progress! Further, it created its own Eco Rating scheme for mobile phones and #GreenMagenta and #GoodMagenta Label for products and services and at the same time does not fall short with international certifications. Since 2021, calculation of Board of Management members’ remuneration takes account of development of energy and CO₂e-emissions KPIs.

Company’s environmental initiatives are outnumbering the others, nevertheless all the others achievements are satisfactory and we hope to see more of them over the following years. We also must say that even more achievements can be found in the CR report and we invite the readers to have a look at it. Telekom has undertaken multiple third-party evaluations by renowned bodies like CDP, TCFD, SASB and GRI and follows even more frameworks. It was granted 99 out of 100 points in the CDP Climate Disclosure Leadership Index (CDLI) and was listed on CDP A List sixth year in a row. The list of awards is also impressive, but we dare to say, not as much as the list of certifications, including six ISO, two TÜV, and more. Compliance with SDGs is clear and we did not find any signs of greenwashing. Lastly, there were no recent negative articles found, besides the company’s most recent inconsistency regarding the sales of its customers’ private data. We hope the Group entity will take action in the US and prove that it truly deserve its high rating and cast an example for all companies in the sector to strive for.

Sustainability Scorecard

Deutsche Telekom Company Activity

Deutsche Telekom AG, formed in 1995, is a German telecommunications company that is headquartered in Bonn and is the largest telecommunications provider in Europe by revenue. It engages mostly in the provision of telecommunication and information technology services. The Systems Solutions segment offers integrated solutions for fixed and mobile networks, highly secure data centers, and a comprehensive cloud ecosystem made up of standardized platforms, and global partnerships. The Group Headquarters and Group Services segment focuses on board departments such as global network factory, and group technology unit.

Deutsche Telekom Sustainability Activity - As per company declarations

With companies in about 50 countries, Deutsche Telekom is one of the world’s leading telecommunications providers. Because the company is the European leader in providing telecommunications services, it also wants to be a pioneer in sustainability. The company has made bold promises over the years, for example achieving net zero by 2040 across the whole value chain. Deutsche Telekom ensures cross-border implementation of its CR strategy, gearing strategic approaches in the national companies to local circumstances. The company made commitments to act responsibly along the entire value chain and play an important role in solving today’s ecological, economic and social challenges.

Certificate & Labels, Standards and Frameworks

OECD Guidelines for Multinational Enterprises
Ten Principles of the UN Global Compact
GRI-Index
Global Compact Communication on Progress
Sustainability Accounting Standards Board (SASB)
German Sustainability Code
UN LGBT+ Standards of Conduct for Business
TCFD
power usage effectiveness, or PU determined with the method specified by the data-center standard EN50600
“eg-check” certificate for fair salaries
TÜV quality seal
ISO 14001
ISO 50001
ISO 45001
ISO 27001
ISO 27701
ISO 9001
Blue Angel label
TÜV Certified Green Product label
The IT systems at Telekom Deutschland were certified as secure in 2020 by the testing institute TÜV Informationstechnik (TÜViT) of the TÜV Nord Group
Cyber Emergency Response Team has been officially certified according to the SIM3 standard (Security Incident Management Maturity Model) since 2020
Fairphone 4 is currently the world’s only smartphone to have been awarded the German “Blue Angel” (“Blauer Engel”) label, a certification for environmentally friendly products
In 2021, the association visitBerlin Convention Partner again audited the Representative Office in Berlin and, as a result, certified it as a Sustainable Partner in its top category, “Leader”

Deutsche Telekom in the news: Press Reviews and Social Media

T-Mobile continues building an ad business, despite ongoing controversies | Light Reading

Telekom’s actions in the US are misaligned with the company’s statement regarding the sales of its customers’ private data.

Highlights from Deutsche Telekom Sustainability Report

Achievements

Long list of overarching and factual targets
Multiple third-party evaluations, awards and renowned certifications
100% renewable energy use across the entire group
91% emission reduction since 2017
Telekom created its own eco rating scheme and awards
High ESG expectations towards suppliers

Weaknesses and Setbacks

None

Targets vs Progress Reported

Target	Results reported
Aim to achieve 60% of procurement volume as verified as “uncritical” by 2025 95% procurement volume should be without an identified CR risk by 2025	- 60% achieved in 2021 - 99.7% of procurement volume in 2021 - In 2021, 462 suppliers were invited to participate in the CDP Supply Chain Program, 268 participated - Follow a sustainable procurement strategy - As of 2020, suppliers of solutions involving artificial intelligence (AI) must also comply with the requirements of AI Guidelines - Since 2014, an online compliance training for suppliers is offered
99% LTE coverage in Germany by 2020 (99% in 2021) 99% LTE coverage in Europe by 2021 (98% in 2021) 99% 5G coverage in Germany by 2025	- 99% coverage in 2021 in Germany - 98% coverage in Europe - 90% 5G coverage in Germany
Increase Group-wide customer retention (measured using TRI*M index)	- At the end of the year under review, the indicator for the Group (excluding T-Mobile US) came in at 73.4 points versus an adjusted value of 72.7 points at the start of the year
Integration of requirements from EU Taxonomy	- Fulfillment of the EU Taxonomy Regulation’s requirements in effect for 2021, via listing of taxonomy-eligible turnover, capital expenditure, and operating expenditure
Decrease Group-wide Scope 1 and 2 emissions by up to 95%, with respect to their 2017 levels, by the end of 2025. The remaining emissions are to be offset via suitable measures, to enable the company to reach climate neutrality Reduction of emissions from the upstream and downstream value chain (Scope 3) by 25 percent per customer, compared to 2017, by 2030 Climate neutrality by no later than 2040 (Scope 1, 2 and 3) Improvement of the efficiency of data centers; use of climate-neutral company data centers and externally operated data centers (pursuant to the Climate Neutral Data Centre Pact) by 2030 Switch Group-wide power consumption to 100 percent renewable energy by 2021 (achieved)	- Emissions reduction 2017–2021 by 91% to around 247 kt CO2 e (Scope 1&2) - Emissions reduction 2017–2021 by 4% to around 51 kg CO2 e per customer (Scope 3) - Total emissions 2021: 15 023 kt CO2e The PUE factor of energy efficiency fell from 1.85 in 2008 to 1.49 in 2021 - 100% GREEN ELECTRICITY across the entire Group
Through 2024, European national companies (outside of Germany) plan to collect one million used mobile devices and keep them in the circular economy by refurbishing or recycling them Ensuring that, by 2024, none of the electronic waste produced by Deutsche Telekom in Europe, and no used devices the company collects, such as smartphones, routers or laptops, wind up in landfills As of mid-2022, packaging for all new Deutsche Telekom-branded products in Germany and Europe is to be sustainable, in keeping with our “Sustainability Packaging Guideline.” By the end of 2022, ensuring that third-party smartphones we sell in Europe have sustainable product packaging The Paperless Office project aims to completely eliminate paper use wherever possible by 2025	- In 2021 collected about 150 000 devices - In 2021, about 1.4 million new Telekom-branded products sold or leased in Germany were already sustainably packaged in line with internal criteria - In 2021, about two-thirds of all smartphones sold by Deutsche Telekom in the EU were sold in sustainable packaging - Saved some 275 metric tons of paper in 2021 - Revenue from sustainable products made up 42% of the whole revenue, excluding US, in 2021 (44% in 2020). A key reason for the slight percentage decrease seen in this area is that total revenue grew more strongly than did sustainability-related revenue - “Green Point of Sale,” brings sustainability-oriented measures focused on shops in Europe - Telekom generated 86 636t of waste in 2021 (excluding T-mobile US) including residual, paper, technical-non-hazardous and hazardous waste, and more than 90% of it was recycled
Increase the proportion of women on the Supervisory Board and in top positions in middle and upper management to 30 percent by 2025	Total workforce: - 35.7% women - Middle and upper - Management: 27.3% Board of Management of Deutsche Telekom AG: 37.5% - Supervisory Board (in Germany): 42.4% - Supervisory Board (international): 25%

UN SDGs Compliance Analysis

Progress made toward SDG targets
As reported by Deutsche Telekom

Expect suppliers to pay the minimum wages as set forth in the ILO img Convention

Efficient smart agriculture information-technology solutions allow for higher harvest yields while reducing the use of resources such as seeds, water, fertilizers, and energy

Avoidance of empty runs through the “Mein Telekom Techniker” web app helps reduce air pollution. It therefore has a positive impact on both air quality and human health
Ecoshift helps reduce transport-related emissions and air pollution in cities
Human Rights Impact Assessments, enacts measures for observance of human rights throughout the company and in the value chain

“AwareNessi” helps parents talk with their children about this issue and teach them to use the internet with care
The multimedia learning methods used with Teachtoday promote safe and competent media use

Use of soy-based printer ink prevents use of environmentally harmful chemicals

Use of the AR FieldAdvisor app has improved service productivity, by enabling larger numbers of service calls to be made within a given period of time. Since the app eliminates travel time, and enables service personnel to work from their homes, its use also enhances the well-being of service personnel. In addition, it facilitates compliance with Covid-related contact restrictions
Human Rights Impact Assessments, enacts measures for observance of human rights throughout the company and in the value chain
The switch to online billing saves paper, and printer toner, and reduces logistics requirements. We have identified the potential negative consequences of this measure as a drop in sales for the timber and paper industries and logistics sector. However, these consequences are less substantial than the positive effects

“Teachtoday” and “SCROLLER” initiatives promote media literacy on the part of children.
In cooperation with the German National Association of Senior Citizens’ Organisations (BAGSO), senior citizens are helped to navigate the digital world.
320 Green Pioneers in 2021 (2020: 250); working at 53 sites in Germany (2020: 45); more community initiatives in national companies
Digital learning rate (share of learning hours completed as online learning) 2021: 89% (2020: 69%)
83% of the training courses offered throughout the Group were available online (2020: 68%)
Systematic management of company smartphones and tablets supports more-efficient, and more-sustainable, use of valuable resources
The digital application of “Mein Telekom Techniker” web app saves paper, since it eliminates the need for two thirds of the “sorry we missed you” cards that previously had to be placed in a mailbox when the customer was not home. This supports resource efficiency and makes service processes greener.
Ecoshift visualizes company-wide mobility-related emissions, and it supports derivation of specific measures to reduce them. It also saves time; its dedicated interfaces facilitate carbon-footprint determination, and its real-time data facilitate preparation of company reports.
“AwareNessi” advises children and parents with regard to use of security tools in cyberspace, without mentioning any brand names.
The switch to online billing saves paper, and printer toner, and reduces logistics requirements. We have identified the potential negative consequences of this measure as a drop in sales for the timber and paper industries and logistics sector. However, these consequences are less substantial than the positive effects

Elimination of transpor trelated emissions tied to an average of 2 485 km of road and air travel to and from service sites (for 100 service calls) through AR FieldAdvisor app
Avoidance of empty runs through the “Mein Telekom Techniker” web app helps reduce air pollution. It therefore has a positive impact on both air quality and human health.
The A-CDM solution in T-systems helps reduce air pollution
Ecoshift helps reduce transport-related emissions and air pollution in cities. It also contributes to employees’ health and well-being.
Use of recycled materials, and avoidance of plastic, reduce waste

Through cooperation with everphone a reduction of emissions by about 50 kg CO₂ equivalents per company smartphone and tablet can be achieved – refurbishment rate increases to 97%, employees become more aware of the need to use devices sustainably
The digital application of “Mein Telekom Techniker” web app saves paper, since it eliminates the need for two thirds of the “sorry we missed you” cards that previously had to be placed in a mailbox when the customer was not home. This supports resource efficiency and makes service processes greener.
Ecoshift visualizes company-wide mobility-related emissions, and it supports derivation of specific measures to reduce them. It also saves time; its dedicated interfaces facilitate carbon-footprint determination, and its real-time data facilitate preparation of company reports.
Issues of “AwareNessi” are available in digital form, for printout only as necessary. This helps reduce paper waste.
The switch to online billing saves paper, and printer toner, and reduces logistics requirements. We have identified the potential negative consequences of this measure as a drop in sales for the timber and paper industries and logistics sector. However, these consequences are less substantial than the positive effects
Use of recycled materials, and avoidance of plastic, reduce waste

Created its own Eco Rating scheme for mobile phones and #GreenMagenta and #GoodMagenta Label for products and services
Green network throughout the whole group
Clear climate targets and achievements (climate neutral by 2025 in direct operations and by 2040 the entire value chain)
Use of the AR FieldAdvisor app to eliminate the need for 100 typical on-site service calls can save about 614 kg CO₂ equivalents
Thanks to web app “Mein Telekom Techniker” (“My Deutsche Telekom Service Technician”) for 100 service calls, calculation shows that an average of about 14 kg CO₂ equivalents is saved per call
T-Systems offers airport operators a software system that helps to make airport operations more efficient. On average, use of A-CDM can save up to 92 kg of CO₂ emissions per takeoff. Also worthy of note is that T-Systems developed the software with electricity from renewable energies
T-Systems offers business customers “EcoShift,” a sustainability platform, which shows companies the carbon footprint generated by the mobility of their employees and, on a dedicated platform, translates this data into specific recommendations. The use of the sustainability platform can save about 12 tons of CO₂ emissions annually, per 100 employees.
The switch from paper billing to online billing showed that the adverse environmental impacts of online billing are more than 50 percent lower than those associated with paper billing
Sustainable product packaging for remotes

Efficient smart agriculture information technology solutions allow for higher harvest yields while reducing the use of resources such as seeds, fertilizers, and energy
Telekom conducts projects to protect biodiversity
Telekom requires suppliers to protect the environment and use resources responsibly

Cooperation with everphone offering “Device as Service” (active collection of devices from employees, exchange and proper repair of defective devices, and certified disposal and recycling of devices taken out of service)
AR FieldAdvisor app’s remote-maintenance functionality makes it easy to provide competent technical support outside of major cities, and in less-developed areas.
T-systems enhances collaboration, and it saves time by optimizing operational and resources management.
“AwareNessi” provides reliable information about data security internationally in 16 different languages
Tens of cooperations with businesses, climate protection and environmental organisations and civic and aid organisations

Sustainability Certificates, Awards and Listings

Deutsche Telekom Sustainability Report

RATING

SECTOR

Chief Sustainability Officer

Stock Exchange and Ticker

Website

Contact

Listing

Awards

Revenue

Market Capitalisation

Employees

Content source

Deutsche Telekom Sustainability Report

Evaluation of Deutsche Telekom

Sustainability Scorecard

Deutsche Telekom Company Activity

Deutsche Telekom Sustainability Activity - As per company declarations

Certificate & Labels, Standards and Frameworks

Deutsche Telekom in the news: Press Reviews and Social Media

Highlights from Deutsche Telekom Sustainability Report

Targets vs Progress Reported

UN SDGs Compliance Analysis

Sustainability Certificates, Awards and Listings

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