ESG Report 2023: Helping society thrive

To help society thrive, our priorities are bridging the digital divide, ensuring an inclusive workplace to draw on the best talent and improving our relationship with our customers.

Having trained and committed professionals makes anything possible. We aim to be a catalyst for their growth, providing opportunities for continuous training.

In this regard, we empower our people to take the reins in defining their learning roadmap using the training tools available to them.

As a result, SkillsBank, our skills development platform, has 91,900 active employees, while Universitas Telefónica delivered 70 programmes last year that reached some 11,000 people.

During 2023, 70% of employees committed to acquiring and developing new skills

Managing talent

In addition to this talent management model, a new performance appraisal method will be implemented from 2024. It aims to support the development and maximise the impact of each of our employees. It will measure all the aspects of our culture: impact, collaboration, transformation and growth.

Another element Telefónica has incorporated is a firm commitment to internal mobility, in order to accelerate professional growth and the acquisition of new skills.

In 2023, the eNPS or level of engagement from our employees improved by seven points to reach a record high of 76.

  • For Telefónica, diversity and inclusion (in addition to being consistent with principles of social justice) represent an invaluable opportunity to attract the best talent, empathise with our customers, grow as a company and, ultimately, have a positive impact on our environment.

    According to the figures for 2023, 32.8% of executive positions were held by women. We are therefore close to our target of 33% by 2024 and heading towards a new goal of 37% by 2027. Progress in this regard forms part of our employees’ variable remuneration.

    Last year we reduced the adjusted pay gap to 0.7%, maintaining our Group-wide commitment of dropping from 1% by 2024.

    Our target is for 37% of our executive positions to be held by women by 2027

    Similarly, we continue to increase the number of employees with disabilities. At the end of 2023 we had 2,572 employees with disabilities, getting closer to our target of having over 2,700 on our team by 2024.

    For Telefónica, contributing to providing opportunities for people with disabilities is not only an ethical necessity, but also a talent and business issue

    In addition, we want our LGBT+ employees to be working in environments where they can give their best. We also have initiatives to promote generational and racial diversity.

  • Our customers’ experience and the quality plans designed to improve this are strategic aspects for Telefónica. In 2023, we continued to increase customer satisfaction levels, reaching an NPS of 31, an improvement of over 10 points since 2017.

    The network is our most important asset. Today’s changing environment and accelerating digitalisation have underlined how important it is to have a robust, stable and reliable network. That is why we want to provide the best experience for people and businesses when they are connected.

    Telefónica is part of the Planet Pledge initiative to contribute to fighting climate change through marketing and communication

    In addition, we strive to personalise customer service by using the latest technologies and improving communication processes with our customers.

    ESG also offers us opportunities to transform our customer relationship with new approaches.

    To know our clients’ perception of the service we offer, we extract and report the Net Promoter Score (NPS). It is an indicator of customer satisfaction and the probability that they recommend our products and services in which we have gone from 30 (2022) to 31 (2023).

  • Our Responsibility by Design assessment framework helps us to boost the inclusion of ethical environmental sustainability and accessibility principles from the development of products, services and channels and their various upgrades through to their final delivery to the customer.

    Similarly, we continue to develop green digital solutions. AENOR has certified 52% of the services we offer the B2B segment as being Eco Smart through their potential to deliver environmental benefits and contribute to mitigating our customers’ impact on the planet.

    At the same time, in order to achieve an equal and barrier-free user experience for all our customers, we are working to improve the accessibility of our shops and procurement, communication, customer service and support channels.

  • As part of our purpose to “make our world more human by connecting people’s lives”, at Telefónica we are committed to bringing the best connectivity and the latest technology to everyone, advocating for ethical, people-centred digitalisation.

    We therefore work to provide inclusive access (broadband in both urban and rural regions, accessibility and technologies to serve people with disabilities), digital skills training and innovation and important services with a social impact. We also seek to promote safe and responsible use of technology.

    According to the World Benchmarking Alliance, since 2021 our efforts have helped us become leaders in digital inclusion as we promote a more inclusive economy and society.

    In 2023, we helped train over 1.2 million people in digital skills to improve their skills and employability

  • At Telefónica, we have been quantifying our impact on the main United Nations Sustainable Development Goals (SDGs) since 2019 in order to better integrate them into the organisation’s decision-making models.

    The latest published report shows a contribution of over €100 billion.

    At Telefónica, we promote sustainable development mainly through our contribution to SDG 9 “Industry, innovation and infrastructure” and SDG 8, “Decent work and economic growth”.

    Two figures that demonstrate our impact in 2023: for every euro of gross operating margin we obtained in 2023, we generated 4.3 euros which contributed to the GDP of the main countries in which we operate.

    Our activities constitute a catalyst for job creation: for every person on our staff, we additionally generate over 10 indirect or induced jobs.

  • Human rights are a key pillar of the social and global business fabric. Guaranteeing people’s rights not only represents a set of ethical principles but is also a key component in ensuring the long-term sustainability and well-being of companies.

    Our commitment to respect for and fostering of human rights is embodied in the policies and processes that make up our due diligence process and permeates Telefónica’s entire value chain.

    In 2023, Telefónica published a pioneering report on the due diligence process taking into account the new requirements in this area.

    The priority issues for the Company are digital rights, the responsible use of new technologies, digital inclusion, child protection, and social and environmental standards in the supply chain.

    Due diligence

ESG Report 2023

Summary of the Company’s mission, strategy and progress in economic, environmental, social and governance matters.

Telefónica’s mission, strategy and progress in economic, and ESG matters.

More info about Management and Sustainability (ESG) Report 2023
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