Telefonica has announced its new targets in the field of environmental, social and governance (ESG) principles and commitments through its Global Sustainability Plan 2026-2030, which includes Scope 3 emissions reduction of 56% and Scope 1 and 2 emissions reduction of 90% by 2030. The plan will lay the groundwork for the company's long-term business development, enhance the efficiency of its operations and reinforce risk management, and advance its climate commitments, the Spanish telecommunications company said.

The new roadmap focuses on four strategic areas: environmental action, responsible technology, governance and business integration, the company said. The plan sets out measurable targets and key performance indicators (KPIs) that will embed sustainability throughout the organisation and provide long-term value. The new commitments also support Telefónica's objective of becoming a net-zero company by 2040, both in terms of its operations and value chain.

Climate Targets Enhanced for 2030

With regard to the environmental pillar, Telefónica has pledged to cut its direct (Scope 1 and 2) GHG emissions by 90% by 2030 and indirect value chain (Scope 3) emissions by 56% by the same time. The company's interim targets continue to be a step towards its long-term net zero target for 2040.

Scope 3 emissions typically cover emissions resulting from a company's value chain, such as those attributable to purchased goods and services, transportation, business travel, product use and product end-of-life treatment. They can be the most difficult to reduce because they go beyond the scope of a company's operations.

The new targets will be achieved with ongoing investment in renewable energy, energy efficiency and circular economy measures, said Telefónica. The Company will also aim to enhance the use of resources and minimise environmental impacts across its operations.

The Zero-Waste Objective and Circular Economy measures.

As part of its environmental strategy, Telefónica has also announced a goal of achieving zero waste by 2030. The company aims to achieve this by increasing the re-use and refurbishment of equipment and increasing the lifespan of its technological assets and maximizing the use of critical materials.

These are designed to reduce waste generation and to utilise available resources more efficiently," the company said. The benefit of longer product lifecycles and material efficiency can be used to minimise environmental impacts, in terms of both material production and disposal.

The circular economy approach is also expected to help the Company achieve operational efficiency and also play a role in its overall sustainability goals.

Creating Climate Resilient Infrastructure with Renewable Energy

The sustainability plan also outlines these measures to increase the company's resilience to climate-related risks. Telefónica will increase investments to strengthen its infrastructure against the effects of the changing climate and increase long-term renewable energy supply contracts.

The company expects that a greater penetration of renewable energy will help mitigate energy market risks to its operations while improving energy security in its operations. These are designed to facilitate business continuity, whilst reducing carbon emissions.

Technology solutions to support customers.

In addition to decreasing its own, Telefónica will keep developing "technology-driven solutions" that will assist customers in their efforts to decrease their emissions as part of its Eco Smart portfolio.

The company also defined a number of social priorities under the second pillar of the plan, such as reinforcing the child protection measures, enhancing digital accessibility and promoting digital wellbeing.

Telefónica will continue investing in workforce development and recruitment, as well as in retention, and will scale up its training programs to help develop the skills needed for the current technological shift in the telecommunication industry. Cultivating inclusive workplaces is another part of the company's sustainability efforts, the company added.

Ensuring governance and incorporating ESG.

The 3rd pillar of the sustainability plan is to improve governance within the organisation. Telefónica will also include the criteria of ESG in the decision-making process, in the management of its supply chain and in the allocation of capital.

The firm will also be moving forward with its governance program of AI and have a comprehensive plan in place for privacy and cybersecurity. Telefónica claims that these measures will enhance the control, transparency and traceability of its supply chain.

The company also stated that better governance will help drive its commitments in the area of sustainable finance and strengthen responsible business conduct.

Sustainability, embedded in Corporate Strategy!

The last one concerns sustainability and is incorporated as a key element of Telefónica's corporate strategy. The roadmap was created in collaboration between the company's corporate divisions and operating units to make sustainability a cross-cutting issue in their business activities, the company said.

Telefónica's Sustainability and Regulation Committee will monitor implementation of this plan. Significant sustainability metrics will also be included in the company's strategic management and monitoring processes, enabling monitoring of progress against the targets of the plan, the company also said.

In response to the announcement, Maya Ormazabal, Telefónica's Global Chief Sustainability Officer commented, “Telefónica's climate commitments are further strengthened by targets in this plan that aim to reach net-zero emissions by 2040 and the company's commitments to renewables, energy efficiency and the circular economy.”

Telefónica has established far more ambitious medium-term emissions reduction targets in its latest sustainability roadmap, while incorporating environmental, governance and social issues in its long-term business strategy. The plan will help the company grow sustainably, enhance its resilience and reinforce its oversight as it strives to reach net-zero by 2040 across its operations and value chain, the company said.