“In order to leave a world worth living in for the next generation, we must stride into the future with courage and curiosity.” Timotheus Höttges Chairman of the Board of Management Deutsche Telekom AG
2 – 3 F O R E W O R D
DEAR READERS, The biggest driver for this is digitalization. It will en- able progress in the fi ght against climate change, in medicine and education, creating more livable cities and inventing new products for a more sustainable everyday life. It is helping us to meet 17 Sustainable Development Goals (SDGs) from the UN’s Agenda 2030: these SDGs are arguably the most ambitious goals the international community has ever set itself - and we are all responsible for reaching them. So what is our role as Deutsche Telekom? We are “en- ablers”: in this way, we want to make our contribution so that digitalization can unleash its full potential for more sustainable development. You can read how we accomplish this in detail in our recent CR Report at www.cr-report.telekom.com. However, as optimistic as we are, we cannot ignore the fact that some people fear negative consequences of digitalization. For this reason, we’re exploring the question of what corporate responsibility means in the digital age. We want to give the social debate momentum. That’s why we have created our “Digital Responsibility” portal, where you can actively join in the discussion. I look forward to receiving your posts. Tim Höttges The year 2017 ended with a real highlight for Deutsche Telekom: in December, we received the German Sus- tainability Award for our holistic sustainability man- agement. I am pleased that this award recognizes not only our many years of work, but also how we are using the opportunities offered by digitalization for a better future. This positive conclusion to the year was important for me. For looking back at the year, there was again great cause for concern in 2017: persistent armed confl icts forcing people to fl ee their homeland. Political rheto- ric exacerbating confl icts rather than defusing them. Burgeoning nationalism focusing on division and not on cooperation. And fatal ignorance as regards the consequences of climate change, threatening to undo the hard-won progress of recent years. But anyone who just decides to sit back and do nothing is drawing the wrong conclusions. I feel very strongly that standing by our convictions has seldom been more important than today. This applies not only to us as individuals; it is particularly relevant to Deutsche Telekom as a company. The values for which Deutsche Telekom stands must be defended. We are a European undertaking, and believe in the European vision of shared prosperity and social se- curity. It is not for nothing that our brand motto is ‘Life is for sharing’. We want to enable sharing through digitalization in Europe and beyond. We stand for optimism as well, for in order to leave a world worth living in for the next generation, we must stride into the future with courage and curiosity.
4 – 5 T R A N S P A R E N C Y ENDLESS INFORMATION – THE END OF PRIVACY?
T R A N S P A R E N C Y
6 – 7 T R A N S P A R E N C Y DATA – THE RAW MATERIAL OF THE 21ST CENTURY We post vacation snaps, google symptoms, look for apartments, jobs and even true love - with every trace we leave on the net, the data moun- tain grows a little bigger. For a long time now, life without the Internet in our daily lives has been unthinkable. But unlike at home, we can’t just draw the curtains on the Internet to shut out prying eyes. So what exactly does digital transparency have to do with us? On the one hand, these vast amounts of data open up completely new possibilities - for example, for intelligent traffic control, research into diseases or the ecological use of resources. But on the other hand, transparency can make us vulnerable. This can happen if private information falls into the wrong hands. As a society, we need to ask ourselves what privacy means to us. Who can we, or who do we want to, entrust with our data? What can we do to protect ourselves? FROM RAW MATERIALS TO DIAMONDS If data is the raw material of our time, then adding value and prosperity are only possible where this raw material is processed and refined. Yet that requires consistent rules and a clear stance. At Deutsche Telekom, we are focusing on short-distance Internet: it is crucial that data does not pass through other jurisdictions when being moved around the net. What about data analysis? Only with anonymized or pseudonymized data. We must also constantly ensure that every individual retains their sovereignty over personal data - meaning they have the opportunity to object to the use of this data. We are doing our utmost to ensure that the data entrusted to us is in safe hands with us - and we explain to customers how they can protect their own data. Since data security is something we can only deal with as a whole society, we are working closely with government agencies and other companies.
T R A N S P A R E N C Y THE RIGHT CHOICE 10 sec are enough to create a password that takes a whole lot longer to crack. NO CHANCE FOR HACKERS One billion security-related items of data from around 3,000 sources! That’s how much informa- tion our in-house cyber defense team analyzes every day to ward off hacker attacks before they happen. 365 days of the year, 7 days a week, 24 hours a day. Our experts monitor the infrastructure of Deutsche Telekom and our customers around the clock. Our Cyber Defense and Security Opera- tion Center is one of the largest and most modern in Europe. Analysis tools help us identify behavior patterns that indicate a cyber attack has happened. On this basis, we can then quickly introduce coun- termeasures. We are continually developing new methods to keep up with the attackers. With the “drone shield”, for example, we offer data centers, stadia and authorities a solution to protect against the growing risk from private drones. 1 billion items of security-related data are assessed every day by our experts to prevent cyber attacks. It takes just 10 seconds to create a secure pass- word that will thwart an attack. Our online guide www.sicherdigital.de shows you how to create a secure password and other ways of protecting your- self. Even if there is no such thing as total security – if you know about and use every security mea- sure, you can protect your data as much as possible. If you’d like to know more about privacy and data security, please visit our website at www.telekom. com. In our digital sustainability magazine “We Care”, we also explain where the biggest traps lurk online - and explain, for example, why you should always act on a security update straight away. TRANSPARENT SUPPLY CHAINS Digital tools can help us to increase transparency in our supply chain - an important step in pre- venting violations of human and labor rights or environmental standards. We have over 30,000 sup- pliers from more than 80 countries, and they must all comply with strict ethical, social, ecological, and human rights requirements. To monitor their sustainability performance, one of the tools we have is the online information system E-TASC, used industry-wide. We oblige strategically important or particularly high-risk suppliers to enter compre- hensive self-assessments on the system. Based on this data, our experts can identify potential risks and introduce the necessary measures at an early stage. But not everything can be resolved digitally: on-site inspections and face-to-face discussions with suppliers allow us to ensure that they are actually complying with standards. Through all of these measures, we are contributing to the goal of the UN’s 2030 Agenda to promote supply chain sustainability (SDG 12).
8 – 9 N O M O R E B O U N D A R I E S HOW FAST IS TOO FAST?
N O M O R E B O U N D A R I E S
10 – 11 N O M O R E B O U N D A R I E S ANYTIME, ANYWHERE, EVER FASTER That meeting with colleagues from the US? We’ll be there at 9 o’clock in the evening, live from our living room. Big weekly shop coming up? Quick! Book a shared car. In the mornings we do our important banking before heading into the office. After we leave it, we book our next train journey. We are “always on”, connecting with others and sharing adven- tures, experiences and products with one another. Even machines are learning to talk to each other, which is making industrial processes more efficient and sustainable. Boundaries in time and space are dissolving. That’s great because it means an end to standing in line, boredom and clocking in. But a lack of boundaries in the digital world can be over- whelming if we are always available and can never switch off. It doesn’t just break down the boundaries that have hemmed us in. It also affects the ones that protect us. It’s all about finding the right balance between immense freedom and clear rules. FOCUSING ON PEOPLE Digitalization makes the world simpler, faster, more diverse, and more efficient: in short, it makes it better. More sustainable cities, less traffic, better medical care, sharing platforms for sharing instead of owning - the possibilities are endless. Here at Deutsche Telekom, we want to drive this development: by expanding networks, with new innovative applications and through partnerships, we are helping to make the most of the opportunities offered by digitalization and using them to help people. Digitalization is not an end in itself: it should make life easier, promote prosperity and equal opportunities, and connect people without being limited by borders. But we also know that there are reservations, and we take these seriously. That’s why we are asking for dialog and making sure that in everything we do, digital change happens responsibly - and puts people first. For example, in our Smart City projects we are working closely with municipal authorities and public utility companies to meet city dwellers’ needs.
N O M O R E B O U N D A R I E S IMPROVED TRAFFIC FLOW – LESS CO 2 Fewer traffic jams means arriving faster - digital technology is making it possible. One example is our “Park and Joy” app, which drivers have been able to use in Hamburg since 2017. Sensors have been installed in the first parking lots in the Hanseatic city. From the summer of 2018, these sensors will tell app users which parking spots are available. Drivers using “Park and Joy” can then navigate directly there. In 2018, cities planning to introduce the parking app include Bonn, Duisburg, Dortmund, Darmstadt and Moers. Another example is real-time traffic information: we operate the Daimler AG technical platform worldwide for its “Live Traffic” service. This gives Mercedes drivers traffic jam information and recommendations for alternative routes. In 2017 alone, 5 million vehicles used “Live Traffic” on the road: in one year, this allowed savings of some 6.2 million liters of fuel and about 15,000 tonnes of CO 2 . 18 cities in ten European countries are already using Deutsche Telekom’s Smart City solutions. SUSTAINABLE CITY LIVING If machines learn how to talk to one another, city life can improve. And cities are getting bigger all the time. Every week, some 1.3 million people are mov- ing from rural areas to cities across the globe. This creates more traffic, more waste and more demand for energy and drinking water. We are helping cities like Hamburg and Bucharest to become more sus- tainable through digital solutions - an important sus- tainability goal in the United Nations 2030 Agenda (SDG 11). The newest Smart City project has been running in Bonn since 2017. The themes there are saving energy, increasing efficiency, and improving air quality. Dimmable street lamps automatically become brighter when pedestrians approach with the help of motion sensors. Recycling containers fitted with sensors check waste levels. The munic- ipal garbage collection service need not come for the container until it is actually full. And in the city center, we are using another sensor on a street light to record different environmental data. Software developed by Deutsche Telekom checks air quality using this data.
12 – 13 N O M O R E B O U N D A R I E S SHARE, TRADE, BORROW Studies show that a privately owned passenger vehicle sits around unused for an average of 23 hours a day. A drill only runs for about 13 minutes before it gets thrown out with the electrical waste. The numbers are clear. If we were to purchase fewer products ourselves and share more products with each other, we could save both a lot of money as well as valuable resources. Ever more sharing platforms are being developed for just this reason. For them to work, they need an Internet that is fast and that really works. This is right where Deutsche Telekom comes in: we invest more than 5 billion euros a year in Germany alone, mainly in expanding our networks. It’s only when sharing services like city bikes or car sharing are available to the maximum that they’ll reach their full potential. And the best is that sharing is useful, fun and lets us meet other people. “Our current way of doing business is not only detrimental to future generations but to people in poorer countries as well. That’s why we urgently need to come up with something, if we want to maintain a good lifestyle in the long term. We have to move away from the throwaway society and towards a circular economy.” Birgit Klesper Senior Vice President Group Corporate Responsibility Deutsche Telekom AG Read the complete interview at www.cr-report.telekom.com.
N O M O R E B O U N D A R I E S JUST TAKE SOME TIME OUT Is the first thing you do when you wake up, or the last thing you do at night is to look at your smartphone screen? Then you have to ask your- self who’s really in charge. Are we in charge of our mobiles? Or are they in charge of us? If you can’t switch off, or your smartphone lighting up is stopping you from sleeping, that’s counter- active. Deutsche Telekom wants to encourage the healthy, conscious and moderate use of digital media and technologies. That is why we are pro- moting media literacy and offering tips on how to switch off on our website www.telekom.com and our “We Care” magazine. BETTER MEDICAL CARE EVERYWHERE Does living in a rural or remote area mean travers- ing long distances to obtain good medical care? Not necessarily! Thanks to digitalization, physi- cians can provide good medical care to their patients even over long distances. Take Greece, for example, where a telemedicine network connects health care centers on the Aegean islands with the mainland. Check-up results can be sent directly to hospitals in Piraeus via live stream, and patients only need to make the expensive trip to the main- land when a hospital visit is necessary. With these and other projects we are helping ensure broad access to high-quality health care, which is also one of the UN’s sustainability objectives (SDG 3). THERE FOR OUR CUSTOMERS We also offer digital services so that our customers can contact us with their concerns anywhere, any- time. For example, if the router is flashing strangely and not doing what it’s supposed to, a message to our Digital Service Assistant might help. The chatbot can now automatically answer questions about cables, installation and incidents with regard to telephony, Internet and TV. If the chatbot doesn’t know the answer, it will pass the cus tomer to a customer adviser. Since the end of 2017, our customers have also been able to use the My Telekom Technician service. This tracks when their appointed Telekom technician will arrive so they can plan their day better. Our MagentaSERVICE app combines the entire service offering for mobile communications and landline customers, allowing our customers to do things such as check their data usage, manage their contracts, or organize for a line to be moved.
14 – 15 T R A N S F O R M I N G W O R K WILL WE BE OUT OF A JOB – OR FINALLY GET OUT OF DOING THE WORK?
K R O W G N I M R O F S N A R T
16 – 17 T R A N S F O R M I N G W O R K HELP, THE ROBOTS ARE COMING ... ... and they’re after our jobs! In their study “The Future of Employment”, Oxford professors Frey and Osborne conclude that nearly 50 percent of jobs in the US may be automated in the near future. But what does that mean? Will we all be out of a job tomorrow - and have no income? Or will we get more time to use as we choose? Can artificial intelligence really replace work by people altogether, or will machines instead become our new colleagues? And what about the new jobs actually being created by digitalization? No one can say for certain whether more jobs will be cre- ated than will disappear - or vice versa. And no-one knows how our society will change as a result. But in any case, one thing is clear: the world of work is undergoing a dramatic change. Work is becoming more digital, flexible and versatile. Employees and companies alike must be willing to learn and to change. DON’T WAIT, JUMP IN! Digitalization is a process without an off switch – but it’s up to us whether we let the transition steamroller us or we actively shape it. As a telecommunications company, we are driving digitalization forward by expanding our networks and developing innovative solutions. At the same time, we also have to evolve as a company and keep up. This is why we at Deutsche Telekom are creating experimental spaces where we try out new things. One of these experimental areas involves interdepartmental teamwork. Using the 80/20 model, we give employees the freedom to choose to spend 20 percent of their working time on projects outside of their usual remit. This allows them to work with teams from other departments. In this way, we break up departmental silos and can make better use of the company’s broad spectrum of talent. We are also breaking new ground when it comes to team working: we work together on digital platforms across the Group and use new methods such as design thinking to solve complex problems. Our HR position paper outlines other ideas on how we can shape the world of digital working.
T R A N S F O R M I N G W O R K BUILDING SKILLS You can’t teach an old dog new tricks. This old truism has long been obsolete in the digital age. Technological change is fast-paced and we are all learning new things every day. As a company, we want to equip our employees for the challenges of tomorrow. That’s why our HR department works closely with other Deutsche Telekom departments. Together, they peer into the crystal ball and con- sider what our strategic focal points will be in the coming years. What skills will our employees need to work in the future? This is how we create “future job profiles” and decide what further training or new appointments we need. We need a good over- view of current skills within the company to be able to do this. Almost 5,000 employees from various areas have already completed a skills management process with this in mind. Each employee is as- signed a skills profile that covers the specialist and general skills they need to best meet current and future job requirements. Managers and employees then look together for any gaps and can work out targeted training measures. “A positive attitude towards digitalization is essential. In some places we need the courage to take on a challenge and try out something new. That is why I always urge people to ‘just go ahead and do it.’ And we are creating the necessary experimental space for this so that we can explore new possibilities – without organizational and operational pressures.” Christian P. Illek Chief Human Resources Officer Deutsche Telekom AG Read more about our new culture of trying new things at www.cr-report.telekom.com.
18 – 19 T R A N S F O R M I N G W O R K CREATING FREE SPACES In the office every morning at eight o’clock sharp, at the same desk every day and back into the rush hour traffic eight hours later. For a long time, this was how a typical office workplace looked. Digitalization is seriously shaking up how we work. Nowadays, teams are spread across different locations and meet in web conferences – often from the office, but also when traveling or from home. The work environment therefore obviously needs to change too. Through Future Work we are giving our employees open office environments, the possibility of desk sharing, areas for networking, and project and creative spaces ... We are creating space for fresh ideas in the truest sense. However, Future Work also stands for mobile working, away from work areas, and for a new type of trust-based management that relies on results rather than presence. 18,000 employees in Germany were working according to our “Future Work” principles at the end of 2017. 90% of all employees in Germany were able to use a lifetime work account by the end of 2017. FACILITATING FLEXIBILITY Is it possible to work independently of time or place? Digitalization makes it possible. Whether they are in the office, or working from home or on the train: our employees achieve excellent results everywhere. We laid the foundation for this as early as 2016: that year, the unions ver.di and agv:comunity concluded the first general collective agreement on mobile working. We are flexible about where we work, but also about working hours: flexible working hours, part- time work, or longer periods of time off – our employees can choose the work model that best supports their individual work-life balance and suits their current phase of life.
T R A N S F O R M I N G W O R K TAKE A CHANCE ON DEMOCRACY Employees choosing their own managers? That’s reality at Deutsche Telekom. At the end of 2016, the 130-strong Corporate Communications team chose four managers from among their own ranks – initially for one year. The team selected three women and one man, of different ages and with different levels of experience. Why this unusual procedure? It’s quite simple: as our world of work changes, we must take a long, hard look at how we manage it. And maybe decide to become bolder and try new things out together. We are hoping the project brings greater transparency, a better understanding between team and managers and therefore better leadership overall. The project has the full support of the Works Council. 123,000 employees were connected by our in-house social network YAM by the end of 2017. 37% of all learning hours at the company were completed digitally in 2017. DIGITAL TEAMWORK We work online, communicate online and more and more often we also learn online: “You and Me” - or YAM for short - is the social network for our em- ployees. At the end of 2017, some 123,000 users had already registered. YAM has up-to-date news and can also be used to discuss exciting topics and give each other feedback. YAM also gives our em- ployees a direct line to the Board of Management and managers. In addition, it creates new team- work opportunities. For example, right now around 30 virtual communities are discussing strategically important topics such as cyber security, artificial intelligence or the Internet of Things. Gamification, or the inclusion of gaming elements in training ma- terials, helps put the fun into learning. For example, we have successfully tried out the use of quiz and VR games. In 2017, more than 37 percent of all course hours were completed in digital form.
20 – 21 P A R T I C I P A T I N G PARTICIPATING IN THE DIGITAL WORLD – EVERYONE ON BOARD?
P A R T I C I P A T I N G
22 – 23 P A R T I C I P A T I N G ENCOURAGING PEOPLE TO GET INVOLVED The world’s knowledge is now at our fingertips. The net offers an incon- ceivable wealth of information flooding in on us in real time: breaking news, thrilling stories, and groundbreaking studies. It gives us insight into foreign cultures, new perspectives, different opinions. It lets us get involved, look for like-minded people, find supporters or organize pro- tests. And it helps us find our way around new places - whether we’re on vacation or want to move to a new country. In the digital age, access to the Internet is one of the most important prerequisites for social partici- pation – and using digital media competently is becoming as important as knowing your times tables. That’s because the net also confronts us with other things: fake messages, propaganda, insults. There’s no real filter - so facts appear next to fake news, and war reports play alongside cat videos. In a digital world full of fascinating possibilities, we need guidelines to help us recognize what is important and what is right – as individuals, but also as a society. LEAVING NO-ONE BEHIND Being part of the knowledge and information society is only an option for those with techni- cal access to the net. Deutsche Telekom is therefore investing heavily in network expansion – more than any of its competitors. Data privacy and data security are also high on our agenda as we want our customers to have complete control over their digital data. It is also important to know how to avoid being misled. In order to browse the net safely, we must be able to differentiate between half-truths, alternative facts and fake messages, and question sources critically. We want to strengthen these skills and encourage people to use media respon- sibly. Through a range of initiatives, we are committed to promoting media literacy among the young and old - hence, this is one of the focal points of our social commitment. We also strive to enable people from different cultural backgrounds to participate in the digital world and integrate them into society.
P A R T I C I P A T I N G CLEVER AND SMART STARTING IN THE WORLD OF WORK Anyone who wants to benefit from the advantages of digitalization must also be aware of the risks, so they can use digital media competently, inde- pendently, and safely. This applies particularly to children and teenagers: even if “digital natives” seem perfectly able to navigate the information flood, they rarely question the interests or intentions behind it – and they are particularly impressionable. Our “Teachtoday” initiative (www.teachtoday.de) supports children, young people, parents, grand- parents, and teachers by offering hands-on tips about safe and competent media usage – in seven different languages. Teachtoday provides a huge range of materials, from advice apps to a data pri- vacy dossier and a media literacy test. In 2017, the question “Do the media influence opinion?” was the focus of Teachtoday’s “Media, sure! But secure.” competition targeting schools and youth clubs. The Deutsche Telekom Stiftung foundation is also active in promoting media literacy. Through the “Yes, I can!” initiative, it gives young people the skills they need to negotiate the digital world independently and confidently. Digital education is also a top pri- ority within the national companies: the “Connected Kids” project run by T-Mobile Austria helps students and schools to use digital media and learning formats. Our diverse media literacy commitment is consistent with one of the Sustainable Development Goals from the UN’s 2030 Agenda, i.e. to improve access to quality education (SDG 4). Suddenly everything has changed ... People who have had to flee their homeland face huge chal- lenges. Once the most urgent issues have been addressed, and they have started to learn German, comes an important question: how do I find work, and fast? Through a range of programs and projects, we are giving refugees the chance of a flying start. We employed 340 refugees altogether in Germany in 2017 – in internships, training positions, on coopera- tive study programs and under the “Internship PLUS Direct Entry” pilot initiative. The project enables gradual entry into professional life over two and a half years, and leaves plenty of time for language courses, especially at the start. In 2017 we held six applicant days for the intern selection process at various locations. These provided an opportunity to get to know each other in a relaxed atmosphere. The focus was not on perfect applications, but on face-to- face conversation. Our experiences have been really positive, which is why we want to help even more refugees into work in Germany in 2018. Not just at Deutsche Telekom, but also at supporting partner companies that want to offer jobs but have no experi- ence of employing refugees. As a technology partner, we also support the www.handbookgermany.de information portal where refugees can find out about living, studying and working in Germany in a range of languages. TRUE OR FALSE? “Pope supports Donald Trump”. Placed on social media, this message has been shared hundreds of thousands of times, liked and commented on. This is far from trivial: made-up news can have real political consequences and even influence election results. However, it can be difficult to decide if messages like this are true or not. We want to raise awareness of how to view digital information with a critical eye. That’s why we invited all of our employees in Bonn to attend the “1001 truths – trust and opinion forming online” activity day in July 2017. One speaker in the workshops and rounds of talks and discussions was Barack Obama’s former campaign manager, who revealed how fake news works. As a result of positive feedback from the activity day, we’ve created additional materials on the theme of “opinion-making on the Inter- net”. These are aimed at children and teenagers, adults and seniors, but also at people who can disseminate the message, such as teachers, mentors and HR managers in companies. From summer 2018, the material will be published on our portal www.medienabersicher.de. It will be available in German and English and also in easy-to-understand language. This will help people with learning disabilities or those who don’t speak German fluently to understand the information.
24 – 25 A N E X P E R T ’ S V I E W WHEN SCANDALS SHATTER TRUST: WE NEED CORPORATE DIGITAL RESPONSIBILITY MORE THAN EVER BEFORE BY PROF. DR. CHRISTIAN THORUN, MANAGING DIRECTOR OF THE CONPOLICY INSTITUTE FOR CONSUMER POLICY Sharing vacation memories on social media, manag- ing accounts efficiently with an app, and convenient- ly controlling home electronics through voice-con- trolled assistants: today, digital technologies are part of everyday life. But they also show that users who divulge sensitive information are making their private lives transparent. As they can’t check what companies do with data in their data centers, they have no option but to give their trust. The digital economy is a trust economy. However, this trust has been severely shaken in the past: millions of people have been affected by the illegal disclosure of their data by Facebook. Inves- tigation committees are looking into allegations of election rigging through social media platforms. Hate comments on the Internet have led to new regu- lations, such as the Network Enforcement Act, which require social media platforms to delete illegal con- tent more quickly. This raises the question of how to regain lost trust, and how to minimize such dangers in the future. In other words, if data is the new oil, we must explore which regulatory frameworks and safeguards are needed to prevent any more damage. We must take a two-pronged approach to answering this: on the one hand, legislation is needed. So we should celebrate the fact that many countries have adapted their competition laws to the newly emerging digital markets in recent years. The General Data Pro- tection Regulation has updated data protection law for the European Union. Another question under dis- cussion is what measures can be used to prevent the abuse of algorithms - and whether companies that wield power in the market ought to be regulated and supervised as infrastructure services are. On the other hand, business must take action. Many companies have shown through their CSR activities over recent years that they are not just the cause of problems. They can also contribute to solving prob- lems, for example environmental issues. However, the more online business models and offerings they use, the more responsibility they have to assume for their impact on the digital world. This means extend- ing traditional CSR activities in environmental, social affairs and human rights areas to include corporate digital responsibility, i.e. digital responsibility. The UN Guidelines on Consumer Protection are one source that describes the issues involved. With re- gard to corporate digital responsibility, the following issues need to be addressed:
A N E X P E R T ’ S V I E W Prof. Dr. Christian Thorun MEDIATION Confl icts can arise any time between providers and users during everyday business transactions. Smart Contracts, i. e. self-executing contracts that trigger automated legal consequences, offer users an effi cient way of pursuing their rights when a company has not met its obligations, without having to fi ll out a lot of forms fi rst. This list shows that companies have to manage a whole range of subjects if they want to live up to their digital responsibilities. However, corporate digital responsibility is still in its infancy. A look at sustainability reports from the top DAX 30 compa- nies reveals that very few companies to date have been developing strategies for digital responsibil- ity. This inaction must end. This is the only way users will really be able to trust digital offerings. ACCESS Companies should campaign for better Internet access. Right now, over half of the world’s popu- lation has none. ECONOMIC INTERESTS Companies should respect and promote princi- ples such as net neutrality and the neutrality of search results. They should not personalize pric- ing. And they should also be open about how al- gorithms make decisions and ensure that these are not discriminative. LIABILITY At the moment there are legal gray areas con- cerning decision-making by autonomous sys - tems, where liability for mistakes is unclear. Com- panies should therefore introduce user-friendly liability regimes. DATA PRIVACY AND SECURITY The General Data Protection Regulation has es- tablished new rules for processing data. Compa- nies have to interpret these rules not only with a view to their own duties, but also in the users’ interest. These include user-friendly options for giving consent, easy-to-understand information about stored data (e.g. through dashboards) or promoting innovative technical approaches to data privacy (such as privacy bots).
26 – 27 G R O W T H BOOST FOR GROWTH – WITH RESOURCES STRETCHED TO THE LIMIT?
G R O W T H
28 – 29 G R O W T H THE GROWTH BOOST Digitalization is changing the economy at breakneck speed. It is adding enormous benefits in productivity and facilitating unprecedented individualization. Good-bye off-the-rack, hello tailor-made! According to one study, digitalization could increase economic output in Germany by an additional 82 billion euros by 2020. But that’s not all. Digitalization is also significantly contributing to achieving the goals of the United Nations’ 2030 Agenda: to bring economic progress and prosperity in line with social justice and the respect for ecological limits. However, if digitalization is to reach its full potential for a better world, it must not be stopped by national borders. SUSTAINABLE DEVELOPMENT REQUIRES NETWORKING As a European undertaking, we believe in the European vision of shared prosperity and social security. This prosperity is not based on isolation but on free trade, free competition and economic networking. Digitalization means economic growth – and the chance for a better, more sustainable future. However, this is not going to happen by itself, but a task for which politicians and companies alike must take responsibility. We want to play our part. By investing in digital infrastructure, we are creating the basis for sustainable and inclusive growth. Through our products and services we are offering solutions to social and environmental challenges. We are driving forward development in innovation, including by promoting digital start-ups with sustainable business models. We are also asking others to help shape digitalization, and are networking in politics, science and society. In this way, we are contributing to achieving the sustainability goals of the 2030 Agenda - with our core business and beyond.
G R O W T H BUILDING A HIGH-SPEED NETWORK When it comes to expanding networks, we’re at full throttle. We already operate the largest fiber-optic network in Europe, at more than 455,000 kilome- ters. However, demand for higher bandwidths is constantly increasing. One of our goals is for 80 percent of the German population to soon be able to cruise the Internet with 100 Mbps. How will we achieve this? By keeping up the pace as we expand. In Germany, on average, one of the gray street cabinets on the curb was connected to the new technology every 3 minutes in 2017. Expand- ing our network infrastructure is helping us con- tribute to the 2030 Agenda and the sustainability goal of building resilient infrastructure for sustain- able innovation (SDG 9). 93% was the coverage through mobile communications tech- nology LTE in the German Deutsche Telekom network by the end of 2017. 69% is the number of fixed lines in Germany that we migrated to IP technology by the end of 2017. STARTING A REVOLUTION Another network revolution is imminent: 5G. This communications standard is a completely new network concept that aggregates fixed-line and mobile networks and builds on an entirely innova- tive network architecture. 5G is giving rise to un- dreamed-of possibilities: for new application areas, for new business models and, last but not least, for new jobs. 5G will provide up to 1,000 times higher capacity, 10 times better speeds, 10 times faster response time and 1.5 times better mobility compared to conventional technologies. Through 5G, for example, cars will be able to communicate with each other in real time in the future. This could make the vision of safe, smooth traffic a reality. We are already testing the future of communication in Berlin. Three antennas have been in use there since October 2017. They are the first live ones in a real environment in Europe to work with 5G. We were able to prove the industrial sustainability of 5G and the advantages for the energy sector in another practical test in the spring of 2017. In cooperation with the Berlin-based electricity supplier Stromnetz Berlin and telecommunications company Ericsson, we demonstrated that highly flexible communica- tions networks could soon be available thanks to 5G, which could be used in the shift toward wind and solar energy. 5G will therefore also be an im- portant tool in combating climate change and its consequences (SDG 13).
30 – 31 G R O W T H INVESTING IN THE FUTURE How can we bring new ideas for the digital future to the streets? For one thing, we can invest in young start-ups and help them to develop. In 2012 we founded the start-up incubator hub:raum. In Berlin, Cracow and Tel Aviv we have worked with 200 start- ups since then. Among other things, we are promot- ing the development of innovative 5G applications in Europe. Possible areas where the new wireless standard will play a key role include faster care for accident victims. With 5G, data can be transferred between first responders at the scene and hospital specialists in real time. And in the Telekom Inno- vation Laboratories (T-Labs) we are working on innovative solutions for the near and distant future – in collaboration with scientists from a range of uni- versities. Important fields of work at T-Labs include virtual reality and artificial intelligence. 10 times more CO emissions than the 2 ICT sector uses itself can be saved by 2030 through infor- mation and communication technologies, according to the SMARTer2030 study. 57.7 million euros were invested in R&D in 2017. PROTECTING THE CLIMATE How can we separate economic growth from the consumption of natural resources? One answer is to use digitalization. For example, storing your data on the Telekom cloud instead of on your hard disk saves resources. But that’s not all: it also reduces 2 emissions, as our highly efficient, secure data CO centers use less energy to store data due to better capacity utilization. Technology can also help to reduce emissions in other sectors. According to the SMARTer2030 study, by 2030 savings of up to 2 billion metric tons of CO₂ could be made through the targeted application of information and commu- nication technologies. So how does it work? With intelligent agricultural machinery that helps farmers to optimize the use of fertilizers or seeds - resulting in higher yields while saving on water and CO . The 2 study also showed that information and communica- tion technologies have the potential to save almost 10 times more CO₂ emissions by 2030 in other industries than the ICT industry consumes itself. Digitalization is therefore a lever that can be used to achieve key sustainability goals: to break the link between growth and consumption of resources, save energy, and slow down climate change.
149,336 used cell phones and smartphones were collected throughout Germany in 2017 and were either reused or properly recycled. G R O W T H LEVERAGING THE CIRCULAR ECONOMY If it’s broken, throw it away - all too often this is the way our consumer model works. This leads to the loss of valuable resources while garbage piles grow. The idea of a circular economy offers a more promising solution, where resources return to the production process through recycling. As a tele- coms company, we are doing our part to decrease the resource consumption of ICT products. In our leasing model for routers and media receivers the devices are used for longer, and discarded devices are refurbished whenever possible for reuse, which extends their life cycle. Our cell-phone collection program also ensures that valuable raw materials are returned to the value chain. LET’S TALK, NOT GIVE ORDERS When we talk about digitalization, our discussion must also include issues of impact assessment and digital responsibility. What are the risks? Who will be the winners and losers? Under the heading “Are we stumbling blindly into digitalization? We need to do our digital duty” we launched an initiative in 2016 to address these issues. Expert interviews, extensive informational material and the opportu- nity to join in the discussion are all available on the website. The main idea behind this is that no individual can define “digital responsibility” – we can only do that together. That’s why we’re involved in different memberships and collaborations, including as a member of the “Charter of Digital Networking”. This is a voluntary alliance of German companies that are committed to shaping digital- ization responsibly. The opportunities and risks of digitalization for climate protection were also a subject of the discussion forum we held during the World Climate Conference together with the Global e-Sustainability Initiative industry association in November 2017.
Responsible: Birgit Klesper Senior Vice President Group Corporate Responsibility Friedrich-Ebert-Allee 140 53113 Bonn, Germany Concept/Editorial input/Design: Deutsche Telekom AG Stakeholder Reporting GmbH May 2018 Disclaimer, publishing information and contact Deutsche Telekom AG Friedrich-Ebert-Allee 140 53113 Bonn, Germany Bonn District Court: HRB 6794 Registered office: Bonn VAT ID No.: DE 123475223 Tel: +49 (0) 228-181-0 Email for administration purposes: firstname.lastname@example.org Supervisory authority: Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen Tulpenfeld 4 53113 Bonn, Germany Authorized representatives: Timotheus Höttges Adel Al-Saleh Thomas Dannenfeldt Srinivasan Gopalan Dr. Christian P. Illek Dr. Thomas Kremer Claudia Nemat Dr. Dirk Wössner 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 expectations or targets for revenue, adjusted EBITDA, or other performance measures. 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 gene- rally 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 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 underlying 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 account for new information or future events or anything else.
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