Digitalization helps curb climate change: Towards zero emissions by 2040

Telefónica includes sustainability as a cross-cutting theme in its strategy, aligned with the Sustainable Development Goals (SDGs) defined in the United Nations 2030 Agenda, to accelerate responsible digitalization that generates competitiveness and a positive impact for all.

The green and digital transitions reinforce each other. Studies by the World Economic Forum and the Exponential Roadmap indicate that digital solutions can reduce global emissions by 15% in sectors such as energy, industry, agriculture, and transportation, and by up to 35% thanks to their ability to transform people's habits by 2030.

And this is crucial to achieving the level of ambition for global emissions reduction set out in the Paris Agreement, as it is necessary to strive for the maximum degree of efficiency in processes, and digitalization makes this possible.

Digital solutions can reduce global emissions by up to 35% thanks to their ability to transform people's habits by 2030.

At COP29, Digital Day was celebrated for the first time, with the aim of securing commitments to promote the adoption of digital solutions and limit the use of resources by technology. The Declaration on Green Digital Action, promoted by the International Telecommunication Union (ITU), was presented at the Summit. The initiative was endorsed by more than 1,000 organizations, including Telefónica.

The Declaration is “a commitment to reduce the environmental footprint of digitalization, improve data-driven decision-making, and strengthen vital digital communications infrastructure against the impacts of climate change.”

On the one hand, to make progress, the sector's major challenge is to decouple data growth from energy consumption and thus contribute to Europe's green transition through responsible digitalization. Telefónica is successfully addressing this challenge through more efficient networks, such as fiber and 5G, energy efficiency measures, and renewable electricity.

Aim: Net-zero emissions by 2040

Telefónica's global goal is to achieve net-zero emissions by 2040 across the entire value chain, ten years ahead of international agreements. To achieve this, it is committed to reducing emissions by 90% and neutralizing residual emissions through the purchase of carbon credits for CO₂ absorption, preferably through nature-based solutions.

Telefónica was the first telco in the world to obtain validation from the Science Based Targets Initiative (SBTi) for its net-zero environmental goals, both in the short, medium, and long term, according to the new Net-Zero Standard. This occurred in mid-2022. The company thus confirmed that its decarbonization path is aligned with science.

Since 2015, all its emissions have decreased by 52%.

Energy Efficiency Plan

The challenge for Telefónica is to maintain stable electricity consumption despite the sharp increase in the digitalization of society and the increase in data used on its telecommunications networks. The main savings are achieved by modernizing its network and shutting down old equipment. Fiber is 85% more energy efficient than copper, and 5G is 90% more efficient than 4G.

In addition, there are initiatives to reduce energy use during off-peak periods and in cooling, lighting, power equipment, etc. Telefónica has developed and implemented 201 energy efficiency initiatives by 2024 and has managed to reduce energy consumption by 8% between 2015 and 2024, despite a nine-fold increase in data traffic.

Telefónica has managed to reduce energy consumption by 8% between 2015 and 2024, despite data traffic increasing ninefold.

After meeting its 2025 goal of reducing energy consumption per traffic unit by 90%, the telco aims to reduce it by 95% by 2030. It's worth noting that Telefónica uses 100% renewable electricity in Europe and Brazil and, as a consumer in several countries, contributes to generating more clean energy. To meet both goals, long-term power purchase agreements (PPAs) are being encouraged.

Circularity: Zero Waste by 2030

For Telefónica, the best waste is the kind that is not produced, and that is why it aims to be a Zero Waste company by 2030.

Telefónica integrates the circular economy into its processes to optimize resource consumption and promotes environmentally friendly design, reuse, and recycling to minimize its impact and encourage the reincorporation of materials into the production cycle. Circularity helps avoid indirect carbon emissions associated with the extraction of new materials linked to the manufacture of new equipment, which contributes to achieving net-zero emissions by 2040.

Telefónica prioritizes reuse and, when this is not possible, obtains the value of materials through recycling.

The Zero Waste objective seeks to transform waste into resources through proper management. The company prioritizes reuse and, when this is not possible, extracts value from materials through recycling.

The number of operational, office, and customer equipment reused in 2024 reached five million, an 11% increase compared to 2023. Furthermore, 95% of the waste generated was reused and recycled.

Telefónica has various platforms that help it promote the circular economy in its processes and with its electronic equipment.

Digital solutions for the green transition

Telefónica is committed to developing digital solutions that help its customers become more sustainable. For example, it helps them save energy, CO2 emissions, and water, and foster the circular economy. These solutions, known as EcoSmart, have been certified by AENOR (National Institute of Statistics and Censuses), and have the potential to generate environmental benefits for its customers' activities and businesses. Most of these solutions are based on Internet of Things, Big Data, Cloud, and Artificial Intelligence technologies. Currently, 57% of the B2B solutions offered by Telefónica have been certified as EcoSmart by AENOR.

Telefónica estimates that its EcoSmart and connectivity services helped customers in Spain, Brazil, and Germany avoid 17.4 million tons of CO2 emissions by 2024.

Similarly, Telefónica quantifies the specific emissions avoided by its connectivity and solutions. To do so, it conducts case studies with its B2B customers and surveys its residential customers to analyze how their digital habits help them become more sustainable. A survey conducted by Telefónica with more than 4,400 residential customers in Spain, Brazil, and Germany shows how digital habits contribute to decarbonization.

Digital habits that contribute to decarbonization 1 Video calls made by their Spanish clients save up to 18 domestic and 3 international trips per year. 2 Online shopping saves more than 28 trips per person per year. Most of these trips would be made in gasoline or diesel cars. 3 With online training, clients save more than three trips per week.

For the eleventh consecutive year, Telefónica has been recognized as a leading global company for its action against climate change by being included in the "A List" compiled by CDP, a non-profit organization whose report is considered the "gold standard of corporate environmental transparency" and the benchmark for analysts and investors in this field.