Investors pay attention not only to financial performance metrics when selecting stocks, but also to ESG criteria: that is, they consider how a company acts in the areas of environmental (E), social (S) and governance (G). In order to create transparency for financial market participants, we have our sustainability performance assessed by external rating agencies. We also incorporate ESG criteria into our own investments. When it comes to taxes, we rely on transparency and trust vis-à-vis the tax authorities.
Our approach
As a public limited company, we are dependent on the capital market and the financial market participants. We want to respond to this target group in a forward-looking and transparent way. To this end, we map our performance using environmental, social and governance indicators, participate in ratings and rankings, and regularly participate in investor dialogues. We also take environmental, social and governance aspects into account in our own financing decisions – for example when making capital investments or investing in research and development initiatives.
Our focus areas in sustainable finance:
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Climate protection
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Circular economy
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Artificial Intelligence (AI) and ESG
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Social aspects (e.g., equal treatment, fair pay)
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Corporate governance
The T-share in sustainability ratings
For more than two decades, we have been successfully participating in various ESG ratings with our share (T-share). The ratings we select depend on their financial market relevance, independence, analysis quality and the strategic relevance of the results. If Deutsche Telekom receives a good ESG rating from rating agencies, the T-share will be listed in corresponding sustainability indices on the financial market.
In 2025, the T-share was again listed in important sustainability indices. These included the Climate A list and CDP’s classification as a “Supplier Engagement Leader”.
Listings of the T-share in sustainability indices or predicates
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Successfully listed in index |
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Rating agency |
Indexes/ratings/ranking |
2025 |
2024 |
2023 |
2022 |
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CDP |
STOXX Global Climate Change Leaders |
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Supplier Engagement A-List |
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MSCI |
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EMU Climate Action Index |
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ISS-ESG |
Prime Status (Sector Leader) |
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Bloomberg |
Gender Equality Indexc |
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ESG “Leading” status |
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Sustainalytics |
STOXX Global ESG Leadersa |
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STOXX® Europe ESG Leaders 50 Index |
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DAX ESG Target |
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FTSE Financial Times Stock Exchange |
FTSE4Good Index Seriesa |
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T‑share in sustainability-oriented investment strategies
Investment products in the area of SRI (Socially Responsible Investments) consist of securities of companies that are successfully screened according to ESG criteria. The development of demand for the T-share in this investment category serves as an indicator of how our sustainability performance is perceived by investors.
The ESG KPI “Sustainable Investment” indicates the proportion of T-shares held by institutional investors with SRI investment intentions. As of December 31, 2025, this stake was around 29.3 % of T-shares (Source: Nasdaq).
KPI „Socially Responsible Investment (SRI)”
in %
ESG criteria for investments
We want to make our investments financially attractive and at the same time in line with ESG criteria – both for funds that we invest as an investor and for bonds that we use to raise debt capital for investments. To this end, the Corporate Responsibility and Treasury (financial management) divisions regularly evaluate sustainable and attractive financing models.
Since 2019, Deutsche Telekom’s capital investment (the so-called DT Trust) has been based on ecological and social standards. DT Trust is guided by the criteria of the National Pension Fund of Norway (“Norges”). In doing so, we exclude, among other things, companies that violate human rights, produce banned weapons such as nuclear weapons, or whose core business is considered harmful to the environment.
Our commitment to research and development
As a future-oriented telecommunications company, we work closely with universities, other industries and partners and also participate financially in innovations, including a focus on AI. Here is a selection:
For more insights into specific AI use cases at Deutsche Telekom, please visit our
websiteTogether with Nvidia, we started building an industrial AI cloud (“AI factory”) in Germany in the year under review and developed a partner ecosystem with companies and research institutions for this purpose. You can find out more about the AI factory under Energy here in the CR report.
At the end of 2025, we announced a multi-year collaboration with OpenAI to be able to offer advanced AI applications in Europe. In close cooperation, we will design new AI-powered products and expand communication options for customers. The first pilot projects started in the first quarter of 2026.
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As part of the Global Telco AI Alliance, we agreed in 2024 together with international partners to establish a joint venture to develop telco-specific, multilingual Large Language Models (LLMs) for applications such as digital assistance and customer service solutions.
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Climate change increases the risk of heavy rainfall events. Together with the software specialist Spekter, we have developed an IoT-based early warning system for cities and municipalities that collects precipitation and water level data and is intended to inform the population and emergency services at an early stage in the event of critical developments.
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Together with companies from the high-tech, hardware and chemical sectors, we have developed an approach to reuse components from old equipment for the production of new equipment. A first prototype is the NeoCircuit router: It uses central electronic components from old smartphones. More details about the router can be found here in the CR report under Circular economy.
Further information on our innovations can be found in the Annual Report 2025.
Managing taxes transparently
Deutsche Telekom AG and its Group affiliates companies comply with applicable tax regulations in all countries and territories in which they conduct business. This means that tax compliance requirements are met in the respective countries and taxes owed are paid properly.
Group Tax and local tax functions ensure that the Group affiliates companies have an efficient tax structure within the framework of German and foreign tax laws as applicable in each country. In the view of Group Tax, it is essential to cooperate transparently and trust-based with local tax authorities to achieve sustainable tax efficiency, for example, in connection with operationally advisable company reorganizations.
In addition, the aim of the tax strategy developed by Group Tax is to contribute as much as possible to the success of Deutsche Telekom’s operations, e.g., by providing detailed advice regarding new business models or innovative technological developments. In particular any unresolved issues related to tax law are clarified directly and practical solutions to meeting all applicable tax requirements are provided.
This tax strategy (incl. tax policy) – “Tax Compliance, Sustainable Tax Efficiency, Tax as Valued Business Partner” – has been approved by the Deutsche Telekom AG Board of Management.
For detailed information on the work of Group Tax, its principles, and its responsible approach to taxation, please refer to the detailed document “Tax Strategy.”
Further information with regard to taxation of Deutsche Telekom
Additional information with regard to such taxes – for example, about our country-based reporting, and additional details about tax rates – is provided in the documents on Country-by-Country Reporting and the Cash Tax Rate Reconciliation.
For some years now, Deutsche Telekom has determined “Total Tax Contribution” figures for our key national companies in the telecommunications sector. This specialized approach and further information are explained in the document on Total Tax Contribution. These reports will also be prepared and published in the coming years.
Looking ahead
In the future, we will continue to have the T-share evaluated in sustainability ratings and rankings and take ESG criteria into account in our investment decisions. We want to further intensify the dialogue with investors, analysts and relevant initiatives in order to exchange best practices, address expectations at an early stage and contribute to the further development of standards in the capital market.
Deep Dive for Experts
Management & Frameworks
Deutsche Telekom is guided by the EU Sustainable Finance Disclosure Regulation (SFDR). It primarily applies to financial companies that are required to incorporate sustainability factors into their investment decision-making processes and collect corresponding data on the sustainability impact of their investments. However, companies outside the financial sector are also affected. For this reason, we have tabled the most important potential adverse impacts (PAIs) on sustainability aspects for our investors and financial service providers. In view of the ongoing review and possible revision of the SFDR at EU level, we closely followed regulatory developments in the year under review in order to be prepared for future requirements at an early stage.
The EU Taxonomy Regulation aims to promote investment in companies that are responsibly managed and engage in environmentally sustainable economic activities. Its goal is to create a uniform understanding of sustainable activities and investments. Currently, the EU Taxonomy does not include criteria for the economic activity “Provision and operation of electronic communications networks and services”, which is the essential part of our business model. Therefore, we have not yet been able to demonstrate our contribution to climate protection in the area of network expansion and operation for fixed networks and mobile communications within the framework of the EU Taxonomy. Consequently, we welcome the easing of reporting requirements for companies whose business activities are not significantly covered by the EU Taxonomy, which has been in force since January 2026. In line with the materiality thresholds set out in the Omnibus Regulation, we have refrained from reviewing our taxonomy-eligible economic activities, which together account for only 2.5 % of our revenues and 1.6 % of our investments, for taxonomy compliance in 2025. In addition, we have refrained from disclosing taxonomy-relevant operating expenses for 2025, as these are not material to our business model. We are closely monitoring a possible expansion of the EU Taxonomy to include additional economic activities in order to prepare for the fulfilment of new regulatory requirements at an early stage. Detailed information on the EU Taxonomy can be found in our Sustainability statement 2025.
Relevant Standards
Task Force on Climate-related Financial Disclosures (TCFD)
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Key metrics for measuring and managing climate-related opportunities and risks
More about taxes
Net value added
In the year under review, we recorded a net value added of EUR 62.2 billion. The year-on-year decline (EUR 65.2 billion) is mainly due to significantly lower repayments to investors. In contrast, payments to employees increased. The increase is mainly due to the United States operating segment, due to higher average headcount and higher restructuring expenses. In the Germany operating segment and the Group Headquarters & Group Services segment, lower headcount had a negative impact on personnel expenses. Overall, investments in intangible assets and property, plant and equipment were at the previous year’s level. In the case of intangible assets, capital expenditures decreased due to the high level of investment in spectrum licenses in the previous year. Investments in property, plant and equipment, on the other hand, increased due to further network modernization and network expansion (broadband, fiber-optic and mobile communications infrastructure).
Net value added
In contrast to the income statement, only actual cash flows are included in the net value added account. This means that, for example, deferred tax expenses and the recognition of provisions do not affect the net value added in the reporting year. Although these expenses reduce the consolidated net income in the income statement, they are not associated with a payment to a stakeholder group, as is the case with net value added. The payments for this will only be made in the future and can therefore only be taken into account in the net value added in the following years.