Telefónica’s methodology for calculating avoided emissions

As the urgency of climate action intensifies, companies are under growing pressure not only to reduce their own emissions, but also to quantify how technologies help others decarbonize. At Telefónica, we believe that digital services and the connections we create extend far beyond networks—they can also help reduce greenhouse gas emissions across society. This is the premise behind our new methodological framework for assessing avoided emissions, which is now publicly available.

Measuring what we help avoid: Our methodology for calculating avoided emissions by connectivity and ICT solutions

 The report, titled Avoided Emissions – Methodological Framework, offers a comprehensive and transparent methodology for calculating the net positive carbon impact of the digital solutions we deliver to customers across Europe and Brazil. It represents a step forward in aligning innovation with climate integrity, applying recognized international standards to bring clarity to an emerging field of carbon impact assessment. 

What are avoided emissions—and why do they matter?

Avoided emissions occur when a solution generates a net negative carbon effect, which means it avoids more emissions than it generates. Avoided emissions refer to the greenhouse gas emissions that are prevented through the use of a low-carbon or digital solution when compared to a reference scenario. Unlike traditional carbon accounting—which focuses on emissions directly generated by a company (Scope 1), purchased energy (Scope 2), or value chain activities (Scope 3)—this concept measures the climate benefit delivered by enabling others to emit less. 

At Telefónica, this means measuring the net carbon impact of services like residential broadband fixed and mobile connectivity enabling teleworking, or e-learning, as well as IoT solutions like smart lighting or fleet management, among others. These solutions allow individuals and organizations to operate more efficiently and sustainably—cutting travel or optimizing energy use. Many of these are examples of ICT-enabled decarbonization in action. 

The methodology aims to measure, in a robust and transparent way, the positive climate impact of ICT-based services offered by Telefónica.

Quantifying these benefits is complex, but crucial. Done rigorously, it enables companies to steer innovation toward climate goals, inform sustainability reporting, and build trust in decarbonization claims.

A robust and transparent framework

Our methodology draws from two of the most authoritative global references on the subject:

• The World Business Council for Sustainable Development’s (WBCSD) Guidance on Avoided Emissions. 
• The International Telecommunication Union’s (ITU-T) L.1480 Recommendation, which provides a structured method to assess the carbon impacts of ICT solutions. 

By aligning our approach with these standards, we ensure consistency, comparability, and transparency in our assessments. In cases where full alignment is limited by data gaps, our methodology remains conservative while clearly stating assumptions and limitations.  

From theory to practice: How we measure

The report outlines a multi-step framework that guides the evaluation of each digital solution: 

1. Eligibility check – We apply three “gates” to validate whether the company and the solution can legitimately claim avoided emissions: climate credibility, scientific alignment, and contribution significance. 
2. Solution scope & reference scenario – We define what the solution does and compare it to a baseline scenario where the solution does not exist. This hypothetical “what-if” model allows us to isolate the carbon impact. 
3. Consequence tree – We map out all effects of the solution—first-order (direct emissions), second-order (indirect enabled effects like reduced commuting), and higher-order (behavioral or systemic changes). 
4. Functional unit & calculation logic – Each analysis is based on a one-year period and one user or connection. This enables us to calculate a standardized carbon abatement factor per solution. 
5. Data quality & uncertainty analysis – We prioritize primary and specific data sources. Where secondary or proxy data is used, we disclose it and assess the uncertainty. 
6. Aggregation – Finally, the avoided emissions are scaled up to company level based on the total user base for each solution. 

In 2024 alone, the solutions evaluated by this methodology enabled the avoidance of 17.4 million tonnes of CO₂e, across Spain, Germany, and Brazil—equivalent to roughly 23% of our revenues in those countries. These figures have been independently reviewed and verified by PwC under limited assurance.  

Solutions driving decarbonization

The framework is not just academic. It is applied to a growing set of Telefónica’s services, categorized into two families: 

• Connected Living Solutions: Teleworking, public transport apps, e-learning, e-shopping, and carpooling. These services empower customers to change daily habits, reducing emissions from transport, office space, and retail – key enablers for greenhouse gas reduction in households. 
• IoT-enabled Business Solutions: Smart parking, smart lighting, waste management, and fleet optimization. These solutions help businesses and municipalities cut fuel use, optimize logistics, and improve urban efficiency — delivering tangible carbon savings and supporting the evolution toward smart cities. 

Each solution is evaluated with a custom-built model, considering country-specific factors like electricity mix, transport modes, and user behavior. Our in-house data, together with client surveys and third-party emission factors, ensures a robust foundation for each result. 

Why this matters: From accountability to action

Avoided emissions reporting is still maturing as a practice. By publishing this framework, Telefónica aims to contribute to a more credible, harmonized approach within the ICT sector and beyond. It is part of our broader commitment to net zero emissions by 2040, validated by the Science Based Targets initiative (SBTi), and to supporting our customers in achieving their own climate goals. 

We recognize that avoided emissions cannot replace the need to reduce our own footprint. But they are a valuable signal of how digitalization—done right—can be a driver of climate progress, unlocking scalable pathways for ICT-enabled decarbonization across industries and cities. 

For sustainability professionals, partners, regulators, and anyone seeking a detailed look into how digital services can enable emissions reductions, we invite you to explore the full methodology: