10 YEARS of VODAFONE NEW ZEALAND Corporate Responsibility Report for the 2008 Financial Year 1 VODAFONE PROFILE VODAFONE PROFILE

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10 YEARS OF VODAFONE NEW ZEALAND Corporate Responsibility Report for the 2008 Financial Year 1 VODAFONE PROFILE VODAFONE PROFILE

Open Economic How does What is Vodafone Vodafone operate doing for the in an open and New Zealand accountable economy? manner?

Social Environmental What impacts What is Vodafone do Vodafone’s doing to protect products and the New Zealand services have on environment? my community?

2 3 REPORT SCOPE CEO INTRODUCTION

Welcome to Vodafone New Zealand’s fi fth Contents New Zealand has changed greatly over We also believe that we have an important Corporate Responsibility Report, covering CEO Introduction • 5 the past ten years. role to play in building strong communities. the year ended 31 March 2008. This report Vodafone Profi le • 6 Since its inception in 2002, the work of the covers the local operations of Vodafone Corporate Responsibility Management • 10 In 1998 the country had only a limited GSM Vodafone New Zealand Foundation has New Zealand. All targets and performance Supply Chain • 14 (Global System for Mobile) network, the touched the lives of many New Zealanders measures included in this report refer to Stakeholder Engagement • 16 standard now used by over 80 percent of in need. The Foundation is recognised as a our local performance. An electronic copy Economic Impacts • 20 the world’s mobiles. Vodafone purchased leading partner of programmes to improve of this document, along with our previous Social Impacts • 26 this network from Bell South in November the lives of young people at risk. Corporate Responsibility reports, is Employees • 35 1998, and began the rollout of the country’s available online at: Vodafone Foundation • 38 fi rst national GSM network. This investment At Vodafone we see our tenth anniversary Health and our Technology • 45 enabled New Zealanders to do what many as a milestone. Over the past decade www.vodafone.com/responsibility Environment • 48 other overseas mobile users took for granted the integration of mobile phones and Responsible Network Deployment • 55 – to roam around New Zealand, and the rest the internet into our everyday lives has The Vodafone Group publishes an annual Assurance Statement • 58 of the world, using the same mobile phone. transformed the way we live. With the Corporate Responsibility Report and evolution of mobile devices and our long concise Corporate Responsibility Report, Ten years later that same network is term investment in our mobile network, the which cover Vodafone’s global operations. Key still standing, servicing over two million two technologies are converging fast. This is More information, along with Corporate Vodafone customers. Over the past decade likely to have an even more profound impact Deadline Responsibility reports from other Vodafone we have enhanced the network, and on the way we live and do business in the operating companies around the world On track / Achieved introduced 3G, to ensure New Zealanders decade ahead. can be found at: Ongoing have access to the latest technologies Not Completed to keep pace with the rest of the world. Enjoy the report, www.vodafone.com/responsibility Vodafone has achieved a number of fi rsts for the country, including TXT messaging, About this report PXT messaging, video calling, the launch of Our aim for this report is to provide a the iPhone and pricing initiatives that have balanced account of Vodafone’s most signifi cantly reduced the cost of accessing Russell Stanners material impacts on New Zealand – mobile communications. Chief Executive Offi cer economic, environmental and social. The contents of the report were determined We believe our leadership should extend through a process of internal and external beyond our products and services, to the stakeholder engagement. This report broader impacts of telecommunications has been independently assured as a full, on New Zealand’s communities and its balanced and accurate account of our environment. We have demonstrated this performance by an independent auditor. leadership in our response to issues such as TXT bullying and the use of mobile What in the phones while driving. This leadership also world have means supporting and promoting the we done? positive application of telecommunications technologies to help address areas such as climate change, healthcare and education.

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4 5 VODAFONE PROFILE VODAFONE PROFILE

Vodafone New Zealand telecommunications provider, offering 2008 marks our tenth anniversary in ﬁ xed-line services such as home phone New Zealand. Vodafone launched in lines and broadband, alongside our mobile New Zealand in1998 with the purchase products. This is part of our global Total of Bell South New Zealand. At the time Communications strategy, which will see the company had 138,000 customers – us driving innovation and ﬁ xed/mobile around one in 30 New Zealanders – and convergence as we aim to meet the full a small GSM network which covered voice and data communications needs of only limited urban areas. our customers.

Ten years later Vodafone has over two Although we are the leader in mobile, our million customers, representing one in two share of the overall telecommunications New Zealanders. Vodafone’s network covers market is smaller – around a quarter. 97 percent of the population. Our 3G, HSPA Over the next ten years we hope to network is world-class, delivering innovative increase competition across the whole services and broadband-speed mobile telecommunications industry, and push data connections. to grow our share of the Total Communications market. In 2006 Vodafone purchased ihug, New Zealand’s third largest Internet Service The decade ahead presents many Provider (ISP). We are now a full-service challenges and opportunities. A key issue

is the need for New Zealand to build its In the past fi nancial year Vodafone Vodafone New Zealand Factbox Vodafone Global Factbox broadband capacity. We plan to meet this completed the acquisition of India’s need through investment in fi xed-line Hutchinson Essar Limited. We also secured (Billion GBP) 2008 2007 (Million NZD) 2008 2007 high-speed broadband infrastructure – our the licence to operate a second national Revenue 35.5 31.1 ‘Red Network’ – in parallel to building the mobile network in Qatar, an operation which Turnover 1,509.8 1,370.3* capability of our national mobile network. is currently being developed. In the year Adjusted 10.1 9.5 Profi t (after tax) 191.5 161.5* Our current position puts us as the number ahead Vodafone is expected to complete operating profi t one challenger in the New Zealand market. the purchase of a 70 percent share in Ghana Customers (000) 2,336 2,224 (before goodwill Telecom, further expanding our footprint amortisation & Share of Mobile 52.3% 53.7% Vodafone Global Profi le into high-growth emerging markets. exceptional items) Market Vodafone’s vision is to be the communications No. of Employees 1,553 1,375 Market 81.1 71.6 leader in an increasingly connected world. www.vodafone.co.nz/about No. of Mobile 1,305 1,264 capitalisation Since its formation in Britain in the 1980s www.vodafone.com Phone Sites No. of Customers* 260.5 206.4 the company has expanded rapidly, with over (million) 260 million proportionate customers* as of *2007 fi nancial results restated to include fi xed line 31 March 2008. operations No. of Employees 71,003 66,343 Mobile voice 433.6 245.0 minutes (billion minutes) No. of Mobile 96,500 83,561 Phone Sites *Adjusted to refl ect Vodafone’s proportionate ownership of each operating company 6 7 VODAFONE PROFILE VODAFONE PROFILE

10 Years of Vodafone New Zealand

Year Business / Product / Service Corporate Responsiblity Milestones Milestones 1998 Vodafone NZ launched, with 138,000 customers. 1999 Introduced TXT messaging service. Began sponsorship of the Vodafone Warriors. 2000 500,000 customers. 2001 1 million customers. $1 million donation for 1 million Purchase of 3G spectrum. customers. 2002 Introduced PXT. Vodafone New Zealand Foundation launched, pioneered the World of Difference programme. Subsidiary Joint Venture Associate Began collecting mobile phones for Vodafone Customers Worldwide recycling. 2003 Vodafone Live! launched. First Corporate Responsibility report Introduced Video PXT. published. Country Customers Country Customers 1.5 million customers. (000s) (000s) 2004 Introduced Motormouth. Campaign against TXT bullying Albania 1,130 New Zealand 2,366 launched, in partnership with NetSafe. Australia 3,690 Kenya 4,092 2005 Began offering YouChoose Plans. First Energy Efﬁ ciency Plan created. China 12,588 Malta 200 Launched 3G. Free TXT weekends. Czech Republic 2,698 Netherlands 4,252 2006 2 million customers. Mobile recycling tubes rolled out to all Egypt 7,738 Poland 2,653 Announcement of ihug purchase. Vodafone branded stores. Fiji 223 Portugal 5,209 Launch of 3G broadband (HSDPA). France 8,278 Romania 8,921 BestMate introduced. Germany 34,412 South Africa 15,368 2007 Vodafone became the biggest seller of Piloted blocking of mobiles in prisons. Greece 5,454 Spain 16,039 singles and digital music in NZ. Vodafone HandsUp programme Number portability began. launched. Hungary 2,340 Turkey 16,935 First All Blacks game available on Awarded a record nine World of India 29,558 United Kingdom 18,537 mobile. Difference recipients. Ireland 2,264 United States 30,230 2008 ihug amalgamation completed. Safe driving campaign with AA. Italy 23,068 New Zealand exclusive launch of the Launched partnership with iPhone. Enable Community (mobile recycling). Global Climate Change target set. Published ﬁ fth Corporate Responsibility Report.

8 9 CORPORATE RESPONSIBILITY MANAGEMENT

Introduction for engaging with stakeholders with an Vodafone has a broad footprint in New interest in, or who are impacted by, our social Zealand. Telecommunications is a part of and environmental footprint. The CR team everyday life for most New Zealanders. is also responsible for the production of the Our communications network, and the annual Corporate Responsibility Report. An impact of our products and services, independent third party audits the contents of covers the length of the country. If we the report to ensure it represents an accurate are to build a strong and sustainable and fair account of our performance. company it’s essential that we integrate responsible practices into the heart of The 2007 Vodafone New Zealand Corporate our business. Responsibility Report won a number

Target Survey our employees to assess their understanding of the Vodafone Business Principles Progress Survey launched in March 2008, Survey closed in June

Target Integrate CR performance management into standard governance structure and assign responsibility for delivery against speciﬁ c CR targets Progress Completed

Our approach to Corporate Responsibility of reporting awards. The report was (CR) is to: recognised as the leading local report • Engage with stakeholders to understand by a global organisation at the annual their expectations ACCA (Association of Certifi ed Charted • Respond to stakeholders with our Accountants) Australasian Reporting Awards, evolving CR targets and programmes and as the best sustainability report by a • Report progress back to our stakeholders. corporate at the New Zealand Institute of Chartered Accountants (NZICA) Annual New Zealand Corporate Responsibility Report Awards. Management In New Zealand our core values are For this report, our fi fth, we have maintained represented by our four passions: the previous report title – OPEN – in order to • Passion for customers build recognition and understanding among Open • Passion for our people our stakeholders to the purpose and content • Passion for results of the report, and to build a CR reporting How does Vodafone • Passion for the world around us brand for Vodafone New Zealand. operate in an open and The local Corporate Responsibility team has Corporate Responsibility Governance accountable manner? specifi c stewardship over our passion for the Members of the Vodafone New Zealand world around us – oversight over our impacts executive team have responsibility for the on the environment and local New Zealand Corporate Responsibility programmes which communities. The CR team is also responsible fall within their business unit’s operations

11 CORPORATE RESPONSIBILITY MANAGEMENT CORPORATE RESPONSIBILITY MANAGEMENT

(see chart). Tom Chignell, the General • Ensure our operating standards are Vodafone New Zealand Executives with Accountability for CR Initiatives Manager of Corporate Affairs, is the member consistent across the Group of the executive team with responsibility • Deliver on our promises in three key for Corporate Responsibility. Ultimate areas: responsibility to our customers; Russell Stanners responsibility for CR rests with Vodafone reuse and recycling of mobile phones; Chief Executive Offi cer New Zealand’s Chief Executive Offi cer, and energy effi ciency and climate change Russell Stanners. • Capture the potential of mobile to bring socio-economic value through access to James Marsh Michael Stanley Grant Hopkins Mark Rushworth Ken Tunnicliffe Kursten Shalfoon Tom Chignell Over the past year we have integrated communications. Chief Financial Director of Human Director of Sales Director of Chief Technology GM Internet GM Corporate environmental and social Key Performance Offi cer Resources Marketing Offi cer Business Affairs Indicators (KPIs) into our local planning Vodafone New Zealand, along with all and governance processes, through our other Vodafone companies, reports KPIs Responsible Environment, Mobile monthly ‘Red Book’ fi nancial performance against these priorities on a quarterly basis. Supply Chain Employees Marketing, Health & Our Corporate Foundation Recycling Products & Technology, Content Responsibility reporting system. This includes quantitative These KPIs include performance against Services Waste KPIs tracking our energy effi ciency, waste quantitative targets for energy effi ciency, management, mobile recycling collection mobile recycling, responsible marketing and numbers and advertising complaints. responsible network deployment, along with qualitative measures of compliance against The Vodafone Business Principles of the Business Principles and to determine Integrating the targets has allowed us to Vodafone Group policy requirements. The Vodafone Business Principles represent whether any further training was necessary. regularly communicate our performance These include requirements such as annual the commitments Vodafone makes to its The results of the survey showed that across the business, including at the audits of mobile recycling providers and the stakeholders around the world across all many of our employees required additional executive level. This has helped devolve availability of health information in our legislative environments. The Principles training. We intend to implement this in the accountability for these KPIs from the CR retail stores. cover our interactions with customers, year ahead, to refresh the existing training for team to those teams with ownership of employees, suppliers, communities, the all new employees. operational delivery. More detailed information is reported to environment, government, business partners Vodafone Group on an annual basis. This and competitors. www.vodafone.com/start/about_vodafone/ information is aggregated to form a full corporate_governance/business_principles. Vodafone Global Strategic Goals picture of Vodafone’s global footprint All employees are required to understand html • Delight our customers and performance. For 2008 Vodafone and apply the Principles. In New Zealand, • Build the best Vodafone team has published two global Corporate all employees were required to undertake • Leverage global scale and scope Responsibility reports. The fi rst report is a training on the Principles when they were Target • Expand market boundaries high-level summary of our performance fi rst introduced in 2005. Training was also Implement an ongoing training process • Be a responsible business over the past year, with an update on new integrated into our induction process for to maintain awareness of the Business • Provide superior shareholder returns and important issues. The second report is new employees. The assurance process Principles among existing employees. a full account of our performance over the for this report uncovered an error in our Deadline past year, and includes information on all induction process which meant that new March 2009 Global Corporate Responsibility of Vodafone’s global policies and codes of employees hired since April 2007 had not Management practice. These reports are accompanied undertaken this training. We will rectify this Vodafone’s Corporate Responsibility by other local operating company reports error and all affected employees will be priorities are to: such as this one, which focus on the specifi c required to complete the training. • Maintain high ethical standards impacts within the local country. • Understand and respond to Last year we surveyed our employees to stakeholders’ priorities www.vodafone.com/responsibility measure their understanding and awareness

12 13 SUPPLY CHAIN SUPPLY CHAIN

Introduction Our approach to supply chain Global site evaluations performance. In some cases the decision not Vodafone is a global business. Last management Last year Vodafone undertook 23 site to approve a supplier may be based on the year we spent more than $55 billion Our Code of Ethical Purchasing (CEP) sets assessments of new and existing suppliers. severity of the non-compliance, but more purchasing products and services from out Vodafone’s expectations of suppliers. CEP As a result of these site assessments often the supplier’s unwillingness to rectify more than 40,000 suppliers around the requirements are integrated into our supplier we made 116 recommendations for the issue. world. This scale gives us the power qualifi cation process, to ensure that all new improvement. These represent instances and responsibility to specify social and suppliers are aware of our expectations at the where non-compliances with our CEP Last year we also worked with mobile environmental expectations for our fi rst point of contact. Vodafone’s strategy is were identifi ed, as well as less serious handset supplier ZTE and radio equipment suppliers to meet. It also allows us to to engage directly with our fi rst-tier suppliers recommendations where we found an supplier Huawei to assess CR risks in our infl uence other companies in our sector and assess their compliance with the CEP. We opportunity for a supplier to improve suppliers’ own supply chains in China. We to work together to build consistent emphasise the need for our global strategic current practices. The average number of audited their supplier assessment processes, standards for ethical supply chain suppliers to engage with their own suppliers recommendations across all 23 supplier shared best practice and carried out ten joint management. in a similar way. visits was fi ve. sub-tier supplier assessments, including site visits. These enabled Vodafone to witness Target All New Zealand suppliers are subject Based on these visits, we decided not to ZTE and Huawei’s assessments in action. Promote the Code of Ethical Purchasing to a qualifi cation and approval process. qualify three potential suppliers. All three to our existing supplier base This includes acceptance of the CEP and used fi nes as a disciplinary measure. Issues As a result of these sub-tier supplier Progress management of CR (Corporate Responsibility) of discrimination and poor levels of personal assessments, 314 issues requiring We are awaiting a revised CEP prior issues in their own supply chain. Should protective equipment were also identifi ed. corrective action were identifi ed – 299 to promotion a local risk assessment show any cause of which have now been completed. for concern, the supplier is required to go Our approach to non-compliances found on The outstanding actions relate to health Target through the global qualifi cation process, site assessments is to work with the supplier and safety, overtime and payment, and Integrate Corporate Responsibility which involves completing a detailed self to improve their ethical and environmental disciplinary practices. The assessments criteria into our local supplier assessment before they can progress to the next stage of qualifi cation. In line with our qualifi cation process and supplier Vodafone’s Supplier Qualifi cation Process performance management global process, should a supplier be identifi ed Progress as medium or high-risk they will be referred Achieved for an audit. In some cases a site assessment Potential Suppliers may also be necessary. The supplier will only qualify as a Vodafone supplier after all of

Vodafone does not manufacture anything these requirements have been met. Corporate Financial Technology Delivery Quality itself. We source all of our equipment for Responsibility Stability Portfolio Commercial Capability Management our networks and the handsets we sell from Last year the global supply chain team third-party manufacturers. These suppliers increased its CR capability in the China region Registration are mainly large, well known multi-nationals, by basing two CR-qualifi ed auditors within the Self Assessment who themselves source components and purchasing team in new supply chain offi ces Six Pillars of Supplier assembled products from other suppliers. in Beijing and Hong Kong. All supply chain Performance Management Vodafone’s supply chain operates as a global employees in China have been trained on Qualifi cation Supplier Assessment and Qualifi cation function, ensuring greater effi ciency in its our Code of Ethical Purchasing and the Process spend and consistent standards across industry Electronics Tool for Accountable all countries. Supply Chains.

Approved Vodafone Supplier

14 15 STAKEHOLDER ENGAGEMENT STAKEHOLDER ENGAGEMENT

provided signifi cant reassurance that Introduction Target Target our standards are being met by sub-tier Vodafone New Zealand has an impact Conduct an audit of Vodafone stores Work with key stakeholders to suppliers. on a wide range of stakeholders. Our and Vodafone franchises to test determine our role in promoting online products, services and operations awareness of mobile recycling. Design safety Supplier Performance Management have an effect on our employees, our a communication to raise awareness Deadline As standard practice we regularly monitor customers, our shareholders and broad among retail employees June 2009 the performance of strategic suppliers. As cross-section of the community. These Progress one of the six pillars of Vodafone’s supplier stakeholders are at the heart of our Completed performance management, part of this business and to operate responsibly Stakeholder Engagement Strategy monitoring includes assessment of CR we must ensure we understand their We have many engagement channels for Target performance and risk management, which expectations of our behaviour and our everyday stakeholders. We regularly Globescan survey of stakeholder accounts for 10% of the overall evaluation the impacts we are having on them. survey customers and employees on their perceptions – what drives Vodafone score. The scorecard evaluates: We must also ensure we’re effectively satisfaction with our performance. We New Zealand’s reputation? • Acceptance of the CEP engaging all our stakeholders, including have discussions with the Government on Progress • Management systems for employee those who do not have a direct impact industry matters and briefi ngs with investors Completed welfare on our operations or those whose on our fi nancial perfromance. • Management systems for voices might otherwise not be heard. Target environmental management These stakeholders typically include Our Corporate Responsibility stakeholder Increase employee perception of our • Management of CR in the supplier’s own organisations with an interest in the engagement strategy is designed to overall performance in managing our supply chain social and environmental impacts of complement these activities and provide key impacts • CR reporting activities and stakeholder our business. a platform to engage those stakeholders Progress transparency omitted in the traditional engagement Completed • Proactive approach to CR with Vodafone. channels. We base our strategy on two Target principles: Target In New Zealand we assessed 14 local Implement a responsible marketing • That our stakeholders have the right to Conduct an engagement session with suppliers last year. These were Alcatel- campaign to raise awareness of the be heard youth representatives Lucent, Agilent, Nokia Siemens Network, dangers of using a mobile phone while • That our stakeholders have a right to be Deadline Hewlett-Packard, IBM, 724 Solutions, driving informed about our performance across March 2009 Bytemobile, Ericsson, Nortel Networks, Progress our social and environmental impacts Comverse Technology Inc, Unisys, Huawei, Completed Target Starhome and EMC. In August 2008 we hosted two sessions Target Continue to fund independent and with external stakeholders in Auckland and Promote NetSafe TXT bullying hotline public fi eld monitoring for ten network Wellington. Based on feedback from the www.vodafone.com/start/responsibility/ and TXT bullying advice to a broader sites each year 2007 discussions, we did not have separate supply_chain.html audience Deadline sessions for environmental and social Progress March 2009 stakeholders. Instead we aimed to discuss Completed both themes at each of the sessions. We Target also reshaped the engagement sessions Target Develop case studies for how Vodafone to broaden the scope of the discussion, Conduct an audit of our network waste products and services can be used to in response to stakeholder feedback. In streams including packaging waste from enable organisations to reduce their the past we had focussed predominantly our network equipment impact on the environment on Vodafone’s immediate performance Progress Deadline regarding social and environmental issues. Completed March 2009

16 17 STAKEHOLDER ENGAGEMENT STAKEHOLDER ENGAGEMENT

sessions. The purpose of the forum was Employees ranked a range of key issues on a to share resources, stimulate discussion 1-5 ascending scale in terms of importance Vodafone New Zealand before the events themselves and provide and also how well they thought we were a platform upon which to post follow-up managing these issues. The employees Corporate Responsibility Forum information after the events to generate said that our performance was weakest in some ongoing engagement and dialogue. managing the public perception of health Discussing telecommunication’s role in shaping a sustainable New Zealand issues related to mobile phone masts and Many of the issues raised in the sessions the use of mobile phones and in responding This year the discussion was guided highlighted issues Vodafone could address were already being addressed, however to issues of climate change and energy by a central question: what is the role such as TXT bullying, adult content and several targets have been developed (see effi ciency. We were pleased to see only of telecommunications in shaping a online conduct as well as broader societal box) for the year ahead, some of which are a small gap between the importance sustainable future for New Zealand? issues such as the supply of sustainable, also published elsewhere in this report. We employees placed on mobile recycling and The purpose of this was to stimulate a renewable energy. will disclose our performance against these our perceived performance. Overall, the gap future-focussed discussion that looked at issues in the next year’s report. between perception of importance of issues issues beyond those directly associated In Wellington, the group focussed on the and perception of performance has closed with Vodafone New Zealand. We wanted themes of access to telecommunications, Employee Corporate Responsibility since last year. to build an understanding of what these health and safety and environmental Survey stakeholders thought a sustainable future sustainability. The Wellington session tended Each year we conduct an online CR survey www.vodafone.com/responsibility/dialogues New Zealand looked like, what the role of to have a stronger focus on Vodafone’s of our employees. A total of 163 people telecommunications was in that future, direct and immediate impacts and was responded to the latest survey, around 12 www.vodafone.com/responsibility/ what barriers existed to achieving that future less future oriented. Key issues discussed percent of all employees representing a fair engagement and what society and industry could do to included accessibility to our products and cross section of the workforce. overcome those barriers. services, pricing and competition and heath issues relating to Electromagnetic Fields Our Employees’ Key Issues – Average Score on 1–5 Scale The stakeholders that attended the (EMF) associated with the deployment and Auckland discussion included NetSafe, maintenance of our network. the Manukau City Council, the Mental Recycling of hazardous waste Health Foundation, the Rotary Youth The Vodafone New Zealand CR Forum from our network operations Driving Association, Youthline, GreenFleet In July 2008 we set up an online forum to Using mobiles while driving and several education researchers. run in conjunction with the face-to-face The Wellington discussion included TXT bullying representatives from Consumer New Some comments from the online Zealand, the Automobile Association, Guarding children from accessing forum: adult content through our products Internet New Zealand, the Energy Effi ciency and Conservation Authority (EECA), the “The collaborative learning tools Mobile recycling University of Victoria and the Ministry for enabled through access to the internet the Environment. mean students are connecting to Climate change and energy effi ciency course content and their peers through Managing environmental and The Auckland group identifi ed several advanced on-line learning systems” social risk in our supply chain barriers to creating a sustainable future in “The confi dence to use a given Public perception of health issues around New Zealand which can be themed broadly technology (or brand) is largely mobile phone usage & mobile phone masts as online safety and literacy, work life infl uenced by trust and integrity” – on Launching products and balance, social connectedness/isolation and services with a high social value the future role of telecommunications mental health, education and environmental in education. 012345 sustainability. Within these themes the group Importance Our Performance

18 19 ECONOMIC IMPACTS

Introduction trust and loyalty of the New Zealand At Vodafone we consider managing public if we continue to offer them the the economic impacts of our best value and quality products and operations a vital part of ensuring services. Vodafone believes that ethical that we remain a responsible competition in a market economy is the and sustainable business. As a best way of delivering benefi ts to all its full service telecommunications stakeholders. provider we have a signifi cant part to play in providing the infrastructure 2008 marks the tenth anniversary and services that are necessary of Vodafone in New Zealand. In the to drive economic growth in past decade we have introduced the New Zealand. latest communications technology to New Zealand and in doing so have built a business that over half the Target New Zealand population chooses as Commission research into the their mobile provider. While we are economic productivity benefi ts proud of what we have achieved with of fi xed/mobile convergence and mobile telecommunications increased mobile working on New Zealand competition in this market will keep businesses pushing us to improve further, to Progress deliver an even better service to the Research commissioned – to New Zealand public. be reported in next CR report We aim to repeat the success of the last Target ten years in the fi xed line market. We Bring New Zealand into the top will do this in the same way we have half of OECD pricing benchmarks done before – through offering the most by December 2010 innovative products and services and Progress through competing robustly on price and Completed service. This will allow more New Zealand households and business to share the Target benefi t of faster and better connectivity. Roll out 3G Broadband network to match current 2G network Products & Services footprint, 97 percent of where New We have continued to challenge Zealanders work and play the market across fi xed and mobile Deadline though producing innovative products December 2010 and pricing that provide ever better value to New Zealand consumers and Economic Managing our contribution to the businesses. In the past year we have economy is necessary if we wish to launched: What is Vodafone doing for achieve our goal of being the number • HomePhone Plus: A home phone the New Zealand economy? one telecommunications company line enabled via Vodafone’s mobile in New Zealand. The two are linked, technology, including unlimited as we will only win the confi dence, local and national calls, for only

21 ECONOMIC IMPACTS ECONOMIC IMPACTS

$40 a month – more than 33% with access to high speed, high quality Average Revenue Per User Plus Voice and SMS Usage cheaper than comparable ﬁ xed wireless internet, as well as providing near products ubiquitous coverage for New Zealanders • Vodafone Family: Unlimited mobile travelling around the country. $54 250 calls and TXTs between up to four $52 Vodafone mobiles for only $20 Competition 200 a month Competition in New Zealand $50 • Talker, TXTer and Mega: Advertised telecommunications has been increasing, $48 as our best ever Postpay plans for and competitive pressures are likely to 150 consumers, including up to three continue to grow. We are excited by the $46

BestMates – unlimited mobile calls new possibilities that are created by robust ARPU $44 100 and TXTs to nominated numbers competition in the marketplace and • 12 Months Free Broadband: recognise that this helps and encourages us $42 50 Free fi xed Broadband for 12 months to improve our products and services if we $40 Minutes / TXT Messages Voice to customers who purchased fi xed are to achieve our goals. line and national calling packages $38 0 from Vodafone Other carriers will also be able to access FY2004 FY2005 FY2006 FY2007 FY2008 • Business Fixed Line & Calling: Telecom exchanges as a result of Local Average Monthly ARPU Average Total Voice Per Customer Average Total SMS Per Customer Fixed line phone packages for Loop Unbundling and will therefore be able businesses that allow call savings to provide their own service offerings as of up to 56% versus other comparable well. The operational separation of Telecom agreement allows use of Vodafone’s Since the enactment of the fi xed line phone packages. will allow carriers access to Telecom’s network when NZC customers use their Telecommunications Act in 2001 there copper network on equivalent terms. This mobile phones outside of the NZC coverage has been considerable regulatory activity Over the coming year, we look forward represents a signifi cant change to the areas. Vodafone continues to work with in both fi xed line and mobile markets. A to introducing more innovative products. fi xed line market in New Zealand – one NZC and the Commerce Commission on number of major issues including Local With the advent of Local Loop Unbundling that creates signifi cant opportunities for the standard terms for co-location of NZC Loop Unbundling, operational separation of we will be able to access local telephone Vodafone but also that increases competitive equipment at Vodafone cell sites. Vodafone Telecom and mobile termination rates have exchanges and install our own high-speed tension to the benefi t of the New Zealand has also sold the management rights been the subject of regulatory processes. internet equipment. This allows Vodafone consumer. to a block of spectrum in the 900MHz There will be an ongoing focus by regulators to be amongst the fi rst to offer ADSL 2+ range to NZC, which will allow it to provide to identify economic bottlenecks and to technology to New Zealanders via our The mobile market is also likely to see new improved network coverage. This increased ensure there are appropriate regulatory investment in ‘The Red Network’ – local entrants with new and innovative offerings. competition will encourage both new and settings to ensure a competitive market. Vodafone will continue to work with telephone exchanges that are enabled Over the last 18 months Vodafone has been existing mobile providers to innovate further regulators to ensure analysis is robust and with Vodafone high-speed broadband working hard to enable three new mobile in their product offerings and their pricing. technology. ADSL 2+ allows speeds of up to providers to enter the market via wholesale regulatory interventions do not adversely 24Mbits a second. We also plan to introduce arrangements – Compass Communications impact outcomes for consumers or deter VDSL technology, which will allow for even Limited, Orcon Internet Limited and M2NZ Regulation investment. higher speeds. Limited. The fi rst of these is expected to be Vodafone maintains a collaborative publically launched in late 2008 with the relationship with our regulatory agency, We are facilitating the entry of new mobile We will also be rolling out our high-speed other two following in 2009. policy agencies and our industry body. We providers into the New Zealand market 3G mobile broadband network to match remain committed to seeking the outcomes through our wholesale arrangements and by the current footprint of our 2G network – Vodafone has also been working with NZ that will encourage competition, drive working with NZ Communications. 97 percent of where New Zealanders work Communications (NZC) on the launch of market innovation, reward investment in and play – by 2010. This represents a $500 its GSM network which is partially enabled the New Zealand economy and are, where We have also made progress in resolving million investment in providing New Zealand by a national roaming agreement. This appropriate, industry led. other matters of industry regulation.

22 23 ECONOMIC IMPACTS ECONOMIC IMPACTS

Vodafone has voiced its concerns on the Many of these same services are now operation of the Telecommunications available on a commercial basis via mobile Service Obligations (TSO). The TSO (formerly networks, using products such as Vodafone’s know as Kiwi Share) was introduced with the HomePhone Plus. privatisation of Telecom in the early 1990s. The TSO requires the provision of a minimum Value of mobile services level of telecommunication services to all We remain committed to our goal of New Zealanders, including customers in achieving cheaper mobile pricing that remote areas which are not commercially is within the top half of OECD pricing viable to reach. This requirement is funded benchmarks. We have continued to create by contributions from telecommunications and launch a range of innovative value offers, providers, including Vodafone. which have substantially improved the value that our customers receive from our mobile At present all TSO funding is provided to services. Examples of this are the extension Telecom New Zealand. In the past year, of the popular BestMate product to postpay Vodafone has worked with other members customers and the launch of the Vodafone of the telecommunications industry to Family package, both of which provide our increase the transparency of the TSO customers with unlimited calling, TXTing process, introduce more consumer choice and video calls to their nominated friends per month, an increase of 17 percent over to other Vodafone Plans. We have addressed and competition into the provision and and family. these concerns and are confi dent the plans funding of these services. Vodafone believes 2007 and sends 199 TXT messages per will be included in future benchmarking. that the TSO has failed to keep pace with Our customers have responded to these month, an increase of 16 percent over The Commerce Commission’s own technological advancements. The TSO offers by using their mobile phones more 2007. Average Revenue Per User (ARPU) has reporting shows our pricing to be higher funds the provision of fi xed-line services than ever before. The average Vodafone increased over 2007, but only by less than 1 compared to the OECD average. However, for customers it is uneconomic to reach. customer now generates 116 voice minutes percent. When this is considered in tandem with the increases in TXT and voice usage, the benchmarking methodology does it is clear that Vodafone customers are not refl ect fl at-rate pricing offers such as BestMate and Family, which offer unlimited Vodafone Base Plans vs. OECD Average receiving far greater value for their dollar. calling and TXTing to allocated numbers for a fl at fee. These offers deliver signifi cant 200% Due to these and other pricing innovations, the cost of our mobile products continues value to our customers that is not measured 180% to improve in comparison to other countries. by the ranking. We therefore do not consider 160% The analysis performed by Teligen in this to be a fair refl ection of the true value 140% February 2008, on behalf of the OECD, shows delivered to New Zealand consumers. This gap in the methodology is acknowledged by 120% that Vodafone’s ‘Base’ plans provide better value than the average of comparable plans the Commerce Commission. 100% offered elsewhere in the OECD. 80% The Commerce Commission’s quarterly 60% We strongly disagree with the Commerce reports are available on its website. 40% Commissions’s decision to ignore our www.comcom.govt.nz 20% Base Plans and rank different Vodafone plans against the OECD averages in their 0% www.vodafone.co.nz/on-account-plan-savings Feb04 Feb05 Aug06 Feb07 Feb08 own benchmark reporting. This is due to differences in the contractual conditions Low User Medium User High User OECD Average and marketing of the Base Plans compared www.oecd.org

24 25 proﬁ le SOCIAL IMPACTS

Social Introduction Technology is playing an Mobile phones have seen incredible What impacts do Vodafone’s products increasingly important role in our take-up around the globe. Last year the lives. We have an ever-increasing number of mobile phone subscribers and services have on my community? number of ways to connect with reached three billion worldwide. There each other and a wealth of online is now more than one working mobile information. Over Vodafone’s phone for every two people in the world. mobile and ﬁ xed-line services our customers have access to the The gap between mobile and internet internet, email, social networking technologies is rapidly converging. sites, TXT messaging, PXT Mobile networks are delivering faster messaging, video calling, voice and cheaper access to mobile data and calling, instant messaging and many handset manufacturers are producing other communication opportunities. devices which take advantage of this

Target Implement a responsible marketing campaign to raise awareness of the dangers of using a mobile phone while driving Progress Completed

Target Introduce three signiﬁ cant products with features that reduce exclusion by March 2008 Progress We introduced ZOOMs in the past year, in addition to TALKS and SIMPLY products

Target Review information available to parents about mobile phones, TXT bullying and adult content Progress We reviewed the content on TXT bullying. We will publish a new resource, including revised information on adult content, when off-net ContentGuard is launched

Target Promote the NetSafe TXT bullying hotline and TXT bullying advice to a broader audience Progress Completed. We printed updated brochures and posters for distribution in schools and advertised the NetSafe hotline in national education resources

26 27 SOCIAL IMPACTS SOCIAL IMPACTS

to deliver an improved mobile internet NetSafe provides independent and Malicious and Nuisance Complaints Reported experience. Around the world, most people confi dential advice to anyone who is will view the internet for the fi rst time on the subject to TXT bullying or any other form Complaint Type Year to March 08 May 06 – March 07 screen of a mobile phone. of electronic harassment. In the 2006 we Nuisance 6,043 4,052 sponsored the creation of leafl ets and This technology brings some great posters to promote NetSafe’s services, Malicious 281 500 benefi ts to society. Improving our ability to and raise awareness of TXT bullying. We Wrong number 467 30 communicate, build new relationships and updated these booklets last year to also Total 6,791 4,610 share ideas is good for society. Vodafone cover bullying online and through social is committed to promoting these benefi ts networking sites. NetSafe distributes Actions Year to March 08 May 06 – March 07 and making them accessible to more approximately 50,000 leafl ets to schools people. As a responsible business, it’s also and youth organisations each year. Warning 2,682 1,396 important for us to manage the potential Forward to other telco 449 195 for these technologies to be used for Last year we also placed TXT/online bullying Temporary service bar 128 102 negative purposes. adverts in Newspapers in Education (NIE) TXT removed 122 69 supplements which are distributed in Impact on Youth newspapers around the country. The adverts Account deactivated 13 54 Young people are growing up in a very promoted the NetSafe helpline as a service Total 3,394 1,805 different world to previous generations. for victims of electronic harassment. Technology is a central part of their the rules and principles within the guide services is taken from the customer’s www.netsafe.org.nz education, learning and research, their were still relevant. However, some of the Vodafone account. interactions with their parents and information regarding our products and Last year the number of calls we received their peers and even their sense of services required updating. This included Some of these services include content reporting nuisance or malicious calls personal identity. information on the mobile internet. We unsuitable for younger customers. In order and TXTs increased. We believe this is a intend to update the guidelines in the to protect young people from adult-only good sign, as it shows greater awareness It is our duty to ensure we offer reasonable year ahead, to include information on content we introduced the ContentGuard of the support available. The number protection for our youngest customers so ContentGuard adult content fi ltering when fi lter. ContentGuard must be deactivated of actions from complaints increased they can use our products and services in a it becomes available. via an age-verifi cation process before any dramatically, indicating better awareness of safe and responsible manner. It is now the restricted content may be accessed. No the complaints process and the evidence norm for most teenagers to have a mobile Mobile content adult content was sold over our network required in order for Vodafone to take action. phone, and spending on mobile services With the convergence of mobile and internet prior to the introduction of the content fi lter. The number of more serious complaints represents a signifi cant proportion of technology the range of content available reporting malicious content dropped income in this age bracket. over the internet is now easily accessible In the year ahead we plan to launch a signifi cantly, from 500 to 281 in the last year. through a mobile phone. This includes the content fi lter which will cover content across TXT bullying is a serious issue. Vodafone full range of content format, including audio the mobile internet, covering all websites. Malicious and nuisance complaints has approached this in an industry-wide and video fi les. This fi lter will be activated on request, and reported basis. In 2006 we prompted NetSafe to set can only be deactivated by following an We publish a parent’s guide to mobile up a working group including ourselves, Third-party content providers are able to age-verifi cation process. The launch of this services, which is available online. The NetSafe, the Police and Telecom New sell their services to our customers using fi lter has been delayed due to technical parent’s guide contains a set of rules Zealand. This resulted in a standard Vodafone’s network. These multimedia diffi culties. for safe mobile usage, which is used in approach to individual complaints across products have been available for a number many schools. Last year we reviewed the all organisations and an agreed process of years through Vodafone Live! (our mobile In our fi xed-line business we have been guidelines to ensure they were still relevant for handing over complaints when the internet portal), such as news and weather participating in a Department of Internal and up-to-date with our latest services and message originated on a different updates, music and video downloads and Affairs (DIA) trial. The DIA have been testing technological advances. We found that mobile network. mobile TV. Direct payment for these a fi lter to screen any illegal material and

28 29 SOCIAL IMPACTS SOCIAL IMPACTS

prohibit access. The fi lter works on a blacklist words such as “free” or “unlimited”. The passengers, making adjustments to the principle, blocking any sites which have been Mobile Advertising Policy also includes car heating or stereo, eating and drinking Positive applications for mobile identifi ed as hosting illegal content. requirements for compliance with national and distraction from activities and events technology codes covering advertising of gambling, outside the vehicle. As a part of the 2008 Graduate Mobile advertising alcohol sales, medicines, tobacco and Programme our new graduates had Advertising through mobile phones offers vehicles. As a responsible business we support to manage a corporate responsibility possibilities to explore new business models legislation to promote safe driving. In the project. They were responsible for for generating revenue through the provision Unsolicited electronic communications past year we strengthened our public all aspects of the project, including of mobile services. It also presents new The Unsolicited Electronic Messages Act position, which previously stated that we did designing the initiative, project challenges as we understand the impacts of 2007 came into force on September 5, 2007. not oppose the outlawing of driving while management and implementation. mobile advertising and our responsibilities The Act puts strict requirements on the using a mobile phone. In March 2008 we Last year the graduates launched as a provider of advertising space. distribution of electronic messages, such publicly called for a ban to be put in place. DonateLive! in partnership with the as TXT messages or email, in order to limit This call was covered across national media. Yellow-eyed Penguin Trust and with Prior to launching a mobile advertising spam. The purpose of the Act was to: support from Run the Red. service, Vodafone created a Mobile • Prohibit unsolicited commercial Recently, the Government announced Advertising Policy. The policy explains the electronic messages from being sent it is considering a ban on the use of DonateLive! enabled Vodafone minimum requirements which Vodafone • Require commercial electronic handheld mobiles while driving. It proposes customers to send a free TXT spelling expects from advertisers, media agencies messages to include accurate a potential fi ne of $50 and 25 demerit ‘YEP’ (yellow-eyed penguin) to 5483 and mobile advertising sales agencies that information on the sender points as punishment. The Government is (live), where they could make a donation play a part in providing mobile advertising • Require a functional unsubscribe facility undertaking a formal consultation process of $3, $5 or $9 to the Yellow-eyed through Vodafone’s network. so the recipient can instruct the sender on the proposed law change. Vodafone is Penguin Trust via the Vodafone live! that no further messages are to be sent. supportive of this step, which will make portal. In return for the donations The policy applies many of the same New Zealand’s roads safer. customers received multimedia content standards we require of our own marketing. For Vodafone this requires us to allow such as Yellow-eyed penguin-themed It requires advertising to be decent, fair, customers to opt out from receiving Vodafone Alongside our public call for a ban we ringtones, screensavers and videos cogniscent of safety and personal security marketing information electronically. It also launched a responsible marketing campaign downloaded directly to their phone. All issues, sensitive to national and cultural sets rules for others to access our customers to raise awareness of the damages of using funds from the initiative were passed values and any major socio-political events for commercial purposes. a mobile while driving. We refreshed our on to the Trust. The project was a great and respectful of all people. The policy mobiles and driving advice and printed success with more than 2,500 ringtones, requires that in all mobile advertising Mobiles and Road Safety new Safe Drivers Know to Stop information screensavers and videos downloaded information should be understandable and Road safety is one of Vodafone’s key over 3 months and more than $3,056 not portrayed in a way that could be seen issues. Although mobile phones can be a Our advice to our customers and raised for the Trust. as disrespectful. Mobile advertising must great benefi t for drivers in the event of an other motorists is: also avoid causing offence and be sensitive emergency or breakdown, using a mobile • Never use a handheld mobile while booklets. These are available on our website. to different sectors of society and cultures. while driving is a signifi cant distraction and driving (both for calling and TXTing) We also hosted a safe driving event in Stereotypes and other examples of bad taste increases the risk of accident and injury. • Pull over and park if you need to partnership with Rodney District Council and should be avoided. take a call when you’re on the road the Accident Compensation Corporation. The latest available Ministry of Transport • If you can’t pull over, use voicemail The event was timed to coincide with Vodafone requires disclaimers to be statistics, from 2006, show that diverted and return the call when it is safe to increased traffi c over the Easter break. conspicuous, clearly stated and specifi c. attention, including using mobile phones, do so Any fi ne print must not contradict or modify was a contributing factor in 11 percent of • Fit a built-in hands-free kit to your The event took place at a roadside reserve the main advertising message. Advertisers all crashes that year. In total, 29 deaths vehicle, but keep conversations on State Highway 1 north of Auckland, to should assess the overall impression given were caused by diverted attention on the short and pull over and park if catch holiday traffi c heading away for the to the customer and should be particularly roads in 2006. Diverted attention also possible when taking calls. long weekend. Drivers were offered free cautious when an advertisement contains includes activities such as talking with refreshments, the chance to meet Vodafone 30 31 SOCIAL IMPACTS SOCIAL IMPACTS

Warriors players and cheerleaders, and told The pilot was successful. The Government Premium TXT Services Vodafone Australia, including accounts about the dangers of using a mobile while plans to roll out the technology across Premium TXT services can include paid TXT payable, fi xed asset accounting, treasury driving and driving while tired. all prison sites. This is expected to be competitions, subscriptions to TXT updates and systems maintenance. completed by February 2009. and paid access to content via TXT message. Complaints resolution service These services are operated by other Sharing the benefi ts of mobile In November last year the Responsible Marketing companies through our mobile network. In technology Telecommunications Disputes Resolution Vodafone’s Responsible Marketing the past Premium TXT competitions have Globally, digital inclusion is Vodafone’s (TDR) service was launched. The TDR is Guidelines require all of our marketing to be prompted complaints to the Commerce fl agship Corporate Responsibility programme. a free and independent service available legal, decent, fair, honest and truthful. We Commission due to questions over the Technology can be inaccessible for a number to consumers to resolve complaints have implemented annual training for all our adequacy of disclosure of terms and of reasons – either through prohibitive with their telecommunications provider. employees responsible for our advertising, conditions, which can include automatic cost and lack of availability, or through Customers can escalate complaints to the direct marketing and point-of-sale materials. subscription to Premium TXT services. services which don’t meet the needs of TDR if they feel their complaint has not We have also included employees from our those with disabilities. In the developing been handled appropriately, or if they have marketing agencies in these sessions, which In order to ensure these services are sold world access to communications can drive not received a response within six weeks. cover our responsible marketing guidelines, responsibly an industry-wide approach has economic development and help improve A TDR resolution can award compensation the impacts of our advertising on customers been taken. The Telecommunication Carriers living standards. Mobile phones can also up to $12,000. and a review of our current activities against Forum (TCF) established a Mobile Premium provide otherwise unavailable services, the guidelines. Messaging Services Working Party in August such as access to banking facilities through This is an industry-wide scheme created 2007 to prepare an industry code of practice innovative projects such as M-PESA. by the Telecommunications Carriers Twelve complaints were received by the to set standards for telecommunication Forum (TCF). At present the scheme Advertising Standards Authority in relation service providers, content service providers Last year we launched a mobile recycling has 16 members who fund the TDR, to Vodafone advertising in the last year. and content providers. The Mobile Premium partnership which will increase access including Vodafone and the other main One complaint was upheld. This complaint Messaging Services Code was launched by to communications overseas. Enable telecommunications companies. was in relation to a TXT message send to the TCF in February 2008, with Vodafone one Community is an Australian-based charity subscribers for updates regarding music of 16 signatories. that works alongside microfi nance www.tdr.org.nz downloads. The TXT read: organisations in the developing world. www.tcf.org.nz Enable Community gives mobile phones to Mobile phone blocking in prisons “Get your hands on those hip-hop songs micro entrepreneurs, to assist them to work In November 2007 a pilot was launched you know your parents would disapprove Vodafone Egypt call centre their way out of poverty and create wealth to test technology that blocks mobile of with tracks from all your favourite cuss Last November we began sharing the and employment in their communities. phone signals in prisons. The trial installed merchants including NWA, Dr. Dre, Snoop load of incoming customer service They work in partnership with micro- equipment at three prisons in Northland, Dogg, 50 Cent!” calls with a Vodafone New Zealand call fi nance organisations such as Opportunity Hawkes Bay and Rimutaka. Vodafone and centre team within Vodafone Egypt’s International, who provide small low-interest Telecom New Zealand cooperated with the The complainant objected to the business. This measure was introduced due loans in order for people to purchase Government in the trial. advertisement as it encouraged children to increased call volumes to our call centres, equipment and materials to start to build to obtain material their parents deemed combined with diffi culties in recruiting their businesses. Mobile phone blocking prevents prisoners objectionable. The Complaints Board suffi cient local employees to serve our committing further offences while behind upheld the complaint and ruled that the customers. The Egyptian call centre works All of the phones collected by Vodafone in bars. There is potential for prisoners to advertisement did not meet the due sense in tandem with our existing teams, adding to New Zealand are shipped to Australia, where use mobile phones to organise further of social responsibility to consumers and our customer service capacity. phone suitable for reuse are separated from crime, harass witnesses and others in the society as required by Basic Principle 4 of phones for recycling. Phones suitable for community and arrange escapes. Mobile the Code of Ethics. Many other functions are shared between refurbishing are sent to the Philippines, phone blocking complements existing different Vodafone companies around the where they are refurbished using local monitoring systems on prison pay phones. www.asa.co.nz world. Vodafone New Zealand manages labour, creating more employment in the many of the accounting functions of local communities.

32 33 SOCIAL IMPACTS EMPLOYEES

The Enable Community partnership is a NZ Relay Service Introduction quartile of New Zealand businesses included world-fi rst. We believe it offers the best The New Zealand Relay service is a As a responsible and sustainable in the Hay Group comparison benchmark, environmental and social return on the telecommunications service for people business we have a commitment to being and back above the Vodafone global norm handsets we collect. It also offers an who are deaf, hearing-impaired, deaf-blind an employer of choice. It is essential of 71 percent. incentive for people to hand in their old or speech-impaired. The 24-hour service is to our ongoing success that we ensure mobiles knowing that they could go to a accessible either online or through a fi xed-line our people feel confi dent, appreciated The increases were measured across areas good home where they can make a real TXT-phone or tele-typewriter. The deaf user and inspired and have opportunities to we had targeted to drive higher employee difference to someone’s life. types their conversation to a Relay Assistant develop and are motivated to excel. engagement. This was the result of who reads it out to a hearing person at the programmes to improve employee training www.enablecommunity.org.nz other end of the call. When the hearing person Target and development, improving crossfunctional replies verbally, the Relay Assistant types the Maintain a ten percent reduction of collaboration and linking personal Accessibility of our technology reply and forwards it to the deaf user. workplace lost time incidents against performance to rewards and incentives. For a number of years we have been working The service enables deaf and hearing 2005 fi gure of seven percent with the Royal New Zealand Foundation impaired people to access services that Progress Recognising the importance of line of the Blind to make mobile technology hearing people take for granted, such as Completed managers to employee engagement, more accessible to its members. Through arranging appointments with a health the survey also saw the introduction of the Foundation’s adaptive technology unit provider, phoning a retail store or engaging Target the Manager Index. The index is a way we sell mobile phones loaded with TALKS a tradesperson. The relay service is funded Top quartile employee engagement for a manager to get feedback from software at discounted prices. TALKS is a by Vodafone and other telecommunications relative to NZ companies their people about the impact they are piece of audio software that reads aloud the carriers as part of the Governments Deadline having on their team and how they work. contents of phone menus and messages. Telecommunications Service Obligation. March 2009 Specifi cally, the index generates feedback on whether: As part of the TALKS project the Foundation Target • Everyone knows what is expected of of the Blind offered its members training Have no advertising complaints upheld Engaging with our employees them through clear goals on the use of TALKS. Many of the against us Last year we revised our annual People • These goals are challenging, but attainable Foundation’s members have not used a Deadline Survey to create a more formal process • There are no unnecessary rules, mobile phone before. The software opens March 2009 of surveying employees than had procedures, policies. up the functions of the phones most been provided through the Vodafone • New ideas are easily accepted Target sighted people take for granted, such as TXT Employee Survey and Pulse surveys • People are given the authority to Revise and republish our Parent’s Guide messaging. The development of this training since they started in 2003. The People accomplish tasks without being to mobile was funded by a grant from the Vodafone Survey, conducted in October 2007, constantly checked for approval Deadline New Zealand Foundation. was completed by 94 percent of New • People are recognised for good March 2009 Zealand employees which gave us a performance In past year we secured a second software Target thorough indication of employees’ views • There is good cooperation within the application – ZOOMs. ZOOMs is a screen Review the accessibility of our products of the company. The survey’s results team environment. magnifying tool, which allows those with and services are being used to address gaps in our a vision impairment to view a magnifi ed Deadline performance as an employer and to make In March 2008 we surveyed our employees version of the standard phone screen. This March 2009 improvements where necessary. The on their opinions on our Corporate new software is sold by the Foundation next full employee survey is scheduled Responsibility performance – the fi ndings of Target alongside TALKS and discounted handsets for late 2008. this survery were distilled in June 2008 and Launch internet ContentGuard fi lter for compatible with the applications. for more information see the Stakeholder adult content accessed via our mobile The October 2007 People Survey indicated Enagement section, page 17. www.rnzfb.org.nz network an increase in employee engagement to 68 Deadline percent. This is a step in the right direction to March 2009 get our employee engagement into the top

34 35 EMPLOYEES EMPLOYEES

Employee Value Proposition Employee Fact Box In the year ahead we plan to launch our employee value proposition under the 2008 2007 2006 overarching employee promise – “Be your possibility, make it happen”. The propostion Total number of 1,553 1,375 1,426 focuses on seven key touchpoints: employees* • Welcoming You – employee induction Voluntary employee 27.85% 25.5% 17.7% and welcome to Vodafone turnover** • Connecting You – keeping employees Number of Women in 5 out of 30 5 out of 34 5 out of 32 informed and involved senior management • Developing You – a focus on employee Number of lost-time 444 development accidents*** • Rewarding You – linking performance to rewards and incentives *Permanent fi xed-term actual employees as at 31 March 2008 • Celebrating You – celebrating employee **For greater accuracy the 2007 and 2008 fi gures are caluculated based on rolling voluntary turnover across achievements the period, as opposed to the 2006 fi gure which was calculated based on the total number of employee vs • Looking out for You – a focus on employee the number of leavers at the end of the year. health and safety and wellbeing ***This exludes accidents for employees travelling to and from work, but includes work travel • Beyond You – enabling our employees to make a difference to the world around them Vodafone People Survey Results Red, Rock Solid and Restless Vodafone’s global values – Red, Percentage of employees agreeing with the statement Rock Solid and Restless – help guide 2007 VPS 2007 Pulse 2006 Pulse 2005 VPS employee behaviour to meet our Vodafone is socially 85% 92% business objectives and deliver for our responsible (a good stakeholders: corporate citizen) • Red – passionate about what we do and how we do it Vodafone is ethical in its 78% 75% 76% 87% • Rock Solid – dependable and business dealings delivering what we promise I am proud to work for 89% 80% 83% 87% • Restless – innovative and always Vodafone New Zealand pushing the envelope The company takes a 63% 59% 53% 63% genuine interest in my wellbeing Overall, Vodafone is a good 79% 68% 74% 87% place to work compared to other organisations I know about I am rewarded fairly for the 53% 53% 57% 53% work that I do Overall Engagement 68% 66% 68% 72% Score

36 37 VODAFONE FOUNDATION VODAFONE FOUNDATION

Introduction they make up the two main Foundation Progress Updates from our 2007 World The Vodafone New Zealand Foundation is programmes . of Difference Recipients the philanthropic arm of our business. It is one of 24 Vodafone Foundations globally, The Foundation focuses its attention on Billie Paea – Crosspower Ministries Trust which have distributed more than $110 areas of great social need in New Zealand, Billie spent his World of Difference year million in money, time and materials with a particular focus on issues and working with Crosspower Ministries Trust around the world in the past year. programmes which typically have diffi culty to provide South Auckland youth with a fi nding corporate funding. Governed by positive outlet through dance. The 24 year Created in November 2002, The Vodafone an experienced Board of Directors, the old took on the role as director of one of New Zealand Foundation (the Foundation) Foundation has developed a specifi c focus the Trust’s key youth programmes, hip-hop is funded by grants from Vodafone NZ and of supporting activities and spending that Hands Up Vodafone dance troupe Dziah which made an impact Vodafone Group. The Foundation has always encourage positive and healthy outcomes Can you place your hand on your heart and say you’ve made a difference? With Vodafone Hands Up, now you can. internationally after winning silver in the been a pioneer amongst the Group. The for young New Zealanders aged 12 to 24. Volunteering is at the heart of Vodafone. Hands Up is your chance to spend up to two weeks helping one of our partner youth charities, while we cover your salary. You can even put your hand up to work for 2006 Hip Hop World Championships in fl agship World of Difference programme another youth charity of your choice. There are tonnes of different roles available so check Los Angeles. was invented in New Zealand and is being The youth strategy applies to both the out the intranet to see what’s on offer. Put your hands up and apply now – replicated by other Vodafone foundations Foundation’s grant making and World of entries close Friday 30 May and positions are limited. Billie’s aim was to “inspire, promote and the world-over. The programme funds the Difference programmes. Through its grants develop NZ’s up and coming talent through salaries and expenses of up to six people the Foundation partners with a handful of the unique medium of hip-hop.” Billie Vodafone each year, enabling them to contribute their organisations over a two to three-year period Hands Up Vodafone New Zealand Your chance to put your hand up, lend a hand and make a world of difference. Foundation achieved his three top line goals including skills working with a charity of their choice. In in the hope it can add real value to its charity opening a South Auckland studio with New Zealand the programme runs alongside partners. In 2007 the Foundation named support from his dance crew, developing strategic grant making and together nine World of Difference winners, the most it has ever awarded, who spent 2008 working a schools programme and an after-school in the community. programme with youth at risk. Through his after-school programme Billy expanded Vodafone New Zealand Foundation Hands Up Vodafone the programme in some areas over and Volunteering has always been a big part of above his goals. “This year we had four 2007 2006* Source / Destination the Vodafone New Zealand Community. development crews come out of the The Vodafone Hands Up programme gives Foundation Income studio – it was going to be one class per Vodafone employees the chance to spend $516,959 $530,305 From Vodafone New Zealand week and it went up to four”, Billy said. He up to two weeks volunteering for one of also successfully held a series of events, $800,000 $1,705,373 From the Vodafone Group Foundation our partner charities while Vodafone covers including the ‘Desire to Dream’ showcase at their salary. This is a great opportunity for $330 $6,072 Other income Vector arena: 200 dancers performed and employees to get out in the community Foundation Investments over 1500 attended this event. Billy believes and is also great for the Foundation’s charity dance culture in NZ is “at it’s biggest in $1,506,756 $2,065,287 Total grants made in the fi nancial year partners who access specialist skills through ten years”. $34,562 $67,379 Grants through employee matched giving scheme in-kind support. Vodafone Employees Crosspower Ministries Trust were grateful for In the 2007 year 14 people took part in the 1,341 hours 3,430 hours Donated volunteering time the support that Billie was able to provide Hands Up programme. They lent their skills through being a World of Difference recipient Total Contribution to organisations such as Youth Quest, EDEN saying they were “honoured that you had $1,506,756 $2,065,287 Total donations and Youthline. chosen one of our youth who was raised $243,840,000 $239,852,000 Net profi t before tax - Vodafone New Zealand helping other youth in our community to 0.62% 0.86% Percentage of pre-tax profi ts donated future his passion”. Some of the tangible outcomes that Billy created, according to the *2006 Figures restated from last year’s report to ensure consistency against 2007 audited accounts.

38 39 VODAFONE FOUNDATION VODAFONE FOUNDATION

Trust include: “developing the studio and the services for young people directed at World of Difference year his aim was to had a gun pulled on him and had his head development programme. He was able to prevention, health promotion, treatment expand the organisation to offer services smashed through a window. purchase much needed IT equipment which and support can make all the differences”. around the North Island and, ultimately, our group could not afford to purchase New Zealand. At 16 he was enrolled in the army because for him, some professional development Maree achieved her top three outcomes of the trouble he was getting into. Six years opportunities which would have been hard which included getting the counselling The Big Buddy mentoring programme is in the military tought him discipline, respect for him to raise the funds for, so we the Trust service up and running, increasing funding based on a simple philosophy – that boys and leadership, all skills he took into his feel privileged that one of our members have by over 100% and expanding the schools need good, reliable male role models in next job in the New Zealand Police. His fi rst had this opportunity”. programme to nine schools. She effectively their lives to become good men. “Mentoring posting was to Otara in South Auckland. raised the profi le of EDEN, which was fatherless boys is a profoundly simple He went on to join the Diplomatic Protection achieved through media coverage and in concept but one that has huge implications Squad, responsible for the protection of particular Love Your Body Day (LYBD). Maree in healing the social fabric of our the Prime Minister, the Governor General believes the LYBD event in Aotea Square communities. My dream is that eventually and VIPs. would not have happened without VNZF every fatherless boy in New Zealand who support; “We hadn’t planned on doing Love needs a positive male role model will Paul spent his World of Difference year as Your Body Day. That was made possible actually have one and in the process we project director for a programme he because of World of Difference support”. build a better world”. developed called Youth Quest, a three- Maree believes that due to her WoD year month programme incorporating team “EDEN is now regarded as the community Richard’s ultimate goal of expanding building exercises, anger management leader in the provision of early intervention, the programme nationally was “hugely prevention and education in the fi eld of ambitious”. Half way through the year he classes, self-esteem building, drug and disordered eating in New Zealand”. revised the plan back. Richard said “trying to alcohol counselling and bush survival skills. balance expansion and manage Auckland The programme targeted at-risk youth EDEN support Maree’s sentiments, (which was also growing) was a challenge. throughout the Kapiti and Horowhenua explaining that the World of Difference Instead we went up to Rodney and focused areas. “I have a passion to see young Maree Burns – Eating Diffi culties support provided signifi cant tangible on Auckland and Rodney”. Richard achieved people get the break that I had and to make Education Network (EDEN) outcomes including funding successes, the outcomes he didn’t set out to in his year something of themselves. It’s my turn to Maree has been involved in voluntary work development of counselling service policy including having his mentor recruitment give back to society”. with EDEN in a variety of roles since 1999. and procedure to ensure a professional recognised as world class. Maree completed her PhD in psychology in framework for practice and the availablility Paul achieved all of his top line goals 2004, in which her thesis involved a social of low cost counselling to anybody with Through Richard’s involvement with Big including getting the programme psychological analysis of the eating an eating or body image diffi culty, youth Buddy as a World of Difference recipient, the established, running the pilot, amending disorder bulimia. outreach programme development, and charity saw several tangible gains including the course and running a three month EDEN’s profi le raised within the public sector. enabling it to increase the capacity of the course. He described 2007 as a challenge Maree’s goals for her World of Difference EDEN believes that these achievements organisation and the programme, and from a fundraising perspective. “We have year included establishing an effi cient can be built upon over the next three years develop the foundation infrastructure and been fi nding our feet this year and where counselling service and securing more and beyond. planning work to expand the programme’s we fi tted in”. sustainable funding. She also wanted geographical reach. to raise the profi le of EDEN and put the Richard Aston – the Big Buddy Paul also discovered the 12 month issues of eating diffi culties and disorders Mentoring Trust Paul Fong – Youth Quest mentoring follow up created a deeper on the mental health agenda. Maree says Richard wanted to use his background Paul grew up in Kaitaia in a family of 11. At an relationship with the boys than he anticipated. “disordered eating and body dissatisfaction in corporate business consulting, IT, early age he was drinking “copious amounts” “The mentor relationships with the kids robs people of their passion, energies and community and service work to expand the of alcohol, and getting into fi ghts. He knows were a lot closer than I expected. A their ability to participate fully in life. This services of Auckland-based organisation The what it is like to sleep on the streets. In the deeper relationship was formed and it’s doesn’t need to be the case. Adequate Big Buddy Mentoring Trust. During Richard’s past he had a bottle broken over his head, really positive. We now have 12 kids set

40 41 VODAFONE FOUNDATION VODAFONE FOUNDATION

up with mentors and that relationship • Raising wide public understanding An important part of Annalise’s role will be will probably go for life. The relationship around the importance of children to the to source funding to enable the ongoing works.” Ten out of the twelve boys who nation’s social and economic provision of the project, something that her have been through the programme are development and what we can do to selection as a World of Difference recipient now in full time employment or support optimal outcomes for children will make easier. apprenticeships. • Promoting children and the valuable role of parenting. “I feel privileged to be chosen by the Vodafone New Zealand Foundation to The World of Difference grant helped create represent them in helping to make a tangible outcomes for Youth Quest by Deborah achieved her top line goals difference for our youth.” covering specifi c resources and costs which including creating events to celebrate otherwise would have relied on volunteer children (1000 children at Parliament), Billy Graham, Naenae Charitable Trust time and energies. Paul said “the Grant fundraising, creating understanding and As one of the country’s foremost has ultimately shown its true value in the raising awareness of children’s issues motivational speakers and fi tness advisors, changed lives of the young people that and establishing the organisation on a Billy Graham is passionate about making participated on the programme”. more solid footing. “I achieved what I set a world of difference to the lives of at-risk work, which will involve identifying and out to” said Deborah, a comment that is youth in Naenae and New Zealand. visiting youth-related organisations Deborah Morris-Travers – Every supported by the fact that a further 300 The Naenae Academy, a fi tness and wellness to conduct assessments from the Child Counts new subscribers joined the ECC supporter centre for youth at severe risk in Naenae perspective of a future donor. He plans Deborah Morris-Travers is best-known for base in 2007. and the Hutt Valley, is the main tool in to identify the unmet funding needs and becoming New Zealand’s youngest ever this campaign. present these fi ndings to groups of people Minister of the Crown in the late 1990s, as who may have the capacity to make Our 2008 World of Difference Winners Minister of Youth Affairs, ACC, Environment Through the work of the Trust the boys signifi cant donations to support youth and Women’s Affairs. are carefully nurtured to become good, programmes in Manukau. Annalise Myers - Auckland Women’s upstanding, proud citizens who have the skills and courage to make the right choices In more recent years Deborah has been Centre Teen Parent Project A huge part of Frank’s work will involve in their lives working as an advisor to the Royal New A project co-ordinator at the Auckland assessing the youth sector in South Zealand Plunket Society, coordinating Women’s Centre (AWC) for the past two Auckland, documenting his fi ndings “The World of Difference programme will the Littlies Lobby parliamentary network, years, Annalise Myers will spend her World and encouraging opportunities for working on the Every Child Counts project of Difference year developing the AWC’s Teen allow me to spend much needed time at the Academy so I can develop and execute collaboration. team and the organising committee for Parent Project (TPP), which she estimates our programmes, including a plan to improve the 2006 Australasian Conference on Child will involve some 600 participants over the facilities for the 120 boys who use “As a youth funding advocate I hope to Abuse and Neglect. the next year. the premises.” touch the lives of a signifi cant number of people and motivate them to lend their Deborah spent her World Of Difference Annalise’s own experience as a teen mother Frank Bunce, Manukau Community fi nancial support for youth programmes Year as project manager to Every Child and her passion for helping young women Foundation in Manukau. I’m from South Auckland so Counts, a new initiative that brings together makes her an ideal role model for the young Former All Black Frank Bunce believes his I know the deal. I want to see good things some of the nation’s most signifi cant parents she encounters on a daily basis. profi le will help open doors and make a happen to the young people there.” non-government organisations including “The Auckland Women’s Centre is difference to the Manukau Community Barnardos, Plunket, UNICEF, Save the committed to fi nding creative solutions Foundation, assisting to build a bridge Louise Roebuck, Taranaki Youth Children and the Institute of Public Policy at to social issues and empowering young between private donors and youth develop- Trust’s WAVES programme AUT. Deborah’s aims for the year included: parents. My work with them will help to ment programmes in South Auckland. With a Masters degree in nursing and an • Ensuring all political parties develop ensure that we are creating long-term additional fi ve post graduate papers in youth polices that support children and changes and are providing real support Having grown up in South Auckland, Frank health and sexual health, Louise Roebuck their families to the community.” believes he is well placed to conduct this has a passion for engaging in youth issues

42 43 VODAFONE FOUNDATION VODAFONE FOUNDATION

through the Taranaki Youth Health Trust’s spend her World of Difference year working directly with the youth she and her husband High Chief with a Diploma in Social Work, a WAVES programme. to fi nd ways to extend the role of the Trust in refer to as “their own”. Degree in Bicultural Practice and is enrolled her local community. in a Masters in Social Science Research at Since its inception three short months ago, “The backing of the Vodafone New Zealand Victoria University in Wellington. WAVES has registered close to 600 young The Trust, which exists to provide Foundation gives me the unique chance to people and attracted almost 2000 visits. Her development opportunities for young Maori give back to the community I grew up in and Wayne’s aim is to create a Youth Services vision is to see WAVES become the hub of and Pacifi c people, uses performing arts do something that I love”. Department within the Maraeroa Marae youth health and development in Taranaki and sports as a way to engage and develop Health Clinic, stemming from the Streets and the greater region. disadvantaged youth. Veronica Marwitz, Rape Ahead 237 youth committee. Wayne Prevention Education has managed to establish and maintain Shirley believes that regardless of a young “Health at WAVES is not just about the Veronica Marwitz will continue developing relationships with youth gangs in the Porirua person’s environment or background they physical. We look at all areas of the young the Rape Prevention Education’s (RPE) region and is committed to providing all have the capacity to succeed, they just person’s life, and we reconnect them back to BodySafe programme, a sexual violence alternatives to gang life.The message need to know there are adults who will family or to pro-social adults and peers.” prevention programme for young people. promoted through this community initiative support them and genuinely care about BodySafe, aimed at 13-18 year old males is “Brothers not Colours”. Nicole Robertson and Waitakere Abuse their future. and females, is delivered in schools, and Trauma Counselling Service “Our approach is simple, and strengths alternative education programmes and “Streets Ahead 237 has fashioned a way that After only six months at the Waitakere community groups throughout Auckland. based. Our kids don’t need us to fi x things showcases the communities’ ability to meet Abuse and Trauma Counseling Service for them. They just need room to make the demand of young people at risk”. (WATCS), where she is currently developing Veronica’s aims for her World of Difference their own mistakes and a safe place so a clinical programme for adolescents and year include having BodySafe assessed by www.vodafonenzfoundation.org.nz they can fi gure out the best way to fi x it their families, Nicole Robertson’s focus for an external evaluator, establishing a youth themselves. Our job as adults is to provide her World of Difference year is to develop an advisory group to have impact on the www.vodafonefoundation.com that safe space”. Adolescent Resilience Programme for young content of the programme and increasing women who have been traumatised by the accessibility of the programme to Swanie Nelson, CANOPY Trust physical or sexual abuse. include more low decile schools. She also Introduction Working in social development (both plans to work on making the programme Mobile phones use radio frequency (RF) internationally and nationally) and media for Nicole also hopes to develop a programme more relevant and sensitive to an increasing fi elds to communicate with the nearest several years, Swanie Nelson is passionate to provide direction, support and hope to number of cultures, particularly Maori and available base station. Many other about fi nding creative ways to enable youth professionals working with sexually abused Pacifi c Island youth. everyday items make use of RF fi elds to to be all they can be. adolescents and wants to strengthen the send and receive information, such as radios, televisions, walkie talkies, baby inter-agency partnerships and community Swanie will spend her World of Difference “Sexual violence is a huge problem in monitors and wifi networks. When a resources. year working with the Care and Nurture New Zealand and I believe every young mobile phone is used, the body absorbs of Pacifi c Youth Trust (CANOPY) to help person needs to understand what happens some of the RF fi eld and some scientists “At the end of the year, I hope to see families Pacifi c youth in the South Auckland region to their body should be in their control. I want to ensure our rangitahi are receiving have suggested that this might be harmful. walk away from the small offi ces of WATCS through community events and leadership the most effective sexual violence knowing that their family has stopped the programmes. entrenched cycle of abuse, and that their prevention possible”. Target grandchildren will not one day need abuse Swanie’s aim is to raise awareness of the Directly engage with the public, and trauma counselling.” Trust in the local community and create Fa’amatuainu Wayne Poutoa, Maraeroa customers, key opinion formers and relationships with local businesses. Her Marae Health Clinic - Streets Ahead 237 employees on mobile phone sites and Shirley Allan and Youth role will include setting up sustainable As a former member of the Porirua Mongrel health Performance Trust offi ce management systems to cater for the Mob who served a prison sentence, Deadline As one of the founders of the Youth Trust’s growing needs, helping to develop Fa’amatuainu Wayne Poutoa can identify Ongoing Performance Trust, Shirley Allan plans to a performing arts programme and working with youth at risk. Today he is a Samoan

44 45 HEALTH AND OUR TECHNOLOGY HEALTH AND OUR TECHNOLOGY

Radio frequency emission levels from mobile Emissions from mobile handsets but not in use, handsets send only brief phone sites are set by the New Zealand Current Advice, updated in May 2006, The strength of a Radio Frequency fi eld’s infrequent signals to maintain contact with standard NZS 2772.1:1999. This standard is from the World Health Organisation effect on a person can be measured using the network. These are made a few times based upon International Commission for (WHO) in their fact sheet on base specifi c absorbsion rates (SAR). The SAR every hour as a short transmission lasting Non-Ionizing Radiation Protection (ICNIRP), stations and wireless technology value measures the energy absorbed by just a couple of seconds. which have a safety margin built into them. states “there is no convincing the body as heat in watts per kilogram. There have been thousands of scientifi c scientifi c evidence that weak RF (Radio The International Commission on Non- For those people concerned about studies into the effects of RF on health. Frequency) signals from base stations Ionizing Radiation Protection (ICNIRP) has emissions from handsets, WHO advises There is no evidence to convince experts and wireless networks cause adverse guidelines for a recommended maximum that exposure may be limited by keeping that exposure below the guidelines set by health effects.” SAR value of two watts per kilogram. All call lengths to a minimum, and by keeping ICNIRP carries any health risks, for adults www.who.int/peh-emf/en/ handsets sold by Vodafone comply with the handset away from the head by using or children. But there are still some gaps in these guidelines. SAR values for individual a handsfree or speakerphone function. There have been attempts to design scientifi c knowledge, and more research is Monitoring EMF in New Zealand handsets can be found on the Mobile mobile phone covers that absorb RF fi elds, being carried out to fi ll these. For the past fi ve years Vodafone has Manufacturers Forum to reduce the person’s exposure. WHO commissioned independent fi eld www.mmfai.org/public/sar.cfm advises that there is no scientifi c evidence At the global level we contribute to funding monitoring of RF fi elds around its mobile independent scientifi c research into that these are needed, and that the phone sites. For the previous four years Modern mobile phones adjust the power priority areas identifi ed by The World Health effectiveness of the covers is unproven. the National Radiation Laboratory automatically to the minimum required to Organisation. This funding is delivered They are also likely to affect the quality (NRL) has randomly selected 50 sites to communicate with the mobile phone site. indirectly through research programmes, of service, and may in fact increase the measure. This has created a signifi cant Generally, the nearer the site, the lower funding organisations and industry mobile phone’s operating power. public database of sites showing typical the handset RF output. When switched on associations. In 2006 WHO identifi ed the RF levels around our sites. Vodafone is main gaps in scientifi c knowledge as: the only company in New Zealand to • Long-term exposure publicly disclose independent monitoring nearby transmission equipment, including For information on how we go about • Issues relating to exposure of children information of RF levels in this way. a Telecom New Zealand mobile phone site. choosing the location of a mobile phone site • Dosimetry (the calculation of absorbed The typical reading around the site was less see our Responsible Network Deployment www.nrl.moh.govt.nz RF doses) than 10 micro watts per square centimetre. section – page 55. We recognise there is public concern about From 2007 onwards we have reduced the Exposure Levels Measured by NRL: April 06 – March 08 the safety of mobile phones and mobile number of sites monitored each year. This phone sites. It is our responsibility to ensure corresponds with a slowing rate of growth the health and safety of all our employees, in the number of mobile phone sites, as 40 the focus shifts towards upgrading existing customers and members of the public. 35 We are committed to leading our industry sites to newer 3G technology. In areas in responding to public concerns on this of particular public interest we may also 30 commission individual fi eld monitoring tests issue by making objective and independent 25 information available and engaging openly to meet community demand. Last year we with stakeholders. commissioned reports on 15 sites. 20 www.who.int/peh-emf/en/ Last year the maximum exposure at any site 15 Number of Sites www.iarc.fr/ was measured at 11.6 micro watts per square 10 www.vodafone.co.nz/healthfacts centimetre. This represents 2.6 percent 5 www.vodafone.com/mpmh of the the New Zealand Standard, NZS 2772.1:1999. The site was a rural monopole 0 in Kamo, Whangarei. This reading includes <0.25% <0.50% <0.75% <1.0% <2.0% <4.0% the cumulative emissions from other Maximum exposure against NZS 2772.1:1999 46 47 profi le ENVIRONMENTAL IMPACTS

Introduction Environmental Target The environmental impacts of our What is Vodafone doing to protect the operations are diverse. Through our Reuse and/or recycle 95 percent of mobile network, Vodafone’s footprint network equipment waste New Zealand Environment? spans the length of the country, Progress across urban and rural locations. 98.2 percent recycled This network requires energy to run and produces electronic waste Target when we maintain and upgrade it. Stakeholder target – conduct an Electronic waste is also the result of audit of our network waste streams the sale of hundreds of thousands including the management of of new mobile handsets each year, equipment packaging waste into a country where phones already Progress outnumber people. Completed

For our business to be sustainable Target we must be responsible in our Reduce carbon emissions per MB of trafﬁ c by 40% against 2006 Target levels Collect 75,000 handsets for Progress recycling Achieved across the Vodafone Progress Group. New absolute emissions 41,925 handsets collected target launched

Target Target Stakeholder target – conduct Phase out the use of all Ozone an audit of awareness of mobile Depleting Substances in our recycling in Vodafone stores and airconditioning units implement a communication plan Progress to raise awareness On track for December 2012 Progress Checked retail awareness. Target Launched Enable Community Beat our energy target of 36.2GWh partnership and communicated to electricity consumption all retail stores in April 2008 Progress 35.3GWh consumed Target Commision independent research management of these impacts into the potential for mobile We can also take advantage of communications to reduce New the opportunities to reduce the Zealand’s carbon emissions. environmental impacts of our Progress customers through smart application Research commissioned – of our technology. awaiting results

48 49 ENVIRONMENTAL IMPACTS ENVIRONMENTAL IMPACTS

Climate change to introduce a market mechanism to Vodafone is a member and The Climate exisiting sites. We have also increased Looking towards the future, Vodafone reduce New Zealand’s greenhouse gas Group commissioned a study by McKinsey capacity in our core network infrastructure announced its global climate change emissions and meet its Kyoto obligations. into the carbon reductions that could be in order to cope with growing traffi c across strategy in April 2008. The strategy’s key The proposed trading scheme will be gained using Information Communications our network. commitment is to reduce Vodafone’s implemented with a staggered introduction Technology (ICT). The results, which global emissions by 50 percent by 2020, of emissions caps across all emitting sectors, demonstrate the energy savings that can be Emissions from other sources partially against baseline emissions from 2006. This covering forestry, industry, electricity made by ICT across industry and the energy offset the network growth, with reduced reduction is intended to be a direct reduction generation, fuel and agriculture. sector, will be released in the year ahead. emissions from our offi ce and retail in emissions from our operations, without electricity consumption. There was only any offsetting. As a moderate consumer of electricity In New Zealand Vodafone has commissioned minimal emissions growth from transport, and fuel, Vodafone New Zealand is not Covec to conduct independent research which includes air travel and company fuel “Vodafone Group today announces that directly included under the trading scheme, to measure the impact of new purchases for employee and fl eet vehicles. although our energy costs would be likely telecommunications services on local Across all sources, Vodafone New Zealand’s by 2020 it will reduce its CO2 emissions by 50 percent against its 2006/7 to increase moderately as a result of its businesses. The research intends to assess emissions grew by 780 tonnes last year. baseline of 1.23 million tonnes. This introduction. the potential of these services to increase target will be achieved principally by the productivity of businesses, improve Our long-term goal is to reduce outright improvements in energy effi ciency and Our local stakeholders consider climate work-life balance for workers and reduce emissions across all our operations. At increased use of renewable energy. change a serious problem facing society. their carbon emissions. present we are running two networks in However, they do not perceive climate parallel, both 2G and 3G. Ultimately, as our We have reviewed the options, including change as Vodafone’s most important Our direct CO2 emissions customers migrate across to the newer and carbon off-setting, and have concluded environmental issue. This is likely due Carbon dioxide emissions increased 9.6 more effi cient 3G network, we will be able that the most effective strategy is to to the correct assumption that our percent from our network last year. to decommission 2G network equipment. operations have little direct impact on New This is due to an increased number of mobile In the meantime, our focus is to run our cut our CO2 emissions directly. There are no simple solutions to what is Zealand’s overall emissions. However, our phone sites as we build urban coverage current networks effi ciently. This includes a complex challenge, but through stakeholders are aware of the potential of our 3G network and installation of 3G optimising current technology, adopting operational changes and technological of our products and services to reduce equipment alongside 2G equipment in effi cient solutions such as free-cooling air- innovation we will focus on improving the emissions of others and are keen for us to make ground in this area. They also energy effi ciency in our networks, which Vodafone New Zealand Carbon Emissions account for 80% of our emissions. We expect us to manage our operations in a responsible manner and to have a strategy will use renewable energy when and 20,000 for addressing climate change. where we can. 18,000

In addition, as part of its climate change Reducing impacts through our 16,000 strategy, Vodafone will be focusing on technology 14,000 Our products and services have the potential developing products and services which 12,000 to be used to save carbon dioxide emissions will help customers limit their own 10,000 emissions.” in a number of ways. They can reduce Tonnes the need for travel, streamline logistics 8,000 Vodafone Group Media Release – processes and change the way we work. 6,000 These carbon reductions will potentially 21 April 2008 4,000 outweigh the operational impact of the telecommunications industry in the future. 2,000 Last year the New Zealand Government 0 announced a proposed Emissions On the global stage, the Global 2008 2007 2006 2005 Trading Scheme. The scheme is intended e-Sustainability Initiative (GeSI), of which Transport Retail Ofﬁ ces Network

50 51 ENVIRONMENTAL IMPACTS ENVIRONMENTAL IMPACTS

stewardship schemes will be introduced If a phone is still in good working order, Making an impact on our workplaces The audit revealed ways that we could across many other products groups, raising the best environmental outcome is for We’re commited to environmental best achieve energy savings by making some public awareness of the importance of that phone to be reused by someone else. practice in all aspects of our business, simple changes throughout the offi ce. We A working phone also represents a social including our offi ces which house the have subsequently changed the bulbs in recycling and the availability of recycling and economic opportunity for someone majority of our employees. Our employee the kitchen areas from halogens to more facilities. in the developing world, who otherwise travel programme, i-commute, was effi cient IRC lamps, reprogrammed the would not have access to any form of launched in 2004, as part of our project water coolers and hot water cylinders to Last year we launched a partnership with telecommunications. to relocate our HQ to Auckland’s Viaduct only operate in normal offi ce hours and Enable Community. Enable Community Harbour. The programme promotes turned off any unnecessary lighting, such is an Australian-based charity that works A condition of the partnership with Enable alternative forms of transport, such as as in the foyer and visitors areas which alongside microfi nance organisations in the Community is that they implement a walking and cycling, or the use of public have plenty of natural light. We have developing world. Enable Community gives also introduced area specifi c after-hours collection scheme in the recipient countries, transport. Following the move to our new mobile phones to micro entrepreneurs to air-conditioning switches. To add to our in order to collect all of the phones when offi ce, a 2006 survey showed an increase assist them to work their way out of poverty energy saving initiatives we also specifi ed they reached the end of their life. This closes in employee usage of public transport - and create wealth and employment in a tighter time-frame for our cleaning the loop, to ensure that all of the phones up seven percent to 20 percent, and the their communities. contractors who now fi nish earlier reused are ultimately recycled. number of people driving alone to work than previously. down from 52 percent to 45.5 percent. All of the phones collected by Vodafone in The Enable Community partnership is a We are also making a difference through New Zealand are shipped to Australia, where world-fi rst. We believe it offers the best In the past year we undertook an EECA reducing our paper consumption and phones suitable for reuse are separated environmental and social return on the (Energy Effi ciency and Conservation using recycled paper. In the past year our from phones for recycling. Phones suitable handsets we collect. It also offers an Authority) approved audit across our offi ce paper consumption dropped by one for refurbishing are sent to the Philippines, incentive for people to hand in their old offi ce and network sites. The audit tonne while the amount of waste paper where they are refurbished using local mobiles, knowing that they could go to a included our main offi ce in the we have recycled has decreased 34% from labour, creating more employment in the good home, where they can make a real Auckland Viaduct. the previous year. local communities. difference to someone’s life.

conditioning and trialing onsite renewables industry has shown leadership as one of Total Handsets/Devices Collected such as wind and solar generation for our the ﬁ rst to collect consumer electronic mobile phone sites and core network hubs. waste. Despite the availability of multiple recycling options for our customers, we Mobile recycling are still struggling to meet our mobile 2005 Mobile recycling is one of our key recycling targets. With the introduction of environmental initiatives. The mobile the Waste Minimisation Act, similar product 2006

Paper Usage at Vodafone New Zealand 2007 2008 2007 2006

Total Paper Purchased 28 tonnes 29 tonnes 32 tonnes 2008 Paper purchased with 37%* 82% 82% >70% recycled content Target Paper waste recycled 33 tonnes 37** tonnes 40 tonnes *In 2008 we switched our paper source from recycled to Forest Stewardship Council (FSC) certiﬁ ed paper. **Restated from last year due to recalculation of average bin weight 0 20,000 40,000 60,000 80,000 100,000

52 53 ENVIRONMENTAL IMPACTS RESPONSIBLE NETWORK DEPLOYMENT

Our target for the year ahead is to collect Updated Target Introduction In recent years the focus of our network 75,000 handsets for recycling. Last year Collect 75,000 handsets for recycling Our network of mobile phone sites is deployment has shifted from building we rolled out our recycling programme to Deadline the foundation of our mobile operations national coverage to maintaining and Noel Leeming and Bond and Bond stores March 2009 – it represents a large proportion of improving performance. Growth in new site to increase our mobile recycling footprint. our investment in New Zealand. The numbers has slowed. Our main focus now For the year ahead we intend to place Updated Target ability to operate our network around is to upgrade the speed and capacity of our recycling bins with other retail partners Publish research on the impact of the country is conditional on the trust sites, in order to bring faster data speeds that sell Vodafone handsets. This should telecommunications on our customers’ and acceptance of local communities, and next generation 3G services to more mean that wherever you buy a Vodafone environmental impacts alongside the support of local and New Zealanders. mobile – either in a shop or online – you are Deadline central government. encouraged to recycle your old phone. March 2009 In areas of dense population 3G services At 31 March 2008 we had 1305 mobile are provided by smaller, lower-powered www.vodafone.co.nz/recycling Updated Target phone sites around the country, covering mobile sites, operating at higher 2100MHz www.enablecommunity.org.nz Roll out mobile recycling bins to more 97 percent of where New Zealanders live, frequencies. Much of the rollout of our third party retail stores where Vodafone work and play. These sites are a combination urban coverage has involved adding to Network waste mobiles are sold of 2G and 3G sites, across rural and urban and updating equipment on existing We have an ongoing commitment to reuse Deadline locations. The sites are located on leased network sites. Accompanying this is the or recycle more than 95 percent of the March 2009 land owned by local councils, the NZ rollout of new site builds, designed to waste from our network operations. The Transport Agency and a large number of make use of existing structures such as proﬁ le of our network waste is changing. Updated Target individual private landowners. lamp-posts and commercial rooftops. Previously our focus has been on new site Reuse and/or recycle 95 percent of This rollout is complete across New Zealand’s major cities and well developed builds and maintenance of the existing network equipment waste Target in regional centres. network. We are now starting a phase of Deadline Conduct a survey of the landlords of our replacement of older technology with next Ongoing leased mobile phone base station sites The next stage in our network evolution generation equipment. In the past year by March 2008 we reused or recycled 98.2 percent of our Updated Target is the rollout of 3G at 900MHz, much Progress lower than the existing 3G frequency of network waste by mass. Phase out the use of all Ozone Survey not completed Depleting Substances in our 2100MHz. The lower frequency, the same as our existing 2G network, allows for longer Our network waste data is sourced from a raft airconditioning units Target of network contractors, suppliers and service Deadline transmission range resulting in a signiﬁ cant Audit contractors’ compliance with our increase in the coverage. The rollout out providers. Last year we made a commitment December 2012 - ongoing Responsible Network Deployment Policy to audit our network waste stream, to ensure 3G at lower frequencies will be achieved Deadline through the upgrade of existing 2G sites, we are capturing all sources of network Updated Target March 2010 waste, to test our reporting system and our Beat our energy target of 38.7GWh meaning little growth in our network data accuracy. The audit showed many areas Deadline footprint. Our target is for our 3G coverage for improvement and highlighted gaps in March 2009 Network Waste reporting across our internal network team, which is split into deployment, transmission Updated Target and maintenance units. Reduce our absolute CO2 emissions 2005 2006 2007 2008 by 50% Disposed (kg) 414 284 1,608 959 Some of our older airconditioning units Deadline Reused or Recycled 26,206 79,261 75,465 53,429 contain R-22, an ozone depleting HCFC used 2020 (kg) as a refrigerant. Our target is to replace all Percentage 98.4% 99.6% 97.9% 98.2% R-22 units by 2012. All sales and import of Recycled / Reused R-22 will cease across New Zealand from 2015.

54 55 RESPONSIBLE NETWORK DEPLOYMENT RESPONSIBLE NETWORK DEPLOYMENT

to match our 2G coverage – 97 percent of Mechanical Engineering of the University of the population. Canterbury and Marshall Day Acoustics. What to consider when choosing a mobile phone site Responsible Network Deployment If necessary we may also commission A suitable location for a new mobile Vodafone’s global Responsible Network a specifi c Site Acoustic Assessment phone site must fulfi l the technical Deployment (RND) Policy governs our report when building a site. These reports network requirements for improved local network rollout. Every six months we recommend noise attenuation measures, coverage for our customers, while report against our compliance with the such as screening the equipment by solid balancing the expectations of the policy, alongside quantitative measures of fences, to ensure the equipment complies community and impacts on the local the management of our network rollout. with the required noise levels. We comply environment. There are a number of This includes information on new site with any conditions of ongoing noise criteria to take into account: builds, compliance with local planning and monitoring on any sites where specifi ed in environmental requirements and the cost of the planning consent. Community/environmental leasing sites to build mobile base stations. • Compliance with Resource Visual Impact Management Act The RND Policy identifi es the main impacts As signatories to the Urban Design Protocol • Compliance with local authority of our network as: we’re committed to minimising the visual district plan • Energy consumption impact of our infrastructure. This is refl ected • Alignment with the Urban Design • Waste generation in innovative site design blending in with Protocol • Noise emissions existing structures, and the use of lamp- • Compliance with NZS 2772.1:1999 • Visual impact posts for low-powered 3G sites. We prefer RF exposure levels • Impact on biodiversity to use existing Vodafone sites wherever • Visual impact on the landscape possible. As part of the upgrade process we • Road safety impacts of roadside Network waste and energy effi ciency are attempt to improve the visual appearance of cabinets covered in the environmental section on the existing sites where feasible. • Noise emissions previous pages of this report. • Community sensitivity around www.vodafone.com/responsibility/ certain sites such as schools Within New Zealand the biodiversity networkrollout • Environmental impacts and impacts impact of our operations is low. Our on biodiversity objective is to minimise the impact of our operations on their surroundings. The Network requirements Resource Management Act (RMA) contains • Enhanced network coverage or requirements relating to all impacts in the capacity vicinity of our sites. All new site builds must • Strong and safe construction complete an RMA assessment. Building • Any requirements for line of sight cannot commence until all necessary with other mobile sites consents have been granted. • Easy access and maintenance • Available location for lease We conduct noise testing on mobile phone sites. Much of the testing is provided by the equipment suppliers. We have also commissioned local research to test noise emissions from our sites and cabinets under a range of operating conditions. These tests have been conducted by the Department of

56 57 ASSURANCE STATEMENT VODAFONE PROFILE

ERM New Zealand Ltd Independent Assurance Key Observations and Recommendations Report to Vodafone New Zealand Limited Based on its scope of work, and without affecting the assurance conclusion noted above, ERM provides the ERM NZ Limited (ERM) was engaged by Vodafone following key observations in relation to good practice: New Zealand Limited (Vodafone New Zealand) to • Vodafone NZ has demonstrated pro-active engagement provide independent assurance of its 2008 Corporate with stakeholders through a number of initiatives including Responsibility Report (Report), to the scope of work the launch of an online discussion forum, and face-to-face outlined below. workshops held in main centres to discuss emerging issues such as access to adult content, and advertising. Scope of Work • Initiatives such as establishing recycling partnerships, The Report covers Vodafone New Zealand’s operations for ongoing support to groups raising awareness of text the 12 months to 31 March 2008, unless stated otherwise in bullying, the implementation of prison blocks, and the text. ERM performed this work in accordance with ERM’s assurance methodology, which is based on the international public calls to ban the use of handsets while driving assurance standards: ISAE 3000, AA1000 AS and ISO 19011. demonstrate responsiveness to stakeholders. ERM reviewed Vodafone New Zealand’s use of the AA1000 Principles of Completeness, Materiality and Responsiveness ERM also provides the following key recommendations in reporting performance. To do this, ERM interviewed a for improvement: number of personnel and reviewed relevant documentation at Vodafone New Zealand’s Auckland offi ce, regarding: • The colour-coding system for reporting progress against targets could be better communicated through an 1. Data accuracy, including data trails from original up-front explanation in the Report. site-based data retrieval to the fi nal Report, for a • System checks would improve accuracy of data being representative sample of material parameters. reported in relation to network waste. 2. Robustness of data capture processes, including collation, transcription, internal reporting and controls • Consistency in data gathering and reporting in relation in place, such as internal data verifi cation checks. to employee data, e.g. turnover, could be improved 3. Adequacy and relevance of key statements made through clear communication of contributor guidelines, throughout the Report, including cross-checking of and single-systems established to gather data reported data, for a representative sample of key month-on-month. statements. 4. Effectiveness of mechanisms in place for Report ERM congratulates Vodafone New Zealand on its continued preparation. commitment to sustainability reporting. 5. Responsiveness to stakeholders via interviews with external stakeholders and attendance at a stakeholder engagement workshop.

The scope specifi cally excluded data and statements relating to fi nancial information and any data relating to previous ERM New Zealand Limited (ERM) fi nancial years. 6 January 2009 | Auckland, New Zealand

ERM’s Independence ERM is an independent global provider of environmental, social The ERM team was not involved in the design or compilation and corporate responsibility consulting and assurance services. of the Report (except by way of this independent assurance Over the past 4 years we have worked with over half of the world’s engagement). 500 largest companies, in addition to numerous governments, international organisations and NGOs. Our Conclusion In conducting our Assurance, and in consideration of the Environmental Resources Management limitations within the scope of engagement presented above, Commerce House, ERM concludes that nothing came to our attention to suggest Level 2, 13 Commerce Street that information or data has been materially misstated. PO Box 106234, Vodafone New Zealand’s 2008 Corporate Responsibility Auckland City 1143 Report appropriately addresses the AA1000 Principles of New Zealand Completeness, Materiality and Responsiveness for the 12-month period to 31 March 2008. In conjunction with this Telephone: +64 9 303 4664 Independent Assurance Report, ERM will provide a completed Facsimile: +64 9 303 3254 Assurance Protocol to Vodafone New Zealand. www.erm.com.

58 59 VODAFONE PROFILE

Vodafone New Zealand Limited 20 Viaduct Harbour Avenue, Auckland Private Bag 92161 Auckland 1030 New Zealand Ph +64 9 355 2000