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 maintains specific energy and climate change targets for 2030 and 2040, as well as strategic decarbonisation levers aligned with the 1.5°C trajectory.  These objectives are also aligned and integrated into Telefónica’s  2026-2030 Sustainability Plan, the Company’s environmental, social and governance roadmap for the coming years.

In 2022, Telefónica further strengthened its commitment by becoming the first telecommunications operator in the world to have net-zero targets validated by the Science Based Targets initiative (SBTi).

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, approved by the Board of Directors. Below, we present the 2026 edition of this document, whose objectives are aligned and integrated into Telefónica’s 2026-2030 Sustainability Plan.

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 2026 Climate Action Plan, with a global and cross-cutting scope, involves the different areas of Telefónica responsible for implementing the defined actions. The climate strategy is also integrated into the Company’s governance and accountability mechanisms. Currently, 20% of Short-Term Variable Remuneration is associated with sustainability objectives (ESG) aligned with the Strategic Plan and, within them, the reduction of greenhouse gas emissions represents 5% of this remuneration.

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

Since 2025, operations in Spain, Germany and Brazil have been supporting climate change mitigation activities in an amount equivalent to their Scope 1 and 2 emissions, through projects outside Telefónica’s value chain that generate greenhouse gas reduction or elimination credits. By 2025, 100% of the offset target set for these markets was met and 48,395 carbon credits were withdrawn, all from biogenic sinks. The Telefónica Group maintains its goal of reaching net zero emissions by 2040, while Telefónica Brazil has brought it forward to 2035. From those years, residual emissions will be neutralised through elimination credits, after having reduced total emissions by 90%.

Risks and opportunities

Telefónica analyses climate-related risks and opportunities following the standards defined in the Corporate Sustainability Reporting Directive (CSRD) and TCFD recommendations. The analysis helps to integrate climate change into your long-term business decisions in order to minimise risks and maximise opportunities. The assessment covers more than 100,000 physical assets and uses IPCC climate scenarios and the NGFS Net Zero 2050 scenario.  

The identification of climate risks and the opportunities associated with them is the starting point for defining Telefónica’s decarbonisation strategy, articulated around specific measures that respond to the most important ones. The analysis concludes that the economic benefits associated with climate change opportunities are almost three times higher than the costs derived from the risks.

The 2026 Climate Action Plan consolidates the adaptation model, a model that addresses both the preventive management of climate risks and the response to extreme weather events and the solution of the damage caused.

Our journey to net zero emissions

By 2025:

• Telefónica reduced Scope 1 and 2 emissions by 95.5% in its key markets – Spain, Germany and Brazil – exceeding the 90% reduction target set for that year.
• It also achieved 100% of the target for offsetting Scope 1 and 2 emissions from these markets.

Below are Telefónica’s main emission reduction targets:

By 2030:

• Reduce our Scope 1 and 2 emissions by 90%. In 2025, the reduction already reached 92.8% compared to 2015 and, considering the Group’s company perimeter as of July 2026, the Plan indicates that the operational target set for 2030 has already been achieved.
• Decrease our Scope 3 emissions by 56%. In 2025, the reduction reached 28.2% compared to 2016, so the decarbonisation of the value chain continues to be one of Telefónica’s main climate challenges.

By 2040:

• Reach net zero emissions by reducing 90% of our emissions (Scopes 1, 2 and 3).
• Neutralize residual emissions annually (remaining 10%).

Key components of the Climate Action Plan 

The 2026 Climate Action Plan is articulated in six models that cover the main areas of the organisation and guide Telefónica’s climate action in the short, medium and long term:

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. In 2025, energy consumption per unit of traffic improved by 92% compared to 2015.

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 goal is to have more than 5,000 critical assets with individualized climate risk calculation by 2030.

The value chain model seeks to reduce Scope 3 emissions through collaboration with suppliers and manufacturers and the implementation of circular economy criteria and the promotion of equipment reuse models.

The business model, focused on the enabling effect of digitalization 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. In 2025, these solutions helped customers in Spain, Brazil and Germany avoid 19.2 million tonnes of CO₂.

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 modernization projects. At the end of 2025, sustainable financing accounted for 40.7% of the Group’s total financing, with €20,490 million linked to sustainability criteria.

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, including reducing GHG emissions, and promotes training to build a culture of climate action.

These six models are articulated in an integrated way in Telefónica’s climate strategy, 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 progress made in 2025, including meeting the operational emissions reduction and offsetting targets set for that year, allows us to raise ambition and accelerate the transition to the low-carbon economy, while accompanying our customers and suppliers on their own journey to a more sustainable future.

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