Deutsche Telekom AG · XETR:DTE
Deutsche Telekom — ESG Presentation (2022)
74 slides from Deutsche Telekom's sustainability presentation, 2022
Slide 1: Sustainability Day 2022
SUSTAINABILITY DAY 2022 Becoming the leading global —, aff digital and sustainable telco \y i gs bic y. ed: ne z Se ys ie Q R . dl
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, dep
Slide 3: What does our world look like today?
WHAT DOES OUR WORLD LOOK LIKE TODAY?
Slide 4: Sustainability is CEO matter
Slide 5: Together we walk the talk
Slide 6: ESG Framework
ESG FRAMEWORK ENVIRONMENT SOCIAL GOVERNANCE
Slide 7: ESG Framework with our key ambitions
ESG FRAMEWORK WITH OUR KEY AMBITIONS ENVIRONMENT SOCIAL BUILDING A CLIMATE STRIVING FOR BEING THE BEST TEAM SHAPING THE NEUTRAL FUTURE FULL CIRCULARITY IN THE INDUSTRY DIGITAL SOCIETY Leading the way with Becoming fully circular Becoming an employer of Overcoming the digital divide net-zero GHG emis
Slide 8: Our ESG commitments
OUR ESG COMMITMENTS AMBITION YEAR CLIMATE ▪ 100% renewable electricity for DT Group ▪ From 2021 onwards ▪ Double energy efficiency in DE&EU ▪ 2024 vs 2020 ▪ Net-zero for direct and indirect energy consumption ▪ 2025 vs 2017 (Scope 1 & 2) ▪ 25% emission reduction per customer ▪ 2030 vs 2017 for value
Slide 9: Our ESG commitments
OUR ESG COMMITMENTS AMBITION YEAR BEST (DIVERSE) ▪ 30% female executives ▪ In 2025 TEAM ▪ Maintain employee satisfaction at 79% ▪ 2023 vs 2021 ▪ Increase share of digital experts ▪ From 2022 onwards & DIGITAL ▪ Increase beneficiaries on digital inclusion activities ▪ Until 2025 INCLUSION ▪ Stay conn
Slide 10: Deep dives topics today
DEEP DIVES TOPICS TODAY ‘ Y BEST TEAM AND DIGITAL INCLUSIO! ya CIRCULARITY go ; / i. : 7 GOVERNANCE — a. Gs
Slide 11: Deep dives topics today
TH DEEP DIVES TOPICS TODAY • Sieht etwas mickrig aus Können wir die Bilder größer machen und 2x2 aufteilen, oder • auf hochformatig umbauen?
Slide 12: Our carbon footprint & our targets
OUR CARBON FOOTPRINT & OUR TARGETS DRIVERS OF CO2 EMISSIONS SCOPE 1 SCOPE 2 Own activities Purchased activities 219 ktons 28 ktons (- 7% since 2020) (-98% since 2020) SCOPE 3 Value chain emissions 38% 62% downstream 14,776 upstream customers ktons supply chain .
Slide 13: Our new eMobility commitment
OUR NEW eMOBILITY COMMITMENT EARLY MOVER IN eFLEET As of 2023 obligatory for all newly ordered business cars DE… … and we keep on pushing beyond Germany and with service cars depending on portfolio availability and charging infrastructure CAN REDUCE UP TO 40% OF GLOBAL SCOPE 1 +2 EMISSIONS
Slide 14: Contribution to e-mobility in Germany
CONTRIBUTION TO E-MOBILITY IN GERMANY FAST CHARGING STORY 2022 CHARGE@WORK ▪ #sites: 160 to 200+ eoy ▪ 89 T-sites with 329 charging points ▪ Power: 150 KW+ enabled by YE 2022 ▪ Urban and suburban ▪ Further planned: up to 2,000 CHARGE@HOME ▪ Attractive charging model for employees
Slide 15: Sustainability matters for customers
SUSTAINABILITY MATTERS FOR CUSTOMERS A MATTER OF FACT customers/stakeholders demand environmental responsibility from businesses 83% 90% Gen Z …advocate corporate …say that companies don’t live …has the greatest concern action to tackle up to their responsibility for about climate change & climate c
Slide 16: Our network is green
OUR NETWORK IS GREEN GREEN 100% ENERGY since 2021 worldwide SCALE 50% GREEN PPA PPA until 2025 ENERGY Legacy EFFICIENCY retirement DRIVE Own energy production INNOVATIONS Storage solution
Slide 17: Innovation with storage solutions
INNOVATION WITH STORAGE SOLUTIONS ▪ Local storage solutions at T-locations for decades ▪ Now: build up storage solutions across Germany ▪ Store green electricity from PPA and own production for self consumption. ▪ Support to and sustain the electricity grid in Germany ▪ Ambition until 2030: store 30
Slide 18: Green network enables green products
GREEN NETWORK ENABLES GREEN PRODUCTS SMART BUILDING & ENERGY MANAGEMENT Partner Crem Solutions THE LEVEL METER/SENSOR Partner Waste Dispopsal Experts DT’s enablement factor Remondis 4.8x more CO2e x 4.8 SMART ILLUMINATED ADVERTISING avoided than emitted 23.3 Partner LichtWART 23.3 mn t CO2e avoided
Slide 19: Sustainability portfolio for B2B clients
SUSTAINABILITY PORTFOLIO FOR B2B CLIENTS SUSTAINABILITY ADVISORY & CONSULTING Beyond environmental SUSTAINABILITY MANAGEMENT SOLUTIONS End-to-end SUSTAINABILITY INDUSTRY SOLUTIONS Deep industry know-how SUSTAINABLE IT SERVICES Vendor-independent
Slide 20: Enabling clients to be best in class in ESG performance
ENABLING CLIENTS TO BE BEST IN CLASS IN ESG PERFORMANCE “Leader” Ranking in Sustainability & Decarbonization Services in GER and Nordics in the ISG 2021 Study SUSTAINABILITY SUSTAINABILITY SUSTAINABILITY SUSTAINABLE ADVISORY & CONSULTING MANAGEMENT SOLUTIONS INDUSTRY SOLUTIONS IT SERVICES Strategic
Slide 21: Actively driving towards T-Systems net-zero target
ACTIVELY DRIVING TOWARDS T-SYSTEMS NET-ZERO TARGET Scope 1+2 (kt CO2e) Continued invest in our carbon 772 Scope 3 (kt CO2e) footprint understanding & management 142 512 63 296 In Germany ~70,000m2 630 449 11 Saved reducing heating* 285 emissions/employee by > 50% 2019 2020 2021 > 90% e-orders since
Slide 22: Green datacenters @ T-Systems
GREEN DATACENTERS @ T-SYSTEMS GREEN 100% ENERGY since 20212 GLOBAL < 30 CONSOLI- in 2018 from #89 in 2011 DATION DRIVE AI supported Well Water Cooling INNOVATIONS Waste heat recovery, solar & wind VOLUNTARY COMMITMENT & STRONG IN COLLABORATION 1 PUE = Power Usage Effectiveness, Average Datacenter gl
Slide 23: Exceeding our CMD commitment
EXCEEDING OUR CMD COMMITMENT ... to counterbalance effects of data traffic increase of > 25% p.a. and densification RETIRE Electricity consumption per region Recently PSTN, near-term future SDH, long-term switch TWh (CMD 2021) from BNG to A4 and potential copper platform retirement REDUCE 4.6 MODERN
Slide 24: Reducing electricity consumption significantly
REDUCING ELECTRICITY CONSUMPTION SIGNIFICANTLY… Electricity consumption region Germany Retirement TWh PSTN 2.7 2.5 completed in 2022 0.47 0.40 0.35 0.35 with saving of ~470 GWh p.a. in 2023 0.747 (vs. 2018) 0.27 0.27 0.26 0.28 0.28 0.02 2.2 0.14 0.13 0.13 0.08 Retirement SDH completed in 2025 2018 2
Slide 25: Exploring decentral power supply
EXPLORING DECENTRAL POWER SUPPLY… … TO BE RESILIENT AND SHAPE DEMAND PEAKS INTEGRATION OF SOLAR, WIND, 38 kWh 28 kWh BATTERY AND FUELCELL 68% Trials in Dittenheim and Meissen Self-Suffenciecy Wind Production 55 kWh 10 kWh Wind turbine Baste Station Solar Production LEVERAGING AI WE ADJUST Consumptio
Slide 26: Biggest challenge Scope 3
BIGGEST CHALLENGE SCOPE 3 BIG BUCKETS FROM UPSTREAM 26% 16% 6% Purchased Capital goods Fuel & energy- 1.6% (247 ktons) goods & services related Scope 1+2 from own activities 14% and purchased energy Others, e.g., transport and recycling, commuting, travel Net-zero emissions 37.8% for Scope 1-3 Scope
Slide 27: Addressing this challenge
ADDRESSING THIS CHALLENGE SUPPLY CHAIN RESILIENCE “SUPPLY CHAIN TIER DOWNS” ▪ In-depth analysis with strategic vendors along the entire supply chain – down to spare parts levels and country of origin. 1.6% (247 ktons) ▪ Agreements on direct commercial contracts with preproduct Scope 1+2 suppliers, l
Slide 28: Sustainability integrated in procurement
SUSTAINABILITY INTEGRATED IN PROCUREMENT KEY MEASURES Automated Monitor suppliers for sustainability data to gain Dashboard transparency Supplier Integrate mandatory information to ensure Qualification transparency from the start Supplier Sustain- Apply sustainability weighting of at least 20% in ab
Slide 29: DT ex US: contribution to renewable energy production
DT EX US: CONTRIBUTION TO RENEWABLE ENERGY PRODUCTION CURRENT STATUS TARGET PICTURE 2025 Already 100% renewable electricity Improve quality of our electricity mix Green PPAs Green PPAs and own production 15% GoO1 50% 50% GoO1 85% already 25% green PPAs Increase contribution to first green PPA Renewa
Slide 30: Key take aways
KEY TAKE AWAYS WHERE WE ARE TODAY WHAT TO TACKLE NEXT Green 100% renewable electricity and share of ca. 15% Complete PPA plan up to 50% of grid mix Energy of PPA by 2022 2025 Scope 1+2 lowered already to 247 kT CO2 Push for climate neutrality until 2025 Scope 1+2 eFleet shift already decided for Ger
Slide 31: Agenda
AGENDA BEST TEAM AND DIGITAL INCLUSIO! a. - 2 A CIRCULARITY ofS oe \\ ile SF 2 ABE NG
Slide 32: Circularity
Slide 33: Circularity is a must
CIRCULARITY IS A MUST 50% contribution to 94% linear economy today1 by 2030 fully circular around climate target1 Specific focus on e-waste technology and devices Fastest growing waste stream Closely tied to core business Low Recycling rates 1 EU Monitor, April 2022
Slide 34: Full circularity across EU
FULL CIRCULARITY ACROSS EU ZERO ICT WASTE AND CIRCULARITY FOR DEVICES WITHIN OUR FOOTPRINT: GOOD CAUSE TAKE BACK SCHEMES- INITIATIVE HY1 2022 Educate & motivate customers & employees to ˜ 3 MN bringing back old devices fixed devices: e.g. routers & set- while contributing to local top boxes collecte
Slide 35: Good cause project @ EU countries
GOOD CAUSE PROJECT @ EU COUNTRIES Protection & restoration of 350,800 ha 39 natural habitats of forest area & wetlands in Europe in 10 countries monitored & protected by ICT solutions 22,000 trees planted/protected 7 ha of forest area restored 129 tons of waste collected 16 km of coastline 312 tons
Slide 36: Good cause project @ EU countries
GOOD CAUSE PROJECT @ EU COUNTRIES Protection & restoration of 350,800 ha 39 natural habitats of forest area & wetlands in Europe in 10 countries monitored & protected by ICT solutions 22,000 trees planted/protected 7 ha of forest area restored 129 tons of waste collected 16 km of coastline 312 tons
Slide 37: Eco packaging in all T products
ECO PACKAGING IN ALL T PRODUCTS WELL PACKAGED IS HALF THE BATTLE for all new T-branded products launched in Germany & EU No plastics No mineral ink No unnecessary Product to wrapping, cables, package ratio manuals etc. INNOVATIONS: e.g. paper foam
Slide 38: Circularity with highest standard
CIRCULARITY WITH HIGHEST STANDARD Certification of > 30 products, services, products and initiatives that contribute to more climate protection & responsible use of resources. SPEEDPORT SMART 4 & WLAN REPEATER SPEED HOME Telekom Devices with ECO RATING “Green Product” certification from TÜV Pan-indu
Slide 39: Key take aways
KEY TAKE AWAYS WHERE WE ARE TODAY WHAT TO TACKLE NEXT Zero ICT Waste EU and DE will be on Zero waste for ICT to Expand “zero waste” framework beyond landfill as to Landfill landfill by end of 2022 well as to T-Mobile US and T-Systems. Fixed Line Ca. 60% of fixed line devices already leasing, Develop
Slide 40: Agenda
AGENDA BEST TEAM AND DIGITAL INCLUSIO! a. - 2 A CIRCULARITY ofS oe \\ ile SF 2 ABE NG
Slide 41: Best team and digital inclusion
Slide 42: Loud against hate speech
ATTITUDE MATTERS 1 IN 3 YOUNG PEOPLE have experienced online hate LOUD AGAINST 1.5 BN1 HATE SPEECH earned reach with our #takepart – No Hate Speech campaign • 1 since July 2020
Slide 43: Employer of choice
EMPLOYER OF CHOICE EMPLOYER RANKINGS EMPLOYEE SURVEY RESULTS 80% know and understand the DTAG: strategy of our company. #18 #15 TSI HUNGARY: #2 2019 74% would recommend our 2021 #12 2019 2021 company as a great place to work. HT CROATIA: #10 2019 #4 86% feel their work is 2021 meaningful. 84% find t
Slide 44: Employer of choice
EMPLOYER OF CHOICE ACTIVE EMPLOYEE RESOURCE WE WON’T STOP CULTURE COMPETITIVE SALARIES GROUPS AND INCENTIVES Customer Centricity: 300 active Green Pioneers “Turning customers Sustainable tariff into fans”, agreements International LGBTQIA+ communities “Win their hearts” € 500 Corona bonus Female Net
Slide 45: Future tech & digital skills
FUTURE TECH & DIGITAL SKILLS APPRENTICESHIP & HIRING SKILLING & LEARNING > 5,600 apprentices and dual > 8,500 graduates of students in Germany; 70% share of newskilling academies Tech & IT profiles (class 2022) > 4,500 graduates of group-wide > 3,500 Tech & Digital hirings explorer journey program a
Slide 46: Diversity, equity & inclusion
DIVERSITY, EQUITY & INCLUSION MAKES US STRONG AND SUCCESSFUL FACTS ACTIONS Most diverse board of management in DAX, Renewed companywide DE&I policy 37.5% female and international Diversity implementation Female share of executives plans for each segment 22% (+2% since 2020 excl. US)1 Talent programs
Slide 47: Key take aways
KEY TAKE AWAYS WHERE WE ARE TODAY WHAT TO TACKLE NEXT Further improve Top Employer ranking Top Employer ranking positions such: by 2025: #5–10 (EU), #10–15 (GER) #4–12 (EU), #15 (GER) or “Bester Ausbilder” (GER) Employer New Employer Value Proposition (EVP) of Choice High employee satisfaction aroun
Slide 48: Digital inclusion for our society
DIGITAL INCLUSION FOR OUR SOCIETY
Slide 49: We operate the best fixed and mobile networks in Germany
WE OPERATE THE BEST FIXED AND MOBILE NETWORKS IN GERMANY Rollout strategy with 89.9% fiber coverage >16mbps based on good network for all FTTH (1 Gbps) 5G GERMANY Homes passed1 % of POPs rather than fiber for a few mn 14.7% +2pp 3.4 3.9 91 93 >650,000 km of DT owned fiber network Scale our FTTH roll
Slide 50: We operate fixed and mobile networks with the widest coverage across EU footprint
WE OPERATE FIXED AND MOBILE NETWORKS WITH THE WIDEST COVERAGE ACROSS EU FOOTPRINT CONTINUED STRONG INVESTMENTS INTO FIBER & 5G FOR BEST CUSTOMER EXPERIENCE FIBER NETWORKS 5G EUROPE Homes passed1 % of POPs mn Annual rollout of >1mn Fiber HHP – +6% well on track to reach CMD commitment +27% 7.0 7.4 of
Slide 51: Ensuring accessibility to the digital world
ENSURING ACCESSIBILITY TO THE DIGITAL WORLD GREECE/COSMOTE: TELEKOM DEUTSCHLAND: Free WiFi at 25 archeological CZECH REPUBLIC/T- MOBILE: museums & site Deaf Hotline/E- Transcript: Infrastructure design, installation, Accessible costumer hotline for operation, and maintenance – free people with heari
Slide 52: Ensuring affordability for all
ENSURING AFFORDABILITY FOR ALL EU WIDE LAUNCHED 5G T PHONE INITIATIVES FROM NATCOS ACROSS EU: ▪ Tariffs/ discounts for seniors, unemployed, socially disadvantaged families and people with disabilities. ▪ Free chat network against loneliness for seniors ▪ Toll free helplines & national lines for addr
Slide 53: Increasing the ability to take part
INCREASING THE ABILITY TO TAKE PART PROGRAMS FOR CHILDREN PROGRAMS Germany & International FOR SENIORS Teachtoday Croatia/Hrvatski Poland/ T- Mobile Polska Generations Together In a winning position Magenta/Austria Connectedkids Hungary/Magyar Telekom Slovakia/Slovak Telekom Become A Member ENTER Pr
Slide 54: There when we are needed
THERE WHEN WE ARE NEEDED UKRAINE Ukraine support (1,5 mn SIM cards to refugees, AHRTAL housing, humanitarian aid) networks, free by NatCos devices, power SUPPORT banks, mud DURING COVID19 cleaning FIRE IN e.g. free devices, GREECE connection for schools, elderly etc. FLOOD IN AUSTRIA EARTHQUAKES TOR
Slide 55: Key take aways
KEY TAKE AWAYS WHERE WE ARE TODAY WHAT TO TACKLE NEXT 180+ initiatives, 950 mn+ reach, 26 mn+ beneficiaries Overall increase of beneficiaries, additional Digital Inclusion in EU and D in 2021 20mn in total by 2024 We are track tackling white and grey spots. Drive “Design for all” approach to enhance
Slide 56: Agenda
AGENDA BEST TEAM AND DIGITAL INCLUSIO! a. - 2 A CIRCULARITY ofS oe \\ ile SF 2 ABE NG
Slide 57: Governance
Slide 58: The ESG framework and our key ambitions
THE ESG FRAMEWORK AND OUR KEY AMBITIONS GOVERNANCE GOOD CORPORATE CONDUCT & INTEGRATED INTO STRATEGY, TARGETS AND GOVERNANCE SYSTEMS ESG Youforms an integral manage what youpart of our ‒governance measure approach constant steering with dedicated & measuring cross-functional of progress guidance and
Slide 59: Key elements of data privacy
KEY ELEMENTS OF DATA PRIVACY DATA PRIVACY1 – KEY FIGURES MONITORING & ADVISORY TRAININGS & AWARENESS in 2021 5,667 information requests 4,356 privacy & security Group Data Privacy Audit2 according to art. 15 GDPR assessments Bi-annual survey on the level of data protection 2,576 data privacy inciden
Slide 60: Cybersecurity is the backbone of our business
CYBERSECURITY IS THE BACKBONE OF OUR BUSINESS WELL PREPARED WITH: > 1,600 experts > €200 mn p.a. investment in Security. Market leader in Germany Cybersecurity implemented at all levels: customers, employees and board 1 Cybersecurity Ventures, 6/2022 2 according to ‘Allianz für Cyber-Sicherheit’ Rea
Slide 61: Security by design anywhere & anytime
“SECURITY BY DESIGN” ANYWHERE & ANYTIME SECURITY PRIVACY DIGITAL ETHICS ~4,000 security assessment Clear design paradigm: External certification of AI p.a. during design phase full transparency and control supported product based on for our customers BSI standard AIC4 Highly automated checks Highest
Slide 62: Integrated ESG steering and reporting
INTEGRATED ESG STEERING AND REPORTING PART OF CORE PROCESSES: INCENTIVIZED MANAGEMENT: HIGHEST TRANSPARENCY: MEASURE WHAT YOU MANAGE ESG IN BOARD REMUNERATION CSR REPORTING SINCE 2000 ▪ Data collection in all relevant ▪ 50% of LTI since 2010: Employee & ▪ State-of-the art reporting based business un
Slide 63: DTAG in Europe
DTAG IN EUROPE
Slide 64: T-Mobile US
T-MOBILE US
Slide 65: T-Mobile's aspiration is to create a connected world where everyone can thrive
T-MOBILE’S ASPIRATION IS TO CREATE A CONNECTED WORLD WHERE EVERYONE CAN THRIVE BY SUSTAINABLY MANAGING PROVIDING EQUITABLE CHAMPIONING DIVERSITY, OUR ENVIRONMENTAL ACCESS TO CONNECTIVITY EQUITY, AND INCLUSION FOOTPRINT TO EVERYONE WHO NEEDS IT IN OUR WORKFORCE AND SOCIETY
Slide 66: Sustainably managing our own footprint
SUSTAINABLY MANAGING OUR OWN FOOTPRINT RENEWABLE ENERGY SCIENCE-BASED TARGETS ▪ In 2018, 1st in U.S. wireless to set ▪ In 2019, 1st in U.S. wireless to set science-based a goal to source 100% renewable carbon reduction targets for 2025. energy for our electricity by 2021. ▪ Goals achieved in 2021 (e
Slide 67: Creating a connected world
CREATING A CONNECTED WORLD BRIDGING THE DIGITAL DIVIDE DIVERSE WORKFORCE TO DELIVER INCREDIBLE CUSTOMER EXPERIENCE Launched project $10 mn in 2020 to get Five-year Equity In Action plan kicked off in 10 mn students a free hotspot, 2020. free or highly subsidized data plans, and access to laptops and
Slide 68: Agenda
AGENDA BEST TEAM AND DIGITAL INCLUSIO! a. - 2 A CIRCULARITY ofS oe \\ ile SF 2 ABE NG
Slide 69: We're on track with… and will push for
WE’RE ON TRACK WITH… …AND WILL PUSH FOR Measurable interim milestones 2030/35 Climate & renewable energy targets set (2025/2040) Execution of 50% PPA plan Double energy efficiency while reducing energy Network modernisation (e.g. copper to fibre, mobile consumption until 2024 in DE & EU network mode
Slide 70: We're on track with… and will push for
WE’RE ON TRACK WITH… …AND WILL PUSH FOR Zero waste in technology with concrete action Circularity targets set (2030) plan in 2023 Zero waste initiatives for devices started, but low Attractive customer programs on take back, take back rate on mobile devices esp. for mobile handsets Sustainable packa
Slide 71: We're on track with… and will push for
WE’RE ON TRACK WITH… …AND WILL PUSH FOR Well positioned in employer of choice rankings Stay on high satisfaction rate and in top quartile including a high employee satisfaction rate at 79 % of employer of choice rankings Close digital skill gaps and step-up number of Digital experts at 18.6 % in 202
Slide 72: We're on track with… and will push for
WE’RE ON TRACK WITH… …AND WILL PUSH FOR ESG is part of overall governance model and E and Full integration of ESG - DNA in daily business S targets have been set and business units Data privacy and cybersecurity are addressed with Privacy and cyber security by design processes, trainings and part of
Slide 73: Sustainability Day 2022
SUSTAINABILITY DAY 2022 Becoming the leading global —, aff digital and sustainable telco \y i gs bic y. ed: ne z Se ys ie Q R . dl
Slide 74: Glossary
GLOSSARY AI Artificial Intelligence KPI Key Performance Indicator API Application Programming Interface LTI Long-term incentive B2B Business-to-Business NatCo National Company BNG Broadband Network Gateway NGO Non-governmental organization BSI Bundesamt für Sicherheit in der Informationstechnik NT N