We recognise the urgency of reducing CO₂ emissions and we strengthened our commitments to help limit global temperature increase to 1.5°C. We validated our net zero emissions target under the new Science Based Targets (SBTi) standard, going beyond the Paris Agreement. Our reduction targets are not only compatible with network expansion and service quality, but also help us to be more competitive.
Net zero emissions
Our Executive Committee approved the global goal of achieving net-zero emissions by 2040 across the value chain To achieve this, we are committed to reducing emissions by 90% and neutralising residual emissions through the purchase of CO₂ absorption carbon credits, preferably through nature-based solutions. Hence our commitment to 1t.org to conserve and plant 1.5 million trees this decade.
In our Climate Action Plan we explain how we align our business model with the most ambitious scientific climate recommendations. In the Plan we quantify GHG emissions, define targets and actions for the company’s activities and for our collaboration with customers and suppliers.
All employees are involved: part of our variable remuneration is linked to this target and we already have these programmes in place:
- More efficient transformation of our telecommunications networks.
- Energy efficiency projects.
- Renewable Energy Plan.
- Incorporation of an internal carbon price.
- Emission neutralisation plan.
Without digitalisation there is no green transition
In six years, we have already reduced all our emissions by more than 40% (70% for Scopes 1+2 and 27% for Scope 3 since 2015).
Aware of our responsibility to promote a global movement against climate change, we are part of the following initiatives.
- Our Business:
Energy Efficiency Programme
Our challenge is to keep electricity consumption stable despite the sharp increase in the digitalisation of society and the rising amount of data going through our telecommunications networks. The main savings are achieved by upgrading our network and shutting down old equipment. To this we add initiatives to reduce energy in off-peak periods and in cooling, lighting, power equipment, etc.
Renewable Energy Plan
Not only do we want to be 100% renewable, but as a large consumer of electricity, we also help countries to generate more clean energy. To achieve both goals, we promote long-term power purchase agreements (PPAs) with utilities, contribute to the construction of small renewable hydroelectric or solar power plants, and self-generate our own power.
Our networks are green: we are 100% renewable in Europe, Brazil and Peru (in the data centers we operate, both owned and in third-parties, 69% of the 368,715 MWh we consume come from renewable sources), fibre is 85% more energy efficient than copper and 5G is 90% more energy efficient than 4G.
Internal Carbon Princing (ICP)
At Telefónica, we use carbon pricing through different ways: an implicit price used for example in our Brazil operations.
We also implement a shadow price in our purchasing decisions for hardware that consumes fossil or electricity, as well as hardware containing refrigerant gases, which contributes to reducing our Scope 1 and 2 emissions.
On the other hand, we are introducing an internal carbon fee that will help us to establish a “carbon fund” with the proceeds of this carbon fee, and that could be used to finance carbon removal projects to neutralise our residual emissions as of 2025.
Pioneers in the sector, we launched the industry’s first green bond in January 2019 and have already surpassed €10bn in ESG funding
Energy Management Policy
Our Energy Policy forms part of our Environmental Policy and establishes our energy management principles.
Eight years on the CDP A-List
Telefónica as a leading global company against climate change.
Energy and GHG Emissions Inventory
All the data on our decarbonisation in the last few years.
Telefónica’s approach to the EU Taxonomy
Our activities contribute to climate mitigation and adaptation according to the EU Taxonomy.
Connectivity Solutions’ Life Cycle Assessment
Telefónica Spain has assessed the environmental impact of connectivity solutions according to EU Taxonomy criteria.
- Telefónica presented to the World Bank our carbon pricing strategy
- Telefónica’s three steps towards net-zero emissions
- Reconciling digitalization and Net-Zero economy
- The mobile sector, closer to net zero emissions
- 16 years of Energy Efficiency at Telefónica
- Telefónica, a Supplier Engagement Leader for helping suppliers to reduce their CO₂ emissions