Telefónica cuts emissions from its operations by 80%

This is a machine translation of Telefónica's press release

Madrid, March 23, 2023- Telefónica has reduced CO2 emissions in its operations (scopes 1 and 2) by 80%, since 2015, by introducing more efficient technologies, as well as by the use of renewable energies in the 100% of its facilities in Europe, Brazil, Chile and Peru. In this way, it has achieved the objective set for 2030 8 years in advance, as indicated in its 2022 Consolidated Management Report.

With the achievement of this and other objectives, the Group meets its goals in 2022, strengthens its ESG (Environmental, Social, Governance) commitment, aligned with the principles of the United Nations Global Compact and the Sustainable Development Goals (SDGs), and is prepared to face new challenges as opportunities for growth.

“We are living in extraordinary times, marked by the need to accelerate the digital, energy, green and educational transitions, among others. These transformations go hand in hand and are supported by powerful technologies -Internet of Things, artificial intelligence, metaverse, web3 and, especially, telecommunication networks-”, affirms José María Álvarez-Pallete, president of Telefónica. And he continues: “Digitalization centered on people helps us to progress while respecting the limits of the planet. Telefónica's mission to 'make our world more humane, connecting people's lives' is not just an inspiring principle, but a transversal company commitment to sustainability”.

More green

Telefónica aligns its commitment to the planet by influencing the environmental SDGs (7, 11 and 13), decoupling its growth from the environmental footprint and helping to decarbonise the economy.

To help limit the increase in global temperature to 1.5ºC, and a decade ahead of international agreements, Telefónica has set out to achieve zero net emissions by 2040, including its value chain, being the first telco to validate it by Science- Based Targets initiative (SBTi) under the new Net-Zero standard. Thus, the total reduction in emissions including the three scopes stands at 45% in the last seven years.

This objective is not only compatible with the expansion of the network and the quality of the service, but also allows Telefónica to be more competitive. Thanks to the implementation of more than 100 energy efficiency and management projects, the company has managed to reduce energy consumption by 7.2% compared to 2015, despite the fact that the traffic managed by its networks has increased 7.4 times.

82% of Telefónica's global electricity consumption comes from renewable sources, with the goal of reaching 100% by 2030.

To contribute to the digitization of its customers, Telefónica, as an integral partner of numerous companies, offers its Eco Smart solutions in order to contribute to decarbonizing the economy. Thanks to the efficiencies generated by connectivity and digital services, it helped them avoid 81.7 million tons of CO2 in 2022.

The strategy and actions implemented allow the telco to continue leading this matter and form part of List A of the CDP Climate Change index, in which it has been present for nine consecutive years.

In addition, the company works to be a Zero Waste company in 2030 through ecodesign, purchasing with circular criteria, reuse and recycling. In 2022, Telefónica recycled 98% of its waste and reused 4.4 million electronic equipment from operations, offices and customers.

more inclusive

As a global telecommunications operator, Telefónica focuses its fundamental action on SDG 9 by deploying sustainable, resilient, and quality infrastructures and services with the aim of connecting the largest number of people who can benefit from the advantages of digitization. Following the main international frameworks, in recent years the Group has demonstrated an annual contribution of at least 95,000 million euros to the Sustainable Development Goals (SDG).

Telefónica has continued to maintain the first position in the world ranking in FTTH deployment (except China) with a total of 168.1 million UUII passed as of December 2022, 5% more than in the same period of the previous year, of which a total of 64.5 million (+16%) pass through the company's own network.

The Group has 383.1 million accesses worldwide, which represents a year-on-year growth of 3.8%, and broadband coverage of 80-99% of the population in rural and remote areas in its main markets .

In 2022, Telefónica contributed 45,978 million euros to the GDP of the key countries in which it is present and 7,669 million euros in total tax contribution. In other words, for every 100 euros of turnover, 19.2 are allocated to the payment of taxes.

In addition, the company is a driver of progress and job creation in the areas in which it operates. It generates almost 100,000 direct jobs and more than one million additional jobs indirectly and induced, in such a way that for each person on the payroll, an additional 9.8 jobs are created in the countries in which it operates. In addition, it contributes to the strengthening of local economies by supporting key sectors with 83% purchases from local suppliers, 57% SMEs.

Telefónica is aware that having access to the Internet is not enough, but that it is necessary to address the digital divide, guaranteeing inclusion through training in digital skills and programs that promote employability. To this end, Telefónica and its Foundation offer different projects registered in its global Innovation and Talent Hub, such as the new Universitas campus, its corporate university, Escuela 42 or Conecta Empleo.

For Telefónica, diversity and inclusion management is essential to attract and retain talent, talent without labels. For this purpose, in 2022 a new corporate objective was approved, which will mean doubling the number of people with disabilities on the workforce by 2024. to gender equality, in 2022 it reached 31.3% of female managers and reduced the adjusted wage gap to 0.7%, reaching the target set throughout the Group for 2024, which was +/-1%.

The company, which has carried out a human rights/environmental impact assessment following the new due diligence requirements at the national/European level, has obtained numerous awards for these advances, such as being part of the Bloomberg Gender-Equality Index for the sixth consecutive year. o Being the first company in the world in the digital technology (ICT) sector for its commitment and initiatives to promote digital inclusion according to the World Benchmarking Alliance.

more exemplary

Telefónica is aware of the importance of following the best good governance practices. The ethical and compliance culture is led and promoted from the highest level of the Group with a firm commitment to zero tolerance for corruption. More than 91,000 employees completed the new Responsible Business Principles course in just six months.

Attention to the protection of digital rights has led it to lead the Digital Rights Ranking for the third consecutive year. In the same way, the telco requires 100% of its suppliers to carry out their activity applying high sustainability standards similar to theirs.

The Group has been working for years to align environmental and social sustainability with financial sustainability. Thus, sustainable financing has already reached 27% of the Group's total, which is why the company has set the new objective of placing it between 30 and 35% of the total in 2024.

During 2022, the main sustainability analysts in the market have considered Telefónica as one of the companies in the sector most committed to ESG, improving the ratings received, among others, by Sustainalytics and MSCI.

For more information: Consolidated Management Report 2022