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Structure and scope of consolidation

The information in this Report, produced annually, summarises the development of the Telefónica Group in terms of Corporate Sustainability.

The scope of consolidation of material information is indicated in the table 'Report structure and scope of consolidation'.

  • In 2014, certain variations occurred in the scope of consolidation of the Telefónica Group:
    • On 15 July 2014, the sale of 100% of the stake in Telefónica Ireland was completed, once the pertinent regulatory authorisations were obtained, and as such was removed from the scope of consolidation in order to facilitate comparison with the following years.
    • On 28 January 2014 the sale of 65.9% of the Telefónica Czech Republic stock was completed, having obtained the required regulatory authorisations, consequently causing a decrease in the scope of consolidation of this Report.
    • On 1 October 2014 Telefónica Deutschland finalised the acquisition of E-Plus, as a result of which all its shares, business and personal are integrated into the scope of the German operator of Telefónica Group.

Therefore, information pertaining to E-Plus in Germany has been included in this Report, while information pertaining to Ireland, the Czech Republic and Slovakia has been left out, for all data from 1 January 2014. Information corresponding to previous years has not been redefined.

The complete list of all the companies that comprise the Telefónica Group is published in Annex VI: 'Main companies in the Telefónica Group' of the Consolidated Financial Report which accompanies this Report and can be found on the Corporate website.

Relevance of core Telefónica businesses in the Company scope

 

Revenue (€)

% of the total

Individuals

% of the total

T. Europe + T. Latin America 48,993 97.30% 104,511 81.6%
Other companies 1,384  2.70% 19,189 18.4%

Source of information in this report

  • Corporate Governance and shareholders 

Drawn from the same sources used to prepare the information included in the 2014 Annual Report on Corporate Governance.

  • Economic and financial information​

Drawn from the same sources used to prepare the information included in the 2014 Financial Report, audited by EY.

  • Innovation​

Consolidated through the corporate area of the CCDO, both in R+D and open innovation. The data in these sections are sourced from procurement systems and are reinforced without applying a proportionality test.

  • Customers​

Sourced from Telefónica S.A. management control systems and country operations. The total number of Company accesses does not have to equal the partial sum of accesses from country to country since, for the sake of homogenisation, the area of Corporate Management Control standardises some criteria of counting accesses. The standardisation criteria are explained in the relevant chapter. 

  • Employees​

Figures come from the Corporate Human Resources management systems. In this Report, the concept of individuals is used instead of employees; the latter term is usually used in financial reports. In instances in which the information is consolidated, the number of employees is used as a proportionality factor. The section dedicated to them includes the entire economic scope of the Telefónica Group, except in the Employee Health and Safety chapter, in which the rates reported correspond only to the Group's telecommunications business. This is to facilitate comparison with other companies in the sector, as it is produced taking into account the sector specific circumstances and legislation (e.g. listing occupational diseases).

  • Environment and climate change​

The information is drawn from the Environmental and Operations departments of each country via on-line questionnaires and other information media. The data is consolidated by simple sum and, in the case of climate change, emission factors of the GHG Protocol are taken into account.

  • Suppliers​

Sourced from the procurement system through the sales departments. The consolidation of information is carried out without applying any criteria as a proportionality factor and is presented disaggregated by country or business area. The chapter dedicated to them includes the entire economic scope of the Telefónica Group. It is important to emphasise the difference between the supply data in the consolidated accounts of the financial statements (on an accrual basis and in accordance with the countable scope of consolidation of the Telefónica Group) and the criterion for allocated purchases used in different parts of this Report, which refers to the purchases that are approved in this period, regardless of their accounting criterion or accruals and deferrals as an expense.

The information comes from local operators' systems in each country and from Fundación Telefónica.

  • Social action​

The data comes from the management control systems and sponsorship committees of FundaciónTelefónica, ATAM and the Telefónica Group, and is integrated under LBG monitoring, altogether in an information medium.

  • Exchange rates

All the information in this Report is presented in current euros, unless otherwise stated. The exchange rates applied correspond to those used in all financial statements published by the Company (balance sheet, consolidated and individual accounts) in order to facilitate the integral relationship between financial and non-financial variables.

Exceptions to the scope of consolidation of this report

Certain operators' data is excluded when the Company percentage in them is far below 50%. 

  • China Unicom: Telefónica has a strategic stake of 5.01%.
  • Telecom Italia: Telefónica has an indirect stake of 10.50%.

On 4 July 2014 Telefónica completed the acquisition of 22% of the share capital of Distribuidora de Televisión Digital, S.A. (DTS), the owner of Mediaset España Comunicación, S.A. With this acquisition, the Telefónica Group's stake in DTS reaches 44%.

Throughout this Report, links to other information are included that provide greater detail on certain subjects covered herein. However, the information in these links is not an integral part of this Report.

For deeper analysis of the topics of Corporate Governance and Telefónica's financial performance, in certain places this Report references the following to complement the information given by Telefónica: the Consolidated Financial Statement Reports (Consolidated Annual Accounts) and the 2014 Consolidated Management Report, the Annual Accounts and the 2014 Management Report, the 2014 Annual Corporate Governance Report, and the 2014 Annual Report on the Remuneration of Directors.
 

Report structure and scope of consolidation

 

Core

Other subsidiaries​

Corporate centres​

Outside the organisation​

Telefónica Sustainability
Model​
Sustainability strategy and governance
Interaction with our stakeholders  
Materiality  
Commitment to society Social cash flow
Commitment to our communities
Contribution to public administrations
Telefónica as a responsible investor    
Responsible management​ Ethics and compliance  
Employment practices Workforce  
Health, safety and occupational well-being    
Acquisition, training and retention of talent  
Fair remuneration and recognition of work  
Work environment, conciliation and commitment  
Freedom of association and social dialogue    
Diversity management
Commitment to our customers Customer satisfaction    
Connectivity at our customers' service  
Large customers  
Management of the supply chain
Commitment to the environment Environmental strategy
Environmental management  
Energy and climate change  
Management of electromagnetic fields    
Response to emergency situations  
Volunteering
Digital trust​ Telefónica's digital agenda    
Privacy and security
Good use of the Internet by children
Sustainable
innovation​
Innovation
Sustainable products and services Digital inclusion  
Universal Service      
Disability and dependence  
Digital education  
eHealth    
e-Government
Green Services    

Core: includes information on the companies that offer telecommunications services to customers in Argentina, Brazil, Central America, Chile, Colombia, Ecuador, Germany, Mexico, Peru, Spain, the United Kingdom, Uruguay and Venezuela.
Other subsidiaries: includes information on Telefónica Group companies that offer services other than telecommunications.
Corporate centres: includes information on corporate support units to the Telefónica Group companies.
Outside the Organisation: includes information on customers or suppliers that fall outside of the Telefónica Group structure and Fundación Telefónica in the commitment to our communities.