Overview

Currently, Telefônica Brasil has 12 members on its Board of Directors, 8 of them are independent (83.3%) and 4 are women (33.3%).

Since 2019, 20% of short-term executive and employee compensation are linked to NPS, reputation, GHG emissions and women in leadership targets. In 2022, a New Long-Term Incentive Plan was announced, which includes phantom shares of the Company in executive compensation, with climate change indicators among the evaluation criteria.

Demonstrating how sustainability correlates with its business strategy and long term vision, Telefônica Brasil issued R$3.5 billion in Sustainability-Linked Bonds (SLBs), a debt instrument linked to the achievement of ESG goals. The assumed goals relate to internal actions aimed at promoting diversity and a low-carbon economy. The commitments establish, by 2027: (i) Reduce greenhouse gas emissions by at least 40% (scope 1) by 2027 compared to 2021; (ii) Achieve a value equal to or greater than 30% of leadership positions by black people by 2027. More details about these commitments are available in Telefônica Brasil’s Sustainability-Linked Financing Framework.

By promoting digitalization, Telefônica Brasil brings people, companies and society closer, contributing to transforming lives and businesses. Aware of the benefits of digitalization, in 2022, the company invests R$ 9.5 billion mainly aimed at strengthening its mobile network and expanding fiber network. Aiming to promote social development and inclusion, the company also has solutions in health (Vale Saúde), education (Vivae), banking and access to credit (Vivo Pay and Vivo Money). Digitalization is also part of the Fundação Telefônica Vivo purpose, which benefits more than 2 million people per year and has as one of its areas of focus the development of digital skills with public school teachers and students.

Telefônica Brasil develops the Vivo Diversity Program, with an exclusive committee and actions to expand the inclusion and representation of four main groups: gender, race, LGBTI+ and people with disabilities.  The company is committed to the following goals by 2025: (i) 38% of women in leadership positions; (ii) 30% of black people in leadership positions; (iii) 8% of self-declared LGBTI+ employees. To achieve these objectives, Telefônica Brasil has affinity groups, exclusive development programs, specific recruitment and selection practices, as well as literacy and awareness actions for managers and employees.

Telefônica Brasil is committed to high standards of privacy and security. Customers can access more information about the treatment of data, exercise of rights and details about company’s management practices through the Privacy Center website and the Local Privacy Policy. Furthermore, the digital security strategy is monitored by senior management through: (a) a dedicated management structure with a Chief Security Officer (CSO) and a Chief Information Security Officer (CISO), (b) a Digital Security Risks Executive Committee, and (c) the periodic review of the digital security strategy by a Board of Directors’ independent director.

Telefônica Brasil continuously works to decouple the growth of its services with its carbon emissions. Considering scopes 1 and 2 (market-based method), the company demonstrates a continuous drop in the indicator of CO2 emissions per revenue, as follows: (i) 2020 – 1.81 tCO2e/R$ Million; (ii) 2021 – 1.43 tCO2e/R$ Million; (iii) 2022 – 0.67 tCO2e/R$ Million.

Telefônica Brasil’s main climate target is to achieve net zero emissions by 2040, including emissions from the value chain – Net Zero commitment. In addition, the Company has defined intermediate targets, which include reducing emissions by 90% from scopes 1 and 2 by 2030 and neutralizing the remaining emissions from these scopes through nature-based solutions from 2025. Telefônica Brasil’s decarbonization plan considers short-term (2025), medium-term (2030) and long-term (2035) objectives validated by the SBTi initiative. Details of these goals, as well as actions to achieve them, are available in the Company’s Climate Action Plan.

Telefônica Brasil implements important standards and certifications: ISO 26000 (Social Responsibility); ISO 27001 (Information Security) for the following digital security program (Vivo Segura) processes: Application Security (AppSec), Data Protection Monitoring, Vulnerability Management (GVUL) and Managed Detection and Response (MDR); DSC 10000 (Compliance); ISO 14001 (Environmental); ISO 45001 (Occupational Health and Safety), and ISO 50001 (Energy).