Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Data Security and Privacy
• Digital Inclusion
• Sustainable Supply Chain
• Employee Well-being
• Human Rights

Environmental Achievements

• Reduced CO2 emissions by 20% compared to 2008 (absolute figures, excluding US segment)
• Achieved 52% renewable energy share Group-wide
• Enabled customers to generate around 85% less CO2 than the amount generated by the company in Germany (enablement factor 1.85:1)

Social Achievements

• Launched "Stop Wasting – Start Caring!" initiative to promote resource conservation
• Provided approximately 440 job offers for refugees
• Implemented Teachtoday and 1001 Truths initiatives to promote media literacy

Governance Achievements

• Introduced ethics guidelines on the use of artificial intelligence
• Implemented a comprehensive compliance management system
• Published a declaration of conformity with the German Sustainability Code

Climate Goals & Targets

Environmental Challenges

• Emissions from networks in Germany higher than projected
• Supply chain disruptions due to human rights and labor standards concerns
• Maintaining public trust in data security and privacy

Mitigation Strategies

• Analyzing the effects and implementing further measures to meet emission targets
• Conducting supplier audits and implementing a supplier development program
• Implementing a comprehensive compliance management system and transparent communication

Supply Chain Management

Supplier Audits: 80% of suppliers audited for sustainability in 2018

Responsible Procurement

• Supplier Code of Conduct
• Supplier risk analysis
• Supplier evaluation and development
• Escalation process for violations

Climate-Related Risks & Opportunities

Physical Risks

• Meteorological extremes

Transition Risks

• Introduction of a levy on CO2 emissions
• Increase in energy costs

Opportunities

• Development of energy-efficient products and services
• Potential to save CO2 emissions through ICT

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 17

Deutsche Telekom's products, services, and activities contribute to the achievement of these SDGs through various initiatives and programs.

Sustainable Products & Innovation

• Smart City solutions
• Smart Home solutions
• E-health solutions
• Energy-efficient networks
• Sustainable product packaging

Awards & Recognition

• German Sustainability Award 2018
• Named one of 2019 World’s Most Ethical Companies by the Ethisphere Institute
• Numerous other awards and certifications

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Justice
• Digital Participation
• Responsible Digitalization
• Human Rights
• Supplier Sustainability
• Employee Relations
• Data Protection and Security

Environmental Achievements

• Reduced Scope 1 and Scope 2 emissions by more than 20 percent compared to the previous year.
• Reduced Scope 3 emissions by 11 percent to some 12.8 million metric tons of CO2e in 2019.
• Several national companies sourced 100 percent of their electricity from renewable sources in 2019.
• Reduced CO2e emissions caused by company vehicle fleet by more than 40 percent since 2008.
• Reduced the average global PUE factor at T-Systems data centers from 1.85 to 1.64 between 2011 and 2019.
• Reduced paper consumption by 37.6 metric tons per year through print-on-demand initiative.
• Collected more than 374 thousand mobile devices throughout the Group (excluding TMUS, AMC, Maktel, Crnogorski, DTSE units) in 2019.

Social Achievements

• Increased the proportion of women in top positions in middle and upper management to 35 percent.
• Reduced the accident rate in Germany to 6.8 accidents per thousand employees.
• Over 60 percent of training courses offered were digital.
• 450 positions were filled with refugees at Deutsche Telekom and partner companies.
• Implemented a range of improvement measures based on a Human Rights Impact Assessment at T-Systems India.

Governance Achievements

• Introduced guiding principles for the ethical use of artificial intelligence (AI).
• Had compliance management system certified with a focus on anti-corruption measures.
• Implemented a comprehensive risk monitoring scheme for supplier procurement.

Climate Goals & Targets

Environmental Challenges

• Threats to democracy from media phenomena such as fake news and filter bubbles.
• Resurgent populism in sections of society.
• Supply chain disruptions due to climate events.
• High acquisition costs of electric vehicles and required charging infrastructure.
• Decreased willingness to participate in stakeholder surveys.
• Different legal practices and cultural values in different countries.

Mitigation Strategies

• Modified Group strategy to explicitly make “acting responsibly” a core element.
• Set ambitious climate protection targets.
• Developed alternative sourcing strategies.
• Developed a three-pillar mobility strategy (improve, connected fleet, innovate).
• Conducted document analysis to factor in external stakeholder requirements.
• Established an international compliance advisory team and meetings of compliance representatives from international subsidiaries.

Supply Chain Management

Supplier Audits: 84 on-site social audits in 2019

Responsible Procurement

• Supplier Code of Conduct
• Sustainability criteria in tendering process (10% weighting)
• Supplier Development Program
• CDP Supply Chain Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions leading to network outages

Transition Risks

• Levies on CO2 emissions
• Increase in energy costs

Opportunities

• ICT solutions to facilitate transformation to a decarbonized society

Reporting Standards

Frameworks Used: GRI, UN Global Compact, German Sustainability Code

Certifications: ISO 45001, ISO 14001, ISO 9001, ISO 50001, ISO 27001

Third-party Assurance: PricewaterhouseCoopers GmbH

UN Sustainable Development Goals

• 2
• 3
• 4
• 5
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 15

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Sustainable smartphone recycling initiative
• Eco-conscious packaging
• Online billing

Awards & Recognition

• Ethisphere World's Most Ethical Companies
• CDP Supplier Engagement Leader Board
• Comenius EduMedia Seals for Teachtoday
• FOX AWARDS for Scroller
• German Design Award for Scroller
• German Reading Foundation quality seal for Scroller
• TÜV quality seal for customer satisfaction
• Focus Money “King of Service” award
• CHIP hotline test winner
• Connect mobile network hotline test winner

Environmental Metrics

ESG Focus Areas

• Climate protection & resource efficiency
• Digital responsibility
• Digital participation
• Data security and data privacy
• Human rights and sustainable supply chains
• Sustainable finance
• Social commitment
• Being a responsible employer

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 91 percent from 2017 levels to around 247 kt CO2e.
• Switched to 100% renewable energy for network infrastructure.
• Reduced per-customer Scope 3 emissions by 4 percent compared to 2017.
• Speed Home WLAN router received the Plastics Recycling Award Europe for using over 90% recycled plastic.

Social Achievements

• Launched "Device as a Service" reducing emissions by about 50 kg CO₂ equivalents per smartphone/tablet.
• Improved digital further training with 89% of learning hours completed online (2020: 69%).
• Maintained a high health rate of 95.3% (including extended sick leave).
• Reduced accident rate in Germany to 4.2 accidents per thousand employees (including COVID-19 related accidents).

Governance Achievements

• Linked Board of Management remuneration to progress on energy consumption and CO₂ emissions reduction targets.
• Continued regular audits of compliance management system, confirming appropriateness and effectiveness.
• Developed AI guidelines and integrated them into employee training programs.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (flooding).
• Increasingly frequent natural disasters impacting network infrastructure.
• Rapidly growing cybercrime and AI-supported cyberattacks.
• Risks associated with pandemics.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Analyzing past disasters to identify and reinforce network weaknesses.
• Implementing robust IT control environments, machine learning techniques, and user awareness programs to combat cyber threats.
• Operating a Group Situation Center for pandemic monitoring and crisis management.

Supply Chain Management

Supplier Audits: 88 supplier reviews in 2021 (71 on-site, 17 mobile surveys).

Responsible Procurement

• Supplier Code of Conduct.
• Sustainability criteria in tendering processes (20% weighting as of 2022).
• Supplier Development Program (SDP).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging network infrastructure.
• Network failures due to power outages or cooling system failures.

Transition Risks

• CO₂ pricing.
• Increased energy-efficiency requirements.
• Negative stakeholder feedback and reputational damage.

Opportunities

• Increased use of energy-efficient technologies.
• Growing demand for climate-friendly products and services.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, German Sustainability Code

Certifications: ISO 45001, ISO 14001, ISO 9001, ISO 50001, ISO 27001

Third-party Assurance: PwC

UN Sustainable Development Goals

• 2, 3, 4, 5, 7, 8, 9, 11, 12, 13, 15, 16, 17

Various products, solutions, and measures contribute to achieving these goals.

Sustainable Products & Innovation

• Fairphone 4
• Speedport Smart 4 router
• AR FieldAdvisor app
• EcoShift sustainability platform
• Device as a Service

Awards & Recognition

• CDP A List for Climate Change (6th consecutive year).
• Dow Jones Sustainability Index World and Europe.
• Bloomberg Gender Equality Index.
• Numerous awards for service quality, CR reporting, and #TAKEPART campaign.

Environmental Metrics

ESG Focus Areas

• Climate-neutral business practices
• Circular economy compatibility of products and services
• Diversity, equity, and inclusion
• Shaping a responsible digital society

Environmental Achievements

• Reduced Scope 1 and 2 CO2e emissions by 2% compared to the previous year, reaching a 94% reduction since 2017.
• 100% of electricity used Group-wide sourced from renewable energy since 2021.
• Achieved sustainable packaging for all new Deutsche Telekom-branded products in Europe since mid-2022.
• Nearly 90% of all smartphones sold by Deutsche Telekom in the EU were sold in sustainable packaging by the end of 2022.

Social Achievements

• Improved Group-wide customer retention (TRI*M index) from 72.6 points to 76.0 points.
• Received various awards for commitment to diversity and inclusion.
• Conducted Human Rights Impact Assessments in Slovakia, Czech Republic, and Romania.

Governance Achievements

• Published the company’s first Corporate Digital Responsibility report.
• Successfully introduced the updated CR Policy in a majority of European national companies.
• Integration of ESG targets in Board of Management remuneration since 2021 and for executives in Germany and Europe, as well as employees not covered by collective agreements in Germany since 2022.

Climate Goals & Targets

Environmental Challenges

• Increasing intensity and frequency of extreme weather events impacting network infrastructure.
• Rapidly increasing cyberattacks.
• Unpredictable outbreaks of infectious diseases/pandemics.
• Scope 3 emissions (indirect emissions from the upstream and downstream value chain).

Mitigation Strategies

• Improved methods for predicting potential disasters, designing more robust network infrastructure, installing emergency power supplies.
• Switching to more robust IT control environments, improving protection against attacks, raising awareness among employees and customers.
• Monitoring relevant developments, organizing crisis management, providing suitable protective equipment.
• Close consultation with suppliers to reduce emissions during production and utilize energy-efficient products.

Supply Chain Management

Supplier Audits: 98 supplier reviews in 2022 (83 on-site, 15 mobile surveys)

Responsible Procurement

• Supplier Code of Conduct
• Sustainability criteria in tenders (up to 20% weighting)
• Monitoring potential sustainability transgressions through third-party providers
• Supplier Development Program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events damaging network infrastructure
• Flooding
• Storms
• Heat waves
• Forest fires

Transition Risks

• Carbon pricing
• Regulatory changes (e.g., energy efficiency requirements)
• Negative stakeholder feedback and reputational damage

Opportunities

• Increasing use of energy-efficient technologies
• Growing demand for climate-friendly products and services

Reporting Standards

Frameworks Used: GRI, Global Compact, German Sustainability Code, SASB, TCFD

Certifications: ISO 45001, ISO 14001, ISO 9001 (some units), ISO 50001 (OTE Group), ISO 27001 (OTE Group)

Third-party Assurance: Deloitte (partial)

UN Sustainable Development Goals

• 2, 3, 4, 5, 7, 8, 9, 11, 12, 13, 15, 16

Various products, services, and initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Speedport Smart 4 router (sustainable packaging, recycled plastic)
• Magenta TV Box (bio-based polycarbonate housing)
• SIM cards made from recycled plastic
• Fairphone 4 5G smartphone
• Refurbished smartphones

Awards & Recognition

• Dow Jones Sustainability Index World and Europe (first place in both in 2022)
• CDP Climate Change A List (seventh time in a row)
• Bloomberg Gender Equality Index
• Various awards for CR reporting, diversity, and digital inclusion

Environmental Metrics

ESG Focus Areas

• Climate-neutral business practices
• Circular economy compatibility of products and services
• Diversity, equity, and inclusion
• Shaping a democratic and inclusive digital society

Environmental Achievements

• Reduced CO₂ emissions (Scope 1 and 2) to 217 kt CO₂e (prior year: 233 kt CO₂e)
• Reduced Group-wide Scope 1 and 2 emissions by 7% compared to the prior year.
• Reduced total CO₂e emissions (Scopes 1-3) by 23% since 2020.
• 100% renewable electricity use since 2021 (T-Mobile US and Group)
• Improved data center energy efficiency (PUE value of 1.53 in 2023, down from 1.59 in 2022)
• Increased enablement factor in Germany to 4.78 (2022: 3.76) and in Europe to 3.6 (2022: 2.6)
• 100% of smartphones sold in the EU in sustainable packaging.

Social Achievements

• Increased proportion of women in the total workforce to 35.7%
• Maintained Group-wide health rate above 95%
• Reduced accident rate in Germany to 5.2 accidents per thousand employees (2022: 5.5)
• Increased digital learning rate to 73% (2022: 79%)
• Increased proportion of digital experts to 22%
• Employee engagement score of 76 points (2022: 78 points)

Governance Achievements

• Incorporated energy consumption and CO₂ emissions (Scope 1 and 2) into Board of Management remuneration
• Updated CR Policy enforced at 75 of 135 Group companies by the end of 2023.
• Published Corporate Digital Responsibility report
• Regular audits of compliance management system

Climate Goals & Targets

Environmental Challenges

• Cyberattacks
• Extreme weather events
• Infectious diseases/pandemics
• Geopolitical instability
• Availability of talented job candidates

Mitigation Strategies

• Improved IT control environments, enhanced protection against attacks, increased employee awareness
• Improved disaster prediction, infrastructure reinforcement, emergency power supplies
• Pandemic guidelines, crisis management, network hardening
• Supply chain diversification, increased component supplies
• Succession planning, employee development programs, investments in automation

Supply Chain Management

Supplier Audits: 150 supplier reviews in 2023 (137 on-site, 13 mobile surveys)

Responsible Procurement

• Supplier Code of Conduct
• 20% weighting of environmental objectives in tenders
• Use of EcoVadis and CDP for supplier assessments

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Tornadoes
• Hurricanes
• Forest fires
• Heat waves

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Deloitte

UN Sustainable Development Goals

• 2, 3, 4, 5, 7, 8, 9, 11, 12, 13, 15, 16, 17

Various initiatives contributing to these goals are detailed in the report.

Sustainable Products & Innovation

• uCPE devices
• Device as a Service
• EcoShift sustainability platform
• Smart Groundwater Monitoring
• Digital bill of lading
• Sensor-equipped containers for used textiles
• Parental leave app
• AwareNessi activity book
• T Phone and T Tablet

Awards & Recognition

• German Sustainability Award
• ESG Transparency Award
• Building Public Trust Award
• Second place in NetFederation CSR benchmark
• CDP Climate Change A-List
• Numerous other awards detailed in the report

Environmental Metrics

ESG Focus Areas

• Sustainability
• Economic Security
• Industrial Competitiveness

Climate Goals & Targets

Environmental Challenges

• Low ARPU & return on capital
• Investment gap to reach the 2030 connectivity targets
• Regulatory asymmetries between CAPs and telcos
• Unsustainable burden on Europe’s mobile operators from the current auction regime
• Lack of scale in the EU telecom sector
• Fragmented national telecommunications markets

Mitigation Strategies

• Move away from ex ante SMP regulation towards ex post competition law
• Introduce a dispute settlement mechanism for fair prices for data transport services
• Remove/streamline national barriers to facilitate cross-border services
• In-country consolidation to achieve economies of scale
• Promoting swift availability of spectrum
• Enabling long-term investment by fostering license prolongations and renewals
• Full integration and streamlining of industrial policy objectives
• Swiftly include the deployment and operations of telco networks in the EU Taxonomy

Supply Chain Management

Climate-Related Risks & Opportunities