The analyst firm STL Partners compares 45 companies in the Telecoms Sustainability Scorecard, according to the maturity of their sustainability initiatives, using seven key criteria.
According to the scorecard, Telefónica has “the best global performance” in terms of ESG maturity and stands out in particular in terms of sustainability reporting, green finance, CO₂ emissions reporting and commitment to diversity and inclusion.
The ranking examines the information given in the companies’ most recent annual reports, with a special focus on understanding the sustainability commitments, targets and incentives companies are adopting to motivate their employees to embed sustainability as a priority in their day-to-day work.
Telefónica: the best overall performance in the sector
STL Partners discusses Telefónica’s 20 years of evolution on the road to sustainability: since the creation of its first environmental team in 2001, the operator has developed sustainability gradually using a global approach and with the participation of all teams. The first step was the creation of the Climate Change Office in 2007, which included senior representatives from Operations, Procurement and Social Responsibility.
The analyst firm indicates that Telefónica’s target to be net zero “is among the most ambitious in the industry.” It was the first Telco to issue green bonds and one of the first companies to audit the environmental benefits of its B2B services.
Similarly, the scorecard highlights Telefónica’s reporting on both emissions and gender inclusion.
Commitment to diversity and inclusion
Telefónica has been committed to diversity and inclusion since its inception. In the latest years, it has set very ambitious targets, some of which are linked to the variable remuneration of its employees “Its reporting places a firm focus on gender, specifically women in the workplace,” says STL Partners. Women represent 38% of its total workforce, 29.5% of its executive positions and 33.3% of its Board of Directors.
Telefónica aligns its work with the SDGs since it considers that connectivity and digital solutions are essential in achieving more than half of its goals