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Sustainability Strategy

For Telefónica, sustainability means thinking about society and the planet and focusing the business to be part of the solution to the challenges facing humanity. Equally, being a sustainable company is critical for the future of our business.

We believe it is our duty to take advantage of the capabilities of connectivity and digitalisation, not only to bring value to our customers, but also to help tackle major challenges such as climate change, inequality, employability and misinformation.

We want to accelerate responsible digitalisation than generates a positive impact for all our stakeholders. In this way we will achieve our purpose: to make our world more human by connecting people’s lives and to become more competitive and relevant.

In fact, Telefónica integrates the main aspects of sustainability into its strategy to:

  • Transform the customer relationship: expanding our market and building customer loyalty through a new global responsibility policy and products and services that meet their social and environmental expectations.
  • Transform the operational model: decarbonising our operations and increasing efficiency through energy savings and circularity, as well as increasing our resilience and sustainable financing.
  • Transform and commit to long-term value: leading benchmark ESG ratings through excellent governance, a sound ESG culture (in the value chain as well), and diverse, qualified and committed talent.
Time and Statista has placed Telefónica in the top 10 of the most sustainable companies in the world, obtaining a score of 81.02, placing the Company as the world’s leading telco and the first Spanish company in the index.

We are pioneers in the telecommunications sector in ESG financing, with a volume of more than 21.4 billion euros

ESG Telefónica profile

Discover Telefónica ESG strategy, progress, targets and the main facts in the following presentation. If you want more information, sign up to our ESG newsletter.

*Updated in March 2025

ESG Ratings, indexes & rankings

ESG ratings, indexes & rankings are a permanent incentive to keep improving. In the last months:

  • Sustainalytics has recognised Telefónica as top-rated in its Industry in ESG for consecutive years
  • CDP has included Telefónica on the Climate Change A list for the 11th consecutive year.
  • World Benchmarking Allliance ranks Telefónica top in the sector in both the Digital Inclusion Benchmark and Social Benchmark
  • Workforce Disclosure Initiative (WDI) places us as the most outstanding telco globally for our transparency, openness and commitment to talent, with an overall disclosure score of 94%. We also received two special mentions in the Workforce Action and Value Chain sections.
  • MSCI has awarded us BBB in their ESG rating.
  • Telefónica has been included once again in the FTSE4Good index (2024) and we are the leaders in the sector.
  • Bloomberg gave Telefónica an ESG score of 6.3, placing us in the 99.5th percentile vs. the sector.

84/100

A-List

15.4

Copyright ©<2024> Sustainalytics, a Morningstar company.
All rights reserved.  


4.6/5


71.00/B

*Updated in March 2025

ESG Advance

This is how we differentiate ourselves

At Telefónica we have a code of ethics -the Business Principles– for the entire value chain, including suppliers and business partners.

In order to specify the areas of work that help us to make progress in this mission, we have a global Responsible Business Plan. The 2024-2026 plan seeks to transform customer relationships, the operating model and long-term value.

Sustainability at the highest level

Approval

Board of Directors

  • Responsible Business Principles
  • Ethical Framework in ESG policies
  • Responsible Business Plan

Supervision

Sustainability and Regulation Committee

  • Oversees, among other aspects, the implementation of the Responsible Business Plan

Audit and Control Committee

  • Oversees compliance with the regulations

Nominating, Compensation and Corporate Governance Committee

  • Oversees the variable remuneration system, which includes ESG targets, among others

Monitoring

Executive Committee

  • Monitors the business and the Responsible Business Plan, as well as other issues linked to managing the ESG targets

Global Sustainability (ESG) Office

  • Performs detailed monitoring of all the activities relating to this area

Implementation

Areas of the Company that manage sustainability

  • Implement the responsible business plan and generate and manage the quantitative and qualitative ESG indicators under their responsibility

Local Business Operations

The Sustainability and Regulation Committee of the Board of Directors (Telefónica has been a pioneer in the Ibex35 having a Sustainability Committee on its Board since 2002) approves and monitors the corporate Responsible Business Plan.

Customer satisfaction, gender equality and CO₂ reduction form part of our employees’ variable remuneration

We are transparent

The company’s annual Consolidated Report contains detailed information on our progress in the area of sustainability. The Sustainability Report is prepared in accordance with the Corporate Sustainability Reporting Directive (CSRD), the European Sustainability Reporting Standards (ESRS), and Spanish Law 11/2018 on non-financial information and diversity.

In addition, we prepare specific reports on issues which require special attention:

We are transparent

UK Tax Strategy 2024

Section 172 Companies Act 2006 statement

  • Socio-economic contribution, with our impact on society and the planet, and on the United Nations Sustainable Development Goals (SDGs).
  • Report on Transparency in Communications, detailing our commitment to the fundamental rights of privacy and freedom of expression.

Our Management and Sustainability (ESG) Report 2023 was recognised by the most important international awards:

Telefónica’s mission, strategy and progress in economic, and ESG matters.

Más información sobre Management and Sustainability (ESG) Report 2024