Telefónica’s socio-economic contribution report

Over the past decade, measuring environmental, social, and economic impact has become key to assessing business commitment to sustainability. In this context, Telefónica’s socio-economic contribution quantifies the Group’s impact and its role in the transition to a more sustainable model, aligned with the Sustainable Development Goals (SDGs).

According to the World Meteorological Organization (WMO), 2025 was one of the three warmest years since records began, and the last eleven years were the warmest in a row. At the same time, the Sustainable Development Report 2025 indicates that only 17% of the SDG targets are progressing in line with their fulfilment by 2030.

In this context, the commitment of the private sector is key to promoting the transition towards a development model capable of facing global challenges. To drive sustainable growth, it is key to orient capital markets towards activities that favor it, integrating social and environmental impacts into investment decision-making.

In this context, since 2018 Telefónica has adopted the best available impact measurement methodologies to monetarily quantify our contribution to society. Our goal is to provide the capital market with the necessary information to guide its decisions and thus improve resource allocation in the global economy.

The socio-economic contribution report is based on assessments and calculations of the economic, social and environmental impact of our activities and operations.

The results of this report are truly relevant and essential, as they help us to introduce sustainability criteria into our decision-making process, to improve our management and to create products and services of value.

In addition, the study contributes to strengthening our relationship with the stakeholders we work with, as this information helps them to fully understand how we contribute to communities and the environment.

Methodological lines followed by the report

For the measurement and monetization of impacts, we have followed the guidelines provided by organisations such as the Value Balancing Alliance (VBA) or the International Foundation for Valuing Impacts (IFVA).

On the other hand, the estimation of Telefónica’s contribution to GDP and employment in each of the countries analysed has been carried out using the input-output method.

The use of these methodologies allows Telefónica to quantify its impact in a clear and measurable way, in line with the best corporate sustainability practices. 

Key results of 2025 Telefónica’s socio-economic contribution

In 2025, Telefónica’s socio-economic contribution generated a positive impact of around 78 billion euros in the countries where its three main operations are located: Germany, Brazil and Spain.

The Telefónica 2025 socio-economic contribution report analyses this impact on the company’s main fully consolidated markets within the framework of the current strategic plan.

This strategic approach reinforces Telefónica’s corporate social responsibility, aligning with the UN’s 2030 Agenda to promote more sustainable development

The key pillars of this impact were distributed as follows: 

• Economic contribution: around 47 billion euros, promoting GDP growth and tax collection.
• Digital inclusion: around 17 billion euros, through the deployment of infrastructure, digital services and digital training
• Human capital: around 14 billion euros, promoting well-being and labor equity, and helping to sustain employment.
• Contribution to the environment: around 400 million euros, focused on avoided emissions in customers, circular economy, energy efficiency and other environmental aspects.

Telefónica’s socioeconomic contribution: Key pillars 

To measure its impact, Telefónica classifies its socio-economic contribution into four key pillars: 

1. Economic contribution:

   Related to the socio-economic impact generated by the Group’s activities in the main countries in which we operate (impact on gross domestic product) and the taxes borne that enable public administrations to provide services to society.
   
   In 2025, Telefónica contributed 45.4 billion euros to the GDP of Germany, Brazil and Spain, with an impact equivalent to 0.56% of the aggregate GDP of these countries.
   
   In tax matters, in 2025 Telefónica recorded 1.932 billion euros of taxes paid in Germany, Brazil and Spain. In the Group as a whole, total taxes amounted to €7.472 billion, of which €2.360 billion were input taxes and €5.112 million were taxes collected.

The socio-economic contribution report is based on assessments and calculations of the economic, social and environmental impact of our activities and operations.

1. Social contribution – human capital:

   Refers to the impacts that affect the economic and social well-being of our employees, as well as the promotion of diversity and equality in all areas of the organisation.
   
   In 2025, the social contribution linked to human capital reached around 14 billion euros. In addition, Telefónica’s activity contributed to sustaining 652,010 direct, indirect and induced jobs. For each person hired in the workforce, the company promoted an additional 8 jobs indirectly and induced.

2. Social contribution – digital inclusion:

   This examines the social benefits arising both from the service offered to our customers, through connectivity and digital solutions, and from digital skills training initiatives, which enable responsible use of new technologies and maximise their usefulness to society.
   
   Digital inclusion Telefónica is one of the key pillars of the report, as it analyses how connectivity, digital solutions, digital training and programmes for vulnerable groups generate value for communities. In 2025, this pillar represented a contribution of around 17 billion euros.

By bringing connectivity and digitization to more and more people in both rural and urban areas, we create value for the communities in which we operate.

• Contribution to the environment:

  This monetises the environmental impact caused, either directly or indirectly, by the activities carried out by the company. This allows us to determine how digital services contribute to decarbonising the economy and protecting the biodiversity of the regions in which we operate.
  
  In 2025, the contribution to the environment stood at around 400 million euros, including the analysis of scope 1, 2 and 3 emissions, circular economy, water, biodiversity, other environmental aspects and avoided emissions in customers.

Telefónica’s socio-economic contribution as a driver of change

Analysing external factors enables us to learn more about how we influence society and the environment, which helps us to improve our product innovation and decision-making processes.

Our goal is to continue to work towards bringing these impact analyses to all production processes in the company and to make our calculations more and more robust.

The full contribution report can be found at the following link: