Pressing Forward
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Pressing forward Vodafone Group Plc Sustainability Report For the year ending 31 March 2010 About our reporting About us This is Vodafone’s 10th annual Group report detailing the environmental and Contents social impacts of our business and covers the financial year ended 31 March 2010. About our reporting 1 Previously known as our Corporate Responsibility Report, in 2009/10 we changed the Customers change Climate Operations chain Supply Foundations Report scope Assurance against objectives Progress CEO message 2 title to Sustainability Report. We believe this shift in terminology better reflects the role Vodafone can play in promoting a more sustainable society (see our approach, page 5). About Vodafone 3 Our approach 5 This Report outlines our performance in 2009/10 on each of the environmental and social issues most material to our business. It also includes links to our sustainability Customers 15 website, where we provide more general information about our approach to each issue, Climate change 31 our policies and management processes. See www.vodafone.com/responsibility. Operations 40 Scope Supply chain 54 The scope of this Report includes sustainability data and activities from all local markets Foundations 59 managed by Vodafone for the full 2009/10 financial year, with the exception of Vodafone Report scope 61 Ghana and Vodafone Qatar (for more information see page 61). However, these markets are included in the discussion of issues where they are particularly material and we have Assurance 63 also included separate pullouts on both these markets to outline our progress there Progress against objectives 65 during 2009/10 (see pages 12–13). KPI summary 67 References to Vodafone All references to ‘Vodafone’, ‘Vodafone Group’, ‘the Group’, ‘the Company’, and ‘we’ Key to symbols within this Report refer to Vodafone Group Plc and its local markets. Link Assurance Case study Our progress against objectives and other aspects of our sustainability performance is Strategic objective subject to independent assurance by KPMG. Short term target We aim to provide a balanced account of our performance on the socio-economic, ethical and environmental issues that are most material to Vodafone. We aim to Please send your feedback on this report to align our approach to sustainability management and reporting with the principles [email protected] of the AA1000 Assurance Standard (2008), namely inclusiveness, materiality and responsiveness. A full description of our alignment with AA1000 is provided on our website. Compliance with GRI guidelines We have benchmarked our sustainability reporting (including this Sustainability Report and relevant web pages) against the Global Reporting Initiative (GRI) sustainability reporting guidelines. We assess our application of the GRI reporting framework to be at level B+. An index of conformance with the guidelines and an explanation of how we comply with the GRI principles is available on our website. Our sustainability communications We report on our performance and management of sustainability issues across a range of formats designed to be accessible for various audiences. Sustainability report Sustainability website Local market reports Reports our performance in 2009/10 Outlines our approach to each issue and provides Nine of our local markets Corporate Responsibility Zwischenbilanz 2007/2008 Vodafone Deutschland und Arcor and progress against our objectives. more information on our sustainability management. Make the most of now. produced their own A review of Corporate Responsibility from Vodafone UK Sustainability Reports Visit www.vodafone.com/responsibility. Pressing during 2009/10, focusing forward Vodafone Group Plc Sustainability Report on local and national issues with details of individual local market sustainability programmes. 1 Vodafone Group Plc Sustainability Report for the year ended 31 March 2010 Read more at www.vodafone.com/responsibility CEO Message About us Welcome to Vodafone’s 2010 Sustainability Report Although the economy is not declining any more in most countries, we still face significant challenges to deliver a sustainable society in which business and its Customers stakeholders can prosper in the long term. The lack of a legally binding international agreement on climate change from talks in Copenhagen and the lack of progress on some of the most pressing issues facing the billions of people in emerging markets, underline the urgent need for a cohesive strategy between public and private sector that meets the needs of society as a whole. Climate change Climate I firmly believe that Vodafone and the sector in which we operate have a key role to play in shaping a more sustainable society. Our capital investment across the business – continued throughout the recession – means fast, reliable, high quality Vittorio Colao, networks are becoming ubiquitous, providing a platform to deliver communication Vodafone Chief Executive Officer services to all segments of society. Sustainability challenges are a key stimulus for innovation within the business: within Vodafone we have established dedicated business units to develop and promote Operations services that enable more efficient and effective healthcare; access to basic financial services through mobile payment solutions (already used by over 12 million people in I firmly believe that sub-Saharan Africa); and machine-to-machine applications that can bring substantial Vodafone and the sector carbon and energy cost savings. The ‘SMS for Life’ m-health project in Tanzania (page 22) is a good example of the impact technology can have. in which we operate have a key role to play Many of the benefits our services can bring are very visible in emerging economies. chain Supply But it is in these markets that we also face some of the biggest challenges in our in shaping a more operations due to different working practices and attitudes to risk. sustainable society. Vodafone has maintained a reasonable record on health and safety over the last decade, but the expansion in emerging markets and the application of the most rigorous and demanding tracking methodologies have this year highlighted an unacceptable level of fatal accidents, mainly in Ghana, India and Turkey – markets Foundations with a legacy of poor safety practice and infrastructure, and a high rate of road traffic accidents. In particular, ensuring that our contractors manage health and safety effectively – in their own work and that of their sub-contractors – is a key challenge. I intervened personally on a number of occasions to reinforce our stance on the absolute priority of operating safely and protecting Vodafone employees, contractors and the general public. This Report illustrates how we are working hard to address Report scope the main problems – for example introducing a Fatality Prevention Plan in Ghana, India and Turkey, focused on six key initiatives – and statistics indicate a marked improvement in the second half of the year (page 46). I believe strongly that we must be transparent in reporting on this area to raise awareness of these issues – in our industry and across all sectors – and stimulate a change in attitude to safety also in emerging economies. This is a long-term challenge, but we will not back off. Assurance This report tells the story of how we have tried to address both sides of the sustainability agenda this year – managing negative impacts, while pressing forward to deliver the positive contributions we can make to sustainability. Vittorio Colao Vodafone Chief Executive Officer Progress against objectives Progress 2 Vodafone Group Plc Sustainability Report for the year ended 31 March 2010 Read more at www.vodafone.com/responsibility About Vodafone About us Vodafone corporate relationships Customers change Climate Operations chain Supply Foundations Report scope Assurance against objectives Progress Vodafone local markets Joint ventures Investments in associated undertakings Other investments Vodafone is a world leader in providing a wide Vodafone local markets Where we have operational control or where we own more than 50% range of communications services, including of the equity in the company voice calls, internet access, text, picture and video Europe Africa and Central Europe Asia Pacific and messaging, and other data services. the Middle East Albania Czech Republic Egypt Increasingly, we offer integrated mobile and PC Germany Democratic Republic of Congo3 India communications services, wirelessly through 3G and Greece Ghana3 New Zealand HSPA services, and via fixed-line broadband. Vodafone Ireland Hungary Qatar3 customers can use a range of devices to access our products Italy2 Lesotho3 and services, including handsets, fixed-line telephones, 3 laptops and desktop computers. Our vision is to be the Malta Mozambique communications leader in an increasingly connected world. The Netherlands Romania Portugal South Africa3 Vodafone is one of the world’s largest mobile communications Spain Tanzania3 companies by revenue. Our 341 million proportionate1 UK Turkey mobile customers include private and corporate customers. Investments in associates4 Our business structure is divided into three business regions, Where we have significant influence, but no control or joint control. to reflect our focus on emerging markets. Each region has its Significant influence is effectively the power to be listened to (such own CEO: as a Board seat, veto rights, etc) Europe Verizon Wireless (US) Safaricom (Kenya) SFR (France) Africa and