Telefónica sustainability score: 54/100

Telefónica reports verified FY2024 Scope 1 (94,633 tCO2e) and Scope 2 market-based (84,729 tCO2e) emissions with GHG Protocol methodology and third-party verification. 84.8% reduction in Scope 1+2 since 2015 reflects absolute reductions. Multi-year tracking since 2015 with granular breakdown by market and emission source. CDP A List for 11 consecutive years confirms credibility.

Telefónica reports verified Scope 3 emissions of ~1.71 million tCO2e covering 5 material categories representing >90% of total Scope 3 (purchased goods 54.3%, use of sold products 28.4%, capital goods 10.6%, energy-related 4.6%, business travel 2.1%). 31.3% absolute reduction since 2016. Active Supplier Engagement with ~90% of supply chain covered; 20,800+ supplier audits in 2024. However, 10 of 15 Scope 3 categories excluded from inventory.

Telefónica demonstrates 84.8% Scope 1+2 reduction since 2015 and 31.3% Scope 3 reduction since 2016, totalling 52% absolute reduction across all scopes. Both operational and value chain emissions decline year-on-year against 9.3x increase in network traffic. However, Scope 3 reductions lag operations, and Scope 3 remains 91% of total footprint at ~1.7M tonnes.

Telefónica is RE100 member with 89% renewable electricity globally in 2024, reaching 100% in Spain, Germany, Brazil. Procurement includes long-term PPAs, guarantees of origin, 4,200+ base stations with on-site renewables, and bilateral agreements. Madrid headquarters generates >3GWh/year on-site solar. 85% energy efficiency improvement via fibre over copper; 90% reduction in energy per traffic unit since 2015. Target: 100% renewable by 2030. 11% non-renewable electricity and reliance on energy attribute certificates prevent full score.

Telefónica states it is developing a Biodiversity Strategy and working on TNFD alignment, neither yet complete. Environmental Policy references biodiversity protection; ISO 14001 certification across operations. As a telecoms company, direct nature impact is moderate (tower placement, infrastructure, e-waste). No quantified nature footprint, no deforestation-free commitment, no TNFD-aligned disclosure published.

Telefónica reports 95% waste reused or recycled in 2024; 5 million electronic devices reused. 533,818 network equipment items reused (+70% prior year); 437,180 mobile devices collected. Zero Waste by 2030 target; ecodesign and circular procurement criteria embedded. Eco Rating system and AENOR-verified Eco Smart seal promote sustainable consumption. Internal carbon pricing guides low-carbon procurement. Circular programme operational but not yet independently verified as closed-loop.

Telefónica has Sustainable Water Management Plans across 1,700+ buildings with efficiency measures in water-stressed regions (Spain, Chile, Mexico). Collaborates with Brazilian Business Council for Sustainable Development and UN Global Compact Platform for Action for Water and Oceans. Measures include water-saving monitors and efficiency equipment. No quantified water footprint (m³), no formal reduction targets, no published year-on-year trends. For telecoms, water impact is relatively low.

Telefónica has SBTi-validated net-zero target for 2040 across Scope 1, 2, 3 using absolute reductions, not intensity. Near-term: 90% Scope 1+2 reduction by 2025 in key markets; 84.8% achieved by 2024. Residual emissions via carbon removal (nature-based preferred); no avoided emissions or credits in accounting. 2040 date precedes standard SBTi 2050 requirement by 10 years. Internal carbon pricing and sustainability-linked financing operational.

Telefónica publishes CSRD/ESRS-aligned sustainability reports since 2024; TCFD-aligned Climate Action Plan (4th edition, 2025). Board Sustainability Committee since 2002 (IBEX-35 pioneer). Variable remuneration linked to CO₂ reduction and ESG targets. CDP A List 11 consecutive years. Double materiality analysis validated against ESRS in 2024. 37.4% of financing linked to ESG indicators. Third-party emissions verification. No evidence of executive compensation tied to emissions targets beyond staff variable pay; no lobbying audit published.

No greenwashing lawsuits, regulatory fines, or climate-related controversies identified. CDP A List 11 consecutive years supports credibility. However, InfluenceMap notes Telefónica membership in BusinessEurope and CEOE, which show 'mostly negative engagement on climate policy.' A senior executive holds leadership role at CEOE. No published lobbying audit to address misalignment. Company absent from InfluenceMap's 2024 Global Leaders list but positive own advocacy mitigates concern.