Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced landfill of analogue equipment to 0.3% in the UK.
• Initiatives on energy use underway, including purchase of sustainable energy sources and renewable energy assessments.

Social Achievements

• Launched 'Entrepreneurs on the Move' in South Africa to encourage school leavers to create their own businesses.
• Supported The Eden Foundation in Malta, providing specialized education for children with mental disabilities.
• Supported various other community initiatives globally (e.g., flood relief in Hungary, helping street children in Germany).

Governance Achievements

• Established a Corporate Responsibility Team to define and implement CSR strategy.
• Developing Group-wide CSR policy, Code of Business Principles, and principles for social investment.

Climate Goals & Targets

Environmental Challenges

• Public concern about telecommunications masts and radio frequency emissions.
• Bridging the Digital Divide.
• Managing waste from decommissioned equipment and mobile phones.

Mitigation Strategies

• Open approach to RF emissions, supporting research and public information.
• Investing in projects to advance social and economic goals, particularly in bridging the digital divide.
• Implementing waste hierarchy principles (reuse, recovery, recycling) and supporting handset recycling schemes.

Supply Chain Management

Responsible Procurement

• Strategic approach to green procurement
• Integrating environmental factors into purchasing decisions

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Electro-magnetic fields
• Energy efficiency
• Products and services
• Responsible marketing
• Waste management, refrigerants and fire suppressants
• Handset recycling
• Suppliers

Environmental Achievements

• Applying a free cooling energy saving system in 20% of its base stations led to a 20% energy saving in Vodafone Greece.
• Photovoltaic systems have been installed in 2% of its base stations and in around 18% of cell extenders in Vodafone Greece.
• A pilot trial using wind energy for base stations is underway in Vodafone Greece.
• In switch rooms with engineering equipment, a differentiation in the temperature of operation led to an energy reduction of 15% in Vodafone Greece.
• Vodafone Germany launched a recycling system for used or faulty mobiles, aiming to collect 100,000 mobiles in the first three months.

Social Achievements

• Launched the Vodafone Group Foundation, which sets out a clear policy for social investment.
• Established a network of 27,000 community phones in South Africa, creating an estimated 20,000 jobs.
• Piloted a “Getting Involved” programme in Vodafone UK, resulting in a 100% increase in employees participating in payroll giving and raising over £200,000 from employee fundraising events.

Governance Achievements

• Introduced Vodafone Group Business Principles, communicated to over 90% of employees.
• Hosted a CSR workshop for major global suppliers to promote CSR best practice in the supply chain.
• Developed an EMF transparency initiative, bringing together experts in EMF best practice from across operating companies.

Climate Goals & Targets

Environmental Challenges

• Electro-magnetic fields (EMF) and health concerns.
• Responsible marketing practices, including content standards, security of mobile handsets, and safe driving practices.
• Managing the reuse and recycling of handsets and accessories due to decreasing handset weight.

Mitigation Strategies

• Published “Mobile phones, masts, health and the environment 2002” report.
• Developed an EMF transparency initiative with websites providing radio frequency data.
• Developing a Group-wide responsible marketing code.
• Establishing handset return schemes across the Group.

Supply Chain Management

Responsible Procurement

• Draft Code of Responsible Purchasing shared with suppliers, five suppliers volunteered to work more closely with Vodafone on CSR initiatives.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: London Benchmarking Group Model

Certifications: ISO 14001 (five operating companies)

Third-party Assurance: Deloitte & Touche (agreed-upon procedures)

Sustainable Products & Innovation

• Phone designed to assist blind or partially sighted customers
• Telemedicine applications
• Missing persons alert application

Awards & Recognition

• Vodafone UK awarded best in field for communication at the 2003 RNIB Best Practice Awards

Environmental Metrics

ESG Focus Areas

• Ethics
• Stakeholder Engagement
• Consistency
• Responsibility to Customers
• Reuse and Recycling
• Energy and Climate Change
• Socio-economic Value

Environmental Achievements

• Decreased carbon dioxide emissions per unit of data transmitted by 10%
• 97% of network equipment waste reused or recycled
• 1.37 million mobile phones collected for recycling

Social Achievements

• Launched Vodafone Speaking Phone and Vodafone Simply to improve accessibility
• M-PESA pilot project giving people in Kenya access to micro-finance services
• £5 million social investment fund announced over three years to develop mobile products and services that benefit society

Governance Achievements

• Adopted a Group Privacy Policy
• Introduced a Group-wide issues management process
• Developed a five-year CR strategy

Climate Goals & Targets

Environmental Challenges

• Impact on climate change
• Impact in developing countries
• Policy on bribery and corruption
• Health concerns related to RF fields
• Supply chain issues
• Adult content
• Handset reuse and recycling
• Taxation
• Customer privacy
• Spam
• Mobile theft
• Mobile phone use while driving

Mitigation Strategies

• Set a target to reduce network carbon dioxide emissions per unit of data transmitted by 40% by 2011
• Established handset recycling programs in all operating companies
• Developed tools to combat spam and enable parents to protect children from inappropriate content
• Introduced Vodafone Passport for clearer international roaming charges
• Implemented a risk-based approach to supplier assessments
• Developed a Group Privacy Policy
• Introduced access controls to prevent inappropriate access to age-restricted content
• Developed Group guidelines on premium rate subscription services
• Implemented measures to combat mobile theft
• Launched safe driving campaigns

Supply Chain Management

Supplier Audits: Over 600 suppliers assessed for risk, 15 global suppliers had site evaluations, 85 suppliers evaluated by local operating companies

Responsible Procurement

• Code of Ethical Purchasing (CEP)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (Vodafone Greece), OHSAS 18001 (Vodafone Greece), EMAS (Vodafone Greece)

Third-party Assurance: Deloitte & Touche LLP

Sustainable Products & Innovation

• Vodafone Speaking Phone
• Vodafone Simply
• M-PESA
• Accessible BlackBerry

Awards & Recognition

• Clarion Award for CR internal communications strategy
• Social Contribution Excellence Award (Vodafone Greece)
• GSM Association awards for Vodafone Passport and ‘Stop The Clock’ campaign

Environmental Metrics

ESG Focus Areas

• Extending access to communications
• Mobile phones, masts and health
• Responsible network deployment
• Content standards
• Clear pricing
• Privacy
• CR in our supply chain
• Energy use and climate change
• Reuse and recycling
• Employment issues
• Ethics
• Public policy
• Tax

Environmental Achievements

• Implementing a strategy to cut CO2 emissions by 50% by 2020
• Recycled over six million handsets over the last four years
• Recycles around 97% of its network waste

Social Achievements

• Expanding access to communications to people in emerging markets and reducing preventable exclusion
• Leading industry initiatives to help parents protect their children from potential risks related to mobile phones
• Launched mobile phones designed specifically for children in Italy, Portugal and Spain

Governance Achievements

• Established a Group Duty to Report policy requiring all employees, contractors and suppliers to report any ethical concerns
• Introduced an anti-corruption training programme
• Improved clarity and transparency of pricing across markets

Climate Goals & Targets

Environmental Challenges

• Climate change and its potential economic impacts
• Risks to reputation from issues like clear pricing, content standards, responsible marketing, and privacy protection
• Rapid development of mobile technology leading to handset obsolescence and waste disposal challenges
• Unethical conduct by employees or within the supply chain
• Public concern about the safety of radio frequency fields from mobile phones and base stations
• Unacceptable environmental standards or labor practices in the supply chain
• Managing the socio-economic impacts of mobile communications while entering new markets
• Balancing safeguarding consumer privacy with assisting law enforcement authorities

Mitigation Strategies

• Setting targets to reduce climate impact and improve energy efficiency
• Implementing access controls, content standards, and privacy policies
• Developing handset recycling programs and awareness campaigns
• Establishing strong business principles and ethical purchasing guidelines
• Providing information and engaging openly with stakeholders on health concerns
• Conducting supplier assessments and building capability
• Tailoring services to meet the needs of customers in emerging markets
• Participating in multi-stakeholder dialogues to establish industry principles on freedom of expression and privacy

Supply Chain Management

Supplier Audits: More than 3,600 supplier CR assessments over the last four years

Responsible Procurement

• Code of Ethical Purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions impacting network infrastructure

Transition Risks

• Economic impacts of climate change, carbon taxes

Opportunities

• Developing energy-efficient products and services

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Deloitte & Touche LLP

Sustainable Products & Innovation

• Affordable handsets
• M-PESA mobile money transfer service

Awards & Recognition

• Ranked third in a 2007 UK MORI survey of leading companies in CR
• Top-ranked CR report of 2007 by Corporate Register
• ACCA award for best CR report in 2006 and for tax and public policy reporting in 2007
• Consistently ranked among the top five companies in the Accountability Rating for the last three years
• Listed in the FTSE4Good and Dow Jones Sustainability Indices

Environmental Metrics

ESG Focus Areas

• Access to communications
• Consumer issues
• Network deployment
• Mobile phones, masts and health
• Environment
• Supply chain
• Our people
• Tax

Environmental Achievements

• Decreased like-for-like carbon emissions by 4.7%
• Collected 1.82 million handsets for reuse and recycling
• Sent 97% of waste network equipment for reuse or recycling

Social Achievements

• Achieved the external high-performance benchmark for employee engagement for the first time
• Held Performance Dialogues with 96% of employees
• Launched M-PESA in Tanzania, and extended coverage in Afghanistan and Kenya

Governance Achievements

• Maintained Board-level involvement in tax issues
• Reviewed employee performance against our Tax Team Behaviours
• Provided tax training to over 200 employees across the Group

Climate Goals & Targets

Environmental Challenges

• Regulatory issues preventing mobile money transfer services launch in several markets
• Data collection systems for Vodafone Essar (India) not yet reliable enough for inclusion in main report
• Ensuring contractor compliance with Responsible Network Deployment Policy due to high turnover of contractor workers
• Increase in work-related lost-time incidents (13.7%)
• Four fatalities among contractors in Turkey

Mitigation Strategies

• Working with regulators to establish an efficient and secure business model for mobile money transfer services
• Separate section on India to outline progress and challenges
• Raising awareness of Responsible Network Deployment Policy among employees and contractors; conducting on-site audits
• Analyzing incident trends and including them in annual Health, Safety and Wellbeing plans
• Investigating incidents, improving training and auditing for contractors, introducing incentives and penalties

Supply Chain Management

Supplier Audits: 18 site assessments of strategic global suppliers

Responsible Procurement

• Code of Ethical Purchasing (CEP)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services; M2M connections

Reporting Standards

Frameworks Used: GRI, AA1000 Assurance Standard (2008)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• UN Millennium Development Goals

Improving access to communications; supporting disaster relief; promoting sustainable development

Sustainable Products & Innovation

• Energy-efficient base stations; affordable handsets

Awards & Recognition

• Accountability Rating (first place); Corporate Register Reporting Awards (Best CR Report)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safe and Responsible Internet Experience
• Sustainable Products and Services
• Responsible Business Practices
• Access to Communications

Environmental Achievements

• Reduced CO2 emissions by 9% to 0.94 million tonnes (excluding India)
• 98% of network equipment waste sent for reuse or recycling (excluding India)
• 1.33 million phones collected for reuse and recycling (15 operating companies)

Social Achievements

• Launched Vodafone 150, an extremely affordable handset retailing below US$15
• 13 million M-PESA/M-Paisa customers transferred US$3.6 billion
• Launched Vodafone Parents’ Guide website for safer internet use
• Launched online training course for employees on disabilities

Governance Achievements

• Ranked amongst top UK companies for corporate governance by GovernanceMetrics International
• Received Golden Peacock Global Award for Excellence in Corporate Governance
• Compliant with Section 1 of the 2008 FRC Combined Code on Corporate Governance

Climate Goals & Targets

Environmental Challenges

• Adverse macroeconomic conditions impacting customer demand
• Increased competition leading to higher customer churn and price pressure
• Volatility in financial markets impacting access to capital
• Delays in handset and network development
• Regulatory decisions and changes affecting business
• Unacceptable level of fatal accidents (27 fatalities)

Mitigation Strategies

• Cost reduction and efficiency programmes (£2 billion cost reduction programme)
• Investment in network capability and service quality
• Strong cash generation and working capital management
• Accelerated investment in fixed and mobile broadband networks
• Focus on driving results from existing emerging markets
• Fatality prevention plan in high-risk countries (ISRS adoption, mandatory safety rules)

Supply Chain Management

Supplier Audits: 64 suppliers assessed, 24 on-site evaluations

Responsible Procurement

• Code of Ethical Purchasing
• Supplier Evaluation Scorecard

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services
• M2M connections for carbon reduction

Reporting Standards

Frameworks Used: IFRS, UK Companies Act 2006, AA1000 AccountAbility Principles Standard

Certifications: ISO14001

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Millennium Development Goals

Alignment of mobile products and services in emerging markets with MDGs

Sustainable Products & Innovation

• Vodafone 150 handset
• Samsung Blue Earth phone

Awards & Recognition

• Corporate Register Reporting Award
• Golden Peacock Global Award for Excellence in Corporate Governance

Environmental Metrics

ESG Focus Areas

• Creating sustainable societies
• Eco-efficiency
• Responsible, ethical and honest behaviour

Environmental Achievements

• Reduced energy needed for air conditioning at nearly 37,000 sites, saving 35,000 tonnes of CO2 a year
• Increased the maximum temperature at which base stations can operate at over 22,000 sites, saving 25,000 tonnes of CO2 a year
• Added features that enable remote shut-down of more than 30,000 base stations during periods of low demand, reducing energy use by 5% per site and saving a total of 16,000 tonnes of CO2 a year
• Modernized network by installing new, more efficient Single RAN technology, saving 25,000 tonnes of CO2 per year.
• Introduced efficiency measures to cut energy for cooling and reduce the number of physical servers needed, helping our two main data centres in Germany and Ireland achieve third-party certification for energy efficiency

Social Achievements

• Launched Vodafone M-Pesa, with the number of customers almost doubling in 2010/11 to around 20 million, who collectively transferred over US$500 million a month
• Launched the Emporia RL1 handset, including accessible features such as a simplified menu, large keys and screen, and a loudspeaker compatible with a hearing aid
• Improved Global Wellbeing People Survey score by 9% from the 2007/08 baseline

Governance Achievements

• Rolled out the Vodafone Code of Conduct to all employees
• Settled a long-running dispute with HM Revenue & Customs (HMRC) regarding the UK’s right to tax certain profits earned by Vodafone overseas

Climate Goals & Targets

Environmental Challenges

• Managing health and safety performance, particularly in some emerging markets
• Expanding access to telecommunications in remote areas of emerging markets
• Affordability of internet access in emerging markets
• Managing electronic waste in emerging markets where recycling facilities are limited
• Balancing public duty with responsibility to customers (e.g., assisting governments with information about customers’ communications while respecting privacy)
• Defining boundaries of Vodafone’s responsibility in a complex supply chain
• Increasing stakeholder demands for more transparency across the ICT supply chain

Mitigation Strategies

• Embedding a safety-first culture and targeting root causes of incidents
• Using innovative technology such as ‘no frills’ base stations and on-site renewable energy to deploy networks in remote areas
• Developing low-cost handsets and reducing the cost of internet access via mobile
• Commissioning research to understand how e-waste is currently managed and engaging with others in the industry to share best practice
• Establishing a new policy standard on assisting law enforcement while protecting human rights
• Working predominantly with Tier 1 suppliers to help them improve their performance and build their capability to do the same with their own suppliers
• Conducting more audits and extending these to cover suppliers beyond Tier 1

Supply Chain Management

Supplier Audits: 27 site assessments in 2010/11

Responsible Procurement

• Code of Ethical Purchasing
• Supplier evaluations
• Audits
• Direct engagement of key suppliers
• Use of industry tools (e.g., GeSI’s E-TASC)

Climate-Related Risks & Opportunities

Physical Risks

• Effects of climate change felt more acutely in emerging markets

Transition Risks

• Rising costs of energy, resources and waste disposal

Opportunities

• Developing more energy-efficient network equipment
• Expanding use of on-site and macro renewable energy generation
• Purchasing renewable energy from the grid

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

• Millennium Development Goals

Developing innovative services tailored to emerging market needs, such as access to financial services via mobile and improving the efficiency of healthcare

Sustainable Products & Innovation

• Low-cost handsets
• Vodafone WebBox
• Emporia RL1 handset
• Handsets and accessories with reduced environmental impacts
• Universal charger

Awards & Recognition

• Best Carbon Disclosure at the 2011 Corporate Register Reporting Awards
• Vodafone ranked fourth place overall in Gartner’s 2010 Green Data Centre Excellence Awards

Environmental Metrics

ESG Focus Areas

• Low carbon solutions
• Privacy and security
• Women
• Environmental footprint
• Health and safety
• Responsible supply chain
• Human rights
• Ethics
• Accessibility
• Mobiles, masts and health
• Network deployment
• Agriculture
• Health
• Education
• Finance

Environmental Achievements

• Reduced CO2 emissions per base station by almost 40% since 2007.
• Achieved an average PUE of 1.49 at global and regional data centers.
• Rolled out free air cooling at 13,997 base station sites.
• Deployed hybrid solutions at 656 sites, cutting diesel use by up to 70%.
• Installed Single RAN technology at 33,162 sites.
• Deployed 50,000 energy-saving software features at base stations.
• Achieved third-party certification for energy efficiency at data centers in Germany, Ireland, and Turkey.

Social Achievements

• Launched Vodafone Women First program in Turkey, resulting in 4,700 adverts placed and average sales of $51 per user.
• Rolled out RSV in India, increasing incomes for over 1,300 women.
• Expanded Vodafone Angel Stores in India to 26.
• Launched TecSOS device in the UK, helping women at high risk of domestic violence.
• Improved maternal health in Tanzania through Text to Treatment program, helping 713 women receive treatment in 2013.
• Improved child health in Mozambique through mVacciNation pilot.
• Launched free SMS-based vaccination reminders in India, enrolling 20,000 children.

Governance Achievements

• Published inaugural Law Enforcement Disclosure report.
• Updated requirements for suppliers based on Code of Conduct.
• Implemented consequence management process for contractors failing to act responsibly on health and safety.
• Won PwC Building Public Trust Award 2013 for best Tax Reporting in the FTSE 100.

Climate Goals & Targets

Environmental Challenges

• High number of fatalities and LTIs, particularly relating to traffic incidents.
• Reporting network waste remains a challenge in several markets.
• Limited targets in place for sustainability.
• Scaling up from pilots to long-term financially viable customer propositions in agriculture.
• Addressing the imbalance in women’s access to mobile technology.
• Managing the privacy and security of customer data.
• Government access to individuals’ private communications.
• Increasing incidence of chronic diseases such as diabetes.

Mitigation Strategies

• Continued focus on workforce safety.
• Providing more information on supporting local governments and SMEs to improve waste infrastructure.
• Developing a methodology for measuring carbon savings from customer solutions.
• Exploring barriers preventing women from using mobile technology and developing tailored services.
• Investing in security measures and developing tools to empower customers to manage their personal data.
• Publishing Law Enforcement Disclosure report to increase transparency.
• Developing mobile health solutions to enhance access to diabetes treatment.

Supply Chain Management

Supplier Audits: 30 on-site assessments in 2013/14

Responsible Procurement

• Code of Ethical Purchasing
• Sustainability criteria in tendering process
• Regular site assessments
• Workshops for high-risk suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14001 (several local markets), OHSAS 18001 (Greece, Italy, South Africa, UK)

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

Various initiatives contributing to these goals through mobile technology solutions.

Sustainable Products & Innovation

• ReadySet solar-powered mobile phone charging system
• M-KOPA solar-powered home lighting kit
• Secure Call app
• Secure SIM Data solution
• Secure Family service

Awards & Recognition

• GSMA Global Mobile Awards
• Guardian Sustainable Business Awards
• Ethical Corporation Awards
• FTSE4Good Index
• Carbon Disclosure Project
• Corporate Register Corporate Responsibility Reporting Awards
• PwC Building Public Trust Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Financial Inclusion
• Agriculture
• Health
• Education and Employment
• Privacy and Security
• Responsible Supply Chain
• Human Rights
• Health and Safety
• Tax and Economic Contribution
• Gender Equality

Environmental Achievements

• Reduced energy consumption by 23% in ASB Bank branches over three years.
• Enabled enterprise customers to avoid an estimated 3.5 million tonnes of CO2-equivalent emissions.
• Reduced CO2 emissions per network node by 28% in emerging markets.

Social Achievements

• Launched a global maternity policy providing minimum paid leave for all female employees.
• M-Pesa reached 19.9 million active users, processing 3.4 billion transactions.
• Supported various health initiatives, including vaccination programs and maternal health programs.
• Implemented education programs reaching thousands of children in emerging markets.
• Improved access to financial services through M-Pesa in several countries.

Governance Achievements

• Published a Law Enforcement Disclosure report detailing government demands for access to customer information.
• Implemented robust compliance programs to manage key compliance risks.
• Maintained high recycling rates for network equipment waste (98%).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to conflict minerals.
• Road accidents, particularly in India and Africa.
• Data limitations and exclusions in sustainability reporting.
• Challenges in managing compliance risk across different markets.
• Cyber threats and data security risks.

Mitigation Strategies

• Implemented supplier audits and engagement programs.
• Provided mandatory defensive driver training.
• Developed alternative sourcing strategies.
• Established robust compliance programs and controls.
• Invested in security measures and implemented risk management strategies.

Supply Chain Management

Supplier Audits: 21 on-site assessments + 35 JAC audits

Responsible Procurement

• Code of Ethical Purchasing
• Supplier sustainability requirements
• Risk-based approach to supplier selection.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: Ernst & Young LLP

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

Vodafone's initiatives contribute to these goals through various programs and services.

Sustainable Products & Innovation

• Eco-rated mobile phones
• M2M solutions for energy management and fleet optimization.

Awards & Recognition

• GSMA Global Mobile Awards
• Guardian Sustainable Business Awards
• PRCA Awards
• Various local market awards

Environmental Metrics

ESG Focus Areas

• Women’s empowerment
• Energy innovation
• Youth skills and jobs
• Taxation and total economic contribution
• Supply chain integrity and safety
• Mobiles, masts and health
• Digital rights and freedoms

Environmental Achievements

• Annual GHG emissions per petabyte of data carried by our mobile networks were 40% lower than 2015 despite a 70% increase in data carried
• Enabled our customers to save 1.74 tonnes of greenhouse gas emissions for every tonne we generated through our own activities in 2015-16
• 75% of our base stations use free cooling to reduce energy use
• Reduced lighting-related energy consumption by 2 million kWh within 15 months of implementation (Hampshire County Council)
• Reduced fuel consumption across Connexxion's fleet of 4,500 buses by more than 5% (Vodafone Netherlands)
• 96% of the e-waste leaving Vodafone was sent for reuse or recycling

Social Achievements

• Supported more than 120,000 girls in India to benefit from education
• 25 million active users of M-Pesa – our mobile money transfer service
• 55 million texts sent to help avoid maternal deaths in Tanzania
• Offered more than 2,000 young people places on our graduate, internship and apprenticeship schemes in 2015-16
• Employee engagement levels increased by two points to 79% in 2015-16
• 80% of our employees felt they had opportunities to learn the skills they need to do their jobs well

Governance Achievements

• Updated Code of Conduct to expand the references to human rights
• Implemented a global minimum maternity policy
• Vodafone received the Company of the Year Award at the European Diversity Awards
• Vodafone ranked third in the 2015 Transparency in Corporate Reporting analysis

Climate Goals & Targets

Environmental Challenges

• Significant levels of unemployment among younger people in many operating countries
• Significant power requirements and growing contributions to greenhouse gas emissions
• Limited or poor-quality national electricity transmission networks in emerging markets
• Security of supply risks due to volatile commodity prices and political instability
• Complex supply chain spanning around 15,000 companies across dozens of countries with inherent labour rights and safety risks
• Public concern regarding electromagnetic frequency (EMF) emissions from mobile phones and base stations

Mitigation Strategies

• Developed innovative approaches to energy consumption
• Developed a range of mobile technologies which enhance primary healthcare and preventative services
• Developed a one-year Vodacom Learnership programme
• Launched the Vodacom e-school programme
• Developed robust systems to ensure that companies supplying Vodafone with products or services share our values
• Published extensive information about mobiles, masts and health on our website

Supply Chain Management

Supplier Audits: 92 site assessments (2015-16)

Responsible Procurement

• Code of Ethical Purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Cost inflation from volatile commodity prices and carbon pricing models

Opportunities

• Development of energy-efficient products and services
• Growth of IoT technologies

Reporting Standards

Frameworks Used: GRI G4 Guidelines, OECD Due Diligence Guidance

Certifications: ISO 14001 (Czech Republic, Greece, Netherlands, Portugal, Romania, South Africa, Spain, UK)

Third-party Assurance: EY

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• BBOXX smart solar power generator
• IoT-enabled LED lighting
• Telematics solutions for fleet management

Awards & Recognition

• Company of the Year Award at the European Diversity Awards

Environmental Metrics

ESG Focus Areas

• Women's Empowerment
• Energy Innovation
• Youth Skills and Jobs
• Taxation and total economic contribution
• Supply chain integrity and safety
• Mobiles, masts and health
• Digital rights and freedoms

Environmental Achievements

• Enabled customers to save 1.9 tonnes of greenhouse gas emissions for every tonne generated by Vodafone's own operations.
• Annual greenhouse gas emissions per petabyte of data carried by mobile networks were 37% lower than in 2016.
• Total GHG emissions remained stable at 2.59 million tonnes of CO2e.
• Installed solar PV at an additional 120 base stations, bringing the total to 1,930.
• 96% of e-waste was sent for reuse or recycling.

Social Achievements

• Connected an additional 9.4 million women in emerging markets.
• Launched ReConnect, a program to bring talented women back into the workforce after a career break, aiming to hire 1,000 women over three years.
• Introduced a global minimum maternity policy offering at least 16 weeks fully paid maternity leave.
• Launched various programs to improve health and wellbeing, including Mobilising Maternal Health in Tanzania and M-Tiba in Kenya.
• Developed mobile technologies to enhance safety and security for women, such as Easy Rescue and TecSOS.

Governance Achievements

• Continued to enhance corporate transparency program in four specific areas.
• Implemented a global anti-bribery program.
• Maintained a zero-tolerance approach to bribery and corruption.
• Updated the Doing What’s Right internal communications materials.
• Implemented a Speak Up process for reporting unethical working practices.

Climate Goals & Targets

Environmental Challenges

• Increasing energy consumption due to growing customer data demand.
• Security of supply concerns, particularly in emerging markets.
• Potential for cost inflation in energy prices.
• Managing risks in a complex global supply chain.
• High youth unemployment rates in many operating countries.

Mitigation Strategies

• Continuous innovation in network infrastructure design and operation.
• Development of alternative energy sources (solar PV, fuel cells).
• Implementation of energy efficiency measures (smart meters, dynamic thermal management).
• Robust supplier performance management program, including audits and worker surveys.
• Development of training and mentoring programs to improve youth digital skills and employment opportunities.

Supply Chain Management

Supplier Audits: 69 JAC audits, 26 Vodafone audits, 7 mobile surveys of workers

Responsible Procurement

• Code of Ethical Purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services, IoT solutions

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 50001 (Germany, Greece, Ireland, Turkey), ISO 14001 (Czech Republic, Greece, Netherlands, Portugal, Romania, South Africa, Spain, UK)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 1 (End Poverty)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 9 (Build Resilient Infrastructure)
• Goal 13 (Climate Action)

The sustainable business strategy and Vodafone Foundation programs contribute to these SDGs.

Sustainable Products & Innovation

• IoT solutions for smart metering, fleet management, and other applications.

Awards & Recognition

• One of The Times Top 50 Employers for Women
• Vodafone Spain headquarters awarded Platinum LEED for Commercial Interiors

Environmental Metrics

ESG Focus Areas

• Women's empowerment
• Energy innovation
• Youth skills and jobs
• Supply chain integrity and safety
• Taxation and total economic contribution
• Mobiles, masts and health
• Digital rights and freedoms

Environmental Achievements

• Reduced GHG emissions per petabyte of data carried on our network by 40%
• Enabled customers to avoid 2.1 tonnes of CO2e for every tonne generated through our own activities

Social Achievements

• Connected an additional 13.3 million female customers to mobile in emerging markets since 2016
• Supported 10 million young people to access digital skills, learning and employment opportunities
• Provided up to 100,000 young people with a digital workplace experience inside Vodafone

Governance Achievements

• Became the first communications company to report total taxation and economic contribution on a country-by-country basis
• Implemented a global minimum maternity policy
• Launched a global paternity policy

Climate Goals & Targets

Environmental Challenges

• High levels of youth unemployment
• Growing digital skills gap
• Climate change
• Managing a large global supply chain with inherent risks
• Public concerns about mobiles, masts and health

Mitigation Strategies

• Launched 'What will you be?' program to support 10 million young people
• Set targets to reduce GHG emissions by 40% and purchase 100% renewable electricity by 2025
• Implemented supplier safety forums, training programs, and audits
• Engaged in open and transparent communication regarding public concerns about EMF emissions

Supply Chain Management

Supplier Audits: 81 JAC audits, 17 Vodafone audits

Responsible Procurement

• Code of Ethical Purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (Czech Republic, Greece, Portugal, Romania, South Africa, Spain, UK), ISO 50001 (Germany, Greece, Ireland, Turkey, UK)

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 13 (Climate Action)

Vodafone's initiatives contribute to these goals through various programs and services

Sustainable Products & Innovation

• IoT solutions for smart metering, smart cities, and smart logistics

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Women's empowerment
• Youth skills and jobs
• Energy innovation
• Supply chain integrity and safety
• Digital rights and freedoms
• Mobiles, masts and health
• Anti-bribery and corruption
• Taxation and total economic contribution

Environmental Achievements

• 3% reduction in total greenhouse gas emissions
• 15% of purchased electricity from renewable sources
• 5.9 million tonnes CO2e emissions avoided by customers through IoT technologies and services
• Improved GHG emissions intensity by 36% reduction in emissions per petabyte of mobile traffic data

Social Achievements

• Connected an additional 19.4 million women in emerging markets to mobile since 2016
• Supported 533,698 young people to access digital skills, learning, and employment opportunities
• Provided 54,712 opportunities for young people to receive a digital learning experience at Vodafone
• Launched a common industry Supplier Academy
• 85% of employees believe Vodafone is socially responsible
• Launched Multicultural network with 450 employees

Governance Achievements

• Completed GNI assessment demonstrating good faith efforts to implement GNI Principles
• Established 10 Privacy ‘commandments’
• Launched Vodafone Cyber Code

Climate Goals & Targets

Environmental Challenges

• Climate change and increased energy demand from business growth and customer data usage
• High youth unemployment and growing digital skills gap
• Complexity of global supply chains and managing risks
• Maintaining privacy and managing cyber security risks
• Addressing public concerns about mobiles, masts, and health

Mitigation Strategies

• Setting ambitious GHG emission reduction targets (50% by 2025) and aiming for 100% renewable electricity
• Investing in energy efficiency projects and renewable energy sources
• Developing programs to support youth digital skills and employment opportunities (Future Jobs Finder)
• Implementing robust supplier management programs (on-site audits, worker surveys)
• Strengthening privacy and cyber security policies and controls
• Openly addressing public concerns through community engagement and transparent information sharing

Supply Chain Management

Supplier Audits: 85 on-site assessments conducted, 139 suppliers (90%) responded to GHG emissions questionnaire

Responsible Procurement

• Code of Ethical Purchasing
• Supplier Performance Management Programme
• Joint Audit Cooperation (JAC) initiative
• Supplier Academy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (e.g., Cyclone Idai)

Transition Risks

• Regulatory changes, carbon reduction commitments

Opportunities

• Development of energy-efficient products and services (IoT)

Reporting Standards

Frameworks Used: GRI Standards 2016

Certifications: ISO 14001 (Czech Republic, Greece, Portugal, Romania, South Africa, Spain, UK), ISO 50001 (Germany, Greece, Ireland, Turkey, UK)

Third-party Assurance: Grant Thornton UK LLP (limited assurance)

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 13 (Climate Action)

Initiatives align with SDGs through women's empowerment, youth skills development, energy innovation, responsible supply chain management, and climate action.

Sustainable Products & Innovation

• IoT technologies for smart metering, smart cities, and fleet management

Awards & Recognition

• Bloomberg Gender-Equality Index
• The Times Top 50 Employers for Women 2018
• Stonewall Top Global Employer
• Stonewall Global Senior Champion Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Digital Inclusion
• Gender Equality
• Financial Inclusion

Environmental Achievements

• European networks became 100% powered by renewable energy in July 2021
• Avoided 7.1 million tonnes of CO2e emissions through IoT technologies and services in 2020/2021

Social Achievements

• M-Pesa provides financial services to over 48 million people
• 32% women in management and senior leadership roles as of 31 March 2021
• Supported over 600,000 people through Future Jobs Finder

Governance Achievements

• Establishment of a new ESG Committee in May 2021

Climate Goals & Targets

Environmental Challenges

• Change in renewable energy and/or carbon pricing
• Strategic transformation
• Instability of grid electrical supply
• Limited development of a competitive renewable energy market in Africa
• Supply chain disruptions
• Adverse political and regulatory measures
• Failure to sufficiently develop internal talent
• Female employee churn
• Adverse political and regulatory measures impacting strategy
• Disintermediation and failure to innovate
• Accelerated global shift to renewable supplies
• Global economic disruption
• Technology failure
• Shrinking or limited growth in addressable customer base

Mitigation Strategies

• Investment in energy efficiency initiatives
• Moving towards purchasing 100% of electricity from renewable sources
• Embedding women in management targets in senior management’s long-term incentive plans
• Supporting programs like #ChangeTheFace and Reconnect
• Implementing measures to support customers and promote digital payments during COVID-19

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Damage to/loss of infrastructure as a result of a change in sea levels

Transition Risks

• Change in renewable energy and/or carbon pricing

Opportunities

• Improvement in energy efficiency

Reporting Standards

Frameworks Used: Green Bond Principles (GBP) 2021, Social Bond Principles (SBP) 2021, Sustainability Bond Guidelines (SBG) 2021, Sustainability-Linked Bond Principles (SLBP) 2020, Sustainability-Linked Loan Principles

Third-party Assurance: Sustainalytics (Second Party Opinion), Grant Thornton UK LLP (Limited Assurance)

UN Sustainable Development Goals

• SDG 7
• SDG 13
• SDG 5
• SDG 10
• SDG 1

Initiatives contribute to these goals through various programs and targets outlined in the report.

Sustainable Products & Innovation

• M-Pesa
• IoT technologies and services

Environmental Metrics

ESG Focus Areas

• Inclusion for All
• Planet
• Digital Society
• Protecting data
• Protecting people
• Business integrity

Environmental Achievements

• Achieved 100% renewable electricity use in Europe and Turkey from July 2021 (four years ahead of target)
• 23% reduction in Scope 1 and 2 emissions
• 95% of network waste recovered and recycled

Social Achievements

• Connected an additional 21.6 million female customers in Africa and Turkey since 2016 (four years ahead of target)
• 52.4 million M-Pesa customers (four years ahead of target)
• Launched VodaPay super-app in South Africa with 1.6 million registered users
• 32% women in management and senior leadership roles

Governance Achievements

• Established a new Board ESG Committee
• Inclusion of ESG measures in senior leaders' long-term incentive plan
• 89% of employees completed 'Doing What's Right' employee training

Climate Goals & Targets

Environmental Challenges

• Rising energy costs
• Inflationary pressures impacting customer confidence
• Increased volatility in supply chains and logistics costs
• Increased volume and sophistication of cyber-attacks
• Unsatisfactory commercial performance in Germany in H2 FY22

Mitigation Strategies

• Implementing changes and enhancements to customer journeys in Germany
• Accelerating the shift to digital-first sales and customer care channels in Germany
• Investing in network infrastructure in Germany
• Discussions with potential joint venture partners for further investment in fixed network infrastructure in Germany
• Strengthening Vodafone Germany management team
• Restructuring plan in Spain (mainly affecting owned retail stores)
• Reorganisation of local executive committee in Spain
• Expanding the use of power purchase agreements to lock-in electricity supply and pricing
• Remaining agile in the re-deployment of tasks to regional centres of excellence

Supply Chain Management

Supplier Audits: 71 site assessments

Responsible Procurement

• Purpose criteria in tenders
• Supplier audits and assessments
• Code of Ethical Purchasing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, CDP

Certifications: ISO 50001 (Energy Management Standard)

UN Sustainable Development Goals

• SDG 9
• SDG 17

Vodafone's initiatives contribute to these goals through connectivity infrastructure, digital innovations, and partnerships.

Sustainable Products & Innovation

• SIMs made of recycled plastic
• Self-powered mobile masts

Environmental Metrics

ESG Focus Areas

• Digital Society
• Inclusion for All
• Planet

Environmental Achievements

• Total Scope 1 and 2 GHG emissions decreased by 10% to 0.97 million tonnes of CO2e (52% reduction from FY20 baseline)
• 100% of grid electricity used in European network purchased from renewable sources since July 2021
• 81% of grid electricity used globally purchased from renewable sources (FY22: 77%)
• 96% of non-hazardous network waste reused or recycled (FY22: 95%)
• Enabled an avoidance of 24.9 million tonnes CO2e through green digital solutions (almost 26 times the emissions generated from Vodafone's own operations)

Social Achievements

• Launched a new performance management system
• Embedded integrated skills and learning platform
• Strengthened global senior leadership programme
• Reviewed global hybrid ways of working policy
• Provided support for colleagues affected by the earthquakes in Turkey
• Launched V-Hub digital advice service used by over 5.2 million unique visitors
• Connected Education programme benefited over 1.7 million students and teachers
• 60.7 million customers using Vodafone’s financial inclusion services

Governance Achievements

• Established a Technology Committee
• Completed Doing What’s Right training by 93% of assigned employees
• Introduced regular compliance reviews
• Updated Code of Ethical Purchasing
• Commissioned an independent review of human rights risks, governance and controls

Climate Goals & Targets

Environmental Challenges

• Weak Germany performance and higher energy costs impacting adjusted EBITDA
• Commercial underperformance in Germany
• Inflationary cost pressures in Europe
• Continued price pressure in the mobile value segment (Italy)
• Price competition in the value segment and lower customer base (Spain)
• Significant currency devaluations in Turkey and Egypt
• Data privacy issues resulting in fines

Mitigation Strategies

• Ongoing European cost efficiency programme (further €0.2 billion savings in FY23)
• Price increases for new and existing customers (Germany)
• Targeted pricing actions (Italy)
• Inflation-linked price increases (Spain)
• Cost efficiency programme (Italy)
• Accelerated cost initiatives (Vodacom)
• Introduced new standards and increased monitoring (data privacy)

Supply Chain Management

Supplier Audits: 83 site assessments conducted collectively by JAC initiative members

Responsible Procurement

• Purpose criteria in tenders relating to planet, diversity and safety
• Code of Ethical Purchasing

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 27001, ISO 45001, ISO 50001

Third-party Assurance: KPMG LLP

UN Sustainable Development Goals

• SDG 9
• SDG 17

Vodafone's initiatives contribute to these goals through connectivity infrastructure, digital innovations and partnerships.

Sustainable Products & Innovation

• Ultrahub broadband router (95% recycled plastic)

Awards & Recognition

• Bloomberg Gender Equality Index