Assessment of Biodiversity Impacts and Opportunities

This document is classified as a technical report that assesses nature-related impacts, dependencies, risks, and opportunities associated with Telefónica's operations. The report outlines the company's biodiversity strategy aimed at strengthening its commitment to nature and stakeholders. It begins with an assessment of dependencies and impacts, covering both direct operations and the value chain. The assessment utilizes internationally recognized protocols, including the Natural Capital Protocol and the Biological Diversity Protocol. Key findings indicate that 98% of Telefónica's facilities are situated in areas with low biodiversity value. The report further analyzes the company's contributions to biodiversity loss drivers and identifies significant impacts occurring primarily within its value chain. It highlights risks related to biodiversity, such as operational disruptions from extreme weather events and increased costs due to climate change. Additionally, it discusses opportunities for resource efficiency and sustainable practices that could enhance business performance and reputation. The findings aim to inform decision-making and improve resilience in alignment with leading reporting frameworks.