Telefonica, a leading telecommunications company, continues to be a significant driver of economic and social progress across the nations it operates in.
Telefonica, in its Consolidated Management Report for 2023, said its activities have generated €49.145 billion in Gross Domestic Product (GDP) in its primary operating countries.
Jose Maria Alvarez-Pallete, Chairman of Telefonica, underscored the company’s legacy of service and commitment as it celebrates its centenary. He emphasized Telefonica’s unique position to harness the potential of technology and human resources, while announcing an update to several Environmental, Social, and Governance (ESG) targets.
In addition to its economic impact, Telefonica’s contributions extend to social welfare. For every euro generated by its business, an additional €1.6 was stimulated through expenditure and investment. Moreover, the company’s workforce catalyzed the creation of over 10 indirect or induced jobs per person, totaling 1.3 million jobs in 2023.
Telefonica’s commitment to society is further evidenced by its tax contributions, amounting to €7.58 billion, representing 19 percent of its turnover. The company’s procurement practices prioritize local suppliers, with over 83 percent of its €23 billion procurement volume directed towards them.
Demonstrating its dedication to universal access, Telefonica maintains its leadership in fibre-to-the-home (FTTH) deployment, reaching 173 million premises in 2023, with a substantial portion through its proprietary network. It also boasts 92 percent 4G/LTE coverage globally and has initiated the rollout of 5G in key markets.
The company is deeply engaged in initiatives aimed at fostering digital skills and employability. Projects such as Escuela 42, Conecta Empleo, and Reconectados cater to diverse demographics, including older individuals, to ensure inclusivity and access to opportunities.
Telefonica’s commitment to environmental sustainability is evident through its Climate Action Plan, which targets achieving net zero emissions by 2040. The company has already reduced its operational emissions by 81.4 percent since 2015 and ensures that 100 percent of its electricity consumption in key regions comes from renewable sources.
Moreover, Telefonica offers Eco Smart solutions to businesses, aiding in decarbonizing the economy and reducing CO2 emissions by 86.1 million tonnes in 2023.
Ethics and governance remain integral to Telefonica’s operations. The company maintains high standards of governance, privacy, and transparency, evident in its human rights and environmental due diligence processes. Gender diversity has been notably improved, with women comprising 40 percent of the Board’s members.
Telefonica’s steadfast commitment to sustainability extends to its financing activities, with sustainable financing reaching 33.6 percent of the total in 2023. The company aims to increase this to around 40 percent by 2026, aligning its financial practices with its sustainability objectives.
Baburajan Kizhakedath
