Circular Economy

The global economy loses close to one-third of the value it generates every year due to inefficient resource use, premature obsolescence and underutilised assets. According to the Circularity Gap Report 2026, these losses amount to approximately €25.4 trillion annually, equivalent to 31% of global GDP.

In this context, the circular economy is not only a response to environmental challenges but also a strategic opportunity to reverse this trend by keeping products, components and materials at their highest value for longer. The transition to a circular economy reduces dependence on raw materials and strengthens supply chain resilience, making it a key lever for enhancing the European Union’s competitiveness and technological sovereignty.

Zero Waste 2030

At Telefónica, we are working to embed circular economy principles across our operations and throughout our relationships with suppliers and customers. To achieve this, we are driving the circular transformation of our network, prioritising the reuse of electronic equipment and, where this is not possible, recovering value from materials through recycling.

This approach not only helps reduce our environmental impact but also creates business value.

In 2025, circular business models based on the use and leasing of connectivity equipment generated €1.789 billion in revenue for the company.

Guided by this vision, we aim to become a Zero Waste company by 2030, promoting the reuse and recycling of 100% of the waste we generate. In this way, we extend the value of devices and materials throughout their lifecycle and advance more efficient resource use. The circular economy is a cornerstone of our 2026–2030 Sustainability Plan and a key lever for creating long-term value.

Circular Economy Plan

These are our actions to move towards a Zero Waste company:

1. We reuse electronic equipment from customers, operations and offices.
2. We recycle everything that cannot be reused
3. We collaborate with suppliers to integrate environmental criteria into electronic equipment bearing the Telefónica brand.
4. We share infrastructure to reduce duplication and environmental impact.

Thanks to these initiatives, we have achieved:

95%

reused and recycled

97%

waste diverted from disposal

70%

recycled material in new Wi-Fi Router 7

+64K

shared sites

Thanks to reuse and recycling, some resources such as gold, copper or aluminium can be used in a new product

Electronic equipment

Each year, we reuse more than 4 million devices from customers, operations and offices, representing 75% of all electronic equipment collected, while the remaining 25% is recycled. This model reflects a rigorous and effective approach to resource management.

We reuse over 3 million routers and set-top boxes every year, thereby saving resources and reducing CO₂ emissions associated with the manufacture of new products.

We subscribe the following GSMA circular economy sectoral commitments:We subscribe the following GSMA circular economy sectoral commitments:

100%

of network equipment reused and recycled by 2025

20%

of mobile devices collected by 2030

100%

of mobile devices reused and recycled by 2030

Network equipment: By 2025, we had reused more than 780,000 units. We have met the industry commitment proposed by the GSMA by reusing and recycling 100% of the equipment collected.

Mobile devices: By 2025, we had collected nearly 95 tonnes and reused over 357,000 units, meaning the company had collected 15% of all devices distributed and reused or recycled 100% of the collected handsets.

Circular digital initiatives

Telefónica promotes the circular economy across its operations and electronic equipment through the following initiatives:

Suppliers as partners

We integrate the philosophy of the circular economy into our relationship with suppliers, who are essential allies in this transition. Therefore, within the framework of our global policy of sustainability in the supply chain, we introduce a series of requirements for them to develop their activity taking maximum care of the environment.

• Global Supply Chain Sustainability Policy
  PDF | 606 KB

Although Telefónica does not have production processes, we cooperate with our suppliers to integrate environmental criteria into the home connectivity equipment designed by Telefónica and bearing the image of one of the Company’s brands (Movistar, O2 or Vivo). Additionally, we work together to incorporate circular criteria into the acquisition of electronic equipment.

Global Environmental and Energy Policy

This Policy includes measures that promote circularity, such as encouraging the reuse and recycling of equipment and/or reduce the waste generation.