Materiality

The materiality analysis process which we carry out annually enables us to identify issues of particular importance in terms of their impact on Company strategy and of their relevance to our stakeholders, which helps in the establishing of priorities and courses of action.

Every year at Telefónica we carry out a materiality analysis process in order to identify those issues which require special attention. To that end, we follow the guidelines of the G4 version of the GRI Guide regarding how to identify material issues which must be included in the annual sustainability statements. In this way we enable the comparison and comprehensive identification of issues.

We have also based our analysis on the materiality analysis designed by the Global e-Sustainability Initiative (GeSI) in November 2014, which is specifically for the whole value chain of the ICT hypersector. As can be seen via this link, the GeSI analysis preselects 55 potentially material issues, divided into eight categories: digital inclusion, employees, climate change, supply chain, customers, privacy, governance and impact on communities.

At Telefónica we called upon all the stakeholders related to the Company to help us preselect these 55 material issues which have a key impact on our activity. The stakeholders who collaborated on the project are: Alcatel-Lucent, Amdocs, AT&T, Bell, Bkash, Bolo Phi, Bosch, BSR, BT, Calvert, Deutsche Telekom, Ericsson, ETNO, Everything Everywhere, Forum for the Future, GeSI, Green Electronics Council, Greenpeace, GSMA, HP, Huawei, Institute for Public and Environmental Affairs (IPE), Institute of Contemporary Observation (ICO), ITU, KPN, Nokia, OTE, SACOM, SAM Robeco, SASB, Seagate Technology, Skyworks Solutions Inc., Solving the e-Waste Problem (StEP), Sony Mobile, Sprint, Swisscom, TDC Group, Telecom Italia, Telefónica, Telenor, TeliaSonera, Telstra, The Consultative Group to Assist the Poor (CGAP), The Energy and Resources Institute (TERI), The Sustainability Consortium, United Nations University, Verizon, VimpelCom, Vodafone, World Resources Forum and WWF.

The results of the external and internal analysis enable us to establish the level of total importance of the material issues for Telefónica, as shown below, to group them according to field - financial, environmental or social - and present them graphically in the matrices which can be seen on the page to the right.

All these issues are material within the organisation. With regard to the scope of the information on external issues, please see the chapter on ‘Structure and scope of consolidation’. To learn more about the variations in material relevance by location, please refer to the online version of this Report, where the different materiality tables are available to select and consult according to country.

1
Quality of service
2
Digital trust (privacy + security + freedom of expression + child protection)
3
Supply chain (occupational standards + minerals in conflict)
4
Health, safety and occupational well-being
5
Ethical business practices
6
Digital inclusion: Acessibility
7
Energy consumption
8
Transparency
9
Green services
10
Carbon emissions
11
Talent retention and development
12
Diversity and non-discrimination

Main material issues for Telefónica

The thorough analysis revealed information which is key to a company in which the interconnection between environmental, social and economic factors is increasingly intense, and concluded that the most important aspects are: