Telefónica’s Climate Action Plan

There is no doubt that climate change is one of the main challenges we are currently facing as a society, as the Intergovernmental Panel on Climate Change (IPCC) warns in its sixth assessment report. Telefónica is fully aware of its role as a driver of change in the economy and society through digital services and digitalisation as solutions that contribute to descarbonise other sectors. For this reason, Telefónica must lead by example, which has led to the reduction of its carbon emissions and those of its value chain for more than a decade.

To this end, Telefónica defines both energy and climate change targets for 2030 and 2040, as well as strategic decarbonisation levers, aligned with the 1.5 C temperature rise trajectory of the Paris Agreement.

In 2022, Telefónica reinforced its commitment by becoming the first telecommunications operator in the world whose net-zero emissions targets for 2040 have been validated by the SBTi (Science-Based Targets initiative) initiative.

In order to ensure compliance with its short-, medium- and long-term objectives, in 2022, Telefónica published its first edition of the Climate Action Plan, which has been integrated into the company’s governance model and is approved by the Board of Directors. The fourth edition of this document is presented below.

The Climate Action Plan defines the strategy and objectives, based on science, that will guide our company towards a decarbonised economy

Scope of the Climate Action Plan

The Climate Action Plan has a global scope, which affects all the legal entities that make up Telefónica. It is also transversal, as it involves the various global areas that implement the measures defined in the different models of the Plan. Variable remuneration is also linked, in part, to the achievement of emission reduction targets.

Telefónica was the first telecommunications operator whose net zero emissions targets have been validated by SBTi

The 2025 plan includes an intermediate compensation target for Spain, Germany and Brazil. From 2025, these companies will support activities that mitigate climate change in an amount equivalent to their Scope 1 and 2 emissions, investing in projects outside our value chain that generate greenhouse gas reduction or elimination credits. The Group will reach net zero emissions by 2040, while Telefónica Brazil brings this target forward to 2035; From that moment on, we will neutralise residual emissions through elimination credits after having reduced our total emissions by 90%.

Risks and opportunities

Telefónica analyses climate-related risks and opportunities in accordance with TCFD recommendations. The analysis helps to integrate climate change into your long-term business decisions in order to minimise risks and maximise opportunities.   

The identification of climate risks and the opportunities associated with them is the starting point for defining Telefónica’s decarbonisation strategy, which is structured around specific measures to respond to the most important ones.

The 2025 plan incorporates an adaptation model that addresses both preventive risk management and response to extreme weather events.

Our journey to net zero emissions

These are the main emission reduction targets of Telefónica:

By 2025:

• We have maintained the goal of reducing our operational emissions (Scope 1 and 2) by 90% in our main markets.

By 2030:

• We will reduce our Scope 1 and 2 emissions by 90%. 
• We will reduce our Scope 3 emissions by 56%.

By 2040:

• We will reach net zero emissions by reducing 90% of our emissions (Scopes 1, 2 and 3).
• We will neutralise residual emissions annually (the remaining 10%).

Key components of the Climate Action Plan 

The 2025 Climate Action Plan is based on six models that will guide our climate action in the short, medium and long term. We incorporated an adaptation model and reinforced our governance model.

The operational model seeks to optimise Telefónica’s internal processes to reduce Scope 1 and 2 emissions and neutralise residual emissions. It uses strategic axes such as the efficient transformation of telecommunications networks, the Renewable Energy Plan, the Energy Efficiency Plan and Telefónica’s Emissions Neutralisation Plan.

The adaptation model increases our climate resilience and reduces the economic effects of extreme events and transition risks. It combines a preventive strategy – through the improvement of infrastructures, diversification of supplies and sustainable practices – with a response strategy that activates continuity plans in the face of extreme events.

The value chain model seeks to reduce Scope 3 emissions through collaboration with suppliers and manufacturers and the implementation of eco-design and circular economy criteria in our processes.

The business model, focused on the enabling effect of digitalisation on other sectors, helps us reduce the emissions of our B2B and B2C customers through digital and connectivity solutions, as well as increase the visibility of the digital and green transition.

The economic model includes the financial analysis of climate change, a sustainable financial model, and the internal carbon price as drivers of decision-making. In 2024, more than 37% of our financing was sustainable, and we continue to issue green and hybrid bonds for efficient retrofit projects.

The governance and advocacy model integrates climate strategy at all levels of government, defines oversight and accountability responsibilities, links variable employee compensation to climate goals, and promotes training to build a culture of climate action.

These six models are integrated into Telefónica’s governance model, which seeks to communicate its strategy in a transparent way, commit the entire organisation to climate change objectives and influence society by establishing alliances with the most relevant stakeholders.

The improvements achieved in 2024 allow us to raise ambition and accelerate the transition to the low-carbon economy, while accompanying our customers and suppliers on their own journey towards a more sustainable future.

The full Climate Action Plan can be consulted in the following document: