Company Profiles

Telefónica

Spain

Telefónica, a world leader in telecommunications, offers mobile phone, fixed telephone, broadband, and pay TV services in Europe and Latin America. The company's greatest environmental impact is associated with electricity required to power its networks and base stations. Telefónica is improving remote management of stations to reduce both energy and travel emissions. The company is also supplying power to transmission units, radio-links, and base stations using renewable energy, including wind and solar. In addition, Telefónica has built one of the largest rooftop solar installations in Europe at its corporate headquarters in Spain. The company's UK division, Telefónica O2, represents approximately one-third of Telefónica's revenues and has committed itself to becoming carbon neutral by 2008, while the rest of the company has a corporate-wide Climate Change Action Plan in process. Although electronic take-back/recycling programs are required by law in most of Europe, Telefónica demonstrates leadership via its battery collection and mobile phone recycling program in Mexico, the first of its kind in that country. Portfolio 21 has asked Telefónica to expand its take-back programs to all of its markets and to incorporate energy efficiency and material restrictions in its purchasing guidelines.

To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 9/30/07 and may not reflect current opinions or subsequent events.