1&1 : Sustainability Report 2022

Sustainability Report 2022

1&1 AG Sustainability Report 2022

1&1 in Key Figures

Details on the key economic, social and environmental figures below can be found in the individual sections of the report.

2022	2021	2020
Financial- / Business KPI
Revenue (in €m)	3,963.7	3,909.7	3,786.8
EBITDA (in €m)	693.3	711.3	468.5
Earnings per share (EPS) (in €)	2.08	2.10	1.25
Free cash flow (in €m)	-64.5	394.8	243.7
Responsible corporate management
Number of confirmed incidents of corruption	0	0	0
Participation rate for Code of Conduct e-learning course (in %)	89.3	90.5	92.3
Responsibility for Products & Customer-related Matters
Number of customer contracts (in millions)	15.8	15.4	14.8
thereof mobile internet contracts (in millions)	11.7	11.2	10.5
thereof broadband contracts (in millions)	4.1	4.2	4.3
Number of shipments by 1&1 Logistics (in million units)	6.4	6.4	6.0
Digital Responsibility
Number of reports of data privacy violations under the GDPR	25	38	33
Responsibility for our employees
Number of employees	3,163	3,167	3,191
Employee turnover rate (in %)	8.1	10.4	6.1
Management positions filled internally (in %)	66.3	70.0	71.0
Women in management positions (in %)	21.0	22.0	23.0
Hours training and education per employee	16.9	14.6	17.1
Absence due to illness (in %)	7.5	5.9	5.6
Responsibility for our environment
Energy consumption (in MWh)	14,728.3	9,628.2	9,002.5
thereof electricity consumption (in MWh)	4,404.4	4,050.3	3,300.8
Business travel and company car trips (in km million)	6.5	4.3	5.7
Recorded CO2 equivalents in tonnes	4,316.5	3,464.9	4,703.9
Cooperation with our business partners
Cost of purchaesd services (in €m)	1,715.7	1,737.6	1,929.0
Cost of purchased goods (in €m)	796.8	780.1	753.2

(1) Since the reporting year 2022, the published ratio refers to all management levels of the 1&1 Group. The previous year's data was adjusted accordingly.

Table 1

Content

• 2 1&1 in Key Figures

• 4 Foreword

• 6 Company Profile

• 8 Business Model

• 9 Outlook

• 12 Sustainability Strategy and Management

• 12 Definition of Sustainability

• 17 Relationship to the UN Sustainable Development Goals (SDGs)

• 19 Sustainability Management

• 22 Responsible Corporate Management

• 22 The basis for responsible action

• 24 Compliance and Anti-Corruption

• 26 Responsibility in the supply chain

• 26 Management Approach

• 28 Our Supply and Added-Value Chain

• 30 Assumption of Human Rights and En-vironmental Due Diligence Obligations

• 33 Cooperation with Our Business Partners

• 38 Digital Responsibility

• 38 Management Approach

• 40 Data Privacy

• 45 Information Security

• 51 Access to Digitalisation

• 56 Responsibility for Products and Customer-related Matters

• 56 Management Approach

• 58 Customer Satisfaction

• 60 Product Responsibility

• 62 Responsibility for our employees

• 62 Management Approach

• 63 Our Human Resources Strategy and HR Organisation

• 65 Develop and Promote Competencies

• 68 Diversity and Equal Opportunity

• 74 Healthy and safe at 1&1

• 78 Responsibility for Our Environment

• 78 Management Approach

• 80 Energy consumption

• 82 Material Consumption and Logistics

• 88 Employee Mobility

• 92 EU Taxonomy

• 96 Annex

• 96 GRI Content Index

• 99 Overview of the Recommendations of the Task Force on Climate-related Finan-cial Disclosures (TCFD)

• 99 About This Report

• 110 Contact

111

Legal informationKey

Internet link

Page reference

Glossary, definition

GRI [number] Reference to a GRI disclosure, see GRI content index, p. 96

Foreword

GRI 2-22

Dear Readers,

Thirty-five years ago, we laid the foundation for what is today 1&1 AG. Since that time, advances in digitalisation have changed the world at a breathtaking pace, and 1&1 has not stood idly by on the sidelines. As befits our position as one of the major German telecommunications companies and a new network operator, we are ramping up more than ever our efforts to secure a sustainable digital future.

More than 15.7 customer contracts and around 3,200 employees translate into a major corporate and social responsibility for us in this respect. Our goal is to provide services that open the door to the digital world for as many people as possible by offering secure, trustworthy and state-of-the-art access to its use.

We are drivers of innovation, and as such, we are pioneering a new technology found nowhere else in Europe during our rollout of the fourth German mobile network, a technology that fully exploits the potential of 5G and renders us the only network operator independent of dominant manufacturers such as HUAWEI. Our operation of the 1&1 Open RAN network is fully virtualised in the private cloud. The required resources will be provided by more than 500 edge data centres now under construction in the immediate vicinity of the antenna locations, connected with fibre optic lines and equipped with gigabit antennas, across all of Germany. This is the only network architecture that can offer the extremely short transmission paths that are indispensable for real-time applications. Our vision is clear: we want 1&1 Open RAN to make a noticeable difference and to contribute to the advancement of 5G in Germany.

Along with our digital responsibility, environmental and climate protection represents one of our key fields of action in which we set the highest standards for ourselves. One of the most important levers for the reduction of our CO2 emissions is the electricity consumption demanded by the operation of our networks. We have long since turned to renewable energies as the source of our electric power. Thanks to our employment of state-of-the-art energy management systems, we are able to track and optimise our energy efficiency continuously. We also implemented specific measures that would enhance even further the efficiency of our logistics operations last year - including, for example, the climate-neutral shipping of our products and the use of packaging materials made entirely of recyclable materials. With respect to our products, we stepped up active marketing of refurbished devices and further expanded our portfolio of sustainably produced smartphones in 2022.

Operating sustainably as a company has become a matter of course for 1&1. The focus is not limited to our efforts to meet without exception the demands of ever-stricter regulations. We also strive to assure the ongoing development of our fields of action that will foster more in-depth and transparent structures. Our conduct of comprehensive projects, the further professionalisation of processes and systems and the bolstering of our teams of experts in the past year all served to guarantee our achievement of these goals.

Our employees actively collaborate in shaping the digital future at 1&1 and are the foundation of our Company's success. Openness, agility and fairness are only some of the pillars of a culture that fosters and challenges our teams in equal measure.

In the coming years, we will never stop dealing intensively and critically with the changing social, eco- nomic and ecological opportunities and challenges while simultaneously taking collectively any required actions and pursuing our steady development. We look forward to an exciting future!

We want to fulfil our aspirations to operate responsibly across all business divisions as much as to attain our goal of sustainable success as the fourth network operator in Germany.

Best regards,

Ralph Dommermuth

Markus Huhn

Alessandro Nava