Telefónica’s socio-economic contribution report

Over the last decade, measuring the environmental, social and economic impact of companies’ activities has become a key factor in assessing corporate commitment to sustainability and development. Telefónica’s socio-economic contribution not only reflects its impact on the economy, but also its key role in the transition towards more sustainable models, in line with the Sustainable Development Goals (SDGs). 

According to the World Meteorological Organisation (WMO), 2024 was the hottest year on record, capping a decade of unprecedented heat driven by human activities. At the same time, the Sustainable Development Report 2024 highlights the slow progress in achieving the SDGs, underscoring the urgency of transforming current development models. 

In this context, since 2018 Telefónica has adopted the best available impact measurement methodologies to monetarily quantify our contribution to society. Our goal is to provide the capital market with the necessary information to guide its decisions and thus improve resource allocation in the global economy. 

The socio-economic contribution report is based on assessments and calculations of the economic, social and environmental impact of our activities and operations.

The results of this report are truly relevant and essential, as they help us to introduce sustainability criteria into our decision-making process, to improve our management and to create products and services of value. 

In addition, the study contributes to strengthening our relationship with the stakeholders we work with, as this information helps them to fully understand how we contribute to communities and the environment. 

Methodological lines followed by the report

First of all, it is necessary to explain the methodology used in the elaboration of the report. For the measurement and monetization of impacts, we have followed the guidelines provided by organisations such as: 

• Harvard Business School (HBS)
• Value Balancing Alliance (VBA) 
• World Business Council for Sustainable Development (WBCSD)
• Capitals Coalition

The use of these methodologies allows Telefónica to quantify its impact in a clear and measurable way, in line with the best corporate sustainability practices. 

Key results of Telefónica’s socio-economic contribution

In 2023, Telefónica’s socio-economic contribution generated a positive impact of more than 113 billion euros in the regions where it operates. Its strategic approach reinforces Telefónica’s corporate social responsibility, aligning with the UN’s 2030 Agenda to promote a more sustainable development. 

The key pillars of this impact were distributed as follows: 

• Economic contribution: +€51,600 M, promoting GDP growth and tax revenues.
• Digital inclusion +€37,700 M, facilitating access to connectivity and digital education.
• Human capital: +€18,300 M, promoting employment and equitable working environments
• Contribution to the environment: +€5,500 M, focusing on environmental impact assessment and emissions reduction.

Telefónica’s Socioeconomic Contribution: Key Pillars 

To measure its impact, Telefónica classifies its socio-economic contribution into four key pillars: 

1. Economic contribution:

   Related to the socio-economic impact generated by the Group’s activities in the main countries in which we operate (impact on gross domestic product) and the taxes borne that enable public administrations to provide services to society.

2. Social contribution – human capital:

   Refers to the impacts that affect the economic and social well-being of our employees, as well as the promotion of diversity and equality in all areas of the organisation.

3. Social contribution – digital inclusion:

   This examines the social benefits arising both from the service offered to our customers, through connectivity and digital solutions, and from digital skills training initiatives, which enable responsible use of new technologies and maximise their usefulness to society.

By bringing connectivity and digitization to more and more people in both rural and urban areas, we create value for the communities in which we operate.

• Contribution to the environment:

  This monetises the environmental impact caused, either directly or indirectly, by the activities carried out by the company. This allows us to determine how digital services contribute to decarbonising the economy and protecting the biodiversity of the regions in which we operate.

Telefónica’s socio-economic contribution as a driver of change

Analysing external factors enables us to learn more about how we influence society and the environment, which helps us to improve our product innovation and decision-making processes.

Our goal is to continue to work towards bringing these impact analyses to all production processes in the company and to make our calculations more and more robust.

The full contribution report can be found at the following link: