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Corporate Responsibility Report 2016 2 Corporate responsibility report 2016 2 CONTENTS 5 ABOUT THIS REPORT 7 AWARDS 11 THE GERMAN SUStaINABILITY CODE 12 INDEPENDENT ASSURANCE REPORT 14 STRATEGY & MANAGEMENT 15 StatEMENT BY THE CHAIRMAN OF THE BOARD OF MANagEMENT 16 VALUES AND GUIDING PRINCIPLES 18 CR STRatEGY 24 CR program 29 ESG key performance indicators 31 SUStaINABLE FINANCE 33 SUPPLY CHAIN AND MatERIALITY 36 StaKEHOLDER MANagEMENT 39 Stakeholder engagement 40 Representing political interests 42 COMPLIANCE 45 HUMAN RIGHTS 46 RISK AND OPPORTUNITY MANagEMENT 48 Data PRIvacY 50 CR-RatINGS 52 CUSTOMERS & PRODUCTS 53 SERVICE QUALITY 57 INFRASTRUCTURE EXPANSION 60 SUStaINABLE PRODUCTS & SERVICES 69 CONSUMER PROTECTION AND SECURITY 70 Consumer and youth protection 73 Cyber security 74 Mobile communications and health (EMF) Deutsche Telekom - Corporate Responsibility Report 2016 3 76 SOCIETY 77 A RELIABLE PARTNER IN THE DIGItaL WORLD 79 Raising awareness 80 Building skills 85 Encouraging implementation 88 ENgagEMENT@TELEKOM 91 CULTURAL & SPORTS SPONSORSHIP 94 EMPLOYEES 95 WORKING IN THE DIGItaL agE 97 RESPONSIBLE AND agILE EMPLOYER 102 OccUPatIONAL HEALTH AND SAFETY 105 TRAINING AND DEVELOPMENT 110 DIVERSITY AND EQUAL OPPORTUNITIES 112 SUPPLIERS 113 SUStaINABLE PROCUREMENT STRatEGY 115 SUPPLY CHAIN MANagEMENT 118 2016 audit results 120 RESOURCE ScaRCITY AND RAW MatERIALS SOURCING 121 CLIMATE & ENVIRONMENT 122 CLIMatE STRatEGY 124 CO2 emissions 129 Energy efficiency 133 Renewable energy 134 Sustainable products 135 CIRCULAR ECONOMY 137 OtHER ENVIRONMENtaL TOPICS Deutsche Telekom - Corporate Responsibility Report 2016 4 139 FacTS & FIGURES 140 EcONOMIC INDIcatORS 140 Socially responsible investment 143 Suppliers 145 Sustainable products 146 Data security and protection 147 Financial performance indicators 149 Financial personnel indicators 153 ENVIRONMENtaL INDIcatORS 153 Energy 160 CO2 emissions 166 Enablement Factor 168 Mobility 170 Used cell-phone collection and waste volume 172 Other environmental data 174 SOCIAL INDIcatORS 174 Social involvement 177 Employee satisfaction 179 Diversity 181 Human Rights 182 Demography and company pension scheme 185 Training and development 188 Employee health 189 Headcount and part-time work 192 Fluctuation 193 Staff reconstructing 196 Ideas management 198 IMPRINT 199 DISCLAIMER Deutsche Telekom - Corporate Responsibility Report 2016 ABOUT THIS REPORT 5 about this report "Act responsibly. Enable sustainability.“ is the title of our latest CR Sustainability relevance: This explains what makes the topic signifi- report. We chose this title to emphasize our commitment to sustainable cant to sustainable development and to Deutsche Telekom's long- activity along the entire value chain and to highlight the potential that term business success. our products and services hold when it comes to addressing environ- mental, economic and social challenges. Management approach: This section starts with an overview of the key goals, measures and monitoring activities summarized in a Deutsche Telekom has been involved in CR reporting for more than table. It then goes on to explain how Deutsche Telekom approaches 20 years. The CR report is a central communication tool for keeping our key sustainability topics, what its goals are and how it intends to internal and external stakeholders informed of the challenges we face achieve them. The management tools, policies and guidelines used and the progress we have made as a responsible company committed to this end are presented, internal and external standards listed and to sustainability. The latest report focuses on the key activities and the latest organizational developments explained. developments in 2016. Progress: Examples demonstrate how Deutsche Telekom has con- REPORTING PERIOD, SCOPE OF APPLICATION AND TARGET tributed to positive development in the the reporting period and GROUPS worked to prevent or reduce negative impacts. All quantative data and figures as well as all relevant results and activi- ties pertain to 2016. Any deviations are marked accordingly. The 2016 The report also includes information on CR facts as well as special CR Report is a Group report that includes many national companies in pages for investors and rating agencies. These provide background which Deutsche Telekom holds a majority stake. This report ties in with information on a variety of topics that can be accessed directly from the the 2015 CR Report. text via links. Readers can also access the "CR facts" section at any time by clicking in the footer. A download area, search and dialog functions The current report specifically addresses Deutsche Telekom's stake- and an interactive benchmarking tool make it even easier to navigate holders. These include analysts and investors, CR ranking and rating the report. What's more, the info cart lets readers select different agencies and NGOs as well as customers, employees, business part- content and create a customized PDF file. ners and representatives from the worlds of business, science, research, education and politics. This year we will again be publishing a CR brochure on selected areas in which we made progress during the reporting period. We have been LOOKING BACK ON DEUTSCHE TELEKOM’S CR REPORTING using the We Care app magazine to get a broad target group interested Deutsche Telekom has been reporting on its sustainability activities in corporate responsibility and motivate them to participate. in various publications since 1996. From 2003 through 2006 we pub- lished a combined annual HR and Sustainability Report. An interim SELECTION OF KEY TOPICS FOR THE 2016 CR REPORT report issued in 2007 formed the transition to our current CR reporting. We conducted an extensive materiality process to help us identify Since 2008 the Telekom Group has been publishing a comprehensive material issues to be addressed in the report. The process is a regular CR Report each year. component of our annual CR reporting activities that helps us identify the topics with maximum relevance for us and our stakeholders. OUR ONLINE REPORT: FOCAL POINTS AND CONTEXT We have been publishing our CR Report exclusively online since the STRUCTURE OF THE CUrrENT REPORT 2010/2011 reporting year to meet the requirements and user prefer- The online 2016 CR Report has been structured as a progress report. ences of our stakeholders. The online 2016 CR Report has been It focuses on the essential developments during the reporting period, available since April 20, 2017 in German and English. Interest in our CR which are discussed in five central reporting sections. report is high. This is reflected in the fact that more than 2,600 visitors were still accessing our 2015 CR Report in February 2017. Customers and products Society The initial pages of each section start with an introduction and an over- Employees view of relevant events and developments on that topic. The subsequent Suppliers pages are structured as follows: Climate and environment Deutsche Telekom - Corporate Responsibility Report 2016 ABOUT THIS REPORT 6 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 Indicators section, consolidated and commented indicators provide information about our progress in the past few years. ADDITIONAL SOURCES FOR CR-RELEVANT CONTENT In addition to the 2016 CR Report we also use our Annual Report and our Data Privacy and Data Security Report to provide information on our corporate responsibility. We also report on Deutsche Telekom's current CR activities on the Group's website under the heading Responsibility. The national companies provide information about their CR commit- ment on their Internet portals and in their own publications. We have added links to other internal and external websites in order to minimize the complexity of our report and give readers access to back- ground information and details. Readers will find information provided by our national companies on their profile pages in the 2016 CR Report, for example. ASSURANCE ENGAGEMENT Selected indicators in the 2016 CR Report from Germany as well as from our national companies T-HT Hrvatski Telekom (Croatia), Slovak Telekom (Slovakia), OTE and Cosmote (Greece) and T-Mobile US were the subject of an assurance engagement by auditing firm Pricewater- houseCoopers (PwC). Based on the guidelines of the internationally recognized GRI-G4 (core) standards published by the Global Reporting Initiative, all of the indica- tors marked in the GRI content index have been reviewed by an inde- pendent auditing firm. The independent assurance report can be found under the assurance report menu item. All reviewed content of this report is marked with the symbol „ " and will remain effective until the next CR report is published. IMPLEMENTATION OF HIGH INTERNATIONAL REPORTING STANDARDS Deutsche Telekom’s 2016 CR Report complies with the guidelines (G4 core) of the Global Reporting Initiative (GRI). It also serves as a Communication on Progress (CoP) from Deutsche Telekom as part of the United Nations Global Compact. The Global Compact CoP provides an overview of specific measures used to put the Global Compact principles into practice. Deutsche Telekom also prepares an extensive Declaration of Conformity on the
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