Strategy
Managing risks, reducing emissions – climate protection needs both
For us, climate protection means more than just adaptation. We want to take active steps and focus on two key levers to proactively address climate change:
Firstly, we adapt to climate risks. We continuously assess locations, processes, and infrastructure for physical risks such as extreme weather events, as well as chronic risks such as temperature changes. In addition, we conduct climate scenario analyses in accordance with European reporting requirements and TCFD standards to systematically evaluate opportunities and risks and thus strengthen the stability of our networks.
The last such analysis was conducted in fiscal year 2024 by the Telefónica S.A. Group, which also included the Telefónica Deutschland Group. The aim was to systematically assess physical risks as well as transition risks and opportunities associated with the transformation to a low-emission economy. The analysis considered the geographical characteristics of the German market and three time horizons (short-, medium-, and long-term) to examine the impact on infrastructure, energy consumption, and regulatory requirements. A detailed presentation of the results can be found in the 2024 Annual Report (starting on page 52).
Building on this, our parent company developed a transition plan, which also applies to us. It defines concrete decarbonization levers and interim targets for three to five years each, in order to achieve the net-zero target by 2040. Implementation is based on six strategic models:
- Optimization of internal processes and transition to renewable energies
- Strengthening climate resilience
- Reduction of Scope 3 emissions through supplier cooperation and circular economy
- Promoting digital solutions for customers
- Sustainable financing including green bonds
- Integration of climate targets into governance and remuneration systems.
In addition, we focus on transparent communication, training, and partnerships to foster a culture of climate responsibility. Read more about our transition plan on page 73 of our 2024 Annual Report.
On the other hand, in addition to adaptation measures, we focus on the continuous reduction of our greenhouse gas emissions – a key lever for improving our CO2 balance and promoting the energy transition through concrete actions. Furthermore, we make a measurable contribution to decarbonisation along the entire value chain: both in our own business operations (scope 1 and 2) and in the supply chain (scope 3). Detailed information on the methodology can be found at our parent company, Telefónica, S.A. Group; our measures for reducing our energy‑related greenhouse gas emissions are described in the Energy chapter, and all key performance indicators are available online in our interactive KPI tool.
With this strategy, we not only respond to potential damage from extreme weather or rising costs during the transition, but also seize opportunities arising from the development of products and services with lower environmental impacts. Furthermore, we provide digital solutions that can support the decarbonisation of other industry sectors.
Policies
We are committed to emissions reduction and sustainable procurement
Our Environment and Energy Policy forms the basis for all emission reduction measures and is anchored in our environmental management system according to ISO 14001. For supplier relationships, we have a procurement policy for low CO2 emissions, which incorporates environmental criteria in the selection of products and suppliers, as well as a Supply Chain Sustainability Policy. This policy sets requirements for climate management for suppliers, including scientifically sound emission reduction targets for relevant scope 3 emissions in accordance with the 1.5-degree scenario.
Targets
Our overarching target is net-zero emissions by 2040 across the entire value chain (including scope 3). To achieve this, we have defined interim targets. These reduction targets are aligned with the guidelines of our parent company, Telefónica, S.A. Group, the first telecommunications company with climate targets validated by the Science Based Targets initiative (SBTi).
We had the following targets by the end of 2025:
Scope 1 and 2: reduction of CO2 emissions by 95% compared to the base year 2015.
Scope 3: reduction of CO2 emissions by 39% compared to 2016.
From 2025 onwards, all remaining and unavoidable scope 1 and 2 emissions will be offset (market-based) by purchasing CO2 certificates.
In addition, we are making a measurable contribution to CO2 reduction in business and society through the expansion of 5G and the introduction of digital solutions such as Smart Grids and IoT.
Performance
Our emissions at a glance
Our scope 1 and 2 emissions were reduced by -97.5% by the end of 2025 compared to the base year 2015 (2024: -97%).
Our scope 3 emissions were reduced by -18% in 2025 compared to 2016 (2024: -24.4%).
We have already certified offset 100% (4,535 t CO2e) of the remaining emissions in 2025 (2024: 80%).
Actions
Greater resilience and fewer emissions
Three approaches to reducing emissions: To reduce scope 1 and 2 emissions, we focus on energy efficiency, the expansion of renewable energy sources and circular economy measures (see chapter Energy and Circular economy).
A significant portion of scope 1 emissions comes from company vehicles. Therefore, in 2024, we adjusted our company car policies and electric vehicle policy to reduce CO2 emissions and accelerate the electrification of our fleet. At our antenna sites, we are gradually switching to free cooling to reduce greenhouse gases. We offset unavoidable emissions through certified climate protection projects that are audited according to internationally recognised standards such as Verra (VCS).
In 2025, the focus was on optimising our cloud resources, for example through rightsizing for demand-driven resource utilisation. In the supply chain, we can reduce emissions by applying sustainable procurement criteria and including CO2 costs in the selection process for certain product categories.
Rethinking hardware and processes: Already in the design process, we pay attention to the CO2 balance of our products, increasingly use recycled materials and design packaging to be more resource-efficient – for example with new routers as part of the “Circular Router Project” (see chapter Circular economy).
We are strengthening our resilience: We remain capable of acting even in crises: Business Continuity Management (BCM) ensures that we remain operational in the event of natural disasters, disruptions, or emergencies. As part of our IT emergency planning, we deploy emergency power generators, for example, to keep our IT systems and networks stable.
At mobile communication sites, we use robust outdoor enclosures (SSCs) that are tested according to ETSI standard 300019-1-4. They protect critical technology such as power supply and control systems from heat, rain, and extreme conditions – thus increasing operational stability at outdoor locations.
Business value
Intelligent solutions for the future viability of our customers
With IoT and cloud solutions, we contribute to energy efficiency and resource-efficient use. Our network infrastructure uses electricity from renewable energy sources and supports the reduction of our carbon footprint. IoT and cloud services enable energy-efficient process control and demand-based resource allocation to reduce emissions. In this way, we aim to create sustainable connectivity with lower environmental impact and drive decarbonisation along the value chain (see measures in the Energy and Climate chapters and online via our interactive KPI tool).
Next steps
We drive decarbonisation forward
Our path leads to net zero by 2040. Following the successful reduction of scope 1 and 2 emissions by the end of 2025, we focus on scope 3. We want to drive decarbonisation forward in the value chain and are planning new interim targets by 2030. A pilot project combines an internal CO2 price with product data from our suppliers. In this way, we are laying the foundation for procurement that combines climate protection and economic efficiency.
