Overview of corporate responsibility in 2011. We take responsibility.
Overview of corporate responsibility in 2011. Contents. 4 Strategy & management. 6 Networks. 10 Customers. 14 Society.
18 Employees. Corporate Responsibility Bericht 2010. Wir leben Verantwortung. 22 Suppliers. 24 Climate & environment. 26 Disclaimer, contact and publishing information. This brochure contains excerpts from the 2011 Corporate Responsibility Report of Deutsche Telekom. You will find the complete report at: www.cr-report.telekom.com
4 Gesellschaft. Strategie & management. Deutsche Telekom’s strategic goal is to become an international leader for connected life and work. For us, this means taking on a leading role when it comes to assuming social responsibility as well. We are planning to become the industry leader in terms of corporate responsibility by 2015, and have designed our corporate responsibility strategy to lay the foundation for long-term corporate success. Telekom’s CR strategy. Deutsche Telekom’s corporate strategy forms the basis of our CR strategy throughout the Group. It reflects our commitment to sustainable manage- ment. At the same time it provides our international subsidiaries with an action framework that they can use to implement CR in their respective sphe- res of influence. We focus on three categories in all of the measures and activities that are based on this strategy: Connected life and work. We are helping shape the change in the increa- singly digitalized work and living environment. Deutsche Telekom supports cultural change with innovative products and solutions toward greater self- determination and quality of life both in our professional and personal lives. Our goal is to be a driving force for sustainable life and work. Connect the unconnected. Irrespective of their social or economic opportunities, we try to get as many people as possible involved in the development of the society they live in. With this in mind, we promote numerous community initiatives and support projects for media skills development. Low carbon society. Global warming and its consequences are one of the greatest challenges facing mankind. We have launched large-scale initia- tives to reduce our own emissions for the long term. At the same time we are also empowering our customers and partners to make their contribution to a low carbon society with our solutions. Internationalizing the CR strategy at the international subsidiaries. The implementation of our CR strategy requires a coordinated approach by all units in the Group. To this end, we have set up a consistent management Inclusion in new sustainability index. In spring 2011 we succeeded in landing a listing in the new STOXX Global ESG Leaders Index. This sustainability index con- siders key figures from 1,800 European listed companies and evaluates them for environmental, social and governance perfor- mance on the basis of the Sustainalytics agency’s ratings.
Deutsche Telekom 5 1,446 stakeholders participated in a survey on the focus of our CR strategy. structure at the different companies. The international CR Manager Network was launched in 2008 to systematize and intensify collaboration throug- hout the Group. Many of the 19 international subsidiaries represented in the CR Manager Network have since incorporated the CR categories in their local strategies. The CR managers from the various business units and inter- national subsidiaries are responsible for operational implementation of the CR strategy. Measuring the success of our CR strategy. In order to steer its CR performance, Telekom uses seven Group-wide CR key performance indicators (CR KPIs). These help us to systematically and trans- parently optimize our services on an ongoing basis. Use of the CR KPIs will become mandatory in 2012. CR KPIs included in the Annual Report. We included selected CR KPIs— the Energy Consumption CR KPI and the CO2 Emissions CR KPI—in the 2011 Annual Report for the first time. This is the first step toward interlinking the Annual Report and the CR Report more closely, which shows that sustain- ability is a fixed element of Deutsche Telekom’s core business. CR KPI to measure socially responsible investment. Our goal is to con- sistently increase the proportion of shares held by socially responsible inves- tors. We measure our performance in this area with the Socially Responsible Investment (SRI) CR KPI. Stakeholder involvement. Our strategy development is based on the principles of materiality, inclusi- vity, and responsiveness. Stakeholder involvement is an essential part of our CR strategy. That is why, in 2011, we developed a strategic approach to take our stakeholders’ concerns into consideration and facilitate their incor- poration into our processes. The approach is based on the three AA1000 principles of materiality, inclusivity and responsiveness devised by the NGO AccountAbility. In December 2011 it was further developed into a concre- te stakeholder involvement strategy, which is based on the following three pillars: Our strategic profile: The strategic profile names relevant stakeholder groups and defines how the Group intends to shape its relationships with these stakeholders. Internal skills development and service: We are developing an infrastruc- ture that helps our employees implement the strategy into practice. Establishing a stakeholder management system: We document our stakeholder activities and monitor the development of relevant stakeholder issues. Stakeholder involvement initiatives: Telekom’s expert circle 50+ as an example. In order to get people over 50 more involved, we established the Telekom expert circle 50+ in November 2011. The group is comprised of around 60 independent members who volunteer their time and efforts. This customer forum assesses the offerings we have developed for the over-50 target group. New ideas and findings are translated into recommendations for product development. Share of Deutsche Telekom stock held by socially responsible investors. 11.0 % 14.4 % 15.1 % 2009 2010 2011 2011 CR Report: Strategy & management
6 Gesellschaft. Networks. We are driving a nationwide expansion of our broadband infrastructure in all of our markets. High- speed Internet and reliable mobile communications connections are key prerequisites when it comes to enabling equal participation in society. In the interest of climate protection we are replacing out- dated technology that is no longer required with environmentally friendly, energy-efficient solutions. Connect the unconnected. Many people and companies still have no or only insufficient access to mo- dern communications technology. That is why we focus our efforts on using new technologies to fill in gaps in our broadband network as part of the CR category “Connect the unconnected.” 1,100 collaboration projects with local authorities in Germany. In 2011 we carried out more than 1,100 collaboration projects with local authorities as part of the More Broadband for Germany initiative. This enabled us to set Collaboration with local authorities in Germany. 2009 2010 2011 720 over 800 up high-speed networks in regions where this is not economically viable for Telekom. Local authorities permitted the use of existing empty conduits, as- sumed responsibility for groundwork or made a financial contribution to net- work expansion. More than 3,000 communities have been receiving broadband infrastruc- ture through these means since 2008. In 2011 we entered into more than 1,100 collaboration projects for broadband expansion following some 800 in 2010. Faster speeds in fixed-line and mobile communications. Many people already use network-based solutions to organize their day-to- day lives conveniently and individually. That is why we are continuously stri- ving to improve our offer of high-speed connections, both for fixed-line and mobile communications. Data transport within the Internet infrastructure re- lies on a number of innovative technologies. over 1,100 ADSL2+ expansion. ADSL2+ (Asymmetrical Digital Subscriber Line 2+) is the current DSL standard in Deutsche Telekom’s fixed network. It enables fast transmission of large amounts of data at speeds of up to 16 Mbit/s. Bet-
Deutsche Telekom 7 22.8 million ADSL2+ connections since 2006. ween 2006 and 2012, 22.8 million lines in over 1,000 cities were switched to ADSL2+ in Germany alone. VDSL access available for 11.6 million households. VDSL (Very high bit rate digital subscriber line) has made it possible for Telekom to give its DSL connections a further speed boost, doubling speeds compared to ADSL2+. The fast VDSL version of DSL is now available in 50 German cities, offering 11.6 million households connections with bandwidths of up to 50 Mbit/s. FTTH expansion in Germany. In 2011, a total of 168,000 households in ten German cities gained access to Deutsche Telekom’s fiber-optic net- work as new infrastructure was put in place. Up to an additional ten cities are scheduled to be connected to the network in 2012. Expansion of the fiber-optic network in Croatia. In 2011 the Croatian subsidiary T-HT Hrvatski Telekom installed fiber-optic networks on a large scale, providing 260,000 households with an FTTH connection. New FTTH lines for households in 2011. Germany 168,000 Croatia Montenegro 260,000 7,700 FYRO Macedonia 43,000 OTE takes broadband expansion forward in Greece. At the end of 2011, 21.8 percent of Greek households had a broadband connection. OTE con- tinues to be the country’s driving force when it comes to new information and communication technologies. It is the provider of choice for broad- band services. Accordingly, OTE has a large share of broadband custo- mers, amounting to over 32.5 percent of the company’s customers in De- cember 2011. Over 478,700 new FTTH connections at global level. In addition to Fiber to the Cabinet, Deutsche Telekom relies on Fiber to the Home (FTTH) solu- tions, taking fiber-optic cables right into the customer’s homes. Further FTTH expansion in Montenegro. The Montenegrin subsidiary Crnogorski Telekom also pressed ahead with fiber-optic network expansi- on in 2011. FTTH infrastructure was set up in four districts in Podgorica and one in Tivat, and 7,700 households were connected. 43,000 new FTTH connections in FYRO Macedonia. In 2011 the Mace- donian subsidiary supplied 43,000 households with FTTH infrastructure in the wake of fiber-optic expansion and replacement of old copper cables. Makedonski Telekom invested a total of EUR 170 million in the expansion of its fixed and mobile communications networks in 2011. WLAN services for broadband Internet on the go. We currently offer our customers in Germany various options for broadband Internet use via WLAN, e.g., in different modes of transportation. Mobile and fixed stations for wireless Internet. Users of our HotSpot service can use WLAN to conveniently access data and information at more than 11,000 locations in Germany and at more than 50,000 of our partner locations worldwide. HotSpot flat rates are part of many fixed-line and mobi- le communications packages. In collaboration with the German railway company Deutsche Bahn AG we offer WLAN HotSpots in trains on selected routes with data transmission rates of between 1.5 and 16 Mbit/s, or an average of 6 Mbit/s. As of early 2012, 69 ICE trains were equipped with the HotSpot service. In collaboration with Lufthansa, we also give our customers the op- portunity to use HotSpots to surf online via satellite during their flight. Around 25 planes were equipped with this technology as of early 2012.
8 Networks. Awards for mobile communications network in Germany. Deutsche Telekom won a number of relevant awards in 2011. The German consumer organization Stiftung Warentest described our network availability and highest data rates as “excellent” and gave us a score of “good” (2.4) in its test magazine rating. This was followed by extensive measurements for a test by the CHIP Online portal in which we won first place, as we did in the connect magazine test, coming well ahead of the remaining candidates in both cases. In May 2011, readers of connect magazine voted Telekom as Wireless Network Provider of the Year for the twelfth year in succession. 2nd and 3rd generation mobile communications. In addition to setting up state-of-the-art mobile communications networks, Telekom is also continuing to drive expansion of the current 2G and 3G in- frastructure. We are also upgrading older 2nd and 3rd generation mobile communications systems to meet state-of-the-art standards. By doing this, we can save a considerable amount of energy and avoid CO2 emissions. High-speed UMTS with HSPA+. Internet access via UMTS (Universal Mobi- le Telecommunications System), or third generation (3G) wireless technolo- gy, is available in all German conurbations. We achieved our aim of provi- ding UMTS coverage to 85 percent of Germany by the end of 2011. With the new UMTS-based High Speed Packet Access+ (HSPA+), data transmis- sion speed can now be increased further to DSL levels of up to 42.2 Mbit/s. T-Mobile USA: Nationwide HSPA+ at 4G speeds. The U.S. subsidiary con- tinued to expand its nationwide HSPA+ services in 2011. At the end of the year, data rates of up to 21 Mbit/s were available for 200 million Americans, and for 180 million the top data transmission speed was 42 Mbit/s. 4th generation mobile communications. LTE network expansion in Germany and Austria. Telekom supports the network expansion targets of the EU Commission and the German federal government. Our goal is to deliver fast Internet access to as many households as possible in areas that have previously been white spots, most of them in regions with a weak infrastructure. By the end of 2011 we were able to connect over 1,500 rural areas to the LTE 800 network. VDSL expansion in Germany. 10.9 million households 10.5 million households 11.6 million households 2009 2010 2011
Deutsche Telekom 9 85-percent UMTS coverage throughout Germany. The Power Off task force. In 2011 we were able to shut down unnecessary technical sys- tems with an overall wattage of 4,286 kW thanks to measures implemented by the Power Off task force. The energy savings re- alized as a result is the equivalent of 16,564 metric tons of CO2 per year. T-Mobile Austria is also investing heavily in the expansion and further devel- opment of LTE network technology. In October 2010, Innsbruck be came Austria’s first city to be connected to the network of the future. T-Mobile Austria began operating additional LTE wireless stations in Vienna in May 2011 and in Linz and Graz in June 2011. Around 600,000 Austrians in these four cities are now able to use the new broadband technology. Green data centers. Energy efficiency is the most important instrument to effectively improve the CO2 footprint of data centers. The PUE (power usage effectiveness) value is the most important indicator of data center energy efficiency. It compares the entire amount of energy used for data center operation with the amount of energy consumed by the computers. The average PUE value at data centers run by T-Systems International and PASM, a subsidiary of Deutsche Telekom AG, is 1.75. That means that 1.75 kW of power need to be supplied to the data center for every kilowatt of power the servers need. Telekom’s goal is to decrease this value for new fixed network data centers to 1.4 and for existing data centers to 1.6 by 2020. We have already achieved a PUE value of 1.23 at DataCenter 2020. Heat Power Business project launched. Over the course of 2011, we were able to confirm that our equip- ment can be operated in a way that is both efficient and environ- mentally friendly, as was shown in a previous feasibility study. Fol- lowing a start-up phase, local mini-CHP stations were generating around 1,300 MWh of electricity and a further 2,000 MWh or so of district heating by the year’s end. As a result, using the ten mini- CHP stations helped cut CO2 emissions by around 310 metric tons in 2011. 2011 CR Report: Networks
10 Gesellschaft. Customers. We want to help create a digital society with innovative ICT solutions that protect the climate and environment. We offer our customers attractive products and services that meet their needs and enable them to be sustainable consumers that go easy on natural resources. Long-term customer relationships are the main focus of our work. Based on this, we plan to get our customers actively involved in our sustainability activities. Climate and environmentally friendly products and services. De-Mail to reduce CO2 emissions by up to 50,000 metric tons a year. De-Mail is an encrypted communication service that Telekom is setting up to enable official documents to be mailed securely online. A 2010 and 2012 study indicates that Deutsche Telekom’s De-Mail electronic mail service has a savings potential of up to 50,000 metric tons of CO2 per year com- pared with the conventional postal service. Its nationwide roll-out began at CeBIT in March 2012. De-Mail is using a carbon-neutral technical platform and does not generate any additional CO2 emissions. Energy efficiency improved, pollutant content reduced. Telekom further enhanced its offering of energy-efficient, cordless digital telephones during the reporting period. Many fixed-line devices are now available only with special energy-efficient adapters that reduce the customer’s energy con- sumption significantly. We have also incorporated ecological criteria in our product design for the new Entertain boxes. The amount of pollutants contained in the materials used has been reduced to below the statutory limits based on new specifica- tions that we expect our suppliers to fulfill. Suppliers may only use the most sustainable plastics and the lowest-pollutant paints possible. Low-energy speedphones. Available since the beginning of 2012, speed- phones communicate directly with the router without a base station of their own, helping our customers save energy. In addition to improving speech quality, eliminating the base station reduces power consumption by over a third compared to devices such as the Speedphone 500. This effect, how- ever, is partly offset by the improved performance of models with a touch screen or WLAN such as the Speedphone 700. Cloud computing for private and business customers. Cloud computing is based on the principle of outsourcing IT applications and infrastructure to a virtual cloud. Software and data are no longer processed on the office computer but via an external infrastructure. T-Systems offers infrastructure resources such as online computing power and storage facilities as attrac- tive solutions mainly to corporate customers. In all, this could reduce CO2 emissions by 54 percent compared with the average desktop computer. Since September 2011 Telekom has been offering the benefits of cloud com- puting to consumers in Germany by bundling services such as e-mail, music, downloads, video on demand, and storage in the TelekomCloud, which is managed centrally on Telekom servers.
Deutsche Telekom 11 970 metric tons of CO2 offset by using video conferencing services. Climate-neutral download portals. Telekom’s download portals generate around 80 percent less CO2 emissions than retail transactions at stores. How- ever, operating these portals generates new CO2 emissions. By gradually eliminating the carbon footprint of our download portals, we make it possible for our customers to consume in an even more climate and environmentally friendly way. In March 2011, Telekom neutralized the carbon footprint of another download portal, PagePlace, which provides digital books, maga- zines and newspapers. PagePlace enabled us to increase the quantity of CO2 emissions we offset by the end of the year to 855 metric tons. Climate-neutral video conferences. Telekom’s classic video conference services have been climate-neutral since 2009. Over the course of 2011, 970 metric tons of CO2 were offset in this way. Climate-neutral shipping offsets 121 metric tons of CO2. We have been using GoGreen, Deutsche Post’s climate-neutral shipping service, to ship all standard parcels in Germany since 2008. Parcels shipped via the T-Online Shop alone offset 121 metric tons of CO2 in 2011. Recycling used cell phones. Around 762,000 cell phones collected in Germany. We collected around 762,000 used cell phones in Germany over the course of various campaigns in 2011. A large-scale campaign by the “BILD hilft e.V. Ein Herz für Kinder” children’s charity in the fourth quarter of 2011 increased the number of used cell phones collected by over 500,000 compared to the previous year. Recycling containers and concepts in the U.S. Recycling containers for used cell phones and accessories have been installed at all branches of T-Mobile USA. All new cell phones are sold in packaging labeled with a re- minder to “recycle your cell phone” in order to boost awareness of the impor- tance of recycling. A communication campaign was run to add to the effect. T-Mobile USA collected a total of 180,000 cell phones for recycling during the reporting period. Online billing: eco-friendly and convenient. Online billing for Telekom customers in Germany. More than 15 million Telekom bills are sent out online in Germany each month. Online billing now accounts for over 50 percent of the total. Customers can also download their data from the online portal. Use of online billing continues to increase because it is standard for new contracts and paper copies of bills are only available on request. Online billing at international subsidiaries. Use of online billing also in- creased at Telekom’s international subsidiaries, as the following examples show: Around 85 percent of T-Mobile Netherlands residential customers were using online billing as of the end of December 2011. For Slovak Telekom fixed-line and cell-phone customers, online billing has been standard since August 2011 and in most cases is activated auto- matically when a contract is signed. Over 30 percent of customers were using online billing as of the end of December 2011. Cell phones collected in Germany. 50,000 2009 250,000 2010 762,000 2011
12 Customers. Award for sustainability initiative in Germany. Our “Big changes start small” sustainability campaign won the Association of German Communication Agencies’ EFFIE Award in bronze as an especially effective and efficient campaign on October 13, 2011. The Polish subsidiary PTC has been offering online billing to residential customers since 2007, while business customers have been able to use the service since 2011. In November 2011 the number of online bills sent out was more than ten million. Number of online bills in Germany. 2009 2010 2011 13.4 Mio. 14.8 Mio. 15.2 Mio. Customer communication via social media. We offer Telekom customers and other stakeholders a wide range of ways in which to contact us. In addition to our previous channels we now engage in open dialog on different online platforms such as Facebook and Twitter. Our presence in these networks is proving increasingly popular: The Deutsche Telekom AG Facebook page had over 20,630 fans as of the end of February 2012. More than 28,670 followers were using our deutschetelekom profile on Twitter as of the end of February 2012. Customer support on Facebook and Twitter. The Telekom-hilft page, on which the Telekom service team has been responding to queries about products and services since September 2010, now has over 29,170 fans (as of the end of February 2012). Two years earlier there were only around 3,000. Customer support can also be contacted via Twitter, which now has over 17,810 Deutschetelekom followers. By the end of February over 66,110 tweets were on record. TRI*M results for 2011. Compared with the previous year, the 2011 year-end findings of the TRI*M customer loyalty study showed an increase of nearly 6 percent in customer loyalty. Our goal is to improve our customer loyalty figures in Germany by 3.6 percent per year by 2015.
Deutsche Telekom 13 20,630 fans on Facebook (as of end of February 2012) Child protection software for online safety. Deutsche Telekom’s child protection software was one of the first two youth protection programs to obtain official recognition by the German state media authorities’ Commission for the Protection of Minors in the Media (KJM) in February 2012. Industry-wide initiative to protect minors. Telekom teamed up with 25 European companies of the Internet industry to draft the “Principles for the safer use of connected devices and online services by children and young people” in the EU in January 2012. Research and innovation. We see innovation and the continuous development of products and ser- vices as decisive factors on our way to becoming a global leader in connec- ted life and work. In 2011 Telekom made particular progress in the following lines of business: Energy: provision of ICT for smart grids and roll-out of smart metering Connected Car: new ICT applications to connect driver and vehicle with the Internet, contributing, for example, to a reduction in pollutant emissions E-Health: a new ICT infrastructure to connect doctors, hospitals, patients, and health insurers Telemedicine applications for patients. Telekom and Medisana have been jointly marketing the following mobile health measuring devices in Germany since August 2011: GlucoDock CardioDock ThermoDock These devices can measure vital parameters such as blood sugar, blood pressure, and body temperature while on the move. A free app enables data to be read, processed and sent to the user’s physician by iPhone, iPad or iPod. Parents of children with diabetes can use the devices to do a quick re- mote check on their children’s health. The devices are classified as certified medical devices. Research and development spending and investment. In 2011 the Group’s R&D spend was down to EUR 121 million compared to the previ- ous year. As the parent company, Deutsche Telekom AG bears part of the Group’s research and development expenditure. At EUR 48 million, this, too, was lower than in the previous year (down EUR 17 million). 2011 CR Report: Customers
14 Gesellschaft. Society. Telekom not only provides the necessary ICT infrastructure but also helps give as many people as possible access to the information and knowledge society through its many different activities. Under the slogan “We take responsibility.” we uphold our commitment to society both in numerous corporate initiatives and by supporting non-profit organizations. engagement@telekom. Our engagement@telekom platform underlines our commitment to comprehensive support for social concerns—both by the company and by volunteering employees. The platform covers three levels: Corporate volunteering and corporate giving Partnerships Disaster relief Corporate volunteering program. In the fall of 2010, Telekom in Germany launched a comprehensive corporate volunteering concept consisting of three building blocks as part of the engagement@telekom platform: An intranet portal provides employees with both advice on volunteering in their free time and contact addresses for specific activities and collab- oration with committed colleagues. Corporate volunteering is also integrated in vocational and in-service training. All employees can apply to Telekom for funding of non-profit projects. Every year, Telekom approves 1,000 employee requests, resulting in do- nations totaling EUR 250,000. 3,524 employees participating in Social Days in Germany. During our So- cial Days our employees volunteer for a non-profit organization for an entire day. 169 Social Days took place in Germany alone in 2011, and 3,524 em- ployees participated. They volunteered at schools and day care centers, gave Internet and cell-phone seminars to senior citizens, participated in DKMS typing drives and volunteered for the environment. Long-term involve- ments and regular joint activities often resulted from the Social Days activ- ities. Employees also initiated and conducted many additional projects on their own. T-Mobile Czech Republic: 3,017 workdays for people in need. More than 670 T-Mobile Czech Republic employees, almost a quarter of all employees in the country, participated in the voluntary campaign “One day for people in need” in 2011. They spent one day volunteering for the NGO of their choice— with full pay. The employees have volunteered a total of 3,017 workdays since the corporate volunteering campaign was launched in 2005.
Deutsche Telekom 15 169 Social Days were held in 2011 in Germany, with 3,524 employees participating. In 2010 T-Mobile Czech Republic also expanded its volunteer activities in collaboration with the VIA Foundation. Seven employees of the Czech sub- sidiary had worked together with external experts to train a total of 170 NGO employees at PR and human resources workshops by the end of 2011. the initiative was launched in 2009 we have backed 200 projects and reached over 50,000 children and young people. By the end of 2011, fund- ing had totaled around EUR 2 million. More than EUR 500,000 has again been allocated for 2012. Partnership with DKMS. Telekom supports DKMS, the German bone mar- row donor center, in the struggle against leukemia. For 16 years we have run a typing program to identify suitable bone marrow donors and covered the cost of typing for our employees. In 2011, 19 typing campaigns were held at 11 Telekom sites in Germany and 855 employees were newly registered in the bone marrow donor database. In all, more than 6,000 Telekom emplo- yees have volunteered for typing. Developing skills for the young and old. Supporting over 50,000 children and young people. Telekom’s “Yes, I can!” initiative boosts skills that enable children and young people to cope with the demands of everyday life and shape their lives successfully and effectively. In 2011, Telekom again funded a large number of projects for children and young people from disadvantaged backgrounds. A jury se- lected 87 projects from among more than 850 applications. We sponsored each of the winning projects with a maximum of EUR 15,000. A focal point Award for “taking responsibility”: In November 2011, Deutsche Telekom won an award for its engagement@telekom platform. The platform received a special award in the corporate volunteering category in the 2011 European Change Communications Award competition in Salzburg, Austria. UN Decade Award. On February 28, 2012, the “Yes, I can!” initiative re- ceived its second award in the UN Decade of Education for Sustainable Development. “Internet—it’s not a question of age” competition launched. We consider facilitating cross-generational participation in new media as one of our company’s core obligations. That is why, in February 2012, Telekom launched the “Internet—it’s not a question of age” competition together with BAGSO, the German association of senior citizens’ organizations, and klicksafe, the EU initiative for greater online safety. We aim to promote projects and measures targeted at helping older people use the Internet. The competition was launched on February 7, 2012, Safer Internet Day, with Kristina Schröder, German Federal Minister of Family Affairs, Seniors, Women and Youth as its patron. Five projects were granted prize money of up to EUR 5,000 in the catego- ries of “consultation and training” and “online offers.” A special prize was awarded as well. Internet mentorships started. In October 2010, we asked our employees to get involved as Internet mentors, a request that was met with great inter- est. Some 400 employees have signed up to help people learn how to use the Internet and mentor them as they take their first steps. The program, which was initially set up to address seniors, was extended to immigrants in 2011 at the suggestion of a Telekom employee. In 2011, Telekom employ- ees conducted over 100 Internet seminars for seniors and immigrants in Hanover alone. Equal access to education. of the competition in 2011 was “fair society.” We asked applicants to sub- mit projects that promote mutual respect and tolerance, whether it be film projects dealing with social marginalization, intercultural plays or work- shops on non-violent communication. Empathy and the ability to deal with conflict are key skills when it comes to making a future for oneself. Since Free Internet access for 34,000 educational institutions. As part of our Telekom@School infrastructure project, we offered to permanently in- crease the DSL bandwidth at some 34,000 general education and voca- tional schools in Germany from a maximum of 6,000 kbit/s to up to 16,000 kbit/s in April and May 2011. There was no charge for the switch-over or for subsequent use of the Internet.
16 Society. Telekom also gave each school licenses for its new child protection soft- ware. In February 2012, Telekom’s child protection software became one of the first two youth protection initiatives in Germany to be recognized by the state media authorities’ Commission for the Protection of Minors in the Media. The recognized version of the software has been available as a free download for all Telekom fixed-line customers since late March 2012. Greek companies support students. Cosmote Greece has traditionally supported students in need, awarding scholarships and special grants. In the program’s tenth year OTE jumped on board as a sponsor, enabling 15 scholarships to be awarded instead of ten. Each scholarship holder re- ceives EUR 15,280. In addition, Cosmote Greece awarded prizes worth EUR 1,518 each to 27 students for special study and extracurricular achievements, taking the total amount awarded in 2011 to EUR 270,465. The Greek subsidiaries gave preference to students in special need of sup- port due to disability or, for example, coming from a low-income home. “Everyone needs education—education needs everyone”. In this project launched in December 2011 the Deutsche Telekom Foundation, in cooper- ation with the Corporate Responsibility department, funds voluntary com- mitment by Telekom employees at day care centers and in schools. Em- ployees can support projects that go beyond day-to-day day care and school facilities and apply to the Foundation for financial backing particu- larly for projects dealing with science, technology, engineering and math. The projects they support include excursions, project days and activity groups such as a robot group and a nature workshop. Sports and cultural sponsorship. Integrative “New sports experience” school project. In collaboration with the German disabled sports associations Deutscher Behindertensportver- band and Deutscher Rollstuhl-Sportverband, we launched an unprece- dented school project in Germany called “New sports experience” in Octo- ber 2009. Students attending grades 7 to 10 are given the chance to experience first-hand what disabled sports are like. The kids can play sports that they would not normally find at their schools, including wheel- chair basketball, goalball and blind soccer. Getting this unusual perspec- tive makes it easier for them to understand and respect people with disabil- ities. Following North-Rhine Westphalia, Baden-Württemberg, Lower Saxony, Bremen and Hamburg, the project was also launched in Bavaria, Berlin and Brandenburg in 2011. Around 45,000 students from more than CR KPI “Social Commitment” Deutsche Telekom Group in Germany. 2008 2009 2010 2011 39 48 43 44 45 55 52 58 Performance: Share of people surveyed who rated Deutsche Telekom as a socially responsible company (in %). Importance: Share of people surveyed who rated social commit- ment as important or extremely important (in %).
Deutsche Telekom 17 45,000 young people have participated in the “New sports experience” school project since it was launched in October 2009. 400 schools have participated in the project since October 2009. We re- ceived the FASPO Award from the German Fachverband für Sponsoring e.V. association in the Public Sponsoring category in March 2011 for our involvement in the “New sports experience” school project. New Horizons International Film Festival in Wroclaw. Support for the New Horizons International Film Festival, one of the largest events of its kind in Poland, is a key focal point of Telekom’s Polish subsidiary PTC. Over 111,000 people watched the films shown at the festival in 2011. In all, 483 films from 44 countries were screened. PTC also took over as patron of Nowe Horyzonty Edukacji Filmowej, a film project conducted by Polish students in 2011. 28 artists from 13 countries participate in the Telekom Beethoven Com- petition. We support young musicians on their way to the top, through ac- tivities such as the International Telekom Beethoven Competition Bonn which we launched in 2005. The international competition ended on De- cember 10, 2011, with the finale being held at the Beethovenhalle in Bonn. 95 pianists from 33 countries applied for the fourth annual International Telekom Beethoven Competition Bonn, which was initiated by Telekom. The selection panel admitted 28 participants from 13 countries to perform at the piano competition. “Responsibility wins” competition. “Responsibility wins,” an in-house project that rewards voluntary commitment by our young employees, went into its third round in February 2012. Around 1,000 trainees and students in coop- erative degree programs took up the challenge and entered the competition with over 100 projects in which, alongside their vo- cational training, they do voluntary work for people in difficult situations in their lives. T-Mobile USA cooperates with City Year. T-Mobile USA has been cooperating closely with the nation- wide City Year organization since 2006. Its activities include or- ganizing the T-Mobile Huddle Up Service Days. Between March 2011 and February 2012, T-Mobile USA donat- ed USD 1.5 million (about EUR 1.1 million) to the organization, thereby supporting after-school care for children and young people. T-Mobile USA also provides City Year with WLAN and technical services that combined are worth over USD 2 million (around EUR 1.5 million). 2011 CR Report: Society
18 Gesellschaft. Employees. What does a company need to achieve sustainable development? Telekom has a simple answer: A company needs a lively corporate culture and structures that facilitate and promote new ideas. We have taken decisive steps along the road to developing this culture—steps that will help us become the most highly regarded service company in the industry. Competitive workforce. We focused on three core topics in our human resources work in 2011: HR planning: We introduced our qualitative HR planning approach throughout the Group. At the heart of this approach is the concept of To- tal Workforce Management. This will enable us to establish which qualifi- cations we will need when and where, bearing in mind aspects such as demographic trends or future business requirements. That helps us meet our responsibility of providing long-term employment and creating inter- esting development opportunities for our employees. Occupational health and safety: We actively endeavor to prevent exces- sive physical and mental stress on our employees and have further up- graded our occupational health and safety program. The adoption of our Group-wide health, safety & environmental management system under- pins this approach. By the end of 2011 we had introduced it in 13 Ger- man and international Group companies. It includes early warning sys- tems, comprehensive employee surveys on health and work pressures, safety at work and fire protection, prevention and health care initiatives, employee and executive advisory service and free telephone counseling for professional and personal problems. Personnel restructuring: We are streamlining our global corporate or- ganization and making sure that personnel restructuring is moderate and socially acceptable wherever necessary. For this we apply globally proven measures for voluntary redundancies. In Germany these include early retirement for civil servants and the new provisions, issued in the fall of 2011, on phased retirement for older employees, employees out- side collective agreements and senior executives. We also assist employ- ees who are interested in professional reorientation. Corporate Responsibility Bericht 2010. Wir leben Verantwortung. Telekom’s vision and values. Guiding Principles and Code of Conduct rolled out worldwide. In 2010 we updated our Code of Conduct (CoC), which is mandatory throughout the Group. This is where our Guiding Principles are sub- stantiated and defined. The CoC helps to illustrate what the Guiding Principles mean for employees and executives in their everyday working lives.
Deutsche Telekom 19 3,600 employees have been further improving the quality of our customer service since 2009 by attending our Service Academy. Telekom’s five Guiding Principles: Customer delight drives our action. Respect and integrity guide our behavior. Team together—Team apart. Best place to perform and grow. I am T—count on me. We call on our executive staff to set an example of the conduct we expect from our employees. In 2011 we began rolling out the CoC at 40 out of 42 international subsidiaries and completed the majority of these projects. Training and development. Bologna@Telekom enables employees to get an academic education along with their work. The aim of Bologna@Telekom is to contribute to the personal development of employees and ensure their employability and the supply of trained professionals for Telekom for the long term. At the start of the 2011 winter semester, more than 440 employees were studying part time with support from the Group in terms of time and financing. Em- ployees can choose between seven partner universities and 24 different degree programs in information and communications technology, busi- ness information systems, digital pioneering, and business administration. Training for a new service approach. To take our service culture forward we have been enrolling executives across Germany in the Service Acade- my since 2008. The service career established in 2009 is a career path that has been tailored to the service companies in Germany. It offers high-per- forming employees a high-caliber opportunity to develop professionally. Some 1,800 employees attended the Service Academy in Germany alone in 2011. Over 3,600 employees have been able to advance their careers under the service career model since 2009. In this way we are securing and improving the quality of our customer service along a wide front. In ad- dition, some of our international and German subsidiaries have continued or introduced their own service initiatives. Gender collaboration training: Leadership in mixed teams. Telekom has launched gender collaboration training across the Group. Here we prepare our managers for leading increasingly diverse teams. The main aim of the mandatory training is to firmly embed diversity in the company. We launched the training at European Telekom companies in December 2010 and rolled it out across Europe. We are currently carrying it out at all major locations in Germany. Top training provider: 9,600 trainees, 1,200 of them students on cooperative study programs. We have been one of the biggest training providers in Germany for years. For 2010 to 2013, as in the prior years, we have set a trainee ratio of 8.7 percent of the workforce in Germany. In 2011 we were once again able to offer some 3,300 young people the opportunity to start a high quality career training program with our training and cooperative study offers. In training year 2011/2012, we have some 9,600 apprentices and students overall., including about 1,200 students on cooperative degree programs. Trainees and students on cooperative degree programs. 2009 2010 2011 10,546 650 9,952 888 9,613 1,169 Number of trainees Of whom students on cooperative degree programs
20 Employees. Continuing to improve employer image wins numerous awards in Europe. In 2011, we significantly improved in graduate studies, such as the Trendence and Universum studies. In the ranking by IT graduates for Trendence we took 17th place and in the Universum study, 12th place; in that study we ranked higher than employers from the automotive industry for the first time. Many of our inter- national subsidiaries were also able to improve their image as employers. T-Systems, for example, topped the bill as the best ICT employer in the Nether- lands and T-Mobile Austria was named most attractive employer in Austria. Diversity and equal opportunities. Women’s quota: Target for 2011 surpassed. We have made considerable progress in the last two years. The percentage of female executives at Telekom worldwide has increased from 19 percent to 24.7 percent. Generation@Telekom—ready for the demographic shift. We have to secure the experience of older employees and at the same time ensure a balanced age mix in the company through the targeted recruitment of younger staff. With Generation@Telekom, we plan to make Telekom fit to meet these challenges and promote mutual understanding between the generations. The measures of our HR policy across all phases of life include, for example, the Bologna 40plus project. We reach employees over 40 through a variety of academic offers. In 2011, eight percent of the 433 part-time students being supported were over 40. New models for taking time out and part-time work. We offer suitable models financed in advance by the company to employees who wish to take time out or work part-time for personal reasons. The offer includes part-time models for family (family care leave with a special salary model offered since January 2012), continuing education and social involvement. In addition, a savings model offers the opportunity of taking flexible time off or tailoring the structure of part-time work. Employee involvement. Employee survey and pulse check: feedback tools widely accepted and used. The employee survey held every two years and the six-monthly pulse check are our most important Group-wide feedback tools. 2011 was char- acterized by the follow-up measures derived from the 2010 employee survey. The question in our pulse check asking whether teams had seen successful improvements implemented after the 2010 employee survey was answered “Yes” by two thirds of employees in the Germany segment. Topics such as “Trust in senior management,” “Workload” and “Under- standing the strategy” have been directly addressed by the improvements introduced by our executives. The follow-up process focused on the topic of health, as demonstrated by the spread of measures. At least 50 percent of all measures put into practice across the Group concerned employee workload pressures and resources. Ideas management: Employees helping Telekom grow. In 2011 the genial@telekom IT tool, introduced back in 2009, was supplemented by a new way of generating ideas, the Ideas Garden. This IT tool enables employees to work with other interested parties and experts in a virtual environment to develop and flesh out ideas. 10,600 registered and 2,180 active employees prove that this way of get- ting involved has been warmly welcomed. initial proposals and Women in middle and upper management. 19.0 % 2009 22.7 % 24.7 % 2010 2011
Deutsche Telekom 21 10,600 employees are registered and 2,180 employees are already active in the Ideas Garden. People with disabilities: Statutory quota surpassed. Supporting and integrating people with disabilities is important to us. With 6.7 percent disabled employees in Germany, we are well over the statutory quota of 5 percent. Employees with disabilities in Germany. Vocational training program wins award for quality and attractiveness. In 2011, the Group received recognition for its commitment with one of the most prestigious German awards in the field of pro- fessional education, the Initiative in Training and Development award. 2009 2010 2011 6.0 % 6.2 % 6.7 % Second place in Best Recruiters study. Deutsche Telekom has positioned itself as an attractive emplo- yer in Germany according to the Career’s Best Recruiters study of HR products, processes, activities, and communication with job applicants by the 500 biggest German companies. Telekom came second in the survey. 2011 CR Report : Employees
22 Gesellschaft. Suppliers. Deutsche Telekom promotes a sustainable supply chain throughout the Group. We employ the principles of trust, dialog and audits in our relationships with suppliers in more than 50 countries. We support sustainability in the supply chain in industry initiatives as well. Sustainable procurement at Telekom. For Telekom, economic aspects are not all that counts in procurement. Eco- logical and social criteria are applied as well. This has been laid down in our sustainable procurement strategy, which was approved throughout the Group in 2007 and revised in 2010, to implement sustainability in procurement. Guidelines for a sustainable supply chain at 59 international subsidiar- ies. The Group Global Procurement Policy plays a significant role among the various sustainable procurement regulations. It was approved for Deut- sche Telekom in November 2010 and rolled out at numerous international subsidiaries from March 2011 to early 2012. Out of 71 German and interna- tional subsidiaries that are planning to implement the policy, 59 had done so with an official decision being passed by their managing boards by late January 2012. International procurement and cooperation. emerging and developing countries accounted for around 1.9 percent of Telekom’s procurement volume. This increase was due mainly to an in- crease of orders from countries in Eastern Europe. We are working closely with local stakeholders and are involved in initiatives such as the Global e-Sustainability Initiative in order to bring production conditions in these countries into line with Telekom’s environmental and social requirements. Sustainable Procurement CR KPI. We use the Sustainable Procurement CR key performance indicator (KPI) to identify how much of our procure- ment volume throughout the Group comes from suppliers who have been audited or who provide voluntary information on our online information sys- tem E-TASC. E-TASC, the Electronics Tool for Accountable Supply Chains, is a fast, standardized way to assess supplier sustainability assessments. The Group records and monitors the KPI centrally. 38 percent of the total procurement volume was monitored using the KPI during the reporting pe- riod. The decrease by 17 percent compared to the previous year can par- tially be attributed to a decrease in order volume of approximately 12 per- cent. 11 percent of procurement volume from emerging and developing coun- tries. We maintain relations with suppliers in over 50 countries. In 2011 we sourced around EUR 2 billion worth of goods and services in emerging and developing countries. That corresponded to about 11 percent of Telekom’s total procurement volume. In the previous year, in contrast, SWITCH-Asia: Workshops for small and medium-sized enterprises. A to- tal of five training workshops were conducted for small and medium-sized enterprises in China from April to June 2011 as part of the SWITCH Asia project. A one-day national kick-off event was held on September 2, 2011, in Beijing for the SWITCH-Asia project. Around 150 representatives from
Deutsche Telekom 23 50 countries We work with suppliers in over 50 countries. high-ranking Chinese authorities and organizations as well as from Chinese and European companies participated in the event. nal partners. Four more telcos—Belgacom, KPN, Swisscom, and Vodafone— joined in 2011. Together we audit our suppliers around the world on the basis of uniform criteria. Transparency along the supply chain. 27 social audits in 2011. Deutsche Telekom requires all of its suppliers to consistently observe the Group-wide provisions specified in the Code of Conduct and the associated Social Charter. In addition, Telekom’s Fraud Policy on combating corruption applies to all supplier relationships. We de- mand that our suppliers, for their part, apply these standards to their own sub-suppliers. We conduct regular social audits to make sure that our sup- pliers comply with the mandatory minimum standards. In 2011, 27 social audits were conducted with Deutsche Telekom direct suppliers and sub- suppliers: 15 in the context of joint audit cooperation (JAC) and a further 12 audits conducted by external auditors on Telekom’s behalf. To create greater transparency in our supply chain and shed more light on possible CR risks we have decided to extend the scope of audit candidates to areas in which we anticipate the greatest improvement potential. In 2012 we are therefore concentrating on downstream supply chain levels. Our joint audit cooperation with other companies in the industry advocates the establishment of social, ethical and environmental standards for suppliers. Deutsche Telekom, France Télécom-Orange, and Telecom Italia are the origi- CR KPI “Sustainable Procurement” Deutsche Telekom Group. 2009 2010 2011 36 38 55 Proportion of total procurement volume audited and/or covered by self-assessment via E-TASC (in %). Sustainable Procurement Stakeholder Dialog Day. The fourth Sustainable Procurement Stakeholder Dialog Day was held in Shenzhen, China, on November 10 and 11, 2011. For Telekom it was the first dialog event it has attended outside of Europe and for China the first ever event of its kind. The main focus was on how cooperation between the various stakehold- ers can be improved in order to maintain established ecologi- cal and social standards. Rating results in the supply chain sector. In 2011 we maintained our good results in the supply chain sector in key sustainability ratings and improved slightly on our ranking in the prestigious SAM rating by scoring 94 out of 100 points, compared to 90 the year before. This means that Deutsche Telekom received the highest score of all mobile communications companies in the supply chain management category. 2011 CR Report: Suppliers
24 Gesellschaft. Climate & environment. The ICT industry plays a key role when it comes to curbing climate change. Deutsche Telekom’s aim is to play a pioneering role in this process. We develop innovative products and services that enable our customers to contribute to sustainable development at no great expense. In addition, we pursue a wide range of activities designed to continuously reduce the effects of our business activities on the climate and the environment. Climate protection. Our ambitious objective is to achieve a reduction of up to 40 percent in our CO2 emissions in Germany by 2020 compared with the figures for 1995. New cars: CO2 emiss ions down to 131 grams per kilometer. We were able to make further progress toward establishing a sustainable fleet during the reporting period due to our strict Green Car Policy. In the process the aver- age CO2 emissions of new company cars have fallen to 131 g/km from 136 g/km in 2010 (in terms of manufacturers’ standard consumption specifi- cations). If service vehicles are included in the figures, the average CO2 emissions of all new vehicles have been reduced to 125 g/km. Our goal for 2012 is to achieve average CO2 emission levels of 121 g/km for new vehicles. Green business trips. In January 2011, we introduced a flight ban for our em- ployees for trips between Frankfurt and Munich. Exceptions to this ban are only made under special circumstances. This enabled us to reduce the number of flights on this route by 93.5 percent. The CO2 emissions associated with such trips in 2011 decreased from 735 (extrapolated) to 48 metric tons. Intelligent GPS system in Slovakia. Since April 2011, 300 Slovak Telekom vehicles have been connected to a GPS monitoring system. The smart route planning and control that this has made possible is aimed at reduc- ing fuel consumption by 10 percent overall and saving 50,000 liters of fuel a year. It will also reduce CO2 emissions significantly. Climate certificates offset CO2 emissions at Telekom events. In Septem- ber 2011 we revised our event policy for the sake of climate protection. For all Telekom events that generate more than ten metric tons of CO2 we buy climate certificates to offset the carbon dioxide emitted. If required, lower emission levels may also be offset. CO2 emissions at Telekom in Germany. 2009 2010 2011 316,304 t 313,825 t 300,582 t
Deutsche Telekom 25 CO2CO2 40 percent By 2020 we intend to reduce CO2 emissions in Germany by 40 percent compared to levels recorded in 1995. Positioning at the COP 17 climate protection conference. Along with ac- tive participation in Global e-Sustainability Initiative (GeSI) events, Telekom representatives took part in many other rounds of COP 17 discussions. To- gether with partners we emphasized the importance of ICT as a key tech- nology in supporting CO2 reduction in industry and commerce. multi-functional printers in November 2011 as well. It conserves resources and reduces costs by using less paper. In addition, 17,000 employees have been receiving their payslips digitally since 2011, which saves paper and postage. Environmental management. Telekom has been using an environmental management system that complies with the international ISO 14001 standard since 1998. Telekom Deutschland GmbH’s environmental management system was certified in October 2011. As a result around 70 percent of sites across the Group now have a certified environmental management system. ISO 14001 umbrella certificate covers 25 companies. The ISO 14001 en- vironmental management standard specifies internationally recognized re- quirements for environmental management systems. Our focus is on a con- tinuous to meeting Telekom’s environmental targets. During the reporting period the following subsidiar- ies joined the ranks of ISO 14001 certified Group companies: improvement process with regard T-Systems do Brasil Ltda. T-Systems Malaysia T-Systems Netherlands T-Systems South Africa Saving resources. Telekom aims to keep the negative impact its business activity has on the environment as low as possible. Throughout the Group we advocate responsible use of natural resources. 11,000 metric tons of cable recycled. In 2011 Telekom removed more than 11,000 metric tons of cable, e.g., plastic, lead and corrugated-steel sheathed cable, from ducts in Germany alone. The cable was processed in accordance with environmental standards at certified waste disposal facili- ties and up to 90 percent was recycled. Reducing paper consumption. New multi-functional printers have been configured to print on both sides as a default setting since September 2011. This function was set as the default setting on previously installed Polish subsidiary wins environmental competition. In April 2011, PTC became the first mobile provider to receive the Green Brand certificate from the Green Brand Award Com- mittee. The award is presented to companies in recognition of special achievements in environmental protection and sustain- able business. Standardization process for universal chargers. Under the leadership of Luis Neves, head of Corporate Respon- sibility at Deutsche Telekom, GeSI worked to develop a stand- ard for universal chargers in the reporting period. The aim is to define a uniform charger standard for cell phones, tablet PCs, cameras, navigation devices, wireless headphones and mp3 and mp4 players. 2011 CR Report: Climate & environment
26 Disclaimer, Contact and publishing information. Disclaimer. This brochure contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They are generally identified by the words “expect,” “anticipate,” “believe,” “intend,” “estimate,” “aim,” “goal,” “plan,” “will,” “seek,” “outlook” or similar expressions and include generally any information that relates to expecta- tions or targets for revenue, adjusted EBITDA or other performance meas- ures. Forward-looking statements are based on current plans, estimates and projections. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. They include, for in- stance, the progress of Deutsche Telekom’s workforce reduction initiative and the impact of other significant strategic or business initiatives, inclu- ding acquisitions, dispositions, and business combinations. In addition, regulatory rulings, stronger than expected competition, technological change, litigation, and regulatory developments, among other factors, may have a material adverse effect on costs and revenue development. If these or other risks and uncertainties materialize, or if the assumptions under- lying any of these statements prove incorrect, Deutsche Telekom’s actual results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be achieved. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise. Contact and publishing information. Deutsche Telekom AG Corporate Communications Postfach 2000 53105 Bonn , Germany www.telekom.com Contact: Deutsche Telekom AG Corporate Responsibility Telephone: +800-07381220 E-mail: email@example.com More information about Deutsche Telekom’s CR program can be found online inthe 2011 CR Report at: www.cr-report.telekom.com and at: www.annualreport.telekom.com/site0411/en www.e-paper.telekom.com/hr-report-2011-2012 www.e-paper.telekom.com/data-privacy-report-2011 www.telekom.com/corporate-responsibility/11652 The CR brochure has been published in German and English-language versions. The German version is legally binding. Concept and editorial input: Deutsche Telekom AG Stakeholder Reporting GmbH, Hamburg, Germany Design: plan p. GmbH, Hamburg, Germany Photos: Deutsche Telekom AG