Socioeconomic Contribution Report

Over the last ten years the practice of measuring the environmental, social and economic impact of the company’s activities has become increasingly important.

Since 2019, at Telefónica we have initiated a series of studies, researching the social and environmental footprints across our main operational regions, including Spain, Germany, Brazil, and Hispam.

The contribution report builds on the economic, social and environmental impact assessments and quantifications of our activities and operations.

The results of this report are truly relevant and strategic because they help us to include sustainability criteria to our decision-making, improve our management and create valuable services and products.

In 2022, Telefónica generated a positive contribution of over €100 billion in the regions in which it operates.

On the other hand, the study improves our engagement with our stakeholders, because these insights allow them to fully understand our contribution to the communities and environment.

Contribution to key pillars

There are four strategic pillars we use to classify our impacts:

1. Economic contribution:

   Takes into consideration 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 incurred that enable public administrations to provide services for society.

2. Social contribution – human capital:

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

3. Social contribution – digital inclusion:

   Examines the social benefits arising both from the service offered to our customers, through connectivity and digital solutions, and from digital skills training initiatives that enable people to use new technologies responsibly and ensure that these new technologies are as useful as possible for society.

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

• Contribution to the environment:

  Monetises the environmental impact caused directly or indirectly by the business conducted by our Company. This allows us to assess the contribution of digital services towards the decarbonisation of the economy and the protection of biodiversity in the regions in which we operate.

Methodological lines

To measure and monetise the 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.

By analysing our externalities, we can learn more about the effects we have on society and the environment, and this helps us improve our product innovation and decision-making processes.

Our goal is to continue working to extend impact analyses to all organisation’s production processes and to further improve the robustness of our calculations.

Read the complete contribution report in the following link: