Products and services: an overview of the entire life cycle

How can we reduce negative impacts throughout the lifecycle of our products? This is a question that concerns us in product development. The focus is on aspects such as resource conservation, energy efficiency and emission reduction. In order to systematically evaluate possible effects, we use a structured approach to impact measurement.

We also deal with these aspects in detail under “Climate change” and “Resource use and circular economy” in our audited Sustainability statement 2025.

Milestones achieved, ongoing projects and goals

Since 2014, we have been analyzing the impact of our product portfolio. In 2020, we introduced an impact measurement approach that helps us to systematically record and evaluate the impact of our products and services. In 2023, this approach was validated by TÜV Rheinland. We use the results to create transparency and support the (further) development of our products and services.

Specifications for product design

As early as the development of our own-brand products, we take into account potential environmental impacts along the entire life cycle. Our product developers are guided by the Telekom Design Specifications. They specify specific requirements, for example, on the use of materials or the handling of potentially hazardous ingredients.

The design of packaging is regulated in our packaging guideline, which is part of the Telekom Design Specifications. Detailed information on the topic of packaging can be found under Circular economy here in the CR report.

In addition, we are working with partners to make the use of streaming services more energy-efficient. In 2024, we collaborated on a guide to help decision-makers, development teams and consumers better understand the energy needs of video streaming.

Validated methodology: product impact at a glance

In order to assess the possible ecological and social impacts of our products, services and digital solutions in a well-founded manner, we use IT‑supported impact measurement. Our approach defines clear criteria and usage scenarios along the product life cycle.

The focus is on a comparison: We examine what changes as a result of a concrete solution compared to an initial situation – for example, in the use of resources. To do this, we determine in advance which assumptions are based and which parts of the value chain are relevant.

The process and the underlying methodology were validated by TÜV Rheinland in 2023. The validation was confirmed again in the reporting year.

Step 1 - More information about Define the starting point, target image and evaluation criteria

Define the starting point, target image and evaluation criteria

More information about Define the starting point, target image and evaluation criteria

In the first step, we determine what we evaluate and how we measure the impact. To do this, we first describe the initial situation, the desired target image and the measure under consideration. We also define the time period to which the assessment relates. We then determine the basis for comparison of the valuation. Depending on the question, we use a real situation, a benchmark or a scenario:

• Real-world situations compare options that are actually used today.

• Benchmarks compare our solution with external benchmarks or industry-standard alternatives.

• Scenarios describe a possible future state that serves as a comparison or target image.

Step 2 - More information about Define relevant parts of the value chain

Define relevant parts of the value chain

More information about Define relevant parts of the value chain

In the second step, we determine which parts of the value chain are relevant for the assessment. In doing so, we concentrate on those phases of the value chain in which the use of resources can differ between the initial and target situations. In this way, we ensure that we look at the impact where change can actually occur.

Step 3 - More information about Compare resource use and greenhouse gas emissions and quantify changes

Compare resource use and greenhouse gas emissions and quantify changes

More information about Compare resource use and greenhouse gas emissions and quantify changes

In the third step, we compare the use of resources and the product carbon footprint of the initial and target situations along the value chain and quantify the changes caused by the measure. To do this, we record which resources the selected stakeholders need in each case. Depending on relevance and availability, the data basis is validated supplier data, internal data or recognized databases such as “ecoinvent”. On this basis, we determine and compare the use of resources in both situations. The results form the basis for the calculation and evaluation of the CO₂ footprint in the next step.

In order to be able to calculate the changes caused by the measure, we define a functional unit at the beginning. It determines what the comparison refers to – for example, the resource consumption per 1,000 product units.

Step 4 - More information about Assess the environmental and social impacts of the measure

Assess the environmental and social impacts of the measure

More information about Assess the environmental and social impacts of the measure

4.1 - More information about the steps 4.2 - More information about the steps

In the fourth step, we assess the ecological and social impacts of the measure. We measure the ecological impacts in particular with the help of the CO₂ footprint and also assign the effects to the Sustainable Development Goals (SDGs). We also assess the social impact on the basis of the SDGs.

We record the ecological impact with the help of the CO₂ footprint. To do this, we translate the changes in resource use determined in step 3 into CO₂ equivalents.

To do this, the respective changes are multiplied by recognized CO₂ emission factors, for example from the “ecoinvent” database. On this basis, we calculate potential CO₂e savings or additional CO₂e emissions as an overall balance across all relevant value creation phases.

In addition, we take other ecological dimensions into account, such as savings in water consumption or the use of materials. We assign the effects identified to the SDGs.

We also assess the social impact on the basis of the SDGs. They help us to classify the social effects of the measure in a structured way – for example, improved affordability or improved working conditions. In doing so, we evaluate the contribution of the product or solution to the SDGs based on measure-specific criteria, for example on the basis of hours saved.

After evaluating our impact measurement, we summarize the results. We use the knowledge gained to further develop our products and services. In addition, the results serve, among other things, as a methodological basis for measuring progress on the basis of defined key figures on aspects of the circular economy. Further information can be found here in the CR report under Circular economy.

Since the introduction of the methodology, we have used the impact measurement process for over 50 Deutsche Telekom products and solutions to determine environmental or social effects in accordance with our defined criteria. Six further products and measures were added in the reporting year. An overview of all products and services that have undergone the TÜV‑validated impact measurement process can be found on our website.

In the following, we present current examples:

E‑charging infrastructure from Comfortcharge

The expansion of publicly accessible charging infrastructure is an important building block for the mobility turnaround in Germany. With Comfortcharge, Deutsche Telekom is specifically using existing infrastructure on its properties throughout Germany to set up fast-charging stations – such as existing power connections or cable trays. If these prerequisites are already in place at the location, the development of charging infrastructure can be carried out more quickly and with less additional material and construction effort. This avoids emissions that would otherwise occur during earthworks, additional cable laying or the production of additional components. According to our impact measurement, the use of existing infrastructure when installing a fast-charging station results in potential savings of over 29 tons of CO₂e. In the reporting year, Comfortcharge operated around 300 fast-charging locations at our locations in Germany.

Further information on the charging infrastructure at our sites and beyond can be found under Mobility here in the CR report.

SD‑X: Centralizing network functions

With SD‑X (Software Defined Everything), network functions are no longer controlled by individual devices in different locations. Instead, they run through a central, software-based platform in the cloud that connects multiple locations. End devices and internal network components can thus be set up, updated and managed remotely. In addition, SD‑X allows several functions to be bundled in a single device that would otherwise be spread across several devices. As a result, fewer hardware components are needed per site – which can help reduce the amount of e-waste.

In the reporting year, the SD‑X solution of the Hungarian subsidiary Magyar Telekom underwent our impact measurement. The analysis showed that modelled CO₂e savings potential results from the bundling of functions. Under the assumptions used in the Impact Measurement, up to 43 kilograms of CO₂e per multifunctional network device can be avoided. In 2025, the number of SD‑X endpoints used by customers in Hungary was over 50, which corresponds to a potential saving of over 23 tons of CO₂e in 2025.

T Phone: Further development along defined design specifications

In the further development of our 5G smartphones T Phone and T Phone Pro, we are guided by the requirements of the Telekom Design Specifications, which include specifications on the use of materials.

In 2025, the new generation T Phone 3 and T Phone 3 Pro came onto the market. The emission values achieved in the previous generation were taken into account as a reference. The current models were rated 90 out of 100 (T Phone 3) and 88 out of 100 (T Phone 3 Pro) points in the Eco Rating. For comparison, the predecessor models T Phone 2 and T Phone 2 Pro achieved 88 and 84 points, respectively.

The Eco Rating is an industry-wide initiative to evaluate selected environmental aspects of mobile devices and is open to all device manufacturers. Among other things, material efficiency criteria are included in the evaluation, including aspects of repairability, durability and the use of recycled materials.

The improved Eco Rating of the T Phone 3 compared to its predecessors is due to improvements in material efficiency. For example, repairability has been increased. In addition, improvements have been made in the handling of hazardous substances and in the use of recycled materials.

Making impact visible

Sustainability should provide orientation – and be resilient. That is why our TÜV‑validated impact measurement forms the basis for presenting the ecological and social effects of our products, services and measures to private and business customers, investors and other stakeholders in an understandable and transparent way.

If products or services meet our defined criteria, we make this rating visible. Since 2021, we have been using the hashtags #GreenMagenta and #GoodMagenta:

• #GreenMagenta refers to identified ecological effects of products, services, projects, measures and initiatives that can contribute to climate protection or the responsible use of resources.

• #GoodMagenta is used for projects, measures and initiatives in which social or societal effects have been identified.

The presentation is always made with a brief explanation of the specific characteristics, on the basis of which the classification is made. However, the hashtags do not represent an overall rating of a product or service and do not mean that an offer is sustainable in all areas.

Expectations of credible sustainability communication are increasing, also in regulatory terms: From September 2026, new requirements will apply with the European directive “Empowering Consumers for the Green Transition” (EmpCo Directive). Our aim is to continuously develop our sustainability communication and to address high transparency standards at an early stage. Against this backdrop, we began in 2025 to review the communication of the sustainability characteristics of our products and services. We will decide on the future communication of the results of our impact measurement process in 2026.

Product Carbon Footprint (PCF): transparency about product-related emissions

Against the backdrop of increasing transparency and comparability requirements, we are also further developing the methodology of our impact measurement approach. One focus is on the stronger integration with product-related emission calculations. In the reporting year, we developed a tool to calculate the Product Carbon Footprint of our most important products and services, which was validated by TÜV Rheinland in 2026. From 2026, the software solution will enable the calculation of the PCF and the creation of corresponding reports in accordance with ISO 14067.

In this way, we not only want to further develop our approach, but also meet the increasing information needs of our business customers regarding product-related greenhouse gas emissions – especially from companies with extensive product portfolios. From 2026 onwards, we want to provide you with information on the Product Carbon Footprint (PCF) of our most important products and services on request for your greenhouse gas accounting.

Digital solutions for business customers

With digital applications, we support business customers in addressing environmental and regulatory challenges. The following examples show how digital technologies can contribute to the more efficient use of resources and the management of sustainability and energy data.

Digital water management

In large parts of Europe, the groundwater level is falling, endangering habitats for many creatures and making countermeasures increasingly urgent. T‑Systems offers municipalities and companies a solution for digital water management (only available in German). Networked water meters automatically transmit consumption data with the help of “Internet of Things (IOT)” technology. This makes it possible to monitor water withdrawals and detect changes in the groundwater table. Under suitable operating conditions, such digitally supported control of water withdrawal can help to reduce groundwater consumption and support more efficient irrigation.

Applications for ESG data management and energy control

In the “Digital Sustainability” service portfolio, we offer business customers a digital solution in the form of the Telekom Sustainability Manager, which enables them to record ESG data centrally, meet regulatory requirements and measurably manage sustainability goals. The offering includes a central ESG data platform, applications for greenhouse gas accounting and solutions for supply chain or compliance management. The portfolio is complemented by data-based analyses, including AI‑supported evaluations, as well as consulting services along the entire transformation process.

Digital solutions are also used in energy management. IoT‑based complete solutions with retrofittable sensor technology and software-supported evaluation enable the digitization of energy consumption in buildings. This creates transparency about energy use, which forms an important basis for efficiency increases and energy savings.

Cloud4Log: digital and paperless logistics

Cloud4Log is a digital logistics platform from T‑Systems, the German Logistics Association (BVL) and the company GS1 Germany, which enables the paperless exchange of transport documents. Companies from industry, trade and logistics can use this platform to accompany goods deliveries in real time with digital delivery notes. Since June 2025, the electronic international consignment note (eCMR) has also been available as an add-on, which can be used to process cross-border transports digitally and in a legally compliant manner – in accordance with regulatory requirements. Digital solutions like these can significantly reduce paper consumption in logistics. The number of transactions processed via Cloud4Log in the reporting year, results in a mathematical savings potential of around 800,000 pages of paper.

X‑Creation – driving innovation and value creation together

We actively collaborate with partners in innovation projects to develop digital solutions for sustainable applications. One example is the X‑Creation program from T‑Systems. In this community, the participants work together to develop solutions to social and ecological issues. The UNFCCC Secretariat (United Nations Framework Convention on Climate Change) became an official partner of the program in 2024.

After an initial success in 2024 – an AI‑supported app against disinformation on social media – X‑Creation once again turned its attention to current challenges in the reporting year. In addition, around 1,000 participants from over 140 partner organizations such as industrial customers, authorities, universities and NGOs came together at a digital event.

The participants developed more than 27 solutions, including the financing of municipal climate protection measures, the health ecosystem of the future, building efficiency and strengthening media literacy. In addition, the program resulted in two startups that deal with environmentally related technologies.

In 2026, the plan is to transform X Creation into a non-profit organization to further strengthen collaboration and innovation in the long term.

Enablement factor: potential CO₂e savings on the customer side

Since 2014, we have been analyzing the extent to which our ICT solutions can help reduce greenhouse gas emissions for customers. The calculations are based on data and assumptions on various usage scenarios – for example, how to avoid business travel by using Business-Conference solutions. Every year, we use modelled scenarios to determine the potential climate protection impact of our solutions on the customer side.

To measure progress, we determine the KPI “Enablement Factor”. It compares the potential CO₂e savings potential for customers to our own CO₂e footprint (Scope 1 to 3).

For Germany, an enablement factor of 6.09 was determined in 2025. This value describes the relationship between the potential savings effects of using our solutions and our own emissions. This means that for every ton of CO₂ that we cause in Germany by providing these products and solutions, there is a potential savings volume of approx. 6 tons of CO₂e on the customer side. The calculations are based on model assumptions and do not represent actual emission reductions.

Much of the potential savings on the customer side in Germany comes from:

• Home office and our business and video conferencing solutions,

• Cloud Computing and

• more powerful servers, more energy-efficient data centers, and higher infrastructure utilization.

To ensure even greater transparency and comparability, we will continue to support the European Green Digital Coalition (EGDC) in developing an industry standard for calculating emission savings from ICT products in the reporting year.

KPI “Enablement Factor” Deutsche Telekom in Germany

The modelled, potential positive CO₂e effects that are made possible on the customer side by the use of our products and solutions amounted to a total of 23.5 million tons of CO₂e in Germany in the reporting year. This roughly corresponds to the average CO₂e footprint of the inhabitants of the cities of Munich and Frankfurt am Main combined. ^a

This results in an enablement factor of 6.09 for 2025. The enablement factor is thus higher than in the previous year (4.41). This development can be attributed to several influencing factors: These include higher sales volumes of selected digital solutions and changes in user behavior, for example due to increased working from home. In addition, lower Scope1, 2 and 3 emissions from Deutsche Telekom had an impact on the enablement factor.

For a comprehensive classification of Deutsche Telekom’s positive and negative impacts in connection with greenhouse gas emissions and energy consumption, please see “Climate change” in our audited Sustainability statement 2025.

AI development: focus on energy and resource requirements

Applications based on artificial intelligence (AI) have a particularly high energy and resource requirement. In order to support the development and use of AI that is as resource- and energy-efficient as possible, we developed and published nine principles for “green AI” in 2024. They provide guidance on how ecological aspects can be taken into account in the development of AI solutions. With these principles, we not only want to give our developers practical guidelines, but also provide impetus in the ICT industry. For example, the principles stipulate that AI models should be used multiple times and hardware equipment should be adapted to demand. At the same time, AI – used responsibly – can help to use energy more efficiently: For example, an AI‑based solution for controlling cooling systems has been tested in regular operation at the data center in Magdeburg since 2025. In the test phase, an efficiency potential of up to 33 % was shown under the conditions under consideration in terms of cooling-related energy consumption compared to the initial operation. For more information, see Energy here in the CR report.

Looking ahead

From 2026 onwards, we will further develop our impact measurement in order to methodologically sharpen product-related emission calculations and link them to the PCF‑Tool. In doing so, we examine alignment with recognized standards, such as the ISO standards (International Organization for Standardization) and recommendations of the International Telecommunication Union (ITU).

At the same time, “green AI” continues to gain in importance for us. One example is the AI factory in Munich, which opened in 2026. The AI factory is supplied with electricity from renewable energies. In the AI factory, business customers can, among other things, operate so-called digital twins, which can be used to virtually map, simulate and further develop production lines or entire factories before real-world projects are implemented. Such applications can help to make processes more efficient and reduce resource consumption and emissions.