We take responsibility. Corporate Responsibility at Deutsche Telekom Sao Paulo March 2012.
Group profile and figures Deutsche Telekom.
Company
Global Group Deutsche Telekom is one of the world’s leading service companies in the telecommunications industry
Facts and Figures
Products
Our strengths
Products and services for the fixed network, mobile communications, the Internet and IPTV for consumers, and ICT solutions for business customers and corporate customers.
By the numbers
In 2011, Deutsche Telekom reported revenue of EUR 58.6 billion (more than half was generated outside of Germany). Adjusted EBITDA totaled EUR 18.7 billion and free cash flow EUR 6.4 billion.
Employees
Major factor in success: At december 31, 2011, the total headcount stood at about 240,000.
Our definition of Corporate Responsibility. Corporate Responsibility combines the commitment of the company to promote sustainable development globally by •focussing on economic, environmental and social objectives. • cooperating and communicating with internal and external stakeholders. •and assuming the responsibility for corporate actions with the aim of enhancing the company's competitiveness.
Ecology
Corporate responsibility
Finance
Social Engagement
Deutsche Telekom’s vision. CEO‘s commitment. “Sustainability, whether economic, ecological or social, is not an add-on. It is becoming increasingly significant for many investors and shareholders. Ecologically responsible business practice and actions, and better energy efficiency are important areas of future business for us. And we ourselves need to be credible in these areas.” René Obermann, CEO Deutsche Telekom AG, Annual General Meeting 2010
Corporate Responsibility. Significant value contribution for Business and Society. The strategic focus of Corporate Responsibility activities contribute to raise Image and Reputation, grant the company from the society its “license to operate� and to successfully position Deutsche Telekom in relation to its competitors
Business
Drivers of innovation
Cost reduction and resource efficiency Risk provision/ risk avoidance
CR of Deutsche Telekom
Improvement of image and reputation Building confidence
Dialog with stakeholders Risk provision/ risk avoidance
Win-win situation for company and society
Society
Increase in the share value
CR Profiling Areas. Sharpening the CR profile by focusing on three CR fields of activity. How can we support our customers and employees in improving their quality of life and work?
What can we do to enable people to be part of our information and knowledge society?
What can we do to enable ourselves and our customers to effectively contribute towards climate protection?
Connected life and work
Connect the unconnected
Low carbon society
Being a major driving force for sustainable life and work.
Setting an example in the integration of people in the information society.
Being leaders on the road to a low carbon society.
CR profiling by focusing on 3 main fields of action.
Contribution of Deutsche Telekom
Based on societal and ecological requirements as well as stakeholder expectations with regard to sustainable development Contribution to “Connected life and work“
Contribution to “Connect the unconnected“
Contribution to “Low carbon society”
How can we support people in order to improve their quality of life and work?
How can we enable people to participate in the information and knowledge society?
Objectives
Be a decisive force for sustainable life and work
Set an example for the integration of people in the information society
How can we enable ourselves and our customers to make a contribution to climate protection?
Issues
Profiling projects
Binding requirements
Secure the conditions for change in the worlds of work and life and create commendable Conceptions to improve confidence and acceptance Education, training, promoting young talent, diversity, demographic change, life and work balance etc. Service culture; e-learning
e.g. Corporate Volunteering; Bologna@telekom; Bodytel (Glucotel, Pressuretel, Weighttel)
Be a leader on the way to a “low carbon society“
Improve equal opportunities and integrate the disadvantaged Bridge the “digital divide“ through new business models, projects and services More broadband for all User-friendly technology/usability
Reduce carbon dioxide emissions; improve energy efficiency and support the use of clean energy, decarbonize our own business; Support innovations for severing the link between power consumption and CO2 emissions; reduce dependency on energy costs Development of new products and services with lower impact on the environment e.g. Green IT; SMART 2020; Climate Change Strategy; Green Car Policy; Efficient Networks
e.g. Children and youth aid project to enhance equal opportunities “Yes I can do it” - 40 Tsd. Kids reached; 200 projects supported
Sustainable supply chain management Socially responsible investments (SRI) Donations and social sponsoring Environmental management systems Sustainable product development Corporate citizenship Prerequisites for a successful CR profile: DT must meet all important legal and societal requirements that are requested from the company. This is obligatory for all company units. Consumer and data privacy CR reporting (print/Internet) and KPIs
Diversity
Societal dimension
Occupational health and safety Responsible corporate governance
Climate protection. Climate Change Strategy: Core Measures to Meet the 30% Target. 1,471
Core measures to meet the 30 % target
1,471
The most important measures are: -28%
Emissions in kilotons of CO2
Fixed Network
743 (51%)
1,057
370 (35%)
Mobile Network Data Centers IT Equipment Mobility GTM Mobility DeTeFleet
Buildings
152 (10%) 115 (8%) 13 95 (1%) (6%) 137 (9%)
156 (15%) 195 (18%) 79 (7%)
216 (15%) 2008
13 (1%) 77 (7%)
Network infrastructure: transformation to allIP technology Data centers: doubling of performance, increase of emissions by 70% Mobility DeTeFleet: reduction of fleet and green car policy (110g CO2/km – 2015) Mobility Group Travel Management: carbonless rail travel, substitution of travelling by video, audio and Web conferences Buildings: reduction in building premises, energy optimization
167 (16%) Reduction
2020
*Including continued use of RECS for decarbonizing energy consumption in Germany
SMART 2020 Message – ICT’s Enabling Effect, Measuring the Impact ICT can support other industries in emission reductions. The global potential of ICT based emission reductions is around 15% of total global carbon emissions.
SMART2020 Germany Addendum - up to 25% Carbon Reduction Potential by consequent use of ICT in Germany
This results in business concepts that are assessable for each of the five sectors that were identified (assessment according to CO2 reduction potential and economic attractiveness). Supported by
Enabled by
Smart logistics
85.4 Mt CO2e
(e.g., intelligent traffic management, extensive introduction of urban congestion charges)
Smart buildings
41.7 Mt CO2e
(e.g., climate control systems in buildings)
Smart motors
26.4 Mt CO2e
(e.g., optimization of business processes, variable frequency drives in industry)
Smart grid
23.4 Mt CO2e
Dematerialization
16.3 Mt CO2e
(e.g., load and capacity management for electricity suppliers) (e.g., downloading music and videos instead of CD production, virtual conferences)
Conclusions:
The smart use of ICT solutions could reduce CO2 emissions in Germany by up to 25 % by the year 2020 – this is equivalent to 207 metric megatons (Mt). The business value of these concepts is estimated at up to EUR 84 billion by the year 2020.
Examples of sustainable customer solutions: We systematically translate our CR fields of activity into innovative solutions for our customers.
Examples of devices. Sinus A 201
Climate-neutral for a product service life of 5 years (certificates). The DECT ECO mode reduces the transmission power by 99.9 % when the device is plugged in. 50 % greater energy efficiency compared to the previous model (Sinus 200).
Speedport W 723 V
Energy-efficient thanks to switched-mode power supply (SMPS) and circuit design.
Smart Metering. Smart Grid Concept
Source: ABB
Modern de-central distribution networks require more and more modern ICT systems and electronic components
Cooperation Examples Smart Grid pilot (incl. purchase optimization, demand side management, virtual power plant) T-City delivers the setting for an exclusive pilot (2,000 households) in testing smart grid business models
An online and wireless electricity metering system that enables private und business customers to monitor consumption on-time and to recognize saving potentials
Consumption profile over days, weeks, months or years Identification of electricity “guzzlers� Energy saving plan, cost savings Energy supply rules by requirements and generation
Customer: Local energy supplier
Telepresence Systems.
65% non-verbal communication: With Telepresence the emotions of the other participants in a meeting get visible. Use: Sending of Telepresence appointments via Outlook and the Meeting apears on date on the phone in the room, there is no administrator necessary. Audio system: Normal sound volume with sterosopic sound effect. By the use of completly identical build conference rooms there is the feeling to share one room. Integrated document camera enables sharing of documents. Saving of time, costs and carbon emissions.
eHealth eHealth Concept
Internet user
Cooperation Examples
mobile terminal
TV Set
blood pressure monitor
Home Environment
computer
physician
Clinic
Pilot project Home Care T-City Cardio Beat study, Partnership for the heart project (T-Mobile) Disease Management & Telemedicine for Diabetes Care management Programs with Health Insurances
The tele-monitoring system is based on: Regular weight measurements Taking the blood pressure and pulse Collected data is sent to the hospital automatically (bluetooth, set-top box) Impacts: The patient receives optimal care, gets more flexibility and increased quality of life The social system saves money thanks to less or shorter hospitalizations The doctors can take care of a greater number of patients Customers: Health insurance companies, hospitals and physicians Today more than 100 patients are already participating.
Sustainable Procurement: Commitment throughout the value chain.
Sustainable Procurement. Our responsibility spans across the entire value chain. Deutsche Telekom also exercises its influence on a global scale on the production conditions of its suppliers and sub-suppliers and is committed to fair labor conditions and high quality standards.
Deutsche Telekom AG's procurement volume totaled approx. EUR 20 billion in 2010.
Deutsche Telekom procured goods and services from different countries, including several threshold and developing countries.
Deutsche Telekom systematically manages the specific opportunities and risks inherent in the broad supplier and sub-supplier network by deploying a sustainable supplier management system throughout the Group.
Sustainable Supplier Management. Basic elements of the sustainable procurement strategy. Management of social and environmental risk in the supplier
chain, as well as the possibilities of gaining long-term advantages for the company. Suppliers must comply with common, unequivocally defined minimum standards (DT Social Charter, Conventions of the International Labor Organization (ILO), Global Compact, etc.). Compliance is checked regularly in a standardized audit process. Responsibility for this is borne by procurement and sustainability experts at DT. In cases of non-compliance, effective measures are launched, one of which is the standard escalation process. Standardized assessment of relevant strategic suppliers based on a GeSI questionnaire, which is supplied through ETASC (Electronics Tool for Accountable Supply Chains). Information on the analysis of the questionnaire and its results is communicated to the relevant stakeholders.
Main points of reference
CR performance. High standards through external indicators and guidelines. Ten principles of the United Nations Global Compact
Guidelines (G3) of the Global Reporting Initiative (GRI) Organization for Economic Co-operation and Development Guidelines for multinational companies International Labour Organization (ILO) – Key job norms International Organization for Standardization (ISO) Environment management systems Diversity, fairness, and esteem within the company
Socially Responsible Investment (SRI)
CR-Performance. Socially Responsible Investment at Deutsche Telekom. Proportion of Deutsche Telekom Shares related to Socially Responsible Investment (in %) 15,1% 15
“Partial SRI”: 13,1%
12 9 6 3
“Primary SRI”: 2%
app. 3%
0 2007
Source: Ipreo
2008
2009
2010
2011
DT Group Level Top Ratings as of 2011.
CARBON DISCLOSURE PROJECT