Deutsche Telekom: supplier collaboration for a sustainable value chain

Information taken from the Deutsche Telekom website

The CR department and Corporate Procurement at Deutsche Telekom work closely together to implement the sustainable procurement strategy. A joint working group - the Sustainable Procurement Working Group (SPWG) - was set up for this purpose in 2007.

Supplier Engagement
The goal of the working group is to ensure minimum social and ecological standards across the entire value chain. The commitment to Deutsche Telekom's Social Charter therefore applies not only to all of Deutsche Telekom's suppliers but also to their sub-suppliers. The Social Charter lays down strict, Group-wide rules relating to human rights, equal opportunities, health and safety and the right to set up and join a trade union. Deutsche Telekom carry out social audits locally to determine whether and how these rules have been implemented.

Social audit process
In the social audit, Deutsche Telekom checks working conditions and social and environmental standards directly at its suppliers' production sites. Deutsche Telekom feeds any defects that are identified in the supplier company into a corresponding correction and measures plan. This is implemented in close collaboration with suppliers within an agreed period.

E-TASC
The online supplier information system E-TASC (Electronic Tool for Accountable Supply Chains) is an important tool for sustainable procurement. The system collects all the information from the self-assessments that Deutsche Telekom obtains from its suppliers. Environmental protection, health and safety at work, human rights and fair working conditions are a central focus of the Web-based information system. Deutsche Telekom played a central role in the development of E-TASC.

Transparency and escalation
E-TASC enables the SPWG to record extensive information about the performance of the most important suppliers and about potentially risky suppliers. Information from self-assessments, audits, supplier workshops and reports from NGOs is collected in the system. This is then evaluated and made available to Deutsche Telekom's buyers. A defined escalation process is initiated in the event that suppliers refuse to provide information or eliminate defects identified or do not adhere to the schedule for implementing measures. The consequences for the suppliers concerned can extend to the partnership being terminated.

Sustainability training
Deutsche Telekom does not only demand high standards from its suppliers, it also fosters training in the area of sustainability, such as supplier workshops on energy efficiency and sustainable product development. Our supplier training strategy also includes supporting the "Switch China" project aimed at training 500 SMEs in China in the field of sustainability. We also encourage the acquisition of sustainability skills among buyers as an interface to suppliers: we launched an online training course for buyers in 2008 that almost 500 buyers have now successfully completed.

To find out more, visit the Deutsche Telekom website