Sustainable Financing Framework 2023

Telefónica is a pioneer in sustainable financing and stands out for the volume and diversification of its financial instruments. In 2019, it was the first company in the telco sector to issue a green bond for an amount of €1 billion. Also, in 2020 the company issued the first green hybrid amounted to €500 million and in 2021 it launched the sector’s first sustainable hybrid, amounting to €1 billion.

The Sustainable Finance Framework demonstrates Telefónica’s commitment to sustainable practices.

Update on the sustainable financing framework

As part of Telefónica’s Financing strategy, Telefónica published its first Sustainable Financing Framework in 2018, which was subsequently updated both in January 2021 and most recently in July 2023, with the aim of continuously meeting market best practice and investor expectations. Each update of the framework has received a positive Second Party Opinion from Sustainalytics.

The last version of the Framework has been outlined in line with the 4 pillars of the ICMA Green Bond Principles and Social Bond Principles dated June 2023, the recommended External Review Component as well as the LMA, APLMA, and LSTA Green Loan Principles and Social Loan Principles, both dated February 2023.

Key highlights on the update

• Green eligible projects to improve the energy efficiency of networks, based on the transformation and modernisation of telecommunications networks, with a focus on high-speed fixed and mobile networks, will continue.
• The ‘Renewable energy’ category is expanded to include long-term power purchase agreements (PPAs).
• For social eligible projects, socially vulnerable areas are now included in the category of inclusive connectivity with the aim of broadening the social impact of network deployment in these areas.
• The look-back period for eligible projects financed is extended from 24 to 36 months before the issuance of the financial instrument.

The Sustainable Finance Framework demonstrates Telefónica’s commitment to sustainable practices and the use of green and social financing instruments to deliver next-generation connectivity and new digital services that also contribute to Sustainable Development Goals (SDG).

You can fins the complete on our website Sustainable Finance.

Read the last updated of Telefónica’s Sustainable Financing Framework in the link below: