Just as digitalization is helping companies to be more efficient, these technologies are a fundamental instrument for environmental conservation and the fight against climate change.
Therefore, the big technological companies, such as Telefónica, have assumed this role both internally and in the face of their customers and suppliers. Digital transformation not only facilitates the transition to a climatic and circular economy, but also allows us to optimize resources, reduce emissions and promote sustainable innovation, aspects that Telefónica has integrated into its corporate strategy with tangible and ambitious objectives in the future.
International commitment
A 2020 European Council report already indicated that digital technologies can be powerful tools for environmental protection, biodiversity and climatic action, while other international organizations, such as the world economic forum or the exponential Roadmap, calculate that digital solutions can reduce global emissions by 15% in sectors such as energy, industry, agriculture or transportation, and up to 35% Its ability to transform people’s habits until 2030.
That is, digitalization acts as a link between a past based on fossil fuels and a decarbonized and efficient future. Technologies such as 5G, artificial intelligence (AI) and digital twins are essential to monitor ecosystems, improve energy efficiency and plan sustainable cities, significantly reducing polluting emissions. For example, digital twins allow to create virtual replicas to simulate and evaluate urban interventions before execution, which minimizes the environmental impact and optimizes the use of resources.
Such is the importance of the technology and sustainability binomial that even in COP29 (United Nations climate change conference) was held for the first time on the day of digitalization to reach commitments to use digital solutions and limit the use of resources by technology. Hence the declaration on the Green Digital Action, promoted by the International Telecommunications Union (ITU), which was signed by more than 1,000 organizations, including Telefónica.
Objectives and results
This company has made sustainability a transverse axis of its activity. Its commitment to decarbonization translates into an environmental policy that covers from the prevention of pollution and sustainable use of resources to the protection of ecosystems and biodiversity. The company is committed to technological innovation to offer digital solutions that help its clients to face environmental challenges and promote energy efficiency in the design, operation and maintenance of their networks, which include fiber optic and 5G. In addition, it shares infrastructure to reduce visual impact and energy consumption, use renewable energy and recycle materials derived from the dismantling of old networks.
The results of these policies are palpable. Telefónica has reduced its carbon emissions by 84.8% since 2015 in its direct operations (scope 1 and 2), being 95% in its main markets.
Energy Efficiency Plan
The challenge for Telefónica is to keep the consumption of electricity stable despite the strong increase in the digitalization of society and the increase in data that go through its telecommunications networks. The main savings are managed to modernize their network and turning off old teams. Fiber is 85% more energetically than copper and 5G, 90% more than 4G.
To this, they add initiatives to reduce energy in periods of lower traffic and refrigeration, lighting, strength equipment, etc. Telefónica has developed and put into practice 201 energy efficiency initiatives in 2024 and has reduced energy consumption by 8% between 2015 and 2024, although data traffic has increased 9 times.
The Telco after fulfilling its 2025 goal to reduce energy consumption per traffic unit by 90%, it is proposed to reduce it by 95% by 2030. It should still be noted that Telefónica uses 100% renewable electricity in Europe and Brazil and that, as a consumer in different countries, it helps to generate more clean energy.
Zero net in 2040
Telefónica’s commitment goes beyond its own operations, extending to its entire value chain. Telefónica’s overall objective is to reach zero net broadcasts in 2040 and was the first company in the world to obtain the validation of its environmental objectives by the Science Based Targets initiative (SBTI) under the new Net-Zero standard, which includes the effective reduction of at least 90% of all its direct and indirect emissions and the neutralization of the remaining ones through high quality carbon credits. Its road map, the Climate Action Plan, establishes clear goals to reduce operational emissions by 90% by 2030 and reach total neutrality in 2040, thus advancing a decade to international commitments.
Digitization also translates into concrete initiatives for company customers and society in general. Telefónica has developed the “Eco Smart” solutions, verified by AENOR, which have the potential to generate environmental benefits in the activities and businesses of its customers. Telefónica estimates that its Smart and connectivity services helped customers in Spain, Brazil and Germany to avoid the issuance of 17.4 million tons of CO2E for 2024.
In the field of circular economy, Telefónica has set the objective of being a zero residue company by 2030. To do this, it integrates circularity in its processes to optimize the consumption of resources and promotes design with environmental criteria, reuse and recycling to minimize its impact and favor the reinstatement of materials to the production cycle. The number of operations, offices and customers reused in 2024 has promoted 5 million, 11% more than in 2023. Similarly, 95% of the waste generated were reused and recycled.
Responsible digitalization is also reflected in the ethical and sustainable use of artificial intelligence. Telefónica has updated its letter of ethical principles in AI to include environmental commitments, using this technology to optimize energy efficiency, promote circular economy and minimize the environmental impact of its systems.
Digitization, therefore, is an essential engine for the green transition, not only because it reduces the direct environmental impact of operations, but because it enables the whole society to adopt more sustainable models. For all these reasons, Telefónica has been recognized, for the eleventh consecutive year, as a global leading company for its action against climate change by being part of the “list A” prepared by CDP, non -profit organization whose report is considered the “gold standard of corporate environmental transparency” and the referent for analysts and investors in this area.