MILESTONES AND OBJECTIVES

Telefónica has developed a Global Responsible Business Plan centred on: Customer Promise and Digital Trust, Diversity and Management of Talent, Supply Chain, Environment Management and Sustainable Innovation. These are the advances and the targets we have set:

 

Customers
Ethics
Diversity
Place costumers at the center of our transformation

Doing what the costumer expects from us is the base of the Telefónica sustainability proposal. The costumer is our most relevant stakeholder and what he/she looks for, above all else, is quality, transparency, simpleness, and integrity..

Progress

In 2016, we reached 350 million accesses and launched 116 initiatives as part of our Quality Plan, our customers' satisfaction stood at 7.46 (out of 10). With this, we were number 1 in 10 of our 17 markets.

Objectives 2016

Improve customer satisfaction to be the number 1 Telco in the ISC of all the countries in which we operate in the year 2020.

Objective 2017

To be number 1 in the ISC in all countries where we have operations in the year 2020

 
 
Objective achieved Objective in progress Objective unachieved
Empower the ethical code as base for responsible business

Ethics and responsibility are the foundation of sustainable business. They help companies to differentiate themselves, to be more productive, committed and successful.

The objective of Telefónica is that our Principles of Responsible Business be present in all our activity and relations with stakeholders, and move them to the value chain as a whole.

Progress

More than 109,467 professionals, 90% of our staff, had passed the course on Responsible Business Principles until 2016. This is mandatory online training for all employees.

Also, during 2016 we have created a new independent area of Compliance, with the aim of strengthening and promoting ethical culture throughout the Group, 2016 Goals

 
Objectives 2016

To form in our Principles 90% of our staff in March 2016.

Create a communication channel that encompasses all our stakeholders.

Raising awareness among our employees about corruption and bribery.

Objectives 2017

Incorporate the analysis of stakeholder expectations of petitions and complaints.

Update the Principles of Responsible Business and strengthen internal communication.

 

 

Objective achieved Objective in progress Objective unachieved
Boost diversity in our teams

Diversity brings value to companies and to the economy. Today, only 31% of employees in the ICT sector are women. If the presence were similar to that of the men in the digital industry, the European GDP would increase some 9,000 million euros. Also, young people with STEM studies (Science, Technology, Engineering and Mathematics) are needed.

For Telefónica diversity is key to attracting talented professionals. When we have professionals with different ways of thinking or living, we can have different perspectives and achieve positive changes in the organization, as well as create innovative products and services.

Progress

ROur Diversity Council, led by Laura Abasolo, a member of the Executive Committee, has set the company's priority in advancing gender equality as a priority.

Likewise, we continue to incorporate young talent - 20% of our employees are currently under 30 years - to help us move forward in our digital transformation. And we bet on removing barriers in the work environment to facilitate the inclusion of people with disabilities.

 

Objectives 2016

Creation of the Global Diversity Council of Telefónica.

Approval of our Global Diversity and Inclusion Policy..

Encourage measures to incorporate more diversity into our workforce, especially women and people with disabilities.

Objective 2017

Reduce unconscious biases through specific workshops.

Have 30% women in management positions by 2020.

 

Objective achieved Objective in progress Objective unachieved
 
Talent
Digital trust
Supply chain
Guarantee the professional profiles key for the future

The digital revolution involves the creation of new types of work. On the one hand, it is estimated that there will be 825,000 vacancies for ICT professionals by 2020. In addition, 90% of jobs in careers such as engineering, accounting, nursing, medicine, art and architecture will require digital skills.

At Telefónica we want to guarantee the key profiles for the future. A Business Intelligence project has allowed us to identify the differential capacities to succeed in environments of technological disruption: learning capacity; Skills of transformation in the face of constant change, and breadth and depth of digital experiences.

Progress

During 2016, 19.1% of our employees were under 30 years old and we had a total of 9,917 new hires, of which 45.6% were women.

Objective 2016

Identify key talent and high potential at different levels and segments.

Strengthen the global training offer for employees.

Objective 2017

Ensure the complete adoption of the global training tool with 100,000 people trained through the global offer course.

 

Objective achieved Objective in progress Objective unachieved
Encourage costumer confidence regarding all things digital

The Fourth Industrial Revolution is leaving us a hyperconnected world with great opportunities but also important challenges such as data privacy and security.

At Telefónica we defend an open and safe experience for everyone on the Internet and we seek to always guarantee the privacy of our customers and promote transparency to use our products and services with peace of mind. All this, under a security framework, especially relevant for children and adolescents, and giving the user control of their digital life.

Progress

Familia Digital becomes Dialogando, a global initiative whose objective is to discuss the relationship we have with technology in all areas of our lives. The project has already been implemented in 15 countries.

We continue to generate a new relationship of trust with our customers based on transparency and control over their data. That is why we have created the fourth platform. It is the ecosystem that connects data, devices, networks and people./p>

Objectives 2016

Create a corporate Privacy Center on our official website.

Bring Dialogando to other countries of Latin America.

Create Transparency Report in Communications.

Objectives 2017

Reinforce training and employee awareness in privacy and cybersecurity with a new course.

Develop Online Privacy Centers in all operations.

Extending Dialogando all the markets in which Telefónica is present.

 
Objective achieved Objective in progress Objective unachieved

 

Boost sustainability in the supply chain

We are aware of the local and global impact of our activity on society. Responsibility throughout the supply chain is each day a more relevant issue. Both to eliminate reputational and economic risks and to improve customer satisfaction, to promote traceability, innovation and circular economy. It is our responsibility to foster a social and environmental commitment among all our suppliers with efficiency, transparency and guaranteeing equal opportunities.

At Telefónica we are aware of the impact associated with the supply chain due to our volume of purchases and the high local component: more than 26,063 million euros per year and more than 12,847 suppliers awarded. Hence we put sustainability at the center of efficient production, internal culture, risk management and engagement with suppliers.

Progress

In 2016, our Board of Directors approved a new Supply Chain Sustainability Policy, which includes aspects on anti-corruption and conflicts of interest, privacy and confidentiality of information, etc. and social (human trafficking) and environmental (waste, hazardous substances, consumption of materials, etc.) are reinforced.

In addition, we reinforced our annual audit plan by joining the Joint Audit Cooperation (JAC) sector initiative, of which we are part of 13 telecom operators worldwide.

Objectives 2016

Review of the minimum criteria of responsible business that we demand from our suppliers.

Put special focus on providers related to the provision of services.

95% Promote the implantation of the EcoVadis assessment process among the 200 main risk suppliers, as well as reinforce the audits for issues considered to be critical.

Incorporation of Telefónica into the sectorial initiative JAC (Joint Audit Cooperation).

Objectives 2017

Reinforce monitoring controls on providers with the highest risk in the area of privacy and data protection of our customers.

Encourage sharing of good practices in the field of sustainable management.

Continue to expand the scope of the EcoVadis assessment process, including Telefónica's 300 leading risk providers.

 
Objective achieved Objective in progress Objective unachieved
Ecoeficiency
Climatic change
Sustainable innovation
Promoting eco-efficiency and the circular economy

E-waste or electronic waste (electrical and electronic waste) increases with the consequent risk to health. Worldwide, 41.8 million tonnes are generated per year, according to the United Nations University. The highest figure is in Europe, with 15.6 kilos of garbage per person. Of the total, 7% corresponds to ICT and comes from mobiles, computers, printers...

The goal of Telefónica is to do more with less so that our waste diminishes. We also seek to recycle or reuse them all to give them more life and promote circular economy. That is why we reduced our negative impact by -12% and increased the positive until reaching 97% of total recycled or reused waste.

Progress

At Telefónica we promote the reuse of equipment, both internal and of our customers. When this is not possible, we encourage recycling. During 2016, about 3,000 tons were collected, of which 41% were used for reuse, thus generating an increase in its useful life and 59% for recycling.

Objectives 2016

Extend our terminal reuse program for customers in 9 more countries.

Implement 2017 environmental management systems in 100% of our operators according to the international standard ISO 14001 and guaranteed by an external certification. (90% of Telefónica has Environmental Management Systems certified according to ISO 14001).

Objectives 2017

Extend the Ecorating initiative in more countries where we operate and launch the OpenEcorating Web.

 
Objective achieved Objective in progress Objective unachieved
Help slow down climate change

Global warming threatens our well-being and ICT can help slow it down. The sector will decrease its footprint to 1.97% by 2030, according to the SMARTer2030 study. And thanks to ICT services applied to other sectors, global emissions would be reduced by 20% by 2030, maintaining them as in 2015.

Telefónica consumes about 6,740 Gwh each year, which is roughly equivalent to the energy generated annually by the size of El Salvador or Panama. This implies for the atmosphere some 2.4 million tons of CO2eq. The strategy of the multinational is to promote energy efficiency and renewable energy to reduce these figures.

Progress

Telefónica's energy consumption in 2016 fell by 2.2% despite the 50% increase in traffic. Thus, we reduced energy consumption per traffic (energy intensity) by 34%. CO2 emissions dropped by 26% and we achieved a saving of 22 million euros. All this thanks to the Energy Efficiency Plan, with 130 projects developed during the year.

In addition, thanks to our Renewable Energy Plan, about 44% of electricity consumption comes from renewable sources, which is equivalent to the average annual consumption of 203,749 households.

Objectives 2015-2020
  • Reduce energy consumption per unit of traffic by 50%.
  • Begin to cut off our growth in greenhouse gas emissions, reducing them by 30% in absolute terms by 2020 and by 50% by 2030.
  • Save 90 million euros for energy efficiency projects.
  • Use 50% of electricity from renewable sources by 2020 and 100% by 2030.
 
Objective achieved Objective in progress Objective unachieved
Commercialize services with positive impacts on society

Where there is ICT, there is development. New technologies are a source of progress for society in general. For example, it is estimated that a 10-point increase in the digitization index generates a 0.7% increase in GDP per capita. No factor should prevent people from accessing benefits.

Telefónica's strategy is to foster digital inclusion and sustainable innovation to ensure access to communications around the world and to develop products and services that help meet social needs such as demographic change, security solutions and natural disasters, the financial crisis, digital education, climate change or poverty. We want to increase investment in new projects and sustainable innovation initiatives, with a special focus on connecting the unconnected and bringing the Internet to rural areas. We are looking for innovative solutions that seek to have a positive social and/or environmental impact.

Progress

Thanks to our investment in network infrastructures, during 2016, the connectivity of people was significantly improved. In addition, we launched new solutions to address practically all of the issues cited with special attention to education, health and energy efficiency. And we continue to use the big social data to improve the world.

 
 
Objectives 2016

Continue to promote the values of Sustainable Innovation throughout the life cycle of the processes and solutions we offer.

Include metrics for measuring social and environmental impact on key services.

Improve the accessibility of our physical and virtual care channels.

Extend the reach of movistar's accessible services.

To deepen in the implementation of Design for All in all areas of the Company.

Objectives 2017

Increase investment in new projects and accelerate innovation initiatives with social or environmental impact.

Drive innovation to connect the unconnected and bring the Internet to rural areas.

Improve the accessibility of the Movistar+ platform in Spain, implement Accessible Premium Stores and obtain the Universal Certification of the headquarters in the country.

Create a global catalog of terminals that includes the accessibility features in all our operations.

 
Objective achieved Objective in progress Objective unachieved