Telefónica, a telecommunications company known for brands such as O2 and Movistar, has released its 2023 sustainability report, outlining its progress and strategy towards its sustainability goals.
The report details the Spanish multinational’s three-pronged approach of “building a greener future,” “helping society thrive,” and “leading by example.” This is then broken down further into the more commonly known environmental, social, and governance factors, all of which fall in-line with the UN’s Sustainable Development Goals (SDG).
According to the report, Telefónica is on track to reach its SBTi-verified goal of net zero by 2040. In 2022, the company confirmed it had achieved its goal for scope 1 and 2 emission reduction, marking an 80% reduction compared to 2015 levels, seven years ahead of plan.
This reduction in overall emissions can be attributed to an increase in renewable energy use across the business, which the company says in 2022 accounted for 82% of global energy needs, with the goal to reach 100% by 2030. Notably, its Europe, Brazil, Peru & Chile branches have already reached this target.
Scope 3 emissions, which are the hardest to reduce, saw a reduction of 32% compared to 2016 levels, a further reduction of 5% from the year before. To reach its interim goal, these indirect emissions will need to hit 56% from baseline levels by 2030, which the company plans to do through tackling value chain emissions by tagging high-risk suppliers and working with them to implement remedial measures.
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After around 18,600 audits conducted to examine suppliers in 2022, Telefónica tagged 768 as high risk based on several considerations, while the vast majority of suppliers seem keen to fall in line with expectations, six suppliers were blacklisted for failing to take expected action.
Elsewhere in the report, social and governance factors saw improvements, with a continued reduction in the pay gap and an increase in new skills or reskilling programmes. However, one data point that remained the same year on year was the percentage of women found in the board of directors (33%). Although this saw a rise from 18% in 2018.
In a letter from the chairman, José María Álvarez-Pallete said “Telefónica is poised to play a leading role in the new era. Connectivity and digitalisation are the cornerstones of the present and the future. Cooperation, values, and innovation are the essential elements to enable us all, side by side, to build an era of peace and progress.”
About Telefónica
Telefónica is a Spanish multinational telecommunications company headquartered in Madrid, Spain. It is one of the largest telephone operators and mobile network providers in the world, with over 383 million customers in Europe and Latin America.
Telefónica was founded in 1924 as the National Telephone Company of Spain. It was privatised in 1997 and listed on the Madrid Stock Exchange. The company’s core business is providing fixed and mobile telephony, broadband, and subscription television services. It also offers a range of digital services, such as cloud computing, security, and advertising.
