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 12 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

Click to enlarge

Productive Capital

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

60.208 billion

Human Capital

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

3.356 billion

Social Capital

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

36.468 billion

Natural Capital

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

2.403 billion

We contribute more than €102 billion each year to socio-economic progress

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 €53.012 billion per year to the Gross Domestic Product (GDP), €3.4 for each euro we generate. This includes our total tax contribution, €10.118 billion in 2018

It also highlights the impact of our infrastructure deployment, broadband development and digitalisation in the productive and business fabric. We currently have more than 82.7 million real estate units deployed with fibre optics and an average 4G mobile network coverage of more than 76% in Europe and Latin America.

Another important aspect is the impulse that innovation and entrepreneurship have as accelerators of productive development. In 2018, we invested €6.114 billion in R&D&i, in addition to relaunching the Wayra accelerator.

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 1.23 million jobs per year. Thus, for each person recruited for our workforce, we created 9.7 additional jobs in the countries we operate in. This represents, for example, close to 0.8% of the employed population in Spain and Peru.

Our contribution is direct, through jobs (at the end of 2018 we had 120,138 professionals); induced (through their consumption) and indirect (through our purchasing volume of more than €25 billion per year, for almost 10,000 suppliers with nearly 81% awarded to local suppliers).

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 €36 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 and therefore reduce the impact on the environment.

Our activity has an impact on the environment due to the use of natural resources and the emissions and waste generated in operations. In 2018, thanks to the Energy Efficiency and Renewable Energy Plan, we reduced our carbon footprint by 37% (scopes 1+2) compared to 2015. And our goal is to achieve a 50% reduction by 2030 and a 30% reduction in emissions per unit of product purchased in our supply chain by 2025.

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.

In addition, thanks to our products and services we avoid 1.4 million tons of CO2 for our customers. So if we take into account our total impact on global warming, for every ton of CO2 we emit into the atmosphere, we save our customers 1.2 tons.

Emissions avoided in customer by digitization