CR strategy

Sustainability and social responsibility have been firm components of our corporate activities for more than two decades. We see ourselves as a responsible company and have enshrined this in our Group strategy. As such, we are committed to implementing sustainability along our value chain – and to playing an important role in meeting today’s environmental, economic, and social challenges.

Group strategy: Leading Digital Telco

You can find additional information on our Group strategy in the 2022 annual report.

CR Strategy

Our CR (Corporate Responsibility) strategy is derived from the Group strategy.

In the year under review, we continued to hone our CR strategy and identified four key areas where we want to lead through exemplary actions: 

  1. Our strict commitment to climate-neutral business practices: We want to play a pioneering role on the way to a climate-neutral future and enable our customers and society as a whole to complete this journey together with us by 2040.
  2. Our determined efforts to ensure our products and services are compatible with the circular economy: We want to make all of our technologies and devices compatible with a circular economy across the entire value chain by 2030.
  3. Our pursuit of diversity, equity, and inclusion, as well as our investment into future skills: We want to provide a safe, supportive environment where we promote equity among people with different backgrounds.
  4. Our determination to help shape a digital society that is based on our fundamental democratic values and in which all people can participate safely, competently, and with autonomy: We want to make the digital world a tolerant, safe space for everyone and enable society to bridge the digital divide.

Maintaining

  • data protection and security,
  • cultivating a powerful corporate compliance and risk management system,
  • engaging with the fundamental principles of digital responsibility,
  • upholding human rights, shaping sustainable supply chains,
  • investing capital based on ecological and social criteria, and ensuring communication about our environmental and social sustainability activities is transparent also remain additional meaningful aspects of good governance for us.

Melanie Kubin

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Melanie Kubin-Hardewig

Reporting against standards

 

Global Compact

  • Principle 7 (Support a precautionary approach to environmental challenges)
  • Principle 8 (Undertake initiatives to promote greater environmental responsibility)
  • Principle 9 (Encourage the development and diffusion of environmentally friendly technologies)
  • Principle 10 (Work against corruption in all its forms of, including extortion and bribery)

Sustainability targets in remuneration

 
 

Our investments in the network build-out make us one of the biggest investors in the industry. In 2022, we invested around EUR 21 billion Group-wide, primarily in building and operating networks to meet the growing demand for faster, full-coverage data services. However, the network build-out cannot be allowed to lead to an increase in CO2 emissions and thus accelerate climate change. For this reason, we use energy from renewable sources to decouple CO2 emissions from energy consumption. In Europe, we have set ourselves the goal of doubling the energy efficiency of our networks by 2024. Above and beyond this, we want to further increase energy efficiency – for instance at our data centers – and thus reduce energy consumption in the medium term despite the expected rise in data consumption (2024 against 2020, excluding T‑Mobile US). The two non-financial performance indicators “energy consumption” and “CO2 emissions” (Scope 1 and 2) were incorporated into the variable component of our Board of Management’s remuneration in 2021, and in 2022 were also made relevant for our
executives (excluding T‑Mobile US).

In the United States, we are forging ahead with the highly intensive build-out of our 5G network, in particular in rural areas. This initially drives up power consumption. T‑Mobile US, like the Group as a whole, has covered 100 percent of its electricity requirements from renewable energy sources since 2021. There are strong fluctuations in T‑Mobile US’ carbon footprint owing to unforeseeable natural disasters and the associated temporary use of equipment such as diesel generators to restore and back up damaged network infrastructure. Consideration must be given to the special national situation in this key market, which is why the decision was taken, in respect of short-term variable remuneration in 2023, not to include T‑Mobile US in these two non-financial performance indicators. This step ensures that the right incentives are set for the Board of Management toward the sustainable development of the business, while safeguarding the stability of network operations at the same time. This applies equally to Board of Management managers and executives. The annual ambition for the performance indicators “energy consumption” and “CO2 emissions” will continue to be set, managed, and reported for the entire Group as before, including a target value for T‑Mobile US. In the reporting year, Group-wide energy consumption remained stable year-on-year at 13 253 GWh (prior year: 13 323 GWh). Due in particular to the Group-wide use of electricity from renewable energy sources, CO2 emissions (Scope 1 and 2) are at a low level and dropped further as a result of our measures to 233 kt CO2e (prior year: 247 kt CO2e). The values given for total energy consumption and Scope 1 and Scope 2 emissions img are based in part on estimates, assumptions, and extrapolations, and, in part, on data provided by our external energy service providers.

Moreover, achievement of these ESG img KPIs has been embedded in the remuneration system for executives in Germany and Europe as well as for employees not covered by collective agreements in Germany since 2022.

Reporting against standards

 

Global Reporting Initiative (GRI)

  • GRI 2-19 (General Disclosures)

Corporate Digital Responsibility

Day in and day out, we see our world changing, at ever-faster rates. Computers and AI (artificial intelligence) now play indispensable roles in our daily lives. Most of the time, they help us without our even noticing their operation. All of this is the beginning of a development that we can no longer stop – and that we don't want to stop. All enthusiasm notwithstanding, however, we shouldn't head into the digital future blindly. As we move forward, we should seek to define a clear direction and a binding framework for that future. We at Deutsche Telekom are working to bring about digitalization oriented to people and values. “Corporate digital responsibility” (CDR) refers to efforts to manage the opportunities and risks of the digital transformation responsibly. The goals of our CDR activities are twofold: to prevent negative impacts, and to help shape the digitalization process in a positive way. 

For example, we take great care to ensure that all processing of our customers’ personal data is carried out transparently and responsibly, in ways that also safeguard individual customers’ privacy and security. Further information about this area is available in our publications on data privacy, in our status report on data privacy, and in our transparency report. Also, in our Digital Ethics Guidelines on AI, we describe our responsible use of AI in connection with our products and services.

Digital participation is a core aspect of our commitment. We are working to ensure that all people have equal opportunity to be a part of the digital society. Our focuses in this regard include the technical aspects of broadband access, rates and devices that are affordable for all budgets, and users’ ability and desire to use digital media competently. For example, we carry out a variety of projects and implement measures to promote media literacy and democracy skills among the population.

Upholding of human rights is a key element of responsible digitalization. The obligation to respect human rights is enshrined in our basic rules and guidelines. This obligation applies not only to our company, but also to our business partners – and to our approximately 25 000 suppliers in over 80 countries. We expressly require our suppliers to join us in our responsibility, with a view to ensuring that human rights are also respected within the sphere of influence that we have outside of our Group.

Digital responsibility img is also highly important with regard to environmental and climate-protection issues. By developing products that are innovative and sustainable, we help our customers reduce their own carbon footprints – and thereby contribute to climate protection. In addition, to help our customers find sustainable solutions, we highlight products and services that are environmentally and climate friendly. We do this with our #GreenMagenta Label (for products and services) and our Eco Rating scheme (for mobile devices). Our “Smart Innovations” also contribute to society’s efforts to improve its ecological balance.

Our networks are the foundation of our services. To ensure that the network’s energy requirements do not contribute to global warming, we draw 100 percent of the energy for our network infrastructure from renewable energy sources, and we are constantly working to improve our energy efficiency. This is just part of our pursuit of ambitious climate goals and resource conservation measures.

Digitalization is opening up new ways and possibilities for working. We are helping to shape the digital transformation in the workplace, in a responsible manner, and we are continuing to support our employees in addressing the challenges the transformation has brought. Our efforts to reinforce our employees’ digital competencies include our “youlearn” training initiative. In addition, in close consultation with our Group Works Council, we have adopted a “Manifesto on Agile img Working,” a set of guidelines for the digital workplace.

Our commitment to digital responsibility
The technological development needs to be more value-oriented. We see ourselves as having a responsibility to implement ethics within technologies and to make technologies accessible to everyone. During the year under review, we published our Corporate Digital Responsibility@Deutsche Telekom framework, which summarizes our views of digital responsibility. People are our top priority in this framework. The centerpiece of the framework is our House of Digital Responsibility, which is all about people-centric technology.

The House of Digital Responsibility

Our CDR framework and our House of Digital Responsibility are both based on our guiding principles. The foundation of this basis is the commitment to act in accordance with laws and regulations, with human rights and with basic values such as cultural values. Conceptually, we place a number of key areas on this foundation – digital ethics, digital participation, the future of work, and climate protection and resources conservation. These key areas serve as orientational aids for our activities. The foundation and all of these areas, in turn, are housed under the umbrella of principles that constantly guide our efforts, namely data privacy and security, and transparency and dialog.

Outside of our own corporate sphere, our efforts and commitments in this area include active involvement in various alliances and partnerships, such as the German Association for the Digital Economy (BVDW), econsense, a network of internationally operating companies, and the Digital networking charter (Charta digitale Vernetzung). In addition, we are a member of the Corporate Digital Responsibility initiative of the German Federal Ministry of Justice. In 2021, we signed the Initiative’s CDR Codex, thereby committing ourselves to observe a set of concrete principles and to regularly publish a relevant progress report. The first report was published in July 2022.

Annette Reuter

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CR controlling – measuring and managing sustainability

Our CR controlling ensures that we can collect ESG img data and KPIs transparently, and in a timely manner, and report them in the “Management & Facts” section and the interactive KPI tool of this CR report.

 
 

As part of our CR controlling and reporting activities, we record ESG data and performance indicators. We use this dataprimarily to calculate our ESG KPIs, which we use to measure and manage our CR performance. The non-financial performance indicators “energy consumption”, “CO2 emissions” (Scope 1 and 2), and “energy intensity” are also elements of the Group’s higher-level controlling processes. Alongside the ESG KPIs, we also report other metrics with the aim of meeting all internal and external transparency requirements

In addition, we have developed an impact assessment method that allows us to measure and evaluate the environmental and social impact of selected products, solutions, and measures along the value chain. This helps us to keep our key sustainability activities results-oriented, to provide transparent reporting on them, and to make the contribution of our business activities, for example, to achieving the SDGs img, visible.

We have been integrating our ESG data process incrementally in our ICS (internal control system) since 2021. This was initially comprised of specific ICS principles aimed at achieving a high level of data quality, timeliness, and transparency. They cover decentralized, system-based ESG data processes that are aggregated at the Group level. During the year under review, we have supplemented the ICS principles with more demanding transaction-level controls for the remuneration-relevant KPIs.

We are continuously improving our performance indicator system on the basis of internal and external requirements. We have added additional KPIs for the areas of resource conservation and circular economy since 2021, so we can coordinate and communicate our progress in this strategic area even more precisely. Trends in the ESG KPIs over the past four years can be seen here.

Silke Thomas

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Our management tools – the ESG key performance indicators

ESG img KPIs (key performance indicators) are used as management tools for our CR activities. Since they are highly relevant, we also publish them in the combined non-financial statement of our annual report.
Our national companies assist in the collection of Group-wide ESG KPIs by recording CR data themselves. These national companies represent 99 percent of the Group’s net revenue.

For the purpose of integrated financial and sustainability reporting, the KPIs map all six types of capital (see diagram).

img img

Silke Thomas

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Reporting against standards

     

Global Reporting Initiative (GRI) 

  • GRI 2-23 (General Disclosures)

Global Compact

  • Principle 7 (Support a precautionary approach to environmental challenges)
  • Principle 8 (Undertake initiatives to promote greater environmental responsibility)
  • Principle 9 (Encourage the development and diffusion of environmentally friendly technologies)
  • Principle 10 (Work against corruption in all its forms of, including extortion and bribery)

ESG KPIs: 4 year trend

Positive development Positive development
Insignificant development Insignificant development
Negative development Negative development

Development of our ESG KPIs without a specific goal Development of our ESG KPIs without a specific goal

Positive development Insignificant development Negative development Development of our ESG KPIs in relation to set targets

Governance/Economic

2019
2020
2021
2022

ESG KPI "ESG KPI Socially Responsible Investment (SRI)" (% T-Shares, held by SRI investors)
We refined the methodology in the reporting year and have switched to monitoring sustainably managed shares at fund level and no longer at an institutional level. For better comparability with other companies, the total number of shares given pertains to the number of Deutsche Telekom shares in free float.

21,0
22,0
22,0
31,3

ESG KPI "Procurement Volume Without CR Risk" (% of procurement volume from audited direct business partners)

n.a.
99,6
99,7
99,6

n.a.
62
60
64,1

ESG KPI "Sustainability Revenue Quota" (% of revenue with products and services that offer sustainability benefits)

43,0
44,0
42,0
42,0

Environmental

2019
2020
2021
2022

ESG KPI "Energy Intensity" (Energy consumption in MWh*1000 / total IP data volume in terabytes)

119 a)
119 a)
102 a)
91 a)

ESG KPI "Renewable Energy" (share of renewable energy in total electricity consumption)

64,1
58,3
100
100

ESG KPI "PUE" (Power Usage Effectiveness)

1,56
1,50
1,49
1,50

ESG KPI "Enablement Faktor" (The ratio of CO2 savings facilitated by the use of our products and services, to the CO2 emissions from our own business activities (Scope 1-3))

2,44 b)
7,05 b)
4,8 b)
3,76 b)

ESG KPI "CDP Supply Chain Program" (% of coverage of purchasing volume from suppliers from the Supply Chain Program)

63
70
72
52 c)

ESG KPI "Take Back Mobile Devices" (Share of mobile devices taken back in %)

3,6
4,6
3,9
2,3

ESG KPI "Take Back CPEs" (Share of CPEs taken back in %)

n.a.
n.a.
33,6
62 c)

ESG KPI "Ecologically sustainable products" (Share of sustainable products in percent)

n.a.
n.a.
8
6

ESG KPI "Sustainable product packaging" (Share of sustainable product packaging in percent)

n.a.
n.a.
13
46

ESG KPI "Ratio E-Waste Recycling" (Ratio of e-waste recycled (Thermal Recycling and other Recycling / Reuse / Refurbished) in percent)

n.a.
n.a.
n.a.
100

a) The value refers to DT Group Europe + T-Mobile US
b) The value refers to the DT Group in Germany
b) The value refers to the DT Group excluding T-Mobile US

Social

2019
2020
2021
2022

ESG KPI "Community Contribution" (Deutsche Telekom's financial, personnel and in-kind commitment measured in EUR million)

n.a.
n.a.
312
2346

ESG KPI "Beneficiaries - Focus Topics" (Number of people involved and reached who participate in Deutsche Telekom's social initiatives in millions.)

n.a.
n.a.
28
41

ESG KPI "Reach" (Number of people and media contacts reached in million)

n.a.
n.a.
968
2070

ESG KPI "Employee identification with CR commitment" (Employee identification with Deutsche Telekom's CR commitment in %, Basis: Survey 2021)

77
84

ESG KPI "Women in management positions" (Share of women in management positions)

26,0
27,1
27,3
28,1
interactive benchmarking tool

Through our interactive benchmarking tool important facts and figures of our national companies can be analysed and compared.

Business activities and organization

Our website presents a description of our business activities, and our 2022 annual report includes detailed information about the development of our business.

Our Group is devided into five operating segments plus the Group Headquarters & Group Services segment.

We are convinced that commercial, social, and ecological aspects can complement each other. We aim to make a positive contribution to sustainable development throughout our entire value chain.

Grafik: Simplified illustration of Deutsche Telekom’s supply chain

Reporting against standards

 

Global Reporting Initiative (GRI)

  • GRI 2-1 (General Disclosures)
  • GRI 2-6 (General Disclosures)
  • GRI 2-9 (General Disclosures)
  • GRI 2-13 (General Disclosures)

Current organizational structure

img img
Supervisory Board of Deutsche Telekom AG

Is regularly informed regarding the ESG strategy, its implementation and its key performance indicators

Group Board of Management

Approves Group-wide ESG regulations and strategies, and is regularly informed, by the business areas, regarding the status of such regulations and strategies, regarding progress in implementation of the overall ESG strategy, and regarding the status of individual goals and pertinent measures

Group Corporate Responsibility (GCR)

Central competence center for strategy, strategic policies and projects, specialist and procedural advising, external reporting, and stakeholder management

CR-Controlling & Deutsche Telekom Services Europe (DTSE)

CR Controlling is responsible for operational controlling with regard to quantitative targets and KPIs, throughout the various levels of the Group, and it integrates such controlling within existing processes. DTSE collects and consolidates ESG KPIs on a Group-wide basis, and it assures the quality and completeness of the pertinent data collected.

Segment leads / managers

Responsible for implementation of strategy, specifications, and goals within the relevant segments; report on such implementation to the Group Board of Management; and flesh out the CR strategy in keeping with business requirements

CR segment lead

The central contact person, with regard to CR issues, within the relevant segment. The CR segment lead adapts the company’s CR strategy to the segment’s requirements and coordinates CR-related activities within the segment.

CR-Controlling, segment

The area, within a segment, that is responsible for the timely provision of all of the segment’s CR-related data. This includes provision of CR data of subsidiaries. To that end, this CR Controlling area communicates regularly with the CR data controllers at the subsidiaries.

Managing boards of legal entities

Responsible for implementation of strategy, instructions, and targets within their own legal entities. In this connection, they report to their own segments and carry out CR governance in keeping with business requirements.

CR manager

The central contact person, with regard to CR issues, within the relevant legal entity. The CR manager adapts the company’s CR strategy to the legal entity’s requirements and coordinates CR-related activities within the legal entity.

CR Controlling, legal entity

Collects and consolidates the data required for the legal entity’s quantitative KPIs, and reports the data to the legal entity’s segment

Departments

Responsible for making sustainability an integral part of their own topic areas and tasks, and for reporting on sustainability in keeping with requirements pertaining to reporting, ratings. and rankings. Depending on the scope of their tasks, departments are free to define roles akin to those of a CR manager / CR controller.

CR Board

Group-wide body that advises on CR-strategy development, consults with regard to Group-wide positions, and coordinates implementation of the CR strategy in the Group units

CR Data Board

A body that manages data acquisition and reporting processes involving GCR, Controlling and contracted service providers – especially service providers contracted by DTSE

CR Manager Network

Group-wide platform for all staff responsible for CR in segments, legal entities, and functions, for the purposes of sharing know-how and experience and ensuring information is passed on quickly and directly

Working groups & ambassadors

Informal platforms for promoting and coordinating sustainability-related volunteering

The overall responsibility for Corporate Responsibility (CR) lies with our Board of Management; it deliberates and decides on important matters pertaining to CR. The Group Corporate Responsibility (GCR) department develops Group-wide policies and guidelines with the goal of steadily advancing the corporate culture with regard to sustainable innovation and social responsibility. As of January 1, 2022, GCR has been transferred from the Board of Management department for Human Resources and Legal Affairs into the area of the Chief Executive Officer. By taking this step, and including ESG img targets in Board of Management remuneration in 2021, the Supervisory Board and Board of Management highlighted the great importance that Corporate Responsibility has for our Group. In the year under review, the members of the Board of Management discussed sustainability topics and decided on the future development of individual topics in a variety of dialog formats. In addition to the Board of Management meetings, a separate meeting was held in this framework to discuss the topics in more detail. The Supervisory Board was also informed regularly about sustainability topics.

The managements of the different business units and national companies are responsible for implementing our CR strategy. To coordinate their tasks and learn from each other, CR managers and employees from CR relevant functions joined an international network under the leadership of GCR. During the year under review, this network included more than 200 employees from around 50 companies in 20 different countries. The participants have the opportunity to learn more about best practices and discuss new challenges. The agenda of the regular virtual meetings in 2022 included current developments in international climate protection and the impact of the German Supply Chain Due Diligence Act for the Group, among other topics.

Our CR Policy img provides the formal, mandatory framework for the sustainability management activities at all Group units. The CR Policy has also been successfully introduced in a majority of European national companies since 2017. We updated it in 2022. The revised version will be implemented throughout the Group in 2023. The CR managers in the individual segments and legal units are involved in the ratification of the CR Policy in the Group’s subsidiaries. If specific obstacles to implementation become apparent – due to local legal requirements, for example – a solution that satisfies the strategic key statements of the Policy is sought in a dialog with the responsible bodies. Should a solution not be found within the previously agreed time frame, the Deutsche Telekom Board of Management is to be consulted as the final escalation and decision-making body. The involved authorities are then called upon to state their arguments and the circumstances accordingly.

Melanie Kubin

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Melanie Kubin-Hardewig

 

Reporting against standards

     

Global Reporting Initiative (GRI) 

  • GRI 2-15 (General Disclosures)

Global Compact

  • Principle 7 (Support a precautionary approach to environmental challenges)
  • Principle 8 (Undertake initiatives to promote greater environmental responsibility)
  • Principle 9 (Encourage the development and diffusion of environmentally friendly technologies)

2022 CR program – targets, activities, and deadlines

In the CR program framework, we define targets and report on progress regarding their implementation. In the reporting year, we once again aligned the CR program in accordance with the four pillars of our Management & Facts section – Strategy, Economy, Environment, and Social.

Values and Guiding Principles

Corporate responsibility (CR) is based on shared values. Our fundamental values are defined in binding Guiding Principles. We have made these Principles part of the everyday work of our employees through a variety of measures, such as reviews, updates, and our annual “Living Culture Day”. And the measures have been successful. According to our pulse survey to determine employee satisfaction in November 2022, 80 percent of our employees agree that the Guiding Principles are actually being applied to our everyday work (previous year: 79 percent). The corresponding agreement figure among our executive staff was even higher, at 88 percent.

We want to ensure that everyone in our Group and with our partner companies knows how to act responsibly and respect human rights. Our Code of Conduct, our policy statement Code of Human Rights & Social Principles, and our Supplier Code of Conduct all serve to this end. The Codes also serve as the basis for our compliance management system, which guarantees that our business activities are in compliance with laws and regulations.

Reporting against standards

     

Global Reporting Initiative (GRI) 

  • GRI 2-23 (General Disclosures)

Global Compact

  • Principle 1 (Support and respect for internationally proclaimed human rights)
  • Principle 2 (No complicity in human rights abuses)
  • Principle 3 (Uphold freedom of association and the right to collective bargaining)
  • Principle 4 (Elimination of all forms of forced and compulsory labor)
  • Principle 5 (Abolition of child labor)
  • Principle 6 (Elimination of discrimination in respect of employment and occupation)
  • Principle 8 (Undertake initiatives to promote greater environmental responsibility)

Certified health, safety and environmental management: almost all workstations covered

Our integrated management system for Health, Safety and Environment (HSE img) contributes at Group level to making sustainability a component of all our business processes and of our employees’ everyday lives.

It helps us to systematically plan, implement, and improve our processes in the areas mentioned. This promotes the health of our employees and also has a positive effect on their performance. It also helps us to bid on new projects in which potential commercial customers require their suppliers to provide HSE certificates.

Our Group-level HSE management system is covered by an umbrella certificate based on the international standards ISO 45001(formerly OHSAS 18001 img) for occupational health and safety and ISO 14001 img for environmental management. For some units, it also covers international standard ISO 9001 img for quality management.

Some of the national companies are not covered by an umbrella certificate because they have their own certifications, some of which are even more comprehensive. This is the case in Greece, for example, where the OTE Group has its own integrated management system. In addition to the standards named above, it also covers the international standards ISO 50001 img for energy management and ISO 27001 for data security.

All of our employees in Germany have ISO 14001- and ISO 45001-certified workstations. As a result of organizational changes within the Group, changes were made to the umbrella certification method. Certificate coverage remains at the same level as in the previous year, however, with international coverage of 98 percent of employees.

Several companies ceased being subsidiaries of the Deutsche Telekom Group in 2022 and are therefore no longer part of Deutsche Telekom’s umbrella certification:

  • Magenta Telekom Infra GmbH, Austria
  • T-Mobile Netherlands
  • Limited Liability Company Deutsche Telekom GBS RUS, Russia
  • Limited Liability Company Deutsche Telekom IT RUS, Russia
  • Limited Liability Company T-Systems RUS, Russia
  • An office in Szeged, Hungary

Certifications at the following national and international companies were added in 2022:

  • Deutsche Telekom Service Europe Czech Republic s.r.o. (certification in accordance with ISO 9001). With this step, all three international business areas of DT Service Europe – Slovakia, Romania and Czech Republic – have been certified in accordance with the ISO 9001, ISO 14001, and ISO 45001 standards.
  • Deutsche Telekom Global Business Solutions China (Hong Kong) Limited (certified in accordance with ISO 14001 and ISO 45001)
  • Deutsche Telekom IoT GmbH (certification in accordance with ISO 14001 and ISO 45001)
  • Detecon International GmbH (certification in accordance with ISO 14001 and ISO 45001)
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