Indicators & impact

We strive to contribute to the progress of those societies we have a significant presence in. We consider that our impact goes beyond the strictly economic value. Therefore, we evaluate our impacts from all points of view: productive, human, social and environmental.

For more than 13 years, Telefónica has had indicators for the management, monitoring and reporting of critical aspects of the business regarding the sustainability of our projects. The evolution shown by this data also helps us to analyse our progress and upcoming initiatives in the area of corporate sustainability.

Over time, we have been working on them and improving them according to both our internal needs and the requests for information from different stakeholders.

Throughout these years, we have evolved, starting from a measurement of company management, public and general indicators, according to international standards, to the evaluation of our social and environmental impact as a result of our activity, as well as our contribution to the Sustainable Development Goals.

 

More Information:

Value analysis model

Measurement and quantification (monetization) of Telefónica's impact on 25 externalities classified in 4 capitals:

Productive

Social

Human

Natural

Product and Service Evaluation Model

Phase 1: Definition of the scope of analysis.

Phase 2: Impact map / Theory of change.

Phase 3: Definition of indicators / Results.

Phase 4: Measurement.

Phase 5: Action.

Our Value

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Productive Capital

Impact on the economic system through transformation and improvement in terms of productivity and efficiency

68.243 billion

Human Capital

Support for employability, education and health and safety in society in general and in particular of employees, collaborators and suppliers

3.514 billion

Social Capital

Improving individual and collective well-being through communication services and the Internet

35.234 billion

Natural Capital

Impact on the environment due to the company's own activity and support for other sectors with digitisation

3.108 billion

We contribute more than €110 billion to socio-economic progress, 7.9% more than the previous year, thanks above all to the growth of our communication networks

Productive Capital

Impact on the economic system through transformation and improvement in terms of productivity and efficiency

Telecommunications services and digitalisation are one of the main drivers of progress, contributing positively to both economic growth and employment.

In this sense, we contribute €52.408 billion per year to the Gross Domestic Product (GDP), €3.42 for each euro we generate. This includes our total tax contribution, €8.700 billion in 2019

It also highlights the impact of our infrastructure deployment, broadband development and digitalisation in the productive and business fabric. Thus for every euro we invest in infrastructure, we generate approximately 1.06 euros, some 9,311 million euros.

It also increases the importance of cybersecurity services both to preserve the company's communication networks and to improve the resilience of the digital environment in general.

Another important aspect is the impulse that innovation and entrepreneurship have as accelerators of productive development. In 2019 we invested 5,602 million euros in R + D + i.

Human Capital

Support for employability, education and health and safety in society in general and in particular of employees, collaborators and suppliers

We contribute to the generation of 1.16 million jobs per year. Thus, for each person recruited for our workforce, we created 9.57 additional jobs in the countries we operate in. This represents, for example, close to 0.7% of the employed population in Spain.

Our contribution is direct, through jobs (at the end of 2019 we had 113,000 professionals); induced (through their consumption) and indirect (through our purchasing volume of more than €25,200 millions per year, for almost 10,000 suppliers with nearly 83% awarded to local suppliers).

In the same way we contribute to education and the development of digital skills through the initiatives of Telefónica Educación Digital and Fundación Telefónica.

Social Capital

Improving individual and collective well-being through communication services and the Internet

The emergence of new digital technologies has impacted not only the economy and businesses, but also people's culture and way of life as part of an interconnected society.

Access to global communications networks has empowered millions of people around the world, enabling them to communicate, access the Internet, have real-time information and access education. In short, it has allowed us to develop new solutions that allow us to improve our quality of life.

In this sense, our contribution to all this social transformation as a result of the possibilities offered by Mobile Internet, during the last year, is approximately €42,8 billion.

Natural Capital

Impact on the environment due to the company's own activity and support for other sectors with digitisation

It assesses the impact on the environment generated as a result of our activity, as well as quantifying the potential of digitisation to support other sectors to make more efficient use of resources and raw materials.

In 2019, thanks to the Renewable Energy Plan and energy efficiency, we reduced our carbon footprint by 49.6% compared to 2015 (scope 1 + 2). In addition, we cut emissions 18.5% per unit of product purchased in our chain of value (scope 3).

At the same time, digitalisation is also proving to be a catalyst enabling many industrial sectors to make a transition to more sustainable economic models. Some of the environmental benefits it offers are the improvement of production processes, the reduction of resource consumption and lower generation of waste.

Thanks to our products and services we avoid 3.2 million tons of CO2 in our customers, 3.3 times our carbon footprint.

Impact of our products and services

We drive evaluations of the main solutions we develop to know what social, economic and environmental impact they may generate.We drive evaluations of the main solutions we develop to know what social, economic and environmental impact they may generate.

We follow a framework that consists of 5 different phases; definition of the scope, impact map, definition of indicators, assessment model and revision, based on the results obtained.

With regard the assessment model, it can vary from product to product, although the standard models used are:

  • “Impact Management Project" model for the study of socio-economic impacts
  • Environmental impact assessments of Eco Smart solutions and the quantification of avoided CO2 emissions from the most representative services in collaborations with the Carbon Trust.

Some examples of solutions already evaluated are:

  • Impact of fibre deployment in rural areas, where high-speed networks can generate a clear socioeconomic impact on people and the economy of rural populations.
  • CO2 emissions avoided by our connectivity services, IoT solutions, cloud, digital workplace, etc.
  • Social and environmental impact assessment of IoT and energy efficiency solutions.