Telefónica annual Climate Action Plan 

There is no doubt that climate change is one of the major challenges we face today, as warned by the Intergovernmental Panel on Climate Change (IPCC) in its 6^th assessment report. Telefónica is fully aware of its role as a driver of change in the economy and in society through digitalisation and digital services as solutions which help decarbonisation of other sectors. However, Telefónica must first lead by example and reduce its carbon emissions, both direct and value chain ones.

For this reason, in 2020, recognising the urgency of reducing CO₂ emissions, Telefónica ramped up its climate ambition and announced new Energy and Climate Change targets for 2025, 2030 and 2040, aligned with the 1.5ºC scenario of the Paris Agreement and validated by the SBTi. In 2022, Telefónica reinforced this commitment by becoming the first telecommunications operator in the world to have its 2040 net zero emissions target validated by the SBTi initiative.

To guarantee compliance with its short-, medium- and long-term targets, Telefónica published in 2022 its first version of the Climate Action Plan which has been integrated into Telefónica’s governance model and its annually approved by the Board of Directors. Now, we are presenting the third version of this document.

The Climate Action Plan defines the strategy and objectives, based on science, that will guide our company towards a decarbonised economy

As such, the Plan includes GHG emissions accounting, the implementation of specific actions with verifiable indicators and the definition of oversight and accountability responsibilities within the organisation. The plan not only defines key actions in Telefónica’s operational model, but also in its commercial, supply chain and financial strategies.

Scope of the Climate Action Plan

The Climate Action Plan is global, affecting all Telefónica’s legal entities. It is also transversal, involving the different global areas that implement the actions defined in the different models of the Plan. Moreover, variable remuneration is partially linked to the fulfilment of the emission reduction targets.

Telefónica was the first telco with Net Zero targets validated by SBTi

Risks and opportunities

Telefónica analyses the climate-related risks and opportunities in accordance with the recommendations of the TCFD. The analysis helps to build climate change into long-term business decisions, seeking to minimise risks and maximise opportunities.   

The identification of the risks and opportunities linked to climate risk has been the starting point for the definition of Telefónica’s decarbonisation strategy, which is articulated in models with specific actions through which the main risks and opportunities are addressed.

Our journey to net zero

These are the main emission reduction targets of Telefónica:

By 2025:

• We will reduce 90% of our scope 1 and 2 emissions in our main markets and we will neutralise the remaining 10% (unabated emissions).
• We will reduce 39% of our scope 3 emissions.

By 2030:

• We will reduce 90% of our scope 1 and 2 emissions. 
• We will reduce 56% of our scope 3 emissions.

By 2040:

• We will achieve net zero emissions by reducing 90% of our emissions(scopes 1, 2 and 3).
• Neutralising 100% of our unabated emissions.

Key components of the Climate Action Plan 

Telefónica’s Climate Action Plan is built up of 5 key models to achieve the short-, medium- and long-term targets.

The operational model seeks to optimise Telefónica’s internal processes to reduce Scope 1 and 2 emissions and neutralise unbated emissions. It uses strategic levers, such as the efficient transformation of telecommunications networks and Telefónica’s Renewable Energy Plan, Energy Efficiency Plan and Emission Neutralisation Plan.

The value chain model aims to reduce Scope 3 emissions through suppliers and manufacturers engagement and by implementing eco-design and circular economy criteria in procurement processes.

Focusing on the enablement effect of digitalisation for other sectors, the commercial model, helps to reduce the emissions of B2B and B2C customers through connectivity and digital solutions and to make the twin Digital & Green Transition more visible.

Finally, the economic model comprises the financial analysis of climate change, the sustainable finance model, and the internal carbon pricing as decision-support drivers.

These four models are included within Telefónica’s governance model, which seeks to communicate its strategy transparently and avoiding greenwashing, commit all levels of the organisation in the achievement of climate change targets and influence society by establishing partnerships with its most significant stakeholders.

You can see the complete Climate Action Plan in the following document: