Natural disasters Disclosure by Telefonica

Natural disasters Disclosure by Telefonica – telecommunication infrastructure is very sensitive to natural disasters, so it is good reading about that in the 2018 Consolidated financial statements Telefonica S.A.

We have Global Business Continuity Regulations which, among other matters, contemplate the controls necessary to ensure the security and continuity of our processes, defining the necessary management, roles and responsibilities. These regulations contemplate:

  • Business Continuity Plan: Outlines the process and associated logistics so that the Company can recover and restore critical functions that have been partially or totally disrupted within a given time after an unwanted shutdown. Natural disasters Disclosure by Telefonica
  • Global Crisis System: By means of which we manage the high-impact incidents that threaten us. It has a Global Crisis Committee, which includes specialists depending on the type of incident (natural catastrophes, man-made incidents, cyber-threats, incidents in networks, incidents in information systems, etc.).The Committee acts in four phases: alert of the crisis at local level, evaluation of the impact at global level, development of the activity and implementation of the action procedures, and close of the crisis for return to normality. Natural disasters Disclosure by Telefonica
  • Ensuring resilient, high-quality infrastructure: We work to ensure that our network is of the highest quality, resistant to failures and protected from disruptions. We have innovative services in order to improve our ability to react to those situations, helping the civil population and local administrations to respond more efficiently.For example, satellite equipment maintains communications during the reactivation of infrastructures affected by a natural disaster. We have Cell Backhaul, BGAN (Broadband Global Area Network) and satellite telephone services, which have been used in those cases.
  • Offering as much information as possible about the status of our networks and services at all times, even in adverse situations. Besides periodically publishing reports on the quality of our services, we also offer users tools to check the status of the mobile network in real time via the websites of our brands and countries, e.g. Movistar in Spain and O2 in the UK. Natural disasters Disclosure by Telefonica

Natural disasters - Disclosure by Telefonica

We also collaborate with governments, administrations and humanitarian organizations to strengthen response strategies. Natural disasters Disclosure by Telefonica

Example of the main crisis and emergencies in 2018

Natural disasters - Disclosure by Telefonica

2.2.1.2.   Environmental risks and climate change

Telefónica’s activities, like those of any other company, have an impact on the environment and can be affected by climate change. The Company’s environmental and climate change risks are controlled and managed under the Telefónica Group’s global risk management model, in accordance with the precautionary principle.

Something else -   Components of Financial Statements

Our environmental aspects have their greatest risk focus on the high geographic dispersion of infrastructure, which is controlled through environmental management based on uniform processes and certified according to the ISO 14001 standard. Natural disasters Disclosure by Telefonica

With regard to the guarantees and provisions arising from environmental risk, during the year 2018 the Group has maintained and maintains, both locally in the countries where it operates and globally, several insurance programs in order to mitigate the possible occurrence of an incident derived from the risks of environmental liability and/or natural disasters, to guarantee the continuity of its activity.

We currently have fully comprehensive insurance and coverage for all risks, material damages and loss of profit, in order to cover any material losses, damage to assets and loss of income and/or customers, among other problems, as a consequence of natural events, and environmental liability insurance to cover the environmental liabilities required by the laws and rules applicable. Both coverages are based on insurance market standards in terms of limits, sub-limits and coverage. Natural disasters Disclosure by Telefonica

Meanwhile, we specifically analyse the risks derived from climate change in accordance with the recommendations of the Task Force on Climate – Related Financial Disclosures (TCFD), with regard to both physical and transitional risks. (see section ‘Energy and climate change’ and chapter ‘Risk’).

Natural disasters Disclosure by Telefonica

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Something else -   Natural disasters Financial impact overview

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