《西班牙電話公司（TELEFÓNICA）2023年環境、社會和治理（ESG）報告（英文版）（53頁）.pdf》由會員分享，可在線閱讀，更多相關《西班牙電話公司（TELEFÓNICA）2023年環境、社會和治理（ESG）報告（英文版）（53頁）.pdf（53頁珍藏版）》請在三個皮匠報告上搜索。

1、ESG HighlightsAnnual Report 20232DisclaimerThis document and any related conference call or webcast(including any related Q&A session)has been prepared by Telefnica,S.A.(hereinafter“Telefnica”or“the Company”,and in conjunction with its subsidiaries the“Telefnica Group”)exclusively for summarised and

2、 illustrative purposes regarding its non-financial information.The Company does not assume any liability for the content of this document if used for any other purposes different from the one outlined above.The present document may contain forward-looking statements,opinions and information(hereinaf

3、ter,the“Statements”)relating to the Telefnica Group(hereinafter,the“Company”or“Telefnica”),and may include financial and non-financial forecasts and estimates or statements regarding plans,objectives and expectations regarding matters,such as the customer base and its evolution,growth of the differe

4、nt business lines and of the global business,market share,possible acquisitions,divestitures or other transactions,the outcome of recently completed transactions,the Companys results and its operations,including its environmental,social and governance commitments and targets.The Statements can be id

5、entified,in certain cases,through the use of words such as“forecast”,“expectation”,“anticipation”,“aspiration”,“purpose”,“belief”“may”,“will”,“would”,“could”,“plan”,“project”or similar expressions or variations of such expressions.In any case,these Statements do not intend to be exhaustive,nor have

6、been verified by third parties or audited,therefore,Telefnicas opinions and aspirations with respect to future events should be considered indicative,provisional,and only for illustrative purposes.For this reason,these Statements do not represent,by their own nature,any guarantee of future fulfilmen

7、t or profitability,and are subject to risks and uncertainties that could cause the final developments and results to materially differ from those expressed or implied by such Statements.These risks and uncertainties include those identified in the documents containing more comprehensive information

8、filed by Telefnica with the different supervisory authorities of the securities markets in which its shares are listed and,in particular,the Spanish National Securities Market Commission(CNMV)and the U.S.Securities and Exchange Commission(SEC).Except as required by applicable law,Telefnica does not

9、assume any obligation to publicly update the Statements to adapt them to events or circumstances taking place after the date hereof,including changes in the Telefnicas Group business,changes in its business development strategy or any other circumstances.This document and any related conference call

10、 or webcast(including any related Q&A session)may contain summarised,non-audited or non-IFRS financial and non-financial information(including information referred to as“organic”and“underlying”).Such information may not be prepared in accordance with the reporting requirements established by the SEC

11、,and is presented for supplemental informational purposes only and should not be considered a substitute for audited financial or non-financial information presented by the Company.The Companys non-IFRS financial measures may differ from similarly titled measures used by other companies.In addition,

12、there are material limitations associated with the use of non-IFRS financial measures since they exclude significant expenses and income that are recorded in the Companys financial statements.The information contained herein should therefore only be considered in conjunction with Telefnicas consolid

13、ated financial statements for the year ended December 31,2023,as filed with the CNMV and the SEC,as well as other publicly available information regarding the Company.Information related to Alternative Performance Measures(APM)used in this presentation are included in Telefnicas consolidated financi

14、al statements and consolidated management report for the year 2023,submitted to the CNMV,in Note 2,page 11 of the.pdf filed.Recipients of this document are invited to read it.Neither this document nor any related conference call or webcast(including any related Q&A session)nor any of their contents

15、constitute an offer to purchase,sale or exchange any security,a solicitation of any offer to purchase,sale or exchange any security,or a recommendation or advice regarding any security,or a solicitation for any vote or approval in any other jurisdiction.This document and any related conference call

16、or webcast(including any related Q&A session)may include data or references to data provided by third parties.Neither Telefnica,nor any of its administrators,directors or employees,either explicitly or implicitly,guarantees that these contents are exact,accurate,comprehensive or complete,nor are the

17、y obliged to keep them updated,nor to correct them in the case that any deficiency,error or omission were to be detected.Moreover,in reproducing these contents by any means,Telefnica may introduce any changes it deems suitable,may omit partially or completely any of the elements of this document,and

18、 in case of any deviation between such a version and this one,Telefnica assumes no liability for any discrepancy.ContentIntroduction:ESG at TelefnicaP.04Environment:Building a greener futureP.16Governance:Leading by exampleP.35Social:Helping society to thriveP.26Annex P.45ESG at the core of our orga

19、nizationLong-standing commitment to ESGClear pathway aheadAnticipating upcoming regulation3rd party validationsIntroduction:ESG at TelefnicaIntroduction5 10th consecutive year on the CDP A List and Supplier Engagement Leader for 4th year running.World leader in the WBA Digital Inclusion Benchmark fo

20、r 3rd consecutive year.Leading telco in Ranking Digital Rights for 3rd consecutive year.Board committee dedicated to sustainability issues since 2002.(more info).Industrys 1st issuer of green bonds and hybrids(green&sustainable).Clear ESG priorities,with firm ESG targets.ESG targets linked to employ

21、ees annual variable remuneration(20%).Double Materiality assessment according to CSRD requirements.Facilitating investors reporting disclosure requirements(e.g.,PAIs,SDG Impact report)Mission and corporate strategy place sustainability at the core.Telefnicas approach to managing ESG3rd party validat

22、ions Long-standing commitmentClear pathway ahead Anticipating regulationESG at the core of our strategyIntroduction6ESG embedded within our mission and strategyTo make our world more human by connecting peoples livesOur mission:388m accessesESG teams in our 12 Operating MarketsPresence in 170 countr

23、iesESG embedded in our GPS programme as a lever to transform the businessESG at the core of the organizationGrowthProfitabilitySustainabilityB2B,B2C,PartnersImproved performanceLeverage reduction+Value creationGrowth Transform our operational model ProfitabilitySustainabilityTransform our customer r

24、elationship Transform to long term valueIntroduction7Long-standing commitment to ESGTelefnica is a pioneer in sustainable financingObjective:40%of Telefnicas financing to be linked to sustainability criteria by 2026(33.6%at the end of 2023).Exchange rate at year-end 2023.Sustainable financing includ

25、es balance-sheet debt(classified as current and non-current financial liabilities),hybrids instruments and undrawn committed credit lines.Sustainable criteria defined on Telefnicas sustainable financing frameworks according to ICMA,LMA,APLMA,LSTA principles,and other ESG criteria.Not necessarily ali

26、gned with the requirements of the EU Taxonomy Regulation.Introduction8Clear pathway aheadTelefnicas ESG prioritiesReduce the digital divide by connecting the under-served and bringing transferable,digital skills to people.Ensure an inclusive and safe workplace to attract and retain the best talent.T

27、ransform the customer relationship with new offerings and opportunities through an ESG lens.Embed ESG across the business and our supply chain,with the highest ethical standards Ensure the security and privacy of customer data with the highest standards and processes.Minimise our environmental impac

28、t,including achieving net-zero emissions,100%renewables and zero waste.Maximise our reach in providing products and services that decarbonise the economy.Helping society thriveLeading by exampleBuilding a greener futureIntroduction9Net Zero by 2040(SBTi validated)Scopes 1&2%emissions reducedsince 20

29、1590%reductionby 203080%81%We reduced scopes 1,2&3 emissions by 51%in the last 8 years.Main levers to achieve these targets:8.6%reduction on energy consumption since 2015,while data traffic has increased 8.6x.In 2023,100%renewable in Europe,Brazil,Peru&Chile.New target:90%reduction of scope 1&2 emis

30、sions by 2030(previously 80%).Scope 3%emissions reducedsince 201656%reductionby 203032%31%Renewable electricity%in own facilities100%renewablesby 203082%84%Environment:Key targets&progress ENERGY&CLIMATE CHANGE20222023TargetsHighlightsZero waste by 2030Customer Premise EquipmentRouters,decoders90%re

31、furbished by 202486%88%By repairing and reusing,we avoided the purchase of 3.7M of new equipment.Mobile devicesReused and recycled100%reuse,resale and recycling mobile devices by 203099%99%New GSMA target of collecting 20%of directly distributed mobile phones from customers by 2030(in 2023,11%).491,

32、422 mobile devices reused in 2023.Waste managementZero waste to landfill by 2030100%of waste reused and recycled by 203098%97%We reused and recycled 97%of waste,including 4.5M items of electronic equipment,avoiding 365,929 tCO2.GSMA target:Reuse and recycle 100%of network equipment by 2025(99%in 202

33、3).CIRCULAR ECONOMYDevelopment of green digital solutionsAvoided emissionsHelping our customers to avoid emissions 81 MtCO2e 86 MtCO2e In 2023,we helped our customers avoid 86 MtCO2 thanks to connectivity and Eco Smart services.52%of our B2B solutions have been verified as Eco Smart.GREEN DIGITALISA

34、TIONTarget achievedClear pathway aheadIntroduction10Social:Key targets&progress DIGITAL INCLUSIONHUMAN CAPITALEmployee satisfactioneNPSEmployee satisfaction70 points annually69p76p 11 point improvement since 2019.Updated target to 70p(previously 60p).Diversity&inclusionWomen executives%women executi

35、ves37%by 202731.3%32.8%13.7%improvement since 2015.Updated target to 37%by 2027(previously 33%by 2024).1k employees with disabilities added to workforce vs.2022.Talent with disabilitiesNumber of employees with disabilitiesx2 employees with disabilitiesby 20241,4822,57220222023TargetsHighlightsDigita

36、l inclusionRural connectivity%mobile broadband coverage 90%rural mobile broadband coverageIn main markets by 202480-99%82-99%Rural population coverage per operation(4G/LTE):82%Brazil,99%Germany,95%Spain and 99%UK.Total population coverage(4G/LTE):92%total footprint.Total population coverage(5G):48%B

37、razil,95%Germany,87%Spain,and 51%UK.Digital skillsNumber of beneficiariesAt least 1M beneficiaries annually13057151251354 Employability training in digital skills through Telefnica Fundacin programmes,e.g.“Conecta Empleo”.Clear pathway aheadTarget achievedHUMAN RIGHTSHuman rightsEvaluation of 100%of

38、 our operations every year Percentage operations evaluated100%100%Pioneers in publishing a report on the Due Diligence process to take into account the new regulatory requirements.Implementation of the recommendations from the Global Impact Assessment performed in 2022.HUMAN CAPITALIntroduction11SUP

39、PPLIERSPotential high-risk suppliers%externally assessed on sustainability100%by 202672%72%18.3k on-site audits in 2023.In 2023 we requested our key suppliers to align and validate science-based decarbonisation targets by SBTi.GOVERNANCE&ESG CULTURE CorruptionNumber of confirmed cases of corruptionZ

40、ero tolerance of corruption00 95k employees received anti-corruption training,which represents 91%of the workforce Launch of the ESG Academy for employees,reaching 2,500 in 2023.Members of the Board also trained in ESG topics.We have transformed gender representation on the Board:11%women directors

41、in 2015;40%today.Board diversity%female on the Board DirectorsParity in top governing bodiesBy 203033.3%40%PRIVACY&SECURITYData PrivacyPosition in Ranking digital rightsLead the industry in digital rights1st1st Telefnica has held the 1st position in the last three editions of the Ranking Digital Rig

42、htss index.75k hours of training in data protection&security.Data SecurityData Breaches involving personal identifiable information Highest levels of security20 Our main operations are certified under ISO 2700.SUSTAINABLE FINANCERaise sustainable finance%total financing linked to sustainable criteri

43、a40%sustainable finance(1)by 202627.3%33.6%6.3 pp Increase of financing linked to sustainability criteria vs.2022.Governance:Key targets&progress(1)Sustainable financing includes balance-sheet debt(classified as current and non-current financial liabilities),hybrids instruments and undrawn committed

44、 credit lines20222023TargetsHighlightsClear pathway aheadIntroduction12ESG targets linked to remuneration(1)A 2024-2028 Long-Term Incentive Plan proposal is expected to be put forward at the forthcoming 2024 General Shareholders Meeting.(1)For executivesClear pathway aheadFor all employees receiving

45、 bonusIntroduction13Double materiality:determining element of our strategyWell prepared for upcoming regulation(1)Please see further information in Annex VI.Introduction14Anticipating investors EU regulatory needsWe are well suited to meet the Art.8&9 funds criteria:Sector joint proposal under ETNO

46、and GSMA using the Stakeholder Request Mechanism to ask for a new activity in taxonomy specifically dedicated to telecommunication networks.According to the White paper on Buildings Europe digital infrastructure for tomorrow,The Commission will engage with the sector to improve the potential scope o

47、f the EU taxonomy for green investments in electronic communication networks.Our Business,and Environmental&Social practices,lead to substantial net-positive SDG impacts(100bn in 2022)(1).In FY 2023,we reported on Taxonomy alignment for climate change activities&Taxonomy eligibility for new circular

48、 economy activities.Currently there is a low level of alignment(Revenues 1.6%,Capex 0.5%)Alignment implies compliance with Social Minimum Safeguards&Do-Not-Significant-Harm.Telefnica consistently achieves scores above industry averages in ESG ratings.Telefnica reports in its management report an exh

49、austive list of the metrics that investors could potentially use to comply with the SFDR Principle Adverse Indicators.3Principle Adverse IndicatorsWe map our sustainability performance against investor requirements under the EUs Sustainable Finance Action Plan,demonstrating how Telefnica can match i

50、nvestors needs in complying with Art.8&9 SFDR fund requirements.1Taxonomy,Eligibility&Alignment2Going beyond with positive impact(1)Please see further information in Annex I and Telefnicas Impact Report(link to website)Well prepared for upcoming regulationIntroduction153rd party validationsOur perfo

51、rmance is validated by leading rankings4th most admired telecommunications operator in the world and 2nd in EuropeFortune 5006th consecutive year10th consecutive year1st in telco sectorGovernance QualityScore 490%scoreClimate targets validated by SBTi Accountability&TransparencyRatings&Rankings3rd c

52、onsecutive year1st in Digital Inclusion benchmark 3rd consecutive year2th consecutive year as top rated66/1004.6/5A86/10015.2(1)1)Copyright 2024 Sustainalytics,a Morningstar company.All rights reservedEnergy and climate change Telefnica decarbonisation roadmapEnergyConnectivity&digital solutions for

53、 a green transitionCircular economyBiodiversity and waterTelefnicas environmental policies have led the sector for many years.Our digital solutions are helping to decarbonise the economy.E:Building a greener futureE:Building a greener future17In order to reach our short and long-term climate targets

54、,we implemented a Climate Action Plan that goes beyond the Paris Agreement and aims to limit the temperature increase to 1.5C above pre-industrial levels.TargetTarget KPI2023 ProgressKey messages Operational emissions-90%Scope 1&2 emissions reduction by 2030 compared to 2015.-81%Scope 1 emissions dr

55、opped by 7%compared to 2022.Scope 2 emissions dropped by 3%compared to 2022.Valuechain emissions-56%Scope 3 reduction emissions by 2030 compared to 2016.-31%In 2023 Telefnica has further implemented supplier engagement initiatives to reduce its 64%of Scope 3 emissions stemming from the supply chain.

56、(more info).Neutralisation100%Offsetting of unabated Scope 1&2 emissions in key markets(1)by 2025.65%Spain:credits from Telefnica Forest,as well as other conservation and restoration projects,accounting for 18%operational emissions.Germany:neutralised 60%of their operational emissions Brazil:offset

57、100%of their Scope 1&2 emissions through the purchase of carbon credits.Telefnica,S.A.:mitigated 68%of the impact of the Scope 1&2 emissions from its corporate premises.Decarbonisation Plan:Targets&progress so far(1)Key markets mean operations in Germany,Brazil and Spain.E:Building a greener future1

58、851%in 2023 vs 2015Step1Set near-term and long-term SBTi targets and implement a strategy to achieve them.Step2Reduce Scope 1&2 emissions through renewable energy&efficiency.Step3Reduce value chain emissions(scope 3)through suppliers engagement and circular economy.Step4Neutralise unabated emissions

59、 through certified carbon credits.Decarbonisation Plan:Pathway to Netzero by 2040Carbon offsetting stands for offsets that represent avoided or reduced emissions.At Telefnica,we are using carbon credits to reduce emissions from deforestation and forest degradation,which ensure the protection and con

60、servation of forests(REDD+)Carbon neutralisation stands for offsets that represent carbon removed from the atmosphere and permanently stored.At Telefnica,we are using carbon credits from natural solutions,such as afforestation,reforestation and restoration projects(ARR),which promote forestation and

61、 thereby absorb carbon.E:Building a greener future19Decarbonisation Plan:Scope 3 InitiativesScope 3 emissionsScope 3 emissions in 2023Engagement initiatives with suppliersE:Building a greener future20TargetTarget KPI2023 ProgressKey messagesEnergy Efficiency90%Reduction in energy use per traffic uni

62、t(MWh/Pb)by 2025 vs 2015.89%(1)82.2M savings in energy efficiency and management projects during 2023.8.6%reduction on energy consumption since 2015,while data traffic has increased 8.6x(2).Renewable Electricity 100%Electricity sourced for own facilities consumption from renewables by 2030.84%In 202

63、3 we increased energy sourcing for own facilities consumption from renewable sources by 2 pp(ramping up from 82%of total supply).Our commitment is reflected in the Renewable Energy Plan,to achieve 100%renewable sourcing through purchase agreements(PPAs),self-generation,and guarantees of origin.Our E

64、nergy Efficiency and Renewable Energy Plans include a wide range of initiatives aimed at reducing our own emissions(Scopes 1&2).Energy:Targets&Progress so far(1)Our total energy consumption was 6,012 GWh(21,642,699 GJ),of which 95%was electricity and 5%was fuel.We highlight that we have managed to i

65、mprove our rate of energy consumption per unit of traffic by 89.3%compared to 2015.(2)In 2015 we had an energy consumption of 6,578(GWh)and in 2023 we have reduced to 6,012(GWh),even though we increased from 17 PB of traffic to 146.E:Building a greener future21Energy:Relevant initiativesOur network

66、transformation initiatives such as energy efficiency projects,contributed to 66%of total energy savings.Moving from copper,2G,3G and 4G networks to all-IP,fibre and 5G networks will give us a more streamlined business model.Fibre optics-85%more energy efficient vs copper network.2024:Spain will be t

67、he 1st country in EU to shutdown its copper network.5G-Up to 90%more energy efficient than 4G.Germany,Spain,Brazil,Peru and Chile also certified 100%of electricity consumption at third-party sites as being renewable,enabling us to reach 84%globally.Progress in renewable energy consumption in own fac

68、ilitiesE:Building a greener future22Connectivity&digital solutions for the Green Transition Digital solutions for environmental challenges(1)Of the total,84.9 MtCO2 correspond to services where Telefnica only provides broadband and mobile connectivity for the B2C segment and 1.2 MtCO to IoT,cloud,bi

69、g data and health services where Telefnica provides the connectivity,IoT devices,platforms,services and/or software.These data include emissions generated by connectivity and the network infrastructure that forms part of these services.We offer services that have the potential to generate environmen

70、tal benefits by reducing the consumption of energy and water and the emission of CO and boosting the circular economy.In this regard,our portfolio of Eco Smart services,verified by AENOR(an independent certifier),identifies those solutions that have the potential to make a positive contribution to t

71、he environment when used by our customers.Customers emissions avoided through digitalisation Thanks to the efficiencies generated by our connectivity and Eco Smart services,we helped our customers avoid the emission of 86.1(1)MtCO2 in 2023.Eco Smart Services52%of our services in Brazil,Chile,Colombi

72、a,Germany,Mexico,Peru,Spain,Telefnica Global Solutions(TGS),T.Tech and T.Tech UK&I have been verified as Eco Smart by AENOR.E:Building a greener future23Promoting circularity:Waste&digital initiativesTelefnicas digital initiatives to promote reuse&circular economy VICKYBlockchain technology to incre

73、ase traceability of customer premise equipment(modems,routers and TV set-top boxes).APOLLOBig data and analytics to optimise collection routes for uninstalled or inactive equipment.MAIAMarketplace to promote internal reuse of network equipment and when is not possible,facilitate equipment sales of s

74、econdhand network equipment.MARAOmnichannel model with an end-to-end approach that allows our customers evaluate mobile devices and access trade-in programs,technical support or repair services.GRETELPlatform to increase traceability in waste management and to identify opportunities to improve reuse

75、 and recycling rates.Total waste generated(%)E.g:Cables,electronic equipment(WEEE),batteries,paper and others.Promoting the circular economy in the transformation of our network by prioritising the reuse of electronic equipment and,where this is not possible,extracting value from materials through r

76、ecycling.Electronic equipment(%)Only electronic equipment waste(WEEE)97%reused&recycledE:Building a greener future24Promoting circularity:Targets&Progress so far TargetTarget KPI2023 ProgressKey messagesDesign with environmental criteria100%of new home connectivity equipment designed with environmen

77、tal criteria from 202533%Launch of new products such as the Fibre to the Room(FTTR)device,which contains 70%recycled plastic in its casing or HomeSpot 5G Router which is 63%repairable and 89%recyclable and recoverable.Refurbishing and reusing CPE90%refurbished customer premise equipment(e.g.routers,

78、decoders)by 202488%We avoided the purchase of 3.7M of new equipment.Reused mobile devices500kUnits of reused mobile devices by 2030491,422 Reused 491,422 mobile devices,27%more than 2022.Collected mobile devices20%used mobile devices taken back over total new devices sold/distributed through own cha

79、nnels by 2030(GSMA goal)11%In 2023 we collected 102t of mobile phones,11%of the total devices distributed.Zero mobile device waste to landfill100%reused and recycled mobile phones collected by 2030(GSMA goal)99%We reused and recycled 99%of the total mobile phones collected.Zero network equipment was

80、te to landfill100%network equipment reused and recycled by 2025(GSMA goal)99%313,805 reused items of network equipment,36%more compared to 2022,thanks to initiatives such as the MAIA marketplace.Zero waste to landfill100%of waste reused and recycled by 203097%We reused and recycled 97%of their waste

81、,including 4.5M items of electronic equipment and avoiding 365,929 tCO2 associated with the manufacture of new products.E:Building a greener future25Protecting and conserving biodiversity and waterIdentify and assess nature-related impacts,risks and opportunities(direct operations&value chain).Apply

82、 mitigation hierarchy(avoid,mitigate,restore and offset)in relation to priority areas on biodiversity.Establish partnerships and share best practices.Improve employee awareness to encourage responsible and efficient use of resources.Our fundamental aim is to manage all natural resources efficiently:

83、BiodiversityWater98%of Telefnicas facilities are located in habitats with low or very low biodiversity value.12.8%reduction in water consumption in 2023,with a 6.3%decrease in countries classified as highly water-stressed areas.Human capitalTargets&progressDiversity&inclusionDigital inclusionHuman r

84、ightsCustomer relationshipSustainable products&servicesContribution and impact on societyS:Helping society to thriveTelefnica is enabling an inclusive digital transition.Our human capital management aims to attract and retain the best talent.S:Helping society to thrive27Human Capital:Targets&Progres

85、s (1)Parity defined on not more than 60%and not less than 40%of each gender.TargetTarget KPI2023 ProgressKey messagesOverall motivation70 annuallyEmployee Net Promoter Score76 7pp+in eNPS vs.2022(80%of employee participation).Women executives37%of women executives by 2027.32.8%Programmes to accelera

86、te female employee careers and attract female talent.Commitment to gender equality recognised by Bloomberg Gender-Equality Index.Pay gap +/-1%Adjusted Gender Pay Gap(%)in own workforce by 2024.0.71%Target seeks to ensure equal pay for equal work.Achieved in 2022.0%Gross Gender Pay Gap(%)in own workf

87、orce by 2050.16.1%0.7 pp reduction in gross pay gap between 2022&2023.Increasing proportion of women in key positions,i.e.executives or income generation positions(49%in 2023).Gender parity at the highest levelsParity1%women in the companys highest governance bodies.40%women on the Board of Director

88、s Target achieved in 2022 for the Board of Directors.Objective to achieve parity across the Companys highest governance bodies by 2030.Promote inclusion 2,700 employees with disabilitiesN of employees with disabilities by 2024.2,572 Enhanced disability awareness programmes.Commitments through Valuab

89、le 500 initiativeWork-life balance70 annuallyAt least 70%in the employee motivation survey regarding work-life balance.81%Variety of flexible work options including hybrid working and subsidised four-day week,among others.Pioneering digital disconnection agreement in 2019 with all trade union organi

90、sations.Target achievedS:Helping society to thrive28Overall motivation Professional development New ways of working Safety,health and well-beingAI for customised trainingLeveraging AI in our SkillsBank tool.Human Capital:Employee survey resultsAdopted a consolidated hybrid,flexible,and digital work

91、model,redefining workspaces and prioritising employee well-being.Universitas TelefnicaTailored training for all professionals.All employees have access to online courses on occupational health,safety and well-being95%of our professionals reported that their work has purpose and meaning in the employ

92、ee survey(80%participation).81%of our employees reported in the employee survey that learning forms part of their day-to-day working lives.94%of our employees consider that the hybrid-flexible working system enables them to be more productive.81%of our employees feel that Telefnica supports well-bei

93、ng at the Company73%of our employees are covered by a certified(ISO 45001or OHSAS18001)occupational health and safety management system.33 pp higher than in 202265%of employees have adopted our hybrid work model.S:Helping society to thrive29 Female talentPeople with disabilitiesEthnic and cultural d

94、iversityHuman capital:Diversity&Inclusion LGBT+AgeExamples of Initiatives during 2023:Group level:Empowering Women.Spain:Female Talent Boost Programme.Hispam:Futura leadership programme.600 participants during 2023.+1,090 employees with disabilities incorporated during 2023.109nationalities in our w

95、orkforce.Signatories of the UN Standards of Conduct for Business to protect the rights of LGBT+.Benefits for LGBT+couples&parents that go beyond the legal requirements(Hispam).Development and wellbeing of transgender talent(transitioning toolkit,employability workshops)and commitments to attract tal

96、ent in Brasil(111 employees).63%of new recruits in 2023 under 35 years of age and initiatives to promote senior talent(e.g.Brazil).Training&recruitment of candidates for tech roles with specialist partners.Ensuring workplace accessibility.Initiatives to attract talent and promote leadership from the

97、 global majority(UK&Brazil).91%of employees stated that they worked in a company with equal opportunities and 84%said that everyones ideas were taken into consideration regardless of position,gender,age,religion,sexual orientation or identity,ethnicity,origin,disability or personal background.S:Help

98、ing society to thrive30Training in digital skills via Fundacin Telefnica:Basic digital skills(e.g.Renacer Digital).Intermediate digital skills(e.g.Conecta Empleo,Lderes Digitales).Employability and training in advanced digital skills(e.g.Campus 42).Developing new solutions and innovative services th

99、at can improve peoples lives New verticals:e.g.renewables(Solar360 in Spain),eHealth,circularity&education.Solutions and verified labels to inform customers e.g.Eco Rating for B2C and Eco Smart for B2B customers.Ensuring that P&S meet the strictest privacy and security standards to generate confiden

100、ce in use of new technologies.Protecting and fostering a responsible use of technology.Safe and responsible use of technologyDigital inclusion:meaningful connectivity1.2Mof new P&S will be reviewed under our Responsibility by Design framework by 2025.people reached through awareness-raising initiati

101、ves on the safe and responsible use of technology.Connectivity:Access to broadband communication networks.Accessibility:Digital services as a key tool for improving the lives of people with disabilities.Affordability:Providing social tariffs to not a barrier to using new technologies92%of the popula

102、tion in all our markets has access to our 4G/LTE mobile broadband coverage.Innovation and relevant servicesDigital skillsInclusive access100%28M people given intermediate or higher digital skills training to improve employability.S:Helping society to thrive31Human Rights:due diligence processTargetT

103、arget KPI2023 ProgressKey messagesHuman rights risk assessment 100%of our operations assessed on human rights twice a year.100%Global impact assessments every 3-4 years to identify and validate existing/new Human Rights impacts.Based on the results,we conduct local impact assessments twice a year an

104、d independent thematic impact assessments if a new relevant impact is identified.Pioneering report on the Due Diligence process to take into account the new regulatory requirements,following a five-step process:The Global Human Rights Policy establishes the general guiding principles that form the b

105、asis of our relationship with suppliers,employees,customers&society.Global and specific(local,thematic)impact assessments to understand potential impacts and risks on human rights.Priority areas of impact:We adapt internal policies and processes to prevent,mitigate and/or remedy potential human righ

106、ts impacts.We carried out monitoring and reporting activities on an ongoing basis and generates public reports about our Due Diligence process.Our Whistleblowing and Queries Channel enables any individual or entity to express concerns or complaints regarding human rights among other topics.Digital I

107、nclusion.Digital Rights.Responsible use of new technologies.Protection of children.Social and environmental standardsin the supply chain.Due Diligence in Human Rights&Environment1 Policy2 Impactassesments3 Integration into processes4Assesment and reporting5Complaint and remedy mechanismsS:Helping so

108、ciety to thrive32Customer Relationship:Building trustNet Promoter Score 2017 2020 2021 2022 20233126Voice of the Customer programmesSpain:The handling of dissatisfied customers through close-the-loop allows almost 70%of customers to end up being satisfied.Brazil:Resolution rate of the complaint proc

109、ess:75%|Churn reduction:60%.Germany:Since the launch of the program in 2019 the relational NPS has increased by around 20 points.Responsibility to the CustomerOur internal regulation on Responsible Communication provides guidelines on how to address customers and other stakeholders.Net Promotor Scor

110、e Our 2023 ProgressCustomer satisfactionWe measure NPS as a target linked to customer trust.NPS is included within our employees remuneration schemes NPS reached 31 points in 2023,marking an improvement of 10 points vs.2017.99%network availability during 2023,in line with our objective to provide th

111、e best connectivity.We are part of the Planet Pledge initiative.In 2023:Trained 450 marketing,comms,events&sponsorship employees to reduce environmental impact.Provided guidelines to avoid greenwashing.233019S:Helping society to thrive33Sustainable innovationWe develop innovative solutions to help o

112、ur customers transition to more sustainable and competitive business models Open innovation portfolio/active start-ups 538Total cumulative investment in Open Innovation 233M Eco RatingSustainable Products&Services:key to our growth strategyMeasuring the environmental impact of mobile phones througho

113、ut their life cycle.Responsibility by designIntegrating ethical,environmental sustainability and accessibility principles into P&S and channels.Implemented in 100%of our marketsPioneers:AI principles published in 2018Sustainable innovation 3,203 M invested in R&D+i during 2023.497 industrial propert

114、y rights in 2023.High-capacity and energy-efficient networks with solutions based on Data-and AI-driven operations.10 years investing in innovative startupsCore&Network innovationOpen innovationRanked amongst the top 50 companies in Europe for R&D investment*(*)According to the European Unions Resea

115、rch and Innovation Observatory.Portfolio of solutions to address global challenges E-Health services Cyber-security52%of the B2B portfolio has an Eco Smart certificationAnnex34Energy and climate change Climate ChangeContribution and impact on societiesSince 2019 we have been measuring our impact and

116、 our contribution to the main SDGs in order to better integrate this into the organisations decision-making models.To measure and monetise our impacts,we have followed the guidelines provided by organisations such as:Harvard Business School(HBS)The Value Balancing Alliance(VBA)The World Business Cou

117、ncil for Sustainable Development(WBCSD)The Capitals CoalitionThe latest report published considered 2022 data and rendered a 100bn contribution(similar to previous years),Annex IISocioeconomic Contribution Report100bn socio-economic contribution48bn2.5bn32bn17bnCorporate governanceCulture based on e

118、thicsData privacySecurity and cybersecurityManaging a responsible supply chainG:Leading by exampleTelefnica maintains strict levels of governance oversight through policies,personnel,and programmes.G:Leading by example36Our 15-member board has a diverse skill set and backgroundCorporate Governance:A

119、 balanced and diverse board15Members on the Board of Directors40%Women on the Board of Directors%of Directors with the following knowledge and skillsBoard composition%of Directors with professional experience in the following sectors66,67%IndependentDirectorsLead independent DirectorInternational di

120、versity0,40%total votingrightsAverage Directors Tenure8,80 Years Renewed Board of Directors since 201673.33%New directorssince December 2019Target achievedG:Leading by example37Corporate Governance:Active Board oversightThe Board continuously analyses the main strategic issues facing Telefnica.The B

121、oard is responsible for approving Telefnicas Strategic Business PlanThe Strategy and Innovation Committee(SI)supports the Board in analysing Telefnicas global strategy policyThe Board is informed monthly of the matters discussed by the SI,which includes the global strategic policy,and receives updat

122、es from management on strategic issues including among others:Board oversight of StrategyBoard oversight of Responsible Business PlanBoard meets onceevery monthApprovalResponsibleBusiness PrinciplesResponsible Business PlanCorporate Support and Business AreasMain Sustainability PoliciesGlobal Sustai

123、nability(ESG)OfficeEthical FrameworkRoadmap for SustainabilityCountry OperatorsSupervisionMonitoringImplementationHuman Capital Management Initiatives and PlansUpdates on TransformationprogrammeESG Landscape and Responsible Business PlanStrategic Portfolio AnalysisSustainability and Regulation Commi

124、tteAudit and Control CommitteeExecutive Commission meets twice every monthBoard AnnualStrategic Off-siteSustainability and Regulation Committee meets once every monthG:Leading by example38Corporate Governance:Sustainability ManagementMain bodies of the sustainability governance modelGeneral sharehol

125、ders MeetingBoard of DirectorsThe Companys highest decision-making body;Among its functions is the approval of the Sustainability Report.Approves the Responsible Business Principles,the Responsible Business Plan and the relevant ESG policies and regulations.Sustainability and Regulation CommitteeNom

126、inating,Compensation and Corporate Governance CommitteeCreated under its new structure on December 2023,it oversees implementation of the Responsible Business Plan at its monthly meetings,among other tasks.Oversees the variable remuneration system,which includes sustainability-related targets,among

127、other things.Audit and Control CommitteeExecutive CommitteeOversees certain matters related to sustainability information,regulatory compliance,the risk analysis and management process and the Companys reporting processes.One of the Telefnica Groups highest management bodies,monitors the business an

128、d the Responsible Business Plan as well as other issues related to the management of sustainability targets.Global Sustainability(ESG)OfficeCompany areas responsible for managing sustainability mattersDevelopment of the business plan,reporting of sustainability information,management of sustainabili

129、ty risks,monitoring the ESG culture,communication for engagement with stakeholders and coordination of sustainable finance,among others.Undertake the implementation of the objectives of the Responsible Business Plan.General Shareholders MeetingBoard of DirectorsSustainability and Regulation Committe

130、e Nominating,Compensation and Corporate Governance CommitteeAudit and Control CommitteeExecutive CommitteeGlobal Sustainability(ESG)Office Company areas responsible for managing sustainability mattersVarious governance and management bodies involved in sustainability managementG:Leading by example39

131、A culture of responsible business is ensured via robust policies,extensive training and the facilitation of reporting channels.Ethics and responsible businessTargetTarget KPIOur 2023 ProgressKey messagesResponsible Business0Zero Tolerance of corruption and bribery0 confirmed cases of corruption.94,9

132、00 employees(91%of the workforce)have been trained in anti-corruption.5,823 suppliers awarded in 2023 have received information on integrity policies and values.AllEmployeesEmployees trained in Responsible Business Principles and Human Rights92,401 employees Since the Principles of Responsible Busin

133、ess course was launched(May 2022),89%of employees have completed the training.AllOperationsOperations assessed for corruption risksAll operations assessed The operations risk map,including the basic compliance risk,is carried out twice a year.Implementing a solid culture of ethics&compliance Integri

134、ty is the basis for our Compliance function.Legal compliance&zero tolerance to corruption&bribery Mandatory responsible business,human rights training,integrity training and internal awareness campaigns.New Policy on Whistleblowing in 2023(new regulatory requirements).912 complaints received in 2023

135、,328 of which were substantiated,and 109 resulted in termination of contracts.Robust training on ethicsWhistleblowing channel Training on competition law available for all company areas.In 2023,no material judicial proceeding were in progress for violation of competition law and no fines were paid f

136、or anticompetitive practices.Fair competition We do not take a political standpoint beyond views on matters affecting Telefnica.Online and in person courses 3,300 courses(5,500 training hours)on ESG topics and business ethics completed by 2,500 employees in 2023.Political neutralityESG AcademyG:Lead

137、ing by example40Privacy and SecurityPrivacy and Security is fundamental to our business.Our priority is to generate a relationship of trust with all those with whom we work.ProtectionWe apply privacy and security by design,that is incorporated into the initial concept of our products and services an

138、d subsequently throughout the development process.Individuals must be able to manage and control their personal data.This enables access to their data and to additional information about the risks and benefits associated with management thereof.The principle of transparency is about both providing p

139、eople with straightforward tools that allow them to control their data and having the technological development needed to generate maximum respect for privacy and information security.Data must be secure and individuals privacy must be preserved.This is the foundation of our business and our primary

140、 consideration when designing our services and collaborating with third parties.Key Data 202375,821 hours of training in data protection and cybersecurity,with over 94k attendees6,007 days dedicated by internal audit to data protection and cybersecurityLeading telco in Ranking Digital Rights index a

141、nd the DigitalInclusion BenchmarkDesignTransparencyEmpowermentG:Leading by example41 Data privacy:performance,internal controls and main targetsOur internal data privacy policiesOur data privacy performance in 2023Key targetsfor 2024Approve and introduce Binding Corporate Rules(to guarantee transfer

142、 of personal data outside the EU),which will permit us to increase our level of commitment to privacy even further.Update the Groups Privacy Policy it in line with the BCRs Groups Privacy Policy to bring.Update the Global Privacy Centre,which is part of the Global Transparency Centre.In order to red

143、uce risk exposure and increase digital trust,Telefnica complies with the Data minimisation”principle of the General Data Protection Regulation(GDPR),to obtain,process and store only the personal data that is necessary and to do so only for a specified time.We have established policies and guidelines

144、 on the storage and deletion of data in the Transparency Centres of the Groups operators.30 requests for mediation were processed through Voluntary mediation system with AUTOCONTROL 0 fines due to data protection issues as a result of a security breach or incident affecting personal data.G:Leading b

145、y example42Security&Cyber-security Protecting people and property from potential damage from Security threats while guaranteeing confidentiality,integrity and availability of the companys information assets.Key indicators&targetsHigh Severity Cyber security incidents involving personal identifiable

146、information:0(vs.2 incidents affecting 95%of contracts/RFPs with supplierswill contain security requirementsby 2025.Next Steps Continue our review of the global regulatory framework on security in order to simplify it and align it with new versions of international standards,such as ISO 27001.Move f

147、orward with deploying the Zero Trust1 model to control IT system access and with implementing tools to govern the security of cloud environments.Increase the percentage of contracts/RFPs that contain security requirements for the supply chain.(1)Zero Trust is a security strategy applied to accessing

148、 information that will be provided through“minimum privilege”control techniques.It will be end-to-end encrypted and guided by the principle of“never trust,always verify”Internal security management Prevention,detection and appropriate response to reduce attacks and protect digital services across th

149、e Group.Physical and operational security Digital security Business continuity Fraud prevention Supply chain securityInternational standards such ISO 27001 and NIST are followed.https:/ by example43Cyber Security Capabilities for our customers via Telefnica TechIdentifyProtectDetect&respondCyber-exp

150、osure management Cyber-Threat Intelligence.Vulnerability Management.Offensive SecurityZero-trust defense.Managed Security Services.Managed Secure Networking ServicesManaged extended detection&response.DFIR.Managed SIEMIdentityNetworkEnd-pointCloudOTDataAppsPeopleNextDefense PlatformSecurity Automati

151、onManaged&professional services and consulting6,300 Professionals+4,000 Certifications2 DOCs+SOCs+15 yearsof Cyber Security practice in Telefnica24x7 always-on security professionals with global reach&local presenceG:Leading by example44Supply Chain ManagementTelefnicas supply chain approach is base

152、d on two pillars2.Engagement1.Risk managementTargetTarget KPI2023 ProgressKey messagesSupply chain risk assessment 100%of potential high-risk suppliers assessed on sustainability matters via an external platform by the end 202672%Identification of potential high-risk suppliers through our internal r

153、isk assessment methodology.Potential high-risk suppliers then evaluated based on 15 sustainability criteria that cover ESG aspects.Every stage is accompanied with training and engagement with our suppliers:to raise awareness and promote capabilities to improve.100%of our suppliers are required to ac

154、cept our sustainability standards.687 potential high-risk suppliers.72%of potential high-risk suppliers have been evaluated on sustainability aspects18,324 administrative or on-site audits and 853 audited suppliers with improvement plansSTEP 1STEP 3STEP 4STEP 2All suppliers are required to accept ou

155、r Supply Chain Sustainability Policy.Identification of potential high-risk suppliers.Performance assessment of potential high-risk suppliers.Audits(administrative or on-site)of potential high-risk suppliers.Annex45AnnexESG Reporting linksDouble Materiality Climate change risks and opportunitiesOur B

156、oard of DirectorsContribution to societyData privacy by design process,assuring transparency and empowering our customersPerformance in ESG Ratings ESG ReportingAnnex46NNNNNESG Reporting linksESG LibraryAnnex IESG ReportingConsolidated Management Report 2023E EnvironmentS SocialGGovernanceAnnex47Dou

157、ble materiality:ProcessAnnex IIDouble materiality Impact,risk and opportunity(IRO)assessment criteriaImpact perspectivePositive ImpactActualScale+Scope+Economic AssessmentPotential(Scale+Scope+Economic Assessment)x LikelihoodNegative ImpactActualScale+Scope+RemediabilityPotential(Scale+Scope+Remedia

158、bility)x LikelihoodFinancial perspectiveRisksScale+Economic Assessment x Likelihood for potentialOpportunitiesAnnex48Energy and climate change Climate ChangeClimate change:Risks and opportunitiesTelefnica analyses climate-related risks in accordance with the recommendations of the Task Force on Clim

159、ate related Financial Disclosures(TCFD).The opportunities are associated with cost reductions and business growth.Annex IIIClimate change risks and opportunitiesAnnex49Telefnica is firmly committed to the ongoing improvement of its corporate governance framework,increasing,strengthening and consolid

160、ating best practices in this area.Corporate Governance:Our board of directorsAC=Audit and Control CommitteeE=Executive CommissionNCCG=Nominating,Compensation and Corporate Governance CommitteeSRC=Sustainability and Regulation CommitteeCommittee KeyVernica Pascual BoMemberIndependent DirectorCommitte

161、es:NCCGSolange Sobral TargaMemberIndependent DirectorCommittees:SRCAlejandro Reynal AmpleMemberIndependent DirectorMara Rotondo UrcolaMemberIndependent DirectorCommittees:AC,SRCPeter LscherMemberIndependent DirectorCommittees:E,AC,NCCG(Chair)Carmen Garca de AndrsMemberIndependent DirectorCommittees:

162、AC,SRCFrancisco Javier de Paz ManchoMemberOther External DirectorCommittees:E,NCCG,SRC(Chair)Mara Luisa Garca BlancoMemberIndependent DirectorCommittees:AC,NCCG,SRCFrancisco Jos Riberas MeraMemberIndependent DirectorClaudia Sender RamrezMember Independent DirectorCommittees:EJos Javier Echenique Lan

163、dirbarVice Chairman and Lead Independent Director Independent DirectorCommittees:E,AC(Chair),NCCGIsidro Fain CasasVice ChairmanProprietary Director Committees:EJos Mara lvarez-Pallete LpezExecutive Chairman Executive DirectorCommittees:E(Chair)Jos Mara Abril PrezVice ChairmanProprietary Director Com

164、mittees:E,SRCngel Vil BoixChief Operating Officer Executive DirectorCommittees:EAnnex IVOur Board of DirectorsAnnex50Energy and climate change Climate ChangeContribution to Society during 2023 7,580M euros are the taxes paid during 2023:For every 100 euros of turnover,we spend 19 euros in taxes.For

165、every euro of gross operating margin we obtained in 2023,we generated 4.3 euros of contributions to the GDP of the main countries in which we operate.23,370 million euros awarded to 8,462 suppliers.83%of purchases awarded to local suppliers.Our activities constitute a catalyst for job creation:for e

166、very person we hire,we additionally generate over 10 indirect or induced jobsAnnex VSocioeconomic Contribution ReportG:Leading by example51Data privacy by design process,assuring transparency and empowering our customersCustomer empowermentProtection:privacy by design processTransparencyGlobal Priva

167、cy Center Our objective for 2024 is to continue improving this centralised channel,among other things by linking all of our operators Transparency Centres.Our operations certified under ISO27001 are published in the Transparency center.Operators Privacy and Security CentresEnable both our customers

168、and stakeholders to obtain information about the processing of their personal data in a simple,digital and understandable way.Transparency centerAllows customers to set their data privacy and management preferences via their Personal Data Space,permitting to control and ensure the transparency of da

169、ta.Designing P&S is crucial to implement legal and security-based privacy protection measures as well as ensure all business processes related to activities impacting personal data.Annex VIData PrivacyAnnex52Performance in ESG RatingsAccountability&TransparencyGRI standards(comprehensive)SASB Teleco

170、mmunication Services Sustainable Industry Classification SystemTCFD recommendations(Environmental)Recommendations of IIRC Eligibility activities reported under EU TaxonomyAnnex VII3rd Party Validations-Performance in ESG RatingsBloomberg Gender Equality IndexIncludedCDPACDP Supplier EngagementLeader

171、Digital Inclusion Benchmark(DIB)89/1001st in the world(ICT sector)EcoVadis 75/100FortuneMembers of the Most Admired Companies 2023 list(4th in the world/2nd in Europe)FTSE Russell4,6/51st in the sectorMoodys Analytics66/1003rd position in the sectorMSCIARanking Digital Rights1st in the telecommunica

172、tions sectorRefinitiv A-S&P DJSI86/100Member of DJSI EuropeSustainalytics(1)15.2(low risk)8th in the telecommunications sectorWorkforce Disclosure Initiative 90%World Benchmarking Alliance1stThe table includes the latest valuations provided by institutions in 2023 or later,but based on information from that year.1)Copyright 2024 Sustainalytics,a Morningstar company.All rights reserved