Telefonica Brasil (NYSE:VIV) S.A. (B3: VIVT3; NYSE: VIV), also known as Vivo, has been included in the Dow Jones Sustainability World Index (DJSI World) for the year 2025, marking a significant recognition for the company's sustainable business practices. The DJSI World comprises leading companies in terms of environmental, social, and governance (ESG) criteria among the top 2,500 organizations in the S&P Global Broad Market Index.
The company announced on Thursday that it secured the 6th highest performance globally in the telecommunications sector, maintaining its position in the top 10 for the third consecutive year. Additionally, Vivo is recognized as a leader in the Americas based on the Corporate Sustainability Assessment by S&P.
This milestone reflects Telefonica (NYSE:TEF) Brasil's ongoing commitment to sustainability, which has been a key component of its strategy. The company's inclusion in the DJSI World is a testament to its continuous efforts to create value not only for shareholders but also for employees, customers, society, and the environment. The company currently offers a notable dividend yield of 4.9% and maintains moderate debt levels, demonstrating its ability to balance stakeholder returns with sustainable business practices.
Vivo's sustainable business practices have also led to its leadership position in the B3 ISE, the Brazilian stock exchange's Corporate Sustainability Index. This indicates the company's significant role in promoting sustainability within the Brazilian market and beyond. For investors seeking detailed analysis, InvestingPro offers comprehensive research reports covering both financial metrics and ESG performance for over 1,400 stocks, including Vivo.
In other recent news, Telefonica Brasil has made several significant moves. The company recently announced the cancellation of 1.33% of its shares, representing 21,944,664 common shares, which were previously held in treasury. This action does not reduce the company's capital value, but it does signal ongoing capital management strategies. In addition to this, Telefonica Brasil has also announced a capital reduction of R$2 billion, decreasing its share capital from R$62.07 billion to R$60.07 billion, with funds to be returned directly to shareholders.
Telefonica Brasil has also reached a regulatory agreement with Brazilian authorities, allowing for a transition from its current service model. The Self-Composition Agreement was signed with the National Telecommunications Agency, the Federal Court of Accounts, and the Federal Union through the Ministry of Communications. This agreement allows Telefonica Brasil to shift from a Switched Fixed Telephone Service concession contract to an Authorization regime, providing the company with greater operational flexibility.
Furthermore, the Federal Court of Accounts has granted unanimous approval for the adaptation of Telefonica Brasil's existing Switched Fixed Telephone Service Concession Contracts into Authorization Instruments. This regulatory shift aligns the company's operations more closely with current market dynamics.
Lastly, during its Q3 2024 earnings call, the executive board expressed confidence in the company's business prospects while acknowledging potential risks and uncertainties tied to macroeconomic scenarios and industry-related factors.
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