Telefónica is for the fifth consecutive year among the companies included in CDP’s Supplier Engagement Leaderboard for its engagement with suppliers on a global scale to extend climate change measures in its supply chain. CDP is a non-profit organisation that manages the global environmental disclosure system for companies, cities, states and regions.
This recognition values Telefónica’s responsible management of its value chain, requiring and training them to apply high sustainability standards – similar to its own – in their activities. The telco is, together with Telefónica Brazil, one of the 24 telcos on a list of more than 450 companies, among which there are only 20 Spanish companies.
Among the milestones for 2023, Telefónica has managed to reduce CO2 emissions in its value chain by 31% compared to 2016, the most relevant of which are in scope 3 (64%). Thus, the telco is on track to achieve zero net emissions by 2040.
Maya Ormazabal, Director of Environment and Human Rights at Telefónica, explains that “sustainability in the supply chain is a priority for the company. That is why, year after year, we intensify our collaboration with suppliers and ask them to make a greater commitment to reducing their carbon footprint. Our goal is to reduce CO2 emissions in our value chain (Scope 3) by 56% by 2030 compared to 2016 and we cannot do this without the support of our suppliers.
For Simon Fischweicher, Director of Supply Chain and Reporter Services, CDP: “As a Supplier Engagement Leader, Telefónica is demonstrating supply chain leadership, a prerequisite for the transition towards a net-zero, nature-positive future”.
Telefónica has a Supply Chain Sustainability Policy that includes compliance with various environmental criteria. These include the following:
- It requires 100% of its suppliers to accept Telefónica’s Supply Chain Sustainability Policy, which includes requirements on emissions reduction.
- It has invited some 180 suppliers, accounting for around 90% of supply chain emissions, to provide climate data through CDP Supply Chain in order to offer them tailored training based on their climate maturity, in Telefónica’s Supplier Engagement Program.
- As part of its decarbonisation strategy, Telefónica has implemented a new climate mandate requiring key suppliers to set science-based decarbonisation targets validated by SBTi.
- It collaborates in the Carbon Reduction Programme, together with other telcos, to identify the most carbon-intensive products purchased from common strategic suppliers and identify potential emission reduction actions through a life cycle analysis.
- It incorporates TCO – total cost of ownership – emissions, energy and circularity criteria in all its purchases.
This Policy is part of its Climate Action Plan to reduce its CO2 emissions and as a facilitator of the decarbonisation of the economy. For this reason, it has been recognised, for the tenth consecutive year, as a global leader in transparency in performance for its action against climate change, by forming part of the ‘A List’ drawn up by CDP.
