Energy

Strategy

On the way to even greater efficiency and electricity from renewable energy sources

Our environmental and climate strategy focuses on reducing energy consumption and sourcing all electricity from renewable energy sources, secured by recognised certificates of origin and drawn from various renewable energy portfolios. Through a range of measures, we are specifically reducing our energy consumption per unit of data and the associated energy-related greenhouse gas emissions, while simultaneously strengthening security of supply. As part of the Telefónica, S.A. Group, we are acting in accordance with the Group-wide goal of net-zero emissions by 2040. Business customers can benefit from our solutions, which contribute to improved energy efficiency and support them in achieving their decarbonisation targets. Read more about this in the following section on climate.

Policies

We are committed to effective energy management

Our Environment and Energy Policy forms the basis for the responsible use of energy within the company. It defines how we optimise our energy consumption and thereby reduce emissions. These guidelines are a binding component of our energy management system according to ISO 50001. This ensures that we systematically control and continuously optimise our energy consumption. Our Supply Chain Sustainability Policy obligates O₂ Telefónica’ suppliers to calculate and disclose their scope 1 and 2 emissions according to the GHG Standard, reduce their energy consumption, and prioritise the use of renewable energy sources.

Targets

We had the following targets by the end of 2025:

• To reduce energy intensity by up to 87% compared to the base year 2015. Energy intensity is calculated as: total energy consumption (electricity and fuel consumption) divided by data volume per petabyte.

• To continuously source 100% electricity from renewable energy sources at all company and network locations.

Performance

Our approach works

• Our energy intensity – data volume per petabyte – decreased by over 87% in 2025 compared to the base year 2015 (2024: 85.2%), thus we have achieved our target.

• The use of electricity from renewable energy sources at all company and network locations is 100% annually – also in 2025.

Actions

Innovative approaches for a sustainable energy portfolio

100% renewable electricity: We are committed to a sustainable energy portfolio. We have entered into long-term power purchase agreements (PPAs) with two offshore wind farms in Germany, which have been supplying electricity from renewable energy sources since 2025. In addition, we procure annual certificates of origin for electricity from renewable energy sources to offset any remaining conventional electricity purchases. We also utilise a portion of our own renewable energy generation.

Increasing digital efficiency: We switch off unused systems in development and test environments at night and on weekends and introduce technologies such as the AWS Graviton Processor, which offers improved energy efficiency compared to conventional processors. It features lower power consumption per calculation, enables optimised performance per watt for workloads such as databases, and its process architecture promotes less heat generation, thus reducing cooling requirements.

Infrastructure modernisation: Our heating, ventilation, and air conditioning systems in data centres and technical sites are continuously being modernised and optimised. We are replacing outdated air conditioning technology with more energy-efficient hybrid fan units. In addition, we are switching to free cooling and using outside air for cooling to reduce energy consumption.

Making energy consumption transparent: The Eco-Smart label identifies products that meet defined sustainability criteria – particularly energy-efficient operation and a digitally accessible CO₂ footprint. Further information can be found in the Circular Economy chapter. In addition, we rely on smart energy monitoring with AI and smart meters – both in our data centres and in the networks for our business customers. We consider defined sustainability criteria in our purchasing decisions.

Business value

Solutions for the future viability of our customers

With us, companies and institutions can support their climate transition – through the use of digital technologies that enable more energy- and emission-efficient processes. We provide high-performance infrastructures and intelligent data solutions that contribute to reducing emissions and complying with regulatory requirements, as well as promoting the resilience and future viability of sustainable business models. This also includes the continuous expansion of our 5G network, which offers improved energy efficiency per unit of data compared to previous mobile generations. Our solutions include, among others:

1. IoT and big data platforms for real-time emissions tracking and operational optimisation

2. AI-supported network planning to reduce energy demand and increase efficiency

3. Cloud-based services, which – depending on the individual usage scenario and energy consumption – can have a lower CO₂ footprint compared to local systems.

Next steps

We know where we want to go

We will continue to rely on sourcing electricity from renewable energy sources and continuously improving energy efficiency. These measures contribute to the implementation of our climate strategy and support our goal of achieving net-zero emissions by 2040.