Principles for defining the contents of the report

In order to guarantee a balanced and reasonable presentation of the Organisation's performance, the content to be included in the Report must be determined. To determine which information should be in the Report, both the experience and the aim of the organisation must be taken into account, as well as the interests of its stakeholders. Both points of reference are important when it comes to deciding content.

Materiality: The information in the Report must cover those aspects and indicators which reflect the significant social, environmental and financial impacts of the organisation or those which could exercise a substantial influence on the evaluations and decisions of the stakeholders.

External factors

Main interests/aspects on sustainable performance and indicators expressed by the stakeholders. Dialogue with stakeholders for writing of the Report and analysis of materiality with stakeholders.
Main issues and future challenges of the sector, as reported by similar companies and competitors. Use of the telecommunications sector supplement of the GRI.
Rules, regulations, international agreements or relevant voluntary agreements with strategic importance for the organisation and its stakeholders. Communication for progress of the United Nations Global Pact. Information on legal compliance in various countries.
Risks, impacts and opportunities which affect sustainability and which can be reasonably estimated. Analysis of opportunities and risks in the area of Corporate Social Responsibility, as the first phase of the CSR management model. ICT and Millennium Development Goals (MDGs).

Internal factors:

Main values of the organisation, policies, strategies, operational management systems, goals and targets. Chapter which describes Telefónica's mission and values and the Business Principles.
The interests/expectations of the stakeholders which have contributed to the success of the organisation (for example employees, shareholders and suppliers). Dialogue with stakeholders for production of the Report. Analysis of materiality carried out with stakeholders.
Significant risks for the organisation. Each chapter links Business Principles with groups and areas of interest.
Critical factors enabling the success of the organisation. "About Telefónica" chapter and description of the organisation.
Organisation's main areas of expertise and how they contribute or could contribute to sustainable development. "Spirit of Progress" chapter, in which the role of ICTs and Telefónica as a social ally are presented.

Setting out priorities:

The Report prioritises the material aspects and indicators with an executive summary of indicators, practical cases and data from the online Report.

Inclusive attitude towards stakeholders:

The group must identify its stakeholders and describe in the Report how it has responded to their reasonable expectations and interests.

The organisation can give details of those stakeholders to the relevant authorities. The whole structure of the Report is based on the priorities for each of the stakeholders.

The content of the Report is based on the results of the stakeholder inclusion and participation processes used by the organisation in its ongoing activities, as demanded by the institutional and legal framework in which it operates. The Report includes the recommendations made by the stakeholders in the various studies, surveys and dialogue panels organised by Telefónica in its dealings with the stakeholders.

The content of the Report is based on the results of the stakeholder inclusion and participation processes specifically implemented for the Report. The content of the Executive Summary is based on the results of the materiality exercise concluded with stakeholders.

The stakeholder inclusion and participation processes which contribute information on decisions relating to the Report are consistent with its focus and coverage. Dialogue on the Report in accordance with Telefónica methodology has occurred with stakeholders in Spain, Argentina, Brazil, Colombia and Peru. There have also been dialogue panels with stakeholders in the United Kingdom, Germany, Ireland and the Czech Republic in the form of on-site meetings as well as via online tools.

Sustainability context: The organisation producing the report must present its performance in the wider context of sustainability.

The Organisation presents its understanding of sustainable development and includes it in the themes dealt with by the Report, using available and objective information as well as measurements of sustainable development. Presentation of Telefónica's role as driver of financial, technological and social progress; articles on telecommunications and sustainable development and real life examples.

The Organisation presents its performance within the wider context of sustainable development conditions and objectives, as reflected in publications which are respected at the local, regional, global or sector level. The key themes of sustainable development are included (GRI, sector supplement, dialogue with stakeholders...) but not quantitative objectives and data.

The Organisation presents its performance and tries to communicate the extent of its impact and contribution in the corresponding geographical contexts. Local CSR Reports in each of the countries.

The Report describes the relationship which exists between the issues of sustainability and organisational strategy, the long-term risks and opportunities, including issues relating to the supply chain, Corporate Social Responsibility in Telefónica and its Suppliers.

Scope: The scope of the indicators and material aspects and the definition of the Report's scope must be sufficient to reflect the significant social, economic and environmental impacts and to allow the stakeholders to evaluate the performance of the Organisation producing the Report during the period to which it relates.

The Report is drawn up taking into account the complete chain of entities, both upstream and downstream of the Organisation, in the economic cycle, and it covers and prioritises information considered to be significant using the principles of materiality, the context of sustainability and the participation of stakeholders. The report considers the whole of the value chain, prioritising certain issues over others (materiality considerations).

The Report includes all the entities which are controlled or significantly influenced by the Organisation producing the report, unless otherwise indicated. Description of the scope of information included in the Report.
The information contained in the Report includes all significant actions or events taking place in the period covered by the Report, as well as reasonable estimations of future impacts of past events, so long as these impacts can be reasonably predicted, and may become inevitable or irreversible. The Report includes historical series of quantitative impact data, but it does not include projections of these series. Furthermore, companies falling within Telefónica's scope in 2008 have been considered as have some of the future changes in the relationship between Telefónica and its stakeholders.
The Report does not omit relevant information that could influence or further inform the stakeholders in their decisions and assessments, or which may reflect significant social, environmental or financial impacts.

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