Better Health for All

Telefónica's core telecommunications services enable significant health benefits through e-health and telemedicine, improving accessibility and quality of care, particularly in rural areas, which aligns with a score of 20 for health impact core.

The company's products do not have direct safety implications for physical or mental health, resulting in a score of 0 for safety record. Similarly, as the company does not offer health-related products or services requiring accessibility considerations, price accessibility and nutrition and food safety score 0. Telefónica provides a Global Transparency Center and a 24/7 whistleblowing channel, but lacks comprehensive public data on health risks and benefits, leading to a score of -30 for risk transparency. The company invests in 1,168 innovative startups and incubation centers, but the share of R&D specifically aimed at improving health outcomes is not specified, resulting in a score of -40 for health innovation investment. Universal health insurance covering disabilities, mental, and reproductive health is offered as a non-pay benefit for all permanent employees, and benefits for LGBT+ couples and parents go beyond legal requirements, but the scale of these programs as a percentage of revenue is not provided, leading to a score of -60 for health equity programs. The occupational health and safety management system covers 97% of employees in 2024, and universal health insurance is offered to permanent employees, but there is no evidence of broader initiatives to strengthen the healthcare workforce capacity, resulting in a score of -60 for healthcare workforce support. The occupational health and safety management system helps reduce work-related incidents for 97% of employees, but there is no evidence of broader preventative health measures beyond employee safety, leading to a score of -60 for preventative health measures. Telefónica demonstrates strong healthcare data responsibility with Binding Corporate Rules approved by the Spanish Data Protection Authority in 2024, a Global Transparency Center, and zero fines for data protection issues, aligning with a score of 30. While universal health insurance covers mental health for permanent employees, there is no evidence of broader initiatives or support for mental health needs beyond employees, resulting in a score of -80 for mental health initiatives. Telefónica provides basic and intermediate digital skills training via Fundación Telefónica, but this is not explicitly health education, resulting in a score of -80 for healthcare education.

Fair Money & Economic Opportunity

The provided articles primarily focus on Telefónica's digital inclusion initiatives, telecommunications infrastructure, and digital skills training. While one article mentions a mobile wallet (MFS) for financial inclusion in Brazil,

it does not provide specific data points required by the rubric for financial services, such as the percentage of underserved clients, pricing fairness, revenue from high-cost products, share of loan/insurance book, data accessibility for financial products, fair lending compliance, wealth-building outcomes, profit reinvestment in community finance, financial literacy initiatives, or customer debt burden ratios. Therefore, no KPIs can be scored based on the evidence provided.

Fair Pay & Worker Respect

Telefónica reported an adjusted gender pay gap of 0.71% in 2023, indicating that women earn 99.29% of men's pay in comparable roles.

The company's Employee Net Promoter Score (eNPS) was 76 in 2023, based on 81% employee participation. The voluntary turnover rate for 2023 was 4.1%. In terms of contract security, 99% of the global workforce was on permanent contracts in 2023. Over 21,000 employees in Telefónica España are covered by a collective bargaining agreement.

Fair Trade & Ethical Sourcing

Telefónica requires 100% of its suppliers to accept its sustainable supply chain policy within the procurement model, which includes specific commitments on social and environmental impacts and minimum sustainability criteria.

The Global Supply Chain Sustainability Policy was updated in 2025 to align with new European regulatory frameworks. The company identified 661 potential high-risk suppliers, with 407 of these having been evaluated on sustainability aspects.

Honest & Fair Business

Telefónica incurred approximately $28 million in ethics-related regulatory fines in the past three years, including a €20 million fine in July 2025 and a €6 million fine in March 2023 for violating conditions related to bundled offers and smartphone lease commitments.

The company achieved an 88% compliance level for fiscal transparency in 2024, earning the “t for transparent” seal from the Haz Foundation, and received the highest score for tax transparency from S&P CSA and Sustainalytics. Telefónica has not had any financial restatements in the past five years. A formal whistleblower channel is available 24/7 via web, phone, and mail for employees and third parties, allowing for anonymous and confidential reporting, with a policy prohibiting retaliation. The company has an Anti-corruption Policy, approved in December 2015, which prohibits all forms of corruption, regulates gifts, and requires annual certification from directors and executives. Telefónica's crime prevention program in Spain is UNE 19601 certified. The company has a third-party due diligence model for certain transactions, but the extent of independent verification of ethical claims is not quantified.

Kind to Animals

Telefónica is a telecommunications company, and its core business model does not involve animal-derived products, animal testing, animal husbandry, or animal agriculture.

Therefore, most KPIs related to animal welfare are not applicable. While the company conducts biodiversity assessments and mentions biodiversity conservation, no specific measurable data on species recovery or habitat restoration metrics for wildlife conservation impact is provided. Similarly, general supplier audits are mentioned, but not specifically for animal welfare compliance.

No War, No Weapons

The company states it aligns with the UN Guiding Principles on Business and Human Rights, but implementation is uneven across divisions.

It addresses conflict minerals in its supply chain sustainability policy, but no percentage of the supply chain certified conflict-free is provided. Human rights due diligence is conducted annually, with a Human Rights Committee providing updates. Telefónica updated its ethical principles for Artificial Intelligence, but these high-level guidelines omit many defense applications. The company supplies network infrastructure to the Spanish army and security forces and is expanding its defense business, but no specific ethical red lines are mentioned regarding military contracts beyond a general update to AI ethical principles.

Respect for Cultures & Communities

Telefónica has no reported cultural appropriation incidents.

The company conducts a Global Impact Assessment with Deloitte, a third-party expert, which considers vulnerable groups including indigenous communities. Multiple grievance mechanisms are available to all stakeholders 24/7 through public channels, including a Whistleblowing Channel and Responsible Business Queries Channel. These channels accept reports in 21 languages. Over 90,000 employees have completed training in the Code of Ethics and Human Rights.

Safe & Smart Tech

Telefónica is investigating a potential cyberattack from May/June 2025 where sensitive data of approximately 1 million former Peruvian customers was leaked.

A hacker claims a larger breach of 106.3GB of data, which the company has not acknowledged. In 2023, the company incurred 18 fines totaling €300,366 for data protection issues. Telefónica has an AI governance model, approved in 2023, with ethical principles defined in 2018 and updated in 2024. This model includes an AI Ethics Committee and Responsible Artificial Intelligence (RAI) Champions. The company holds UNE 19601:2017 and ISO 37001:2016 certifications for some entities, renewed in 2023, and its Binding Corporate Rules (BCRs) were approved by the Spanish Data Protection Authority in March 2024. In 2023, 94,642 employees completed privacy, data protection, security, and cybersecurity training, totaling 75,821 hours. The company mentions using cryptographic tools and applying technical and organizational measures for security. Telefónica strives for explainable AI and promotes 'Transparent and Explainable AI' to increase user trust. The company states it does not market or sell customer personal data. Customers can manage privacy preferences via a Personal Data Space and Transparency Centre. Telefónica uses an internal RedTeam, continuous monitoring, and a bug bounty program with external experts. Critical vulnerabilities are patched within 3-7 days on average. Privacy by Design is a key strategic pillar and mandatory internal regulation, with 65-75% of products thoroughly assessed for privacy impacts. Red Teams perform ethical hacking and penetration testing. Telefónica complies with the GDPR's data minimization principle, with 73% of unique users' data used for secondary purposes in 2024. The company has a strong compliance program, including an updated Whistleblowing Channel and 100% of executives signing anti-corruption certificates in 2023. The company's responsible AI approach contributes to anticipating and mitigating negative impacts. Telefónica actively participates in various international organizations and forums related to digital rights.