Impact of climate change
In the 2023 financial year, Deutsche Telekom analyzed potential sustainability risks in the areas of climate change and scarcity of resources. Climate change risks are already visible in the form of increasingly extreme weather conditions. Such storm events could damage the infrastructure and disrupt network operation with direct or indirect effects on operations. The risk is assessed in relation to the continuation of operations as part of risk management and is managed at an operational level in the business units.
Deutsche Telekom can take further action to help prevent climate change and to conserve resources by reducing its own CO2 emissions. For this reason, Deutsche Telekom has set itself the goal of achieving climate neutrality in the Company by the end of 2025 (Scope 1 and 2). As a new interim goal on our journey towards climate neutrality along the entire value chain, Deutsche Telekom has committed to reducing CO2 emissions across Scopes 1 to 3 by 55 % in absolute terms by 2030 compared with 2020. Deutsche Telekom then wants to reach net zero across all three scopes along the entire value chain by 2040. Since 2021, the Group has covered 100 % of its electricity requirement with renewable energy. This is achieved through power purchase agreements and other forms of direct purchase, such as through guarantees of origin.
Climate protection also carries financial risks, whether from the introduction of levies on CO2 emissions or increased energy costs, as well as stricter requirements for products, for example in relation to energy efficiency. The measures Deutsche Telekom is taking to counter these risks include measuring the Group’s own energy efficiency and finding ways to improve it. The ESG targets agreed from 2021 for Board of Management remuneration in relation to the respective annual energy consumption as well as the planned annual CO2 emissions for Scope 1 and 2 also contribute to achieving the climate targets and energy efficiency measures.
For further information, please refer to the combined management report in the sections “Combined non-financial statement” and “Risk and opportunity management.”
Deutsche Telekom has currently not identified any key risks to its business model in the area of either climate change or scarcity of resources and, as such, also does not currently anticipate any significant impacts from such risks on its business model or on the presentation of its results of operations or financial position.