Corporate responsibility report 2014 Deutsche Telekom - Corporate Responsibility Report 2014 2 CONTENTS 5 ABOUT THIS REPORT 7 STATEMENT BY THE CHAIRMAN OF THE BOARD OF MANAGEMENT 8 GROUP PROFILE 10 AWARDS 13 INDEPENDENT ASSURANCE REPORT 15 THE SUSTAINABILITY CODE 16 UsER HELP 18 STRATEGY & MANAGEMENT 19 VISION 21 VALUES AND GUIDING PRINCIPLES 23 CR STRATEGY 24 CR ACTION AREAS 25 ESG KEY PERFORMANCE INDICATORS 27 INTERNATIONALIZATION 28 CR GOVERNANCE 30 FINANCE 32 CR PROGRAM 38 STAKEHOLDER INVOLVEMENT 40 Stakeholder expectations 42 Results of the materiality process 45 Formats of involvement 47 Political advocacy 49 COMPLIANCE 51 HUMAN RIGHTS 53 RISK AND OPPORTUNITY MANAGEMENT 54 DATA PRIVACY 55 NETWORKS 56 NETWORK AND INFRASTRUCTURE EXPANSION 59 CYBER SECURITY 60 MOBILE COMMUNICATIONS AND HEALTH Deutsche Telekom - Corporate Responsibility Report 2014 3 62 CUSTOMERS 63 SUSTAINABLE PRODUCTS 64 Innovation in growth areas 67 Sustainable ICT solutions 70 CONSUMER AND YOUTH PROTECTION 73 CUSTOMER SATISFACTION 74 PROMOTING START-UPS 75 SOCIETY 76 CONNECTING THE UNCONNECTED 77 Competent in the digital world 80 Connected in the digital world 81 Ready for the future 83 ENGAGEMENT@TELEKOM 85 CULTURAL AND SPORTS SPONSORSHIP 87 EMPLOYEES 88 PIONEERING CONCEPTS FOR THE WORKPLACE 90 RESPONSIBLE EMPLOYER 92 HEALTH AND SAFETY 94 EDUCATION AND DEVELOPMENT 97 DIVERSITY AND EQUAL OPPORTUNITIES 100 EMPLOYEE SATISFACTION AND PARTICIPATION 101 SUPPLIERS 102 SUSTAINABLE PROCUREMENT STRATEGY 104 SUPPLY CHAIN MANAGEMENT 106 2014 AUDIT RESULTS 108 RESOURCE SCARCITY AND RAW MATERIALS SOURCING 109 CLIMATE AND ENVIRONMENT 110 CLIMATE PROTECTION STRATEGY 113 CLIMATE PROTECTION MEASURES 114 Energy efficiency in the network 117 Energy-efficient buildings 118 Climate-friendly mobility 120 RESOURCE EFFICIENCY AND ENVIRONMENTAL PROTECTION Deutsche Telekom - Corporate Responsibility Report 2014 4 122 FacTS & FIGURES 123 ECONOMIC PERFORMANCE INDICATORS 123 Socially responsible investment 125 Suppliers 127 Financial performance indicators 131 ENVIRONMENTAL PERFORMANCE INDICATORS 131 Energy 134 CO2 emissions 137 Mobility 141 Used cell-phone collection and waste volume 145 Other environmental data 147 sOCIAL & HR PERFORMANCE INDICATORS 147 Social involvement 149 Employee satisfaction 152 Diversity and company pension scheme 157 Training and development 160 Employee health 162 Headcount 167 Ideas management 168 IMPRINT 169 DISCLAIMER Deutsche Telekom - Corporate Responsibility Report 2014 ABOUT THIS REPORT 5 about this report Telekom has been providing extensive information to the general public ONLINE REPORTING SINCE 2010 about its objectives, its activities and the progress made in the relevant We have been publishing our CR Report exclusively online since the economic, ecological and social areas as part of corporate responsibil- 2010/2011 reporting year to meet the increasing requirements and ity (CR) reporting since 1996. changing user preferences of our stakeholders. The online 2014 CR Report has been available since April 30, 2015 in German and English. The title "We take responsibility" is used for the seventh consecutive Interest in our CR report is high. This can be seen in many ways includ- time since it is an expression of Telekom’s long-term commitment to CR. ing the fact that more than 2,700 people accessed our report even in It is our intention to become a leader in our industry as a responsible March 2015, one month after the reporting period had ended. company. In this undertaking, the CR report is a central communication tool that informs our internal as well as external stakeholders of the pro- The homepage gives readers a convenient introduction to this extensive gress we have made on this path between March 2014 and February report by highlighting three global topics that our stakeholders feel 2015, and of the goals we are setting for the future. are very relevant: protecting customer data, environmental and social standards in the supply chain and enabling people to get involved in the ADDITIONAL SOURCES FOR CR-RELEVANT CONTENT information and knowledge society. We engage in open dialog on each In addition to the online 2014 CR Report, we also provide information of these topics and provide examples of how Deutsche Telekom is on our involvement in the community and in society in our Annual addressing these social challenges. Report, and in our Data Privacy and Data Security Report. We report on Deutsche Telekom’s current CR activities on the Group’s website under The start of every detailed page features a short introductory paragraph the heading "Responsibility". The national companies provide informa- explaining why that particular topic is important to sustainable develop- tion about their CR commitment on their Internet portals and in their ment and the ongoing business success of Deutsche Telekom. A down- own publications. load area, search and dialog functions and performance indicators displayed with interactive features make it even easier for readers to In order to reduce the complexity of our report, we have often provided navigate the report. What’s more, the info cart lets readers select differ- links to other internal and external websites. Readers will find informa- ent content and create a customized PDF file. tion provided by our national companies on their profile pages in the 2014 CR Report. Most sections include a section on Deutsche Telekom’s management approach. Here we explain how Telekom approaches key sustainability REPORTING PERIOD, SCOPE OF APPLICATION AND TARGET topics, contributes to positive development in these areas and works GROUPS to prevent or reduce negative impacts. The introduction also contains The 2014 CR Report is a Group report that includes many national consolidated information on topics such as our strategic approach and companies in which Telekom holds a majority stake. This report ties goals, management tools, policies and guidelines, internal and external in with the 2013 CR Report. The reporting period for the various topics standards and the latest organizational developments. spans from March 01, 2014 to February 28, 2015. All quantitative data and indicators refer to the 2014 calendar year. Any deviations are This year’s report focuses on content relevant to the reporting period. marked accordingly. This CR report is addressed to our stakeholders. The "CR facts" and "Socially responsible investment (SRI) facts" sections These include analysts and investors, CR ranking and rating agencies highlight further details. They provide background information on and NGOs as well as all other groups interested in our corporate activi- a variety of topics that can be accessed directly from the text via links. ties such as customers, employees and representatives from the worlds Readers can also access the "CR facts" section by clicking in the margin of science, research, education and politics. column. LOOKING BACK: CR REPORTING AT DEUTSCHE TELEKOM Together with this online report we are also publishing an e-paper with a Deutsche Telekom has been reporting on its sustainability activities summary of selected developments in the reporting period. It is entitled in various publications since 1996. From 2003 through 2006 we pub- "Corporate Responsibility 2014 – Overview. We take responsibility" lished a combined annual HR and Sustainability Report. An interim report issued in 2007 formed the transition to our current CR reporting. In addition to publishing the online CR Report, we have been using Since 2008 the Telekom Group has been publishing a comprehensive the We Care app magazine, which is published regularly, since 2014 CR Report each year. to reach a wide target group, sparking their interest in corporate respon- sibility and inspiring them to get involved. Deutsche Telekom - Corporate Responsibility Report 2014 ABOUT THIS REPORT 6 SELECTION OF THE MAIN TOPICS FOR THE 2014 CR REPORT IMPLEMENTATION OF INTERNATIONAL REPORTING STANDARDS We conducted a multiple-phase materiality process to help us select Deutsche Telekom’s 2014 CR Report complies with the guidelines our reporting topics. The process is a regular component of our annual (G4 core) of the Global Reporting Initiative (GRI). CR reporting activities that helps us identify the topics with maximum relevance for us and our external stakeholders. This 2014 CR Report also serves as a Communication on Progress (COP) from Deutsche Telekom as part of the United Nations Global STRUCTURE OF THE CURRENT REPORT Compact. The Global Compact communication on progress provides an overview of specific measures that we have taken to comply with The online 2014 CR Report has been designed as a progress report the Global Compact principles. Deutsche Telekom also publishes an that focuses on the key developments of the reporting period. The extensive annual compliance statement regarding the German Sustain- reader can access the six main sections of the report by using the ability Code. navigation bar: Networks Customers Society Employees Suppliers Climate and environment These are complemented by three additional sections: The Strategy and management section describes the management of CR processes and the Group-wide integration of Deutsche Telekom’s CR strategy. The majority of our national companies whose CR activities are described in this report have their own profile page. The profile pages can be found under the National companies menu option. In the Performance indicators section, consolidated and com- mented performance indicators provide information