Telefónica Links Sustainability to Financial Performance

Telefónica is integrating sustainability into its core business strategy, expecting positive financial impacts from ESG initiatives. The Spanish telecommunications company outlined a new Sustainability Plan to 2030, centering on renewable energy, energy efficiency, and a circular economy. Telefónica aims to reduce its scope 1 and 2 emissions by 90% and scope 3 emissions by 56% by 2030, targeting net-zero emissions by 2040 across its value chain.

The company projects 740 million euros in revenue from decarbonization solutions in 2025, including energy counters and secondhand equipment sales. Telefónica also reports that transitioning to fiber optics and shutting down 2G and 3G networks reduces energy consumption by 12% per unit of traffic, despite a 15% increase in data traffic. Currently, 40% of Telefónica’s total financing is linked to sustainability through bonds and loans, primarily funding network transformation and rural connectivity.

Telefónica is piloting circularity initiatives, like the recent launch of a router incorporating recycled materials in Germany, and is working with its supply chain to improve traceability and sustainable decision-making.