Telefónica - 1792 Exchange

Rating Overview

Telefónica is Medium Risk.

Telefónica is Medium Risk. The company often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. The company occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	No Data
Political Actions	No Data

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

Telefónica is part of the Joint Alliance for Corporate Social Responsibility (JAC), which seeks to “Driv[e] the sustainable transformation of the Information and Communication Technology (ICT) supply chain” through implementing corporate social responsibility while “sharing resources and best practice” with other members. JAC members are encouraged to “take all reasonable endeavours to promote and secure compliance” to its Supply Chain Sustainability Guidelines to their suppliers, subcontractors, and employees. These guidelines ask suppliers to incorporate sexual orientation and gender identity into their nondiscrimination policies, adopt products and services that offer “environmental and social benefits”, and minimize Greenhouse Gas emissions by establishing emissions reduction targets, publicly reporting GHG emissions metrics, and engaging sub-suppliers and their sub-suppliers to drive GHG emission reduction (1)(2). The company integrates ESG into its business practices. From its Energy and Climate Change page: “In ten years we have already reduced 49% of our GHG emissions (91% of Scopes 1 and 2 since 2015 and 34% for Scope 3 since 2016). These are Telefónica’s strategic levers for the climate transition:… Energy efficiency and renewable energy[,] Low carbon procurement[,] Carbon offseting[,] Decarbonisation of suppliers and customers[,] Sustainable finance” (3). Also, from its 2025 ESG Profile: the company seeks to “embed ESG across the business and our supply chain, with the topmost ethical standards” (4)(5). Also, from its 2025 ESG Profile: “Our effort to transform the company with an ESG lens is reflected in our remuneration structure” (6). The company promotes divisive sex and gender policies. Its Supplier Code of Conduct requires international vendors to include sexual orientation and gender identity in their nondiscrimination policy (7). However, Telefónica has not canceled customers, suppliers, or vendors based on political views or religious beliefs (8).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

Telefónica does not appear to discriminate against charitable organizations based on views or beliefs (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

Telefónica offers unconscious bias training to its employees (1). The company appears to prioritize diversity over merit in its business structure through the establishment of gender and racial targets for its leadership composition and hiring. The company is seeking
“37% of women in management positions by 2027” and “45% black employees and 40% black leaders by 2035” (2). Telefónica does not provide viewpoint protections for its employees (3).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Telefónica is committed to net zero emissions by 2040 (1). The company supports DEI within its business practices, hosting a Global Diversity Council and employing a Chief Diversity Officer (2). Also, from its Diversity and Inclusion webpage: “At Telefónica we incorporate diversity and inclusion management as a key element for connecting talent and growing as a company” (3). The company supports ESG within its business practices. From its 2025 ESG Profile: The company sets “clear ESG priorities with firm targets” (4).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

N/A

Rationale:

Telefónica has not used corporate funds to advance ideological causes, organizations, or policies (1).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

N/A

Rationale:

Telefónica does not operate a PAC or engage in lobbying at this time (1)(2)(3).