Telefónica’s ESG KPIs in 2023

Telefónica´s 2023 ESG KPI report has been prepared for informational and illustrative purposes. In it, Telefónica has set out its main ESG target and indicators in terms of the environment, the circular economy, digital inclusion, human capital, diversity and inclusion, and professional development, among other aspects.

For instance, Telefónica has set itself the goal of achieving net zero emissions by 2040, including the value chain, while from a social perspective our target is to increase the percentage of management positions held by women to 37% by 2027.

The report also shows Telefónica’s contribution to GDP and employment in various countries, as well as its investment in R&D. For example, in 2023, Telefónica’s total contribution to GDP was €49 billion in our main markets, and with regard to employment more than 10 jobs were created per Telefónica employee.

By way of summary, here are some key points:

• By 2023, we had reduced our Scope 1+2 carbon emissions by 81% since 2015 and our Scope 3 emissions by 31% since 2016.
• We avoided 86.1 million tonnes of CO₂ in customer emissions, thanks to our connectivity and our digital products and services.
• 97% of our waste is reused and recycled.
• We reduced total water consumption by 12.8% compared to 2022.
• We had 104,132 employees globally in 2023.
• The level of commitment from our employees increased by seven points, with the eNPS rising to 76 in 2023.
• We continued to increase the satisfaction level of our customers, achieving an NPS (Net Promoter Score) of 31 which is an improvement of over 10 points since 2017.
• We have been the leaders in digital inclusion according to the World Benchmarking Alliance since 2021, due to promoting a more inclusive economy and society.
• We have generated an annual positive impact on our environment and society of +over €100 billion.
• In 2023, we launched ESG Academy, a training initiative aimed at Telefónica’s entire workforce.
• We are in the leading position for digital rights in the scorecard from Ranking Digital Rights.
• In 2023 we requested our key suppliers to set science-based decarbonisation targets validated by SBTi.

At the end of 2023, 33.6 % of our financing was linked to sustainability criteria, representing an increase of 6.3 points compared to 2022.

As a Company we are firmly committed to fostering a more respectful world, which is why we base our actions on three fundamental pillars: Environment, Society and Governanve (ESG).

Environment

At Telefónica, we work at all levels of the organisation to minimise our impact on the environment and to decouple business growth from our environmental footprint. We are firmly committed to reducing our environmental impact and to contributing to a more sustainable future. In this regard, we focus on the following areas: energy and climate change, the circular economy, and biodiversity, water and other environmental aspects, as well as digital solutions for the green transition.

Thus, we strive to reduce our CO2 emissions, increase energy efficiency and drive the circular economy by reducing waste and promoting recycling and reuse. In addition, one of our goals is to use digital solutions to facilitate the green transition.

Society

Telefónica contributes to the socio-economic development of the regions in which it operates, ensuring that no one is left behind. We focus on four main areas: human capital, digital inclusion and human rights, customers, sustainable offering and innovation and contribution and impact on communities.

Our goal is to develop our human capital, promote digital inclusion and human rights, drive sustainable innovation, and have a positive impact on the communities we serve.

Governance

Telefónica is dedicated to maintaining high standards in governance through its actions and policies. We focus on four main areas: privacy and security, ethics and corporate governance and the supply chain. Our targets are to protect customer data, uphold high standards of business ethics, ensure sustainability in our supply chain, and manage any adverse impacts of our operations, as well as ensuring that at least 40% of the financing activity meets sustainable criteria by 2026.

We also intend to uphold a high levels of corporate governance, including a diverse and independent Board of Directors.

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