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Commitment to biodiversity conservation

Deutsche Telekom is deeply committed to biodiversity conservation, actively protecting natural resources and ecosystems throughout our value chain. We conduct biodiversity assessments to mitigate negative effects on species and habitats, ensuring sustainable procurement, promoting reforestation, and enhancing resource efficiency.

In 2022, we conducted a double materiality analysis, updated in 2023, to identify the negative and positive impacts of our activities across the value chain on the environment, society, and human rights. This analysis, aligned with the Corporate Sustainability Reporting Directive (CSRD), assessed 34 issues, including biodiversity. While biodiversity was not identified as a material issue in our direct operations, Deutsche Telekom's commitment to sustainability leads us to take responsibility for biodiversity throughout our entire value chain.

Integrating biodiversity in the company-wide risk management process

Integrating biodiversity risk assessments into our comprehensive, multi-disciplinary company-wide risk management processes is essential. This helps us fully understand and mitigate environmental impacts, a key aspect of our human rights' due diligence and risk assessment, including under the German Supply Chain Act (Lieferkettensorgfaltspflichtengesetz, LkSG). During these assessments, we evaluate the environmental practices of suppliers, focusing on habitat destruction, pollution, and unsustainable resource extraction, as part of our commitment to address biodiversity risks.

Biodiversity risk assessment process with the ENCORE Tool builds on renown methodologies and frameworks

Biodiversity risk assessments are vital for understanding the environmental impact of business operations. One effective method is through the ENCORE Tool (Exploring Natural Capital Opportunities, Risks, and Exposure), which helps identify and manage risks related to biodiversity. In 2023 Deutsche Telekom completed a biodiversity risk assessment with the ENCORE-Tool which employs various methodologies and frameworks to ensure a comprehensive assessment (such as ESRS - European Sustainability Reporting Standards E4, TNFD - Taskforce on Nature-related Financial Disclosures, SBTN - Science-based targets for nature, the EU-Taxonomy, CDP – Carbon Disclosure Project, GRI - Global Reporting Initiative, SASB - Sustainability Accounting Standards Board and the United Nations Sustainable Development Goals).

Scope of our biodiversity risk assessment

The scope of the analysis conducted by Deutsche Telekom included the entire value chain, encompassing upstream activities, own operations, and downstream activities. The analysis focused on the identification of impact-related biodiversity risks, such as the use of terrestrial ecosystems, across all stages of the value-chain. Additionally, it considered dependency-related biodiversity risks like flood and storm protection by asking: "Which dependencies are crucial for Deutsche Telekom in the individual products/services?". The analysis of these factors helped us identify both dependency-related and impact-related risks.

Dependency-related and impact-related biodiversity risks identified along the value chain

Through cumulative scoring, Deutsche Telekom identified hot spots along the value chain where biodiversity impacts are most significant.

Source: Deutsche Telekom

The analysis showed that four stages of its value-chain are potentially relevant from a biodiversity perspective whilst five impact drivers were identified as relevant (non-GHG pollutants, solid waste, GHG emissions, disturbances and terrestrial ecosystem use). A further analysis of the impact drivers of our activities will focus primarily on the value-chain stages with a high-risk score, i.e. raw material extraction, production, installation and disposal/ recycling. This process will allow us to prioritize areas for intervention and mitigation, ensuring targeted and effective biodiversity conservation efforts.

In terms of dependencies, the same dependencies were identified for all stages of the value chain, with climate regulation and flood and storm protection being said to have the greatest dependency. These dependencies prevent the destruction of relevant infrastructure, production sites and our locations.

Source: Deutsche Telekom

Internal assessment with GSMA

To deepen its assessment on biodiversity, Deutsche Telekom entered a biodiversity project group that is currently researching on the impact of the mobile sector on nature (incl. biodiversity). The project is in its second phase in collaboration with GSMA, Quantis and 40 other mobile operators to develop a sector guidance on nature for the mobile sector, with an expanded scope on the operators and a geographic focus. The project group utilizes a comprehensive set of methodologies and frameworks to conduct its analysis. These include CSRD, SBTi - Science-based target Initiative, TNFD, SBTN, and CDP.

The first phase of the analysis was structured around 5 steps:

1. Identify and scope– in this phase methodologies, tools and databases for assessing material biodiversity risk and opportunities where reviewed.
2. Investigate and align– this phase aimed at understanding the scope of operations, terms used, data availability & constraints.
3. Assess and map– in this phase a high-level qualitative materiality assessment was conducted, identifying the most material dependencies and impacts on biodiversity across the GSMA member value chain.
4. Interpret and prioritise– the aim in this phase was to prioritise activities likely to have the most significant impact on biodiversity, covering both the direct impact as well as indirect impacts across the value chain. For each main driver of nature loss, the group identified the priority commodities, sourcing locations and operational sites, based on their contribution to nature loss and GSMA & the mobile network operators' sphere of influence.
5. Plan and prepare– in this phase next steps for GSMA and the mobile network operators on biodiversity assessment and compliance/alignment with reporting were recommended

Identification of the Greatest Impacts on Nature

In the own operations of mobile operators, the greatest impacts on nature have been identified on the resource exploitation and on climate change through energy use as emissions from energy use contribute to climate change, which in turn affects biodiversity through altered ecosystems and habitats.

Source: Quantis, Sponsor: GSMA

Many activities in the upstream value chain, such as material sourcing and manufacturing processes, have substantial impacts on biodiversity. These activities influence at least five of the six natural indicators, including water quality, habitat integrity, and species diversity.

Source: Quantis, Sponsor: GSMA

Identification of "Key Activities" for Evaluation

Several activities have been identified for further evaluation due to their potential impacts on nature, both in own operations (e.g. infrastructure expansion, data centers and the maintenance of access roads) and in the upstream value chain (especially mining and the production and construction of infrastructures).

Recommendations

To effectively guide the further development of the biodiversity strategy for mobile operators, the biodiversity project group has outlined several key recommendations which are designed to not only mitigate the adverse impacts of mobile operators on nature but also to drive substantial improvements in sustainability and biodiversity conservation. These recommendations include strengthened cooperation with suppliers through e.g. traceability initiatives and eco-design considerations and the improvement of data centers through the switch to renewable energies or innovative cooling systems.

For the mobile operators to genuinely work towards no net loss of biodiversity, the project group recommends setting clear, quantifiable biodiversity-related targets for priority areas. These targets should be aligned with global biodiversity goals and tailored to the specific impacts of the mobile industry.

The implementation of these recommendations and the definition of clear biodiversity-related targets will serve as a robust foundation for the continued development and refinement of the biodiversity strategy of Deutsche Telekom, ensuring that we contribute positively to the preservation and enhancement of global biodiversity.

The development of future-proof skills for our employees and the strengthening of an increasingly digital learning culture are top priorities for us. In the reporting year, employees in Germany and the European subsidiaries invested an average of 4.6 working days per employee in their continuing education. In 2023, we advanced our "welearn" (formerly known as “youlearn”) learning culture initiative, which had been established since 2019, aligning it more closely with the Group's strategic objectives. With the theme "Time to Focus on Tech & Digital Skills," welearn specifically targeted the acquisition of technical and digital proficiencies, yielding significant results: 52% of the 3.8 million learning hours invested by employees in Germany and European national companies were dedicated to technical and digital skill development.
Deutsche Telekom has solidified its digital learning framework, boasting a robust digital learning utilization rate of approximately 73%. Leveraging the intelligent "Percipio" learning platform, often likened to the "Netflix of learning," and integrating providers like "Coursera" with content from esteemed universities, over 164,000 employees access a diverse array of digital and contemporary learning resources.
Additionally, the employee-driven "Learning from Experts" (LEX) initiative, launched in 2018, has emerged as the company's largest peer-to-peer learning community, fostering informal learning channels. In 2023, more than 5,650 online sessions were conducted, facilitating the exchange of expertise among colleagues.

Since 2017, we have been using the 80/20 model to give our employees the opportunity to spend up to 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. The model makes employees more visible and motivated, and enhances their network of contacts. Use of the model is voluntary and is tied to a specific Group project.

We keep our goal of reducing our carbon footprint in mind when planning and operating our data centers. To achieve this goal, we take a two-step approach. It starts with optimizing energy consumption at each data center site and then continues with improving processes throughout the global data center landscape.

Our aim is to increase the share of renewable energy on a yearly basis. Therefore our reported target is to increase our share in comparison to the previous year.

After three very successful runs, the kick-off event of our next “Child and Career” mentoring program took place in October 2019. For a period of 21 months, this program provides for potential junior staff in expert and managerial functions from various business units of the Group in Germany to be mentored by an experienced manager. The mentees who will soon start parental leave, are in parental leave or are planning their re-entrance in the job gain new professional and methodical competences “in the tandem” and benefit from shared experiences with others in the program network. In the fourth “Child and Career” session, 26 tandem teams went to the start. The program is supplemented by web-based tutorials on focus topics and self-organized network meetings. In addition, supplementary coaching services such as parental coaching and professional support coaching will be provided, as required. This was very well appreciated by the last run. More than 80 percent of participating junior employees and almost 70 percent of the managers are female.

The next mentoring program will start in the 2nd half of 2022.

Our Start up! Trainee Program primarily targets graduates with an interest in Technology and IT who are willing to leverage their talent as innovator, technophile or revolutionary every single day. With the aim to reach talented candidates outside of Germany, the application process has been held in English since 2017. As a result, we have been able to maintain the share of international participants in 2022: 27 percent of trainees come from different countries around the globe. In the reporting period, a total of 38 BA/MA graduates embarked on the trainee program, 53 percent of whom were women.
During a period lasting around 18 months, trainees familiarize themselves with different areas of the company in Germany and abroad. They take on challenging project assignments in various business areas. The trainees are supported by experienced managers. The program is supplemented by innovative learning elements and events. In addition, our Start up! Trainees also pursue their own initiatives including social & sustainability projects within the context of the Magenta Friday (project day).

We want to make sure that used routers and media receivers don’t just end up in the trash. That is why we promote the “Don’t buy, rent” approach. Our rental services conserve resources and reduce electronic waste, thus cutting CO2 emissions. When a contract is canceled, the customer returns the devices, which are then either refurbished and rented out again or professionally recycled. We have simplified the return process by introducing a returns portal. We advertise our rental service actively and successfully. The offer has been well received by our customers
the number of people using the rental service increased to just over 11,65 million by the end of 2022.

We work with BAGSO (the German National Association of Senior Citizens’ Organizations) to promote media literacy among seniors. As a partner, we sponsor the Goldener Internetpreis (Golden Internet Award). The award recognizes people over the age of 60 who use the internet skillfully and help others to get started in the online world. The next award ceremony is planned for November 2019.
In 2018, we once again took part in Deutscher Seniorentag (Germany’s Day for Seniors), showcasing products and services aimed at people aged 65 years and over. These included mobile telecommunications, fixed-line and MagentaEINS offerings, apps for seniors, and security products by Magenta SmartHome. Visitors to our booth had the chance to use a variety of services. For example, we had two technicians available to set up mobile devices and answer technical questions. As an advisory board member, we are also involved in Digital-Kompass (Digital Compass), a joint project by BAGSO and DsiN. Digital-Kompass uses materials and regular meetings on digital issues to support internet guides who help seniors get online and explore the internet. A total of 75 Digital-Kompass locations are also being set up across Germany.

The Deutschland sicher im Netz e.V. (DsiN – Making Germany Safe on the Net) association has served as a central point of contact for consumers and small businesses interested in the topics of IT security and data privacy for twelve years now. As a member of the association, we are committed to working with other companies and organizations on projects such as the “IT-Sicherheit@Mittelstand” (IT security for SMEs) series of workshops, the “Digitale Sicherheit” (Digital Safety) campaign network, and “Digital-Kompass” (Digital Compass). We are also contributing to the “Sicherheitsbarometer” app (Safety Barometer – SiBa app) for digital self-protection.
Furthermore, we are supporting the project “Digitale Nachbarschaft” (DsiN, Digital Neighborhood). This trains people as volunteer IT ambassadors who will pass on their knowledge and expertise to neighbors and colleagues.
As a member of the “Security, protection, and trust for society and business” platform, which is part of Germany’s national Digital Summit, we worked with the DsiN to develop a new educational tool for artificial intelligence. KInsights! is an interactive showroom that offers an insight into the latest AI technologies. The tool was unveiled to the public by Prof. Günter Krings, Parliamentary State Secretary at the Federal Ministry of the Interior, Building, and Community, at the Digital Summit on December 4, 2018.

For the third year in a row, the Corona crisis has had a massive impact on the world of work. In addition, society faces other challenges: the outbreak of the Ukraine war in February 2022 has made the world more uncertain, and the energy crisis, supply shortages and inflation are felt by everyone in their daily lives. These changes affect all areas of life and move people to want to make the world a better place. Candidates not only want a secure job, but also a sense of purpose in their work, self-fulfillment, continuous development and a contribution to society and the environment.

That is why we have redefined our employer brand in order to attract talented people to Telekom in the face of the known shortage of skilled workers and to convince them to follow their future path with us. For us, there is no specific destination at the end of the journey, but it is a journey that enables talents to realize their ambitions and grow together with us. With a global network of experts, our employees are part of the ever-evolving digital transformation, driving sustainable change and their skills. We call it Growthtopia. The times we live in demand that we express our shared values and that we stand together in the struggle for fairness and equal treatment. With target group-specific messages, authentic communication and the hashtag #QuestionTodayCreateTomorrow, we show what change means to us and what opportunities talents can discover at Deutsche Telekom.

Machines and products are constantly becoming smarter. The technologies that make these developments possible are bundled under the term Internet of Things, or IoT.
IoT can help ideally coordinate the processes of various devices, vehicles, and entire industrial facilities. This increases industrial productivity and ensures efficient logistics, thus helping reduce energy consumption and conserve resources.
We also support the German federal government’s Industry 4.0 initiative through our involvement in IoT. The initiative’s objective is to maintain Germany’s competitive edge in the technology sector.

T-Systems has been developing and operating Daimler’s Connected Car platform (Daimler vehicle backend) worldwide since 2013. The platform is the technical basis for the Live Traffic service, which provides drivers with real-time traffic information, Live Traffic prevents about 30 percent of traffic jams per vehicle. This means the approximately 24 million vehicles equipped with Live Traffic consumed about 26 million liters less fuel. This translates into CO2 savings of around 65,000 metric tons.

FENIX = Federated European Network of Information eXchange in LogistiX

Development of a European federated architecture for data sharing serving the European logistics community

- More transparency through real-time information

- Standardized interfaces for ETA, etc.

- Innovative software modules (SDK) from the cloud

- Intermodal transport solutions within EU guidelines

Development, testing and validating practice-relevant services, e.g.:

- Container arrival times (ETA)

- Digitization of customs systems

- CO2 monitoring

Project goals:

- Overcome the fragmented goods transportation causing economic bottlenecks in the EU member states

- Harmonize and optimize cross-border logistics along selected European transport corridors

- Establish ICT standards for seamless communication of cargo flow addressing all modes of transport

Benefit:

Partners with profound market knowledge develop an architecture for a collaborative IT environment bringing together logistics information systems on an operational level

LCMM (Low Carbon Mobility Management) is a complete system developed for managing logistics fleets. DHL and DB Schenker,
for example, use the patented system in China and Europe and have reduced harmful emissions by an average of 20 percent (saving of 468 kg CO2 per HGV within one month). Fuel costs also went down by as much as 15 percent. This solution starts by analyzing
individual driver behavior. The app helps drivers to develop a more environmentally focused driving style. A cloud backend with corresponding dashboards helps fleet operators to manage their vehicle fleets as efficiently as possible (including up-to-date positioning of each vehicle).

In 11/2020, LCMM has been awarded with the "#GreenMagenta" label of Deutsche Telekom.

Project goal:

SHOW aims to support the deployment of shared, connected     and electrified automation in urban transport, to advance sustainable urban mobility.

- Demonstrations in 20 cities across Europe

- Integration of automated fleets in Public Transport

- Including 69 partners from 13 EU-countries

- International cooperation with organizations from the US, South Korea, Australia and China

Benefits:

- Reduction of 20% energy consumption and 10% emissions

 - Reduction of overall number of private vehicles through intelligent combination of smart Public Transport solutions

 - Improved traffic flow

- Establish new business models and improve virtual validation

Sustainability Challenges we are facing is that although the state-of-the-art SIM card is the eSim, we still sell 9 million SIM cards per year.

Our solution, from 2022, the environmental footprint of physical SIM cards will be further reduced by using recycled material instead of virgin plastic.

The offer pays off on the following SDGs:

·       SDG 12 - Using recycled material instead of virgin plastic

With an annual sales volume of 9 million SIM cards, we save 81 tCO2e annually with the EcoSIM.

We have labeled this solution #GreenMagenta.