Telefónica Targets 56% Cut in Value Chain Emissions by 2030

Telefónica has introduced a Global Sustainability Plan for 2026 to 2030, setting new environmental, social and governance priorities across its international telecommunications operations. Among the plan’s central commitments is a target to reduce greenhouse gas emissions from the company’s value chain by 56% by the end of the decade.

The Spanish telecommunications group has also committed to cutting its direct operational emissions, covering Scope 1 and Scope 2, by 90% by 2030. These interim goals support Telefónica’s wider objective of achieving net-zero emissions across its operations and value chain by 2040.

The strategy is integrated into Telefónica’s broader Transform & Grow corporate plan. Rather than treating sustainability solely as a reporting or compliance function, the company intends to incorporate environmental and social indicators into operational management, investment decisions, supply chain oversight and business development.

Value Chain Emissions Become a Central Priority

Scope 3 emissions include indirect emissions generated outside a company’s own facilities and purchased energy. In the telecommunications industry, these emissions can arise from the manufacture of network equipment, electronic devices and construction materials, as well as logistics, business travel, purchased services and the use and disposal of products.

Reducing these emissions is generally more complex than addressing operational emissions because companies do not directly control the relevant assets or industrial processes. Progress therefore depends on cooperation with suppliers, manufacturers, logistics providers, contractors and customers.

Telefónica’s 56% reduction goal is measured against a 2016 baseline and has been validated under the Science Based Targets initiative, or SBTi. The company’s climate roadmap calls for a 90% absolute reduction across all three emissions scopes by 2040, after which remaining residual emissions would be neutralised annually.

To address its value chain footprint, Telefónica plans to work with suppliers and manufacturers while expanding the use of eco-design and circular economy criteria. This could affect purchasing requirements for telecommunications hardware, customer devices, data centre equipment, batteries, cables and other technology-related products.

Suppliers may consequently face greater demand for verified emissions data, product carbon footprints, renewable energy use and credible decarbonization plans. Companies that cannot provide reliable environmental information or demonstrate progress could find it more difficult to meet procurement requirements from large telecommunications customers.

Network Efficiency and Renewable Energy

Telecommunications networks require significant quantities of electricity to operate mobile infrastructure, fixed networks, data centres and supporting systems. At the same time, continued growth in data traffic means operators must reduce energy use per unit of data while expanding network capacity.

Telefónica’s operational strategy includes network transformation, energy efficiency programmes and the continued procurement of renewable electricity. The company also plans to expand long-term renewable energy supply agreements, which can provide greater price certainty while reducing exposure to fossil fuel market volatility and electricity-related emissions.

According to Telefónica, its energy consumption fell by 12% despite strong growth in data traffic, illustrating the role that network modernization and the replacement of older infrastructure can play in controlling electricity demand. The company reported that 89.1% of its electricity consumption came from renewable sources in 2024.

Long-term renewable power purchasing arrangements may also strengthen energy security by reducing exposure to short-term market fluctuations. However, the environmental benefit will depend on the structure and additionality of the contracts, as well as the electricity markets in which they operate.

Zero Waste and Circular Technology

The sustainability plan also establishes a goal of achieving zero waste by 2030. Telefónica intends to pursue this objective by reusing and refurbishing equipment, extending the useful life of technological assets and improving the management of critical materials.

Circularity is particularly relevant for telecommunications companies because network upgrades generate substantial volumes of electronic equipment. Routers, antennas, servers, cables, customer devices and other components contain metals and minerals that can be recovered, reused or recycled.

Extending product life can reduce both waste and the embedded emissions associated with manufacturing replacement equipment. Refurbishment programmes may also lower purchasing costs and reduce supply risks for materials whose production is geographically concentrated.

Telefónica reported in June 2026 that it had reused or recycled four million devices during 2025, representing 95% of the waste covered by the company’s reporting. The new plan will require the operator to build on these activities and clarify how zero waste will be defined, measured and verified across different markets and waste streams.

Infrastructure Resilience Joins Mitigation Efforts

Alongside emissions reduction, Telefónica is placing greater emphasis on adaptation to physical climate risks. Telecommunications infrastructure can be affected by heatwaves, flooding, wildfires, storms, water shortages and disruption to electricity supplies.

The company plans to strengthen critical infrastructure, diversify supplies and improve continuity planning for extreme weather events. Its climate adaptation model combines preventive risk management with response measures intended to reduce service disruption and financial losses.

This approach reflects the growing recognition that telecommunications networks are essential infrastructure. Failures can affect emergency communications, public services, financial transactions, transport systems and business operations. Climate resilience is therefore becoming an operational requirement rather than a separate environmental initiative.

Governance and Sustainable Finance

Implementation of the plan will be overseen by Telefónica’s Sustainability and Regulation Committee. Key indicators will also be incorporated into the Executive Committee’s strategic management and monitoring processes.

The company says it will integrate ESG criteria more closely into capital allocation, supply chain management and corporate decision-making. It will also continue linking parts of variable remuneration to emissions performance, creating a direct governance mechanism for holding management accountable for progress.

Sustainable finance is another component of the strategy. Telefónica reported that more than 37% of its financing was classified as sustainable in 2024, supported by instruments including green and hybrid bonds. Funding can be directed towards projects such as network efficiency improvements, renewable energy procurement and equipment refurbishment.

What the Plan Means for the Telecom Sector

Telefónica’s plan illustrates how telecommunications climate strategies are moving beyond electricity purchasing and operational efficiency. Scope 3 targets increasingly require companies to address the design, manufacture, transport, use and end-of-life management of technology throughout the value chain.

For equipment manufacturers and other suppliers, the transition is likely to bring more detailed emissions reporting requirements and stronger expectations for renewable energy, material traceability and circular product design. For investors, the credibility of the plan will depend on annual progress, transparent baseline data and evidence that emissions reductions are being achieved in absolute terms.

The 2030 targets provide a measurable framework, but their delivery will depend on procurement decisions, supplier participation, reliable emissions data and sustained investment in efficient infrastructure. Telefónica will also need to manage growing data demand without allowing network expansion to offset gains from efficiency and renewable electricity.

By integrating emissions reduction, circularity and climate adaptation into its corporate strategy, the company is positioning sustainability as part of its approach to operating costs, supply security and long-term resilience. The main test will be whether these commitments produce consistent and independently verifiable reductions across Telefónica’s global footprint before the end of the decade.

Sources:

• www.esgtoday.com

• www.telefonica.com