Strategy

“We want to make our world more human by connecting lives”. Our mission puts people at the center of everything we do and responsible and sustainable growth is our flag.

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Our customers want simpler, high-quality products that make their lives easier, and they appreciate, above all, for us to be transparent and honest in our dealings with them. They also appreciate the innovation and security that we offer in the services we provide and how we collect and handle their personal data.

Investors require us to implement a sustainability strategy that ensures our long-term profitability. And finally, the societies in which we operate ask us not only to act as a responsible company, but also that we contribute to social and economic development.

 

We want to make our world more human by connecting lives

 

In order to address these expectations, the Company’s economic, social and environmental sustainability objectives must be closely intertwined with our business objectives, incorporated into the processes and goals of our business areas and, ultimately, end up as part of our DNA.

Thus our strategic plan seeks the growth in relevance, revenues and returns, achieved in a responsible and sustainable way, that is for the benefit of all our stakeholders, generating more value each day to people and society. All with the motivation of our team as a key element.

Jose María Álvarez-Pallete, Chairman and CEO: “We have to move forward and capture the sustainable growth, not at any price but aligned with the interests of people”.

 

SUSTAINABILITY IS EMBEDDED IN THE CORPORATE STRATEGY

Reconnect”, the programme which will run until 2021, implies a culture of integrity, commitment and transparency. This culture means helping the markets in which the company operates to achieve their full potential for growth and wellbeing, which they have before them thanks to new technology and digitalisation. Because, according to Raúl Katz, an increase of 10% in the digitalisation index generates an increase of 0.749% in the GDP per capita of countries.

In order to advance in this direction, Telefónica has developed a new Global Responsible Business Plan centred on: Customer Promise and Digital Trust, Supply Chain; Diversity and Management of Talent, Environmental Management and Climate Change; Safety and Health, Human Rights and Sustainable Innovation.

This Global Plan will be landing on local plans in the various local markets in order to achieve concrete objectives on three levels of commitment.

 

PERFORMANCE MODEL

Our performance model is based on three levels of commitment, covering the Company’s entire value chain:

 
  • Compliance and risk management: we guarantee compliance with our international, national and local regulatory framework. We coordinate resources at the corporate level to anticipate trends and legislative changes in an environment where more and more economic, social and environmental areas are being regulated.
  • Sustainable productivity: we work to improve our productivity by incorporating sustainability criteria cross-company to all our processes. In addition to what we offer our customers — quality and care — we seek efficiencies and value through a long-term commitment with talent management, energy efficiency and environmental issues, the supply chain, taxes, etc. and, in general, a culture of ethics and integrity that permeates all our activities, both internal and external.
  • Sustainability as a lever for growth: we focus on the social or environmental benefits of the products and services we offer to our customers, companies and individuals. And we work for the digital environment to be increasingly more open and secure, so the opportunities of technology are available to all, promoting geographic, social and personal access to technology.

Our efforts in making sustainability an inherent element of the Company’s strategy are paying off. We have received recognitions from prestigious sustainability global index, like Dow Jones Sustainability Index (DJSI)Carbon Disclosure Project (CDP)SustainalyticsEthibel Sustainability Index or FTSE.

 

Risk Management

We permanently monitor the most significant risks that may affect the main companies of the Group. To do so, the Company follows a Corporate Risk Management Model -based on the COSO (Committee of Sponsoring Organizations, de la Comisión Treadway), it evolves towards COSO ERM-.
 
Among the aspects of increasing relevance are factors such as talent or diversity as well as those that may stem from climate change, especially in cases of physical events related to extreme weather conditions or the increase in temperature. We are in the process of implementing the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) in this area.