Telefónica Updated Climate Action Plan to Reach Net-Zero
The company targets a 90 percent total emissions reduction by 2040, building on significant Scope 1 and 2 cuts.
Updated on Oct. 7, 2026 in Environmental
Live Poll
Do you believe large corporations should prioritize net-zero emissions goals to ensure long-term environmental sustainability?
Telefónica has updated its Climate Action Plan with a formal commitment to reach net-zero emissions by 2040. The strategy includes a target to reduce total emissions by 90 percent.
Why it matters
The updated plan aims to accelerate the company’s transition to a low-carbon economy by embedding sustainability directly into its core financial and investment frameworks. This shift seeks to integrate environmental performance into value creation across the enterprise.
Telefónica achieved a 92.8 percent reduction in Scope 1 and 2 emissions compared to 2015 levels, alongside a 28.2 percent cut in Scope 3 emissions since 2016. The company also analyzed climate risks for over 100,000 physical assets to inform its investment decisions.
The players
Telefónica
A multinational telecommunications corporation that provides integrated connectivity, digital services, and network infrastructure.
The details
The updated plan operates across six pillars: operations, adaptation, value chain, commercial activity, finance, and governance. To manage these, the company utilizes internal carbon pricing and sustainable finance tools, which comprised 40.7 percent of its total financing at the end of 2025. Additionally, Telefónica offset 100 percent of its Scope 1 and 2 emissions in Spain, Germany, and Brazil by retiring 48,395 carbon credits.
Timeline
2015: Base year for Scope 1 and 2 emission reductions.
2016: Base year for Scope 3 emission reductions.
2025: Reporting year for emissions and sustainable finance data.
2040: Target year for net-zero emissions.
The Tech Race
Telefónica's goal to achieve net-zero by 2040 positions it within the global telecommunications sector's aggressive effort to minimize environmental impact. The plan follows a trend of integrating sustainable finance metrics into corporate strategy to meet international climate benchmarks.
Commercial and residential customers in Spain, Germany, and Brazil have already seen the impact of these initiatives, with 19.2 million tonnes of CO2 emissions avoided in 2025. The company’s continued focus on sustainable infrastructure and energy-efficient operations will dictate its future service capacity.
The takeaway
The company has successfully leveraged internal carbon pricing to drive a significant reduction in direct emissions across its core markets. Observers should track future disclosures to see how the firm manages its Scope 3 emissions, which have lagged behind direct Scope 1 and 2 reduction figures.
Further reading
Explore more analysis in our Environmental section.
Source note: This article includes information reported by Thefastmode.
Live Poll
Do you believe large corporations should prioritize net-zero emissions goals to ensure long-term environmental sustainability?
