Corporate responsibility 2014 – overview We take responsibility Can we trust that our data will be kept private? Did we lose the connection? Are we overwhelmed by the Internet?
Deutsche Telekom – Overview of CR 2014 03 04 06 08 10 12 14 16 18 20 22 24 26 Foreword Strategy & management Personal information is nobody’s business Prof. Hansjörg Geiger, Deutsche Telekom’s Data Privacy Advisory Board Customers Networks We have lost the connection Bas van Abel, Founder and CEO of Fairphone Suppliers Climate & environment A network full of possibilities Philipp Riederle, expert on generation Y Society Employees What we are proud of Disclaimer, contact and publishing information This brochure features extracts from the Deutsche Telekom 2014 Corporate Responsibility Report R The complete report is available at www.cr-report.telekom.com
Deutsche Telekom – Overview of CR 2014 Timotheus Höttges, Chairman of the Board of Management Dear Readers, 2014 was a successful year for Deutsche Telekom. We invested, ex- panded and continued to improve the high quality of our networks. Our positive sales results are proof that Deutsche Telekom is on the best road to achieving its goal of becoming Europe’s leading tele- communications provider. With this goal in mind, we rely on innova- tion and responsibility for sustainable development. Our services connect people and enable everyone to get involved in the information and knowledge society. For this reason we con- tinue to intensify our investment in the expansion of our network infra- structure. We also give people the tools they need to use our services safely and securely by offering extensive educational programs. Our “Yes, I can!” initiative helps children and young people from disadvan- taged backgrounds learn personal skills and boost their confidence. It is essential to, it is also important that we gain and retain our custom- ers’ trust. We have been in compliance with the highest data privacy standards for years. Our ten-point program has helped us specify these standards further to guarantee even better online security. As a responsible company, we are also committed to helping find so- lutions to challenges in society. We develop pioneering solutions that help ensure universal healthcare and shape an energy-efficient soci- ety. By outsourcing their IT to our highly efficient data centers, for ex- ample, companies can reduce their energy consumption significantly. We are committed to sustainability throughout our entire value chain. We have made considerable progress in managing our climate pro- tection measures by including the indirect CO 2 by our customers and suppliers. High environmental and social standards have priority in our supply chain, and we review these ex- tensively. We value long-term procurement relationships and work with our suppliers as partners to help them develop further. emissions produced After all, social responsibility is also a question of principles. With this in mind, I would once again like to underline our commitment to the principles of the United Nation’s Global Compact and the German Sustainability Code. I would also like to invite you to read this report and learn more about how we put our commitment into practice. Sincerely, Tim Höttges
Deutsche Telekom – Overview of CR 2014 We take responsibility; our Group-wide sustainability strategy is proof of this. For this purpose, we have imple- mented sustainable leadership principles, measurable targets and tried-and-tested management instruments – which make an impact both at our Group and beyond. We are striving to become the leading telecommunications provider in Europe. We strongly believe in taking on responsibility for the community in everything we do. That is why we passed our sustain- ability strategy, which was derived from our Group strategy, in 2008. The strategy defines mandatory guidelines for the entire Group. Based on this strategy, our CEO is in charge of implementing corpo- rate responsibility (CR) practices at our Group, supported by the CR Board and the central Group Corporate Responsibility depart- ment. An international network of CR managers guarantees that our national companies conduct sustainable business practices as well. It is essential to breathe life into an extensive strategy like this one every day. Our employees are key to our success: their know ledge, ideas and actions. The conduct of our employees, collaboration based on trust at the Group and all of our business activities are founded on the shared values that have been defined in our Guiding Principles. They help us delight our customers again and again. Responsible conduct also means having binding rules and targets. Our Code of Conduct, CR Policy and Social Charter set high stan- dards not only for our Group but also for our partners and suppliers. The success we have had so far motivates us to get even better. We assess our progress based on selected performance indicators, our ESG (environmental, social and governance) KPIs. They provide the data that enables us to evaluate the measures we have introduced and to disclose the results to our stakeholders. R You can find more information in our CR Report at www.cr-report.telekom.com/strategy-management Sustainability is worth money Socially responsible investment (SRI) was important – at least to a certain extent – to roughly 23 percent of our T-Share stockholders at the end of 2014. Compared to 14 percent in 2012, this share has increased significantly in the last two years. This shows us that promoting sustainability helps us secure long-term capital supply, because SRI investors are interested in long-term success and not in short-term gains. That is why we not only inform SRI investors about our suc- cessful sustainability rankings but also pursue intensive dialog with them, for example, at SRI road shows or SRI webinars. 111 Group companies were audited for their protection of human rights as part of our Social Performance Reporting.
Deutsche Telekom – Overview of CR 2014 Comprehensive human rights impact assessment conducted The ICT industry has repeatedly been criticized for deficiencies in their supply chains. Adhering to comprehensive human rights standards, which also apply to our suppliers, guarantees that we respect human rights in all of our business activities. We review their implementation and any possible impact our business ac- tivities may have on human rights at our own organizations in the context of human rights impact assessments. For example, we conducted an extensive assessment at a T-Systems company in 2014. The assessment included talking to different stakeholders, including suppliers, government officials and rights-holders. 98 out of 100 points for climate reporting Deutsche Telekom is the leading telecommunications company in the CDP DACH index 1st place According to Transparency International, Deutsche Telekom is the leader in transparency among German enterprises. We Care: New app magazine covering CR topics We regularly inform our stakeholders about our CR activities via different channels. The We Care app magazine is a new format for this purpose. The magazine, which features entertaining content such as “Why cows are sending text messages and how living will be smarter in the future,” will be published regularly in the future. We Care shows what it means to us to assume responsibility for our society. We provide concise information about the most important sustainability issues and give readers tips and tricks to help them act more responsibly. The first magazine issue focused on “Change”. The second issue will cover “Confiden tiality,” explaining the pitfalls in the digital world and showing how exposed users are to these risks. The We Care app magazine can be downloaded free of charge from the App Store.
06 Deutsche Telekom – Overview of CR 2014
Deutsche Telekom – Overview of CR 2014 Our smartphones are our constant companions. They let us make phone calls, chat, look up things, send out e-mails and be avail- able around the clock. They are so practical. By using them we produce massive amounts of data about our network of friends, about likes and dislikes, about our health and even about intimate details. That information is nobody’s business. But we know that in the digital age hackers, NSA and other secret services are interested in our private lives and data – just ask Edward Snowden. We do not want to be spied on or manipulated in any form. That requires data privacy. Prof. Hansjörg Geiger, member of the Deutsche Telekom Data Privacy Advisory Board. Prof. Hansjörg Geiger served as director for the Federal Commissioner for the Records of the State Security Service of the former German Democratic Republic and as Joachim Gauck’s deputy. He also was state secretary at the Federal Ministry of Justice, president of the Federal Office for the Protection of the Constitution, and president of the Federal Intelligence Service. Since 2003 he has been honorary professor for constitutional law at the Johann Wolfgang Goethe University in Frankfurt. “Our real-time early warning system with more than 180 honeypots records up to one million attacks on our network every day. That shows how high the threat is. The system helps us analyze attack patterns and initiate countermeasures in order to make sure that our customers can go online without having to worry about their security.” Dr. Thomas Kremer, Board Member for Data Privacy, Legal Affairs and Compliance R You can find more information in our CR Report at www.cr-report.telekom.com
80 percent reduction in energy consumption possible with cloud computing Deutsche Telekom – Overview of CR 2014 We want to provide the best customer experience – with the best network, best service and best products. Not only can innovative services and practical solutions make life more convenient and more secure, they can also make it more sustainable. Rapidly increasing online transmission rates make it possible for us to share and mutually advance knowledge, ideas and data worldwide without delay. With smart connections, information and communica- tions (ICT) services help us find answers to the challenges of our time. The biggest of these challenges include climate protection and reducing global resource consumption. When we increase the share of renewable energy in our power supply, we also need to stabilize the power grids. These are all topics to which the ICT industry makes a significant contribution. The same applies to simplifying work processes and improving medical care. We systematically tap this potential in order to expand and guarantee the long-term success of our business. We make our customers’ homes more comfortable, secure and en- ergy efficient, for example, with our smart meters and smart home solutions. Our cloud services and the high degree of standardization at our low-energy data centers reduce energy consumption at busi- nesses by up to 80 percent compared to employing their own hard- ware. Our fleet management solutions improve the efficiency of vehi- cle fleets and, with smart networking solutions for the healthcare system, we help ensure universal health coverage to the benefit of patients, doctors and clinics. Our customers’ trust, particularly in matters of data privacy, is a deci- sive factor in our success when it comes to these pioneering products. That is why all of our offers comply with the highest standards. We have created a separate Board of Management department to take care of data privacy and security at our company and have specified extensive targets in our Binding Corporate Rules on Privacy. R You can find more information in our CR Report at www.cr-report.telekom.com/customers
Business potential through sustainability identified We intend to systematically tap the economic potential of sustainability. That is why we launched a pilot project in 2014 in which we studied selected products for their sustainability advantages so that we can emphasize these aspects in future marketing activities. Our Dynamic Workplace product for busi- ness customers, for example, makes it possible for employees to work outside the office from any location. Cutting back on commuting is not only great on costs and the environment, it also enables a better work-life balance for employees. For a company with 35,000 employees, that means more than 16,000 metric tons of CO well as 56 free hours per employee a year. and more than 15 million euros as 2 Deutsche Telekom – Overview of CR 2014 Euro 95.6 million invested in research and development. Sustainable wine cultivation in Macedonia Agriculture is responsible for 21 percent of global green - house gas emissions. The annual savings potential through ICT solutions in this sector lies at 1.6 billion metric tons of CO . 2 With its Smart Wine project, our national company in F. Y. R. O. Macedonia took a vital step toward sustainable viticulture in 2014. The technical basis for the project is a sensor-supported system that monitors grape development and controls all of the production processes. It helps vintners lower their consump- tion of energy, water and chemicals. Besides this, the system provides information on plant disease, weather problems and optimal harvesting dates. 4.2 million used cell phones collected at T-Mobile USA Smart home We offer our customers a pioneering solution with our QIVICON smart home platform. Developed as an open-source system, users can control, combine and automate devices from different manufac- turers thanks to QIVICON, saving resources all the while. And, of course, the privacy of user information and data security has top pri- ority. The QIVICON platform is effectively protected from unauthor- ized access, a fact that has been confirmed in independent tests.
Deutsche Telekom – Overview of CR 2014 Many people consider fast, reliable telecommunications services that are available everywhere to be an essential element of private and professional life. That is why we in- vest extensively in a full-coverage network infrastructure and continue to expand our offer of broadband data services. Our world is becoming increasingly connected at a rapid pace. That means that the data volumes moving through the communications infrastructure are constantly growing. In response to this develop- ment, we are quickly expanding our fixed and mobile networks as part of our Europe-wide integrated network strategy (INS). Growth is always combined with efficiency and quality in these efforts. In terms of technology, our INS is based on the high-speed transmission tech- nologies LTE, fiber optics, VDSL vectoring and hybrid. We set up thousands of new distribution boxes in Germany in 2014 and hooked them up to state-of-the-art fiber-optic lines. At the same time, we also equipped mobile base stations in many regions of Europe with LTE technology. That gives mobile Internet in Germany access to speeds of up to 300 Mbit/s. We have already made LTE access possible for 80 percent of residents throughout Germany and plan to cover 95 percent of the population by 2018. In our fixed- network expansion activities, we combine fiber optics with VDSL technology as a short and medium-term solution. This should enable us to offer high-speed VDSL vectoring connections with a bandwidth of at least 50 Mbit/s to around 80 percent of households by 2018. Our services are top in terms of both speed and quality. Deutsche Telekom’s mobile voice and mobile Internet service was awarded first place for the fourth time in a row in the network test conducted by the connect trade journal (01/2015). Growing data volumes also call for enhanced measures to protect users and infrastructure. Our Cyber Defense Center has access to extensive skills that let us identify attacks by cyber criminals at an early stage and block their attempts. We have also adopted a Group- wide policy that outlines our commitment to actively addressing research findings on health and mobile communications, and pro- viding our stakeholders with information on the latest technology as well as possible risks. R You can find more information in our CR Report at www.cr-report.telekom.com/networks 5.8 million households We had switched around 5.8 million households in Germany to IP technology by the end of 2014.
Deutsche Telekom – Overview of CR 2014 80 percent of the population in Germany had access to LTE by the end of 2014. One router, two networks: Hybrid connection In fall 2014 we began offering our customers in Germany a com- bination of IP fixed-line and LTE mobile communications in a single fixed-line product thanks to hybrid access. When custom- ers require more bandwidth for their DSL connection, our hybrid service automatically activates LTE using a special hybrid router. This means that the transmission rates of both networks are add- ed together. In 2014 we became the first mass-market provider worldwide to offer this type of hybrid solution. Phone calls with IP technology All signs point to IP, the universal code of the 21st century. Thanks to the Internet Protocol (IP) phone calls are no longer transmitted via analog channels or using ISDN technology, but in the form of data packets, a method that has been the standard in online and mobile communications services for some time now. IP techno- logy is also a requirement for vectoring with download data rates of up to 100 Mbit/s and upload rates of up to 40 Mbit/s. We were able to switch roughly 5.8 million households in Germany over to IP technology by the end of 2014. The migration process is scheduled to be completed by the end of 2018. In the other EU countries we increased the share of IP connections from 27 per- cent to 39 percent in 2014. For our customers, IP technology brings many advantages, such as voice transmission in HD qual- ity for fixed-line calls as well as calls between fixed and mobile networks. 1+ Network test passed with top score fourth year in a row Cyber Defense Center opens There are many types and forms of cyber crime and the damage they cause is often immeasurable. We have combined and are expanding our expertise at the Cyber Defense Center, which we opened in Bonn in 2014. At the heart of the center is a system that analyzes attack patterns. This means that significantly less data has to be analyzed, making it possible to identify, block and track cyber attacks at an early stage. We have also created a training program for employees interested in becoming cyber security professionals. The knowledge gained at the Cyber Defense Center helps us not only to protect our own network infrastructure but also to develop new IT security solutions for our customers.
12 Deutsche Telekom – Overview of CR 2014
Deutsche Telekom – Overview of CR 2014 We live in a world of hyper-communication. And yet our current communication infrastructure, in particular mobile phones, holds a fascinating paradox. The mobile phone is a symbol of instant connectivity, but it’s clear that we’ve lost any connection with the source of how it is made, who made it, where it comes from and the social and environmental consequences of the production process. Every pixel you see and every byte you send has a whole world of minerals, factories, recycling and distribution behind it. It’s time for our connected communication systems to reveal the invisible world of our production systems, and make it human again. Bas van Abel, founder and CEO of Fairphone. In 2013 he founded the company in order to start a movement towards fairer electronics by manufacturing a smartphone that meets high ethical standards. The use of conflict-free resources, an extended product life span and a transparent production process are among the key issues of this venture. “Not only do we expect high standards from our suppliers, we help them comply with international environmental and social standards. Trusting relationships and collaboration as partners are key to sustainable development. With this approach, we work together with our suppliers to guarantee suitable working conditions for their employees and to increase the transparency of our supply chain.“ Birgit Klesper, Senior Vice President, Group Transformational Change & Corporate Responsibility R You can find more information in our CR Report at www.cr-report.telekom.com
Deutsche Telekom – Overview of CR 2014 ICT products are often produced in countries where employee rights and environmental standards are not a given. As one of the largest telecommunications providers worldwide, Deutsche Telekom works to create a more sustainable supply chain. Deutsche Telekom purchases its products and services from more than 30,000 suppliers in over 80 countries. This high market impact allows us to influence our business partners, an opportunity that we use responsibly. We promote fair business practices, good pro- duction conditions and protection of human rights along our entire supply chain. Our Social Charter sets out mandatory environmental and social standards. We use a number of effective tools to implement these standards such as the inclusion of sustainability criteria in our invita- tions to bid. Sustainability is weighted at 10 percent along with other aspects such as price and quality. We require strategically relevant or high-risk suppliers to provide detailed information about their business practices and commission experts to assess these. We review compliance with our require- ments through on-site social audits of selected suppliers. At the end of 2014, we were sourcing 72 percent of our procurement volume from suppliers who had either given us information about their busi- ness practices, which we then reviewed, or underwent an audit. If a supplier fails to comply with our requirements, we arrange im- provement measures with that supplier and then monitor their imple- mentation. If the supplier is not willing to remedy the issues, we initi- ate a systematic escalation process that may include sanctions. Setting a good example through our own conduct, however, is even more effective than these controls. We highly value reliable, long-term relationships as a way of helping us achieve this goal. That is why we engage in regular dialog with our suppliers at dialog events. We also help our suppliers improve their sustainability performance with our supplier development program. R You can find more information in our CR Report at www.cr-report.telekom.com/suppliers 72 % Share of purchasing volume reviewed for sustainability Partnership with suppliers creates competitive advantages Topics such as working time regulations or occupational health and safety are not only fundamental aspects in creat- ing a sustainable supply chain, they can also create com- petitive advantages. One example of this is the pioneering Together for Sustainability project that we initiated in collabo- ration with three key suppliers from the device and network technology sector in 2014. It is a clear win-win situation for us as well as our suppliers because better working conditions have a positive influence on employee loyalty and motivation, raise productivity and improve the quality of products.
Deutsche Telekom – Overview of CR 2014 Stakeholder dialog in China Running a business responsibly can promote growth. We hosted our seventh CR Stakeholder Dialog Day in Shenzhen, China, in November 2014 to discuss this topic with our part- ners there. Suppliers and experts from politics, business and science as well as representatives from the Chinese Environment Ministry were invited to take part. The 118 par- ticipants discussed ways to run a business sustainably in view of global change and came to the conclusion that this requires close collaboration between the ICT industry, poli- tics and non-governmental organizations (NGOs). 1st place The 2014 Sustainable Supply Chain Review ranked supply chain management at 430 companies. 93 out of 100 points according to the RobecoSAM rating (supplier management) Blacklist on environmentally harmful materials In 2014 we conducted a study on harmful materials in cell phones in collaboration with the Fraunhofer Institute for Reliability and Micro- integration. The study identified materials that, although harmful to the environment, are currently not prohibited. Our intention is to set a good example for reducing the use of such problematic materials in the industry. In order to promote this development, we have creat- ed our own materials blacklist that exceeds regulatory standards. Our suppliers are required to comply with this blacklist by the end of 2015.
100 suppliers Around 100 of our suppli- ers were invited to parti- cipate in the CDP supply chain program. Recording Scope 3 emissions We achieved an important milestone in recording our CO 2 emissions in June 2014. For the first time, we were able to publish all of Deutsche Telekom’s Scope 3 emissions in Germany within the context of the CDP (Carbon Disclosure Project). Now we know what areas to focus on in the future. The largest single sources of Scope 3 emissions in 2013 were customer use of products purchased from us followed by our supply chain. We calculated Scope 3 CO emissions 2 totaling at 3,730,091 metric tons (CO equivalents) for 2013 2 and 3,965,268 metric tons for 2014. This increase can pri- marily be attributed to our rising purchase volume as well as to the use of products leased from us by our customers. Deutsche Telekom – Overview of CR 2014 As one of Europe’s largest telecommunications compa- nies, we share responsibility for protecting our environ- ment and conserving resources. That is why we work to reduce our impact on the environment and help our customers protect the climate. Residents, communities and businesses all need to work together. This is the only way they can fully fulfill their climate protection re- sponsibilities. For us, that means using the potential of information and communication technology (ICT) to drastically reduce green- house gas emissions generated by consumers and industry. We set an example in how we impact the climate and environment. Our processes are designed to conserve resources and protect the en- vironment based on comprehensive standards, which are aligned with ISO (International Organization for Standardization) standards, for ex- ample, and we encourage our employees to act accordingly. Key per- formance indicators, such as our KPIs on energy consumption and CO 2 emissions, help us monitor implementation of our measures. We have specified measurable targets based on these KPIs. In 2013, for example, we approved a Group-wide climate protection target to emissions by 20 percent by 2020 compared with 2008 reduce CO 2 (not including T-Mobile US). The relevant direct and indirect CO 2 emissions are calculated based on standards such as the interna- tionally recognized Greenhouse Gas (GHG) Protocol. Updating our network infrastructure plays a key role in pursuing more sustainable business practices as a Group while at the same time helping our customers protect the climate and the environment in their daily lives. Demand for fast data services is growing rapidly. We continue to employ increasingly efficient technologies in our networks in order to counteract the additional energy required to increase their performance. The future here belongs to IP technology, which is considerably more efficient than the network technology we have used in the past. We also cut our energy consumption at our data centers by using innovative lighting, monitoring and cooling techno- logy, for example. We are systematically working to reduce the amount of waste we produce and improve our recycling processes. Our international Waste Management Framework provides a guideline for integrating responsible use of resources and waste throughout the Group. R You can find more information in our CR Report at www.cr-report.telekom.com/climate-environment
Deutsche Telekom – Overview of CR 2014 20 % emissions by 20 2 Our target is to reduce our CO percent by 2020 compared to 2008. 2014 Code of Conduct Data Centre Award Improving the efficiency of our data centers is a key aspect in reducing our greenhouse gas emissions. In June 2014, T-Systems was presented the European Union’s Data Centre Energy Efficiency Award for our ongoing efforts and success with these measures in 2013. Our submission included dis- closing the energy values of all of our data centers and a list of improvement measures. Biere cloud data center: A role model for energy efficiency Our new cloud data center in Biere near the city of Magdeburg is the largest of its kind in Germany as well as one of the largest in Europe. It has room for 30,000 servers and represents a sig- nificant milestone in the achievement of our climate protection target. With a PUE (power usage effectiveness) factor of 1.3, the Biere data center is one of the most modern and most energy- efficient data centers in its class. The PUE factor calculates the relationship between the energy consumed at the data center and the energy used by the computers. Our data center is one of only ten data centers worldwide to have received the Gold LEED certification (LEED: Leadership in Energy and Environmental Design) for its innovative energy and environmental design. 30,000 servers Our new data center in Biere can house 30,000 servers.
Deutsche Telekom – Overview of CR 2014 99 percent of all German-speaking young people between the ages of 14 and 25 have access to a social network, to the Internet, and, therefore, to global information sources – all within seconds. Anyone looking for people of like mind, new ideas or people who support their cause can find these all over the world. It is easy for people who have something to say to reach a global audience. This is the first time ever that individuals have access to these opportunities! But how do we navigate our way through this flood of information? So far we have been doing it intuitively. And how do we recognize which information is true and which is false? What is relevant and what is not? Which sources are reliable? We won’t be able to truly call ourselves a knowledge society until students start learning media skills in grade school. Philipp Riederle, expert on generation Y, book author and public speaker. The bestselling author became well-known in Germany through his “My iPhone and I” video podcast at the age of 14. In 2014 he was selected as one of “Germany’s digital masterminds”. In his presentations and consulting assignments he offers fresh perspectives on generation Y and how to deal with it. “We enable participation in the knowledge and information society. For everyone – regardless of their social or economic situation. We are laying the foundation for this with our intensive network expansion. We also support social projects and have launched an initiative for the development of media skills.” Timotheus Höttges, Chairman of the Board of Management, Deutsche Telekom R You can find more information in our CR Report at www.cr-report.telekom.com
Deutsche Telekom – Overview of CR 2014 19
Deutsche Telekom – Overview of CR 2014 The Internet plays an increasingly important role in our everyday lives. As a leading ICT provider, we take a responsible approach and do our part to make sure that everyone is able to participate in the knowledge and information society. Living in an increasingly digitized world requires certain skills. Only people who know how to work with new media safely and with con- fidence can take full advantage of the opportunities presented by to- day’s knowledge society. That is why we help people of all ages, from preschool-aged children and students to seniors, develop their skills in using digital services. Through the Teachtoday teacher and student initiative, we help teachers, school administrators and school social workers as well as parents and students use digital media to teach and learn by pro- viding practical, everyday tips and resources. Our Telekom@School initiative also provides technical infrastructure at no charge to 34,000 general and vocational schools throughout Germany. With our extensive involvement in education, we hope to strengthen young people’s individual skills. The “Yes, I can!” initiative is an excellent example. The initiative promotes the development of key skills to help children from socially and educationally disadvantaged backgrounds create a successful life for themselves. Through pro- jects conducted by the Deutsche Telekom Stiftung foundation and our own University of Applied Sciences in Leipzig (HfTL), we are also involved in getting children interested in technology and natural sciences and in peaking their interest in a career in the STEM fields (science, technology, engineering, mathematics). Our employees volunteer their time, making them important messen- gers of the values that guide our business. Numerous Social Days illustrate the ways in which we and our employees get involved in social projects or environmental protection, often within the context of longstanding partnerships with non-profit organizations. R You can find more information in our CR Report at www.cr-report.telekom.com/society 1st Cyber Security Summit for Kids at Deutsche Telekom Headquarters Teachtoday – platform for innovative media education Being able to use digital media effectively is important for understanding and co-creating the virtual world. The pur- pose of the Teachtoday online platform, which we have been running under our own name since 2014, is to teach children to do just that. On Teachtoday, teachers can find materials and tips for creating innovative lessons using digital media. Parents get tips for helping their children use media safely. Teachtoday also features the “Medien, aber sicher” competition where public schools and institutions that work with children and young people submit pro jects for using media safely. The members of the winning pro jects in 2014, children between the ages of nine and twelve, got to participate in the first Cyber Security Summit for Kids, which was held at Deutsche Telekom Headquarters.
More security for kids in the Internet Slovak Telekom collaborates with the civic action group eSlovensko to run the Sheeplive project featuring the Sheeplive.eu online portal and a cartoon series. The portal offers an enter taining approach that teaches children and young people how to use their cell phones and the Internet safely. In June 2014, Sheeplive conducted an awareness campaign in Slovakia on online safety and security. The Slovak Telekom shops participated in the campaign. One highlight along- side the many offers for children was the broadcast of a TV ad primarily addressed at parents, showing them how to protect their children from online dangers. Deutsche Telekom – Overview of CR 2014 More than 700 projects supported via the “Yes, I can!” initiative The “Yes, I can!” initiative The “Yes I can!“ initiative celebrated its five-year anniversary in Berlin in June 2014. The initiative supports projects for children and young people that take a variety of approaches to promoting the skills and abilities needed to create a successful life. In 2014, 200 new projects were initiated under the slogan “Living strong” with a funding volume of more than 750,000 euros. The initiative has supported more than 700 projects with a volume of around 4 million euros since its founding. 34,000 schools We got all 34,000 general and vocational schools in Germany online free of charge with our Telekom@School project.
Deutsche Telekom – Overview of CR 2014 The key to our success are the people who work for us. We create the workplace of the future with our pioneering human resources policies and new technologies – and not just in the ICT industry. Deutsche Telekom is responsible for around 230,000 employees worldwide. We are one of the biggest employers in Germany – and one of the most attractive, a fact that was once again validated in 2014 by the Trendence Graduate Barometer. Our goal is to continue to expand our competitive edge with the right people in the right place. We feel that retaining the best employees at our company over the long term while acquiring new competent workers is of para mount importance, particularly in view of demographic change and the lack of skilled workers. All of our training and development offers are coordinated through- out the Group in line with future requirements. Our Education 3.0 initiative supports our employees with customized, hands-on training offers. We play a pioneering role with our Magenta MOOC (massive open online course), which was conducted for the first time in 2014 with 3,600 employees from 27 countries, and with our “Lead to win” leadership model in which we are exploring new approaches. Telekom systematically promotes equal opportunity. We were the first Dax-30 company to introduce a women’s quota of 30 percent for managerial positions, a decision that has triggered public discussion. The diversity of our team is the source of our creativity and agility. That is why we encourage every one of our employees, regardless of gender, age or ethnic origin, and give them the opportunity to realize their full potential. We also offer our employees customized solutions to improve their work-life balance including flexible worktime models that reconcile business needs with the personal interests of our employees. In view of the growing demands in the ICT industry, we feel it is im- portant to encourage our employees to take responsibility for their own health. Based on the Corporate Health Award 2014, our health management policies are above average. With our Group program, Future Work, we also intend to create pioneering working environ- ments that increase our innovation potential and flexibility as well as create a communicative and motivational work climate. R You can find more information in our CR Report at www.cr-report.telekom.com/employees Training program for cyber security professionals Since 2014, we have been offering Deutsche Telekom ap- prentices and students in cooperative degree programs the oppor tunity to engage in IT security and become highly qualified cyber security professionals. This program closes a gap on the German job market. The two-and-a-half-year part-time program combines classic advanced training offers with study modules and learning phases at the company. All graduates of the program receive a certificate from the Ger- man Chamber of Commerce and Industry. The program is open to Deutsche Telekom apprentices and students in coop- erative degree programs after they have finished their training. The Group’s 1st training program for cyber security professionals
Deutsche Telekom – Overview of CR 2014 470,000 training days in Germany alone Future Work Group program introduced at T-Systems in Munich Future Work, our Group program for pioneering working envi- ronments, was launched at T-Systems in Munich in June 2014. The idea behind the program is to promote cross-departmental collaboration with open-plan offices and the option to flexibly share desk space. Around 100 desk-sharing workstations as well as creative islands and retreat spaces were created at the offices on Dachauer Straße. Employees are very happy with the program so far and the flexible working structures have had a positive effect on work-life balance and motivation, a good sign of more Future Work projects to come. Supervisory board mentoring program for women At just over 25 percent, women are a minority on the supervi- sory boards of our German and international companies. We want to continue to see their numbers grow, which is why we are the first DAX-listed company to introduce our own program to prepare female managers for the supervisory board. The goal of the training program, which was launched in November 2014, is to create a pool of potential female supervisory board candidates. In addition to traditional content, case studies from the Group and simulated super visory board meetings, the program will particularly focus on the experience of long- time supervisory board members. More than 13,000 suggestions submitted to Group Ideas Management
24 Deutsche Telekom – Overview of CR 2014 what we are prouD of! 5.8 million householDs in germany equipped WitH moDern ip teChnology since 2014 Today Target 2020 our target: 20 perCent less Co2 by 2020 € 95.6 million invested in researcH and development 25.6 perCent of management positions helD by women – and groWing arounD 7,000 young people in hungary learn HoW to use digital media saFely telekom mitigates shortage of qualifieD workers: First group training oFFer to become a Data privaCy expert up to 80 perCent less energy Consumption thanks to ClouD Computing at our HigHly eFFicient data centers 80 % 60,000 ChilDren anD young people reacHed WitH our “yes, i Can!” initiative 470,000 Days useD for further eDuCation by our employees – in germany alone sustainable supply Chain: of our proCurement volume revieWed For compliance WitH our social and environmental standards 8,000 metriC tons of Copper Cable recovered in germany alone
what we are prouD of! more tHan 13,000 suggestions submitted to group ideas management Deutsche Telekom – Overview of CR 2014 25 34,000 sChools equipped WitH internet Free oF cHarge as part oF tHe “telekom@scHool” initiative genDer mainstreaming awarD: t-systems soutH aFrica recognized For tHe FiFtH time For its diversity acHievements in august 2014 3,600 employees explore neW Ways oF collaboration WitH magenta mooc first Cyber seCurity summit for kiDs around 4.2 million Cell phones recycled or repaired and reused in tHe u.s. in 2014 plaCe in the best network Category For tHe FourtH time in a roW in tHe extensive netWork test conducted by “connect” 180 honeypots installed to enHance internet security we offer training options: 7,400 apprentiCes anD 1,400 stuDents in Cooperative Degree programs in germany alone all 111 fully ConsoliDateD group Companies auDiteD for ComplianCe with human rights saFer tHan ever beFore: ten-point program CreateD for inCreaseD seCurity online
Deutsche Telekom – Overview of CR 2014 Responsible: Birgit Klesper Senior Vice President Group Transformational Change & Corporate Responsibility Friedrich-Ebert-Allee 140 53113 Bonn, Germany Concept and editorial input/ Design: Deutsche Telekom AG Stakeholder Reporting GmbH, Hamburg, Germany Photo credits: Frank Bauer (page 6, 12, 18), Jürgen Schwarz (page 4, 5, 8, 9, 10, 11, 14, 15, 16, 17, 20, 21, 22, 23) The CR brochure is published in German and English. The German version is legally binding. This brochure contains forward-looking statements that reflect the cur- rent 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,” “out- look” or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA or other performance measures. Forward-looking statements are based on cur- rent 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 instance, the progress of Deutsche Telekom’s workforce reduction initiative and the impact of other significant strategic or business initiatives, including acquisitions, dispositions, and business combinations. In addition, regulatory rulings, stronger than expected competition, technological change, litigation, and regulatory develop- ments, among other factors, may have a material adverse effect on costs and revenue development. If these or other risks and uncertainties mate- rialize, or if the assumptions underlying any of these statements prove in- correct, 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. Deutsche Telekom AG Friedrich-Ebert-Allee 140 53113 Bonn, Germany District Court of Bonn HRB 6794, Registered Office Bonn VAT ID No. DE 123475223 Tel: +49 (0) 228-181-0 E-mail for administrative purposes: firstname.lastname@example.org Regulatory authority: Federal Network Agency for Electricity, Gas, Telecommunications, Post and Railway Tulpenfeld 4 53113 Bonn, Germany Authorized representatives: Timotheus Höttges Reinhard Clemens Niek Jan van Damme Thomas Dannenfeldt Dr. Christian P. Illek Dr. Thomas Kremer Claudia Nemat
This brochure features extracts from the Deutsche Telekom 2014 Corporate Responsibility Report The complete report is available at www.cr-report.telekom.com Further information on Deutsche Telekom’s corporate responsibility activities can be found at www.telekom.com/corporate-responsibility, www.annualreport.telekom.com or https://www.telekom.com/static/-/267766/6/report-datasecurity-2014-si