Telefónica is on the ‘A List’ of CDP’s Supplier Commitment Assessment

Telefónica is for the sixth consecutive year among the A-rated companies included in CDP’s Supplier Engagement Assessment (SEA), thanks to its engagement with suppliers worldwide to extend climate change measures throughout its supply chain. CDP is a non-profit organisation that manages the world´s largest environmental disclosure platform for companies, cities, states and regions.

This recognition values Telefónica’s responsible management of its supply chain, with over 8,400 suppliers. The company requires and trains suppliers to apply high sustainability standards – similar to its own – within their activity. Together with Telefónica Brazil, the telco is one of almost 40 telcos in a ranking of nearly 1.400 companies, including 39 Spanish companies.

In 2024, Telefónica reduced its Scope 3 CO₂ emissions by 31.3%, considering the most significant Scope 3 emissions come from its supply chain, compared to 2016. The telco is making progress towards its goal of achieving net zero emissions by 2040, having decreased its operational emissions (Scope 1 and 2) by 85% in eight years, and by 52% when taking into account those of the value chain (Scope 3).

Maya Ormazabal, Environment and Human Rights Director at Telefónica, states: “Sustainability in the supply chain is not just a goal, but a necessity, it makes us more resilient and efficient. At Telefónica, we actively collaborate with our suppliers and the entire sector to mitigate risks related to human rights and the environment, and to define the roadmap for a green transition. It is only by working together that we can secure responsible digitisation”.

For CDP notes that ‘by engaging their suppliers on climate change, companies play a crucial role in the transition towards a sustainable economy’, based on the five dimensions it analyses: targets, supplier engagement, emissions and scope 3 verification, risk management process, and governance and business strategy.

Telefónica has a Supply Chain Sustainability Policy sets out the minimum environmental standards that suppliers must meet. To ensure compliance, Telefónica carries out the following actions:

• It requires 100% of its suppliers to accept Telefónica’s Supply Chain Sustainability Policy, which includes emission reduction requirements.
• It has categorised its suppliers according to their contribution to the carbon footprint and has invited around 180 suppliers, accounting for around 90% of supply chain emissions, to provide climate data through CDP Supply Chain in order to offer them tailor-made training based on their climate maturity, in Telefónica’s Supplier Engagement Programme.
• As part of its decarbonisation strategy, Telefónica has implemented a climate mandate requiring key suppliers to set science-based decarbonisation targets validated by SBTi.
• Collaborates in the Carbon Reduction Programme, together with other telcos, to identify the most carbon-intensive products purchased from common strategic suppliers and identify potential emission reduction actions through a life cycle analysis.
• It incorporates the TCO (total cost of purchasing) of emissions, energy and circularity criteria in all its purchases.

This Policy is part of its Climate Action Plan to reduce its CO₂ emissions and as a facilitator of the decarbonisation of the economy. For this reason, it has been recognised for the eleventh consecutive year as a global leader in performance transparency for its action against climate change, by being included in the “A List” drawn up by CDP.