Telecommunications operator Telefónica has updated its global Climate Action Plan, setting out strategic targets and operational measures to achieve net-zero greenhouse gas emissions by 2040.
The updated framework incorporates science-based targets, economic assessments of physical and transition climate risks, and internal carbon pricing to embed decarbonisation across core business decisions.
According to operational disclosures, Telefónica achieved a 92.8 per cent reduction in Scope 1 and Scope 2 operational emissions by 2025 compared to a 2015 baseline. The company offset remaining operational emissions in Spain, Germany, and Brazil through the retirement of 48,395 carbon credits from nature-based carbon absorption and reduction projects. Scope 3 supply chain emissions fell by 28.2 per cent against 2016 levels.
Key operational and financial highlights within the plan include:
- Strategic focus areas: Establishing operational frameworks across six core pillars: direct operations, climate adaptation, value chain collaboration, commercial activities, sustainable finance, and corporate governance.
- Renewable power & customer avoided emissions: Utilising 100 per cent renewable electricity across primary operating markets. Commercial connectivity and “Eco Smart” digital solutions enabled enterprise and public sector customers in Spain, Germany, and Brazil to avoid 19.2 million tonnes of CO₂ emissions in 2025.
- Sustainable capital allocation: Sustainable financing instruments represented 40.7 per cent of the group’s total financing portfolio at the end of 2025.
- Risk & opportunity assessment: Evaluating physical climate risks across more than 100,000 physical infrastructure assets, with internal modeling indicating transition-related economic opportunities outweigh potential risk costs by nearly three to one.
Maya Ormazabal, Global Director of Sustainability at Telefónica, stated that climate management is embedded directly into corporate operations to drive long-term business value, operational efficiency, and measurable accountability.
Telefónica was the first telecommunications operator globally to have its net-zero targets validated by the Science Based Targets initiative (SBTi). The company aims to achieve its 2040 net-zero target by reducing absolute emissions by 90 per cent across all scopes and neutralising residual emissions.
