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Deutsche Telekom gears up to implement new strategy

October 2004

Europe’s largest telephone company has assigned 60 full time staff to implement a sustainability strategy for its four main operating divisions.

Deutsche Telekom spent nine months devising the strategy, and now has 50 people in its divisions detailed to ‘make it live’.

The 50 working in environmental and sustainability units within the divisions are currently writing action plans and putting the systems in place that are needed to implement the strategy. The remaining ten are in a recently expanded corporate sustainability and citizenship unit at group headquarters in Bonn, and will oversee implementation.

A ‘sustainability day’ for senior executives last month focused on the group’s social and environmental impacts.

The strategy sets out eight general aims, including to:

enhance trust through honesty and transparency
develop ‘sustainable services’
promote resource efficiency and climate protection
overcome the digital divide.

Each of the divisions – T-Com, T-Mobile, T-Online and T-Systems – as well as group headquarters is to devise its own plan for implementing the strategy framework. They are however likely to pursue common approaches in some areas: for example, T-Com has said it will build strategy goals into managers’ individual targets and the other teams are expected to follow suit.

Head office is devising indicators which will be used to monitor the progress of each division from next year.

The German group, which recently reported half-yearly turnover of €28.4billion ($34bn, £19bn), says the strategic priorities are expected to be work-life balance for staff, restricting customer access to illegal internet content, and developing products and services that benefit society.

Environmental objectives will also be given a high priority. In a rare example of a company publicly accepting the case for addressing climate change, the strategy recognizes what it calls ‘the scientific proof and multiple indicators of climate change caused by man’. It adds that Deutsche Telekom will help tackle the problem through better resource use and alliances with NGOs and governments.




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