Sustainable Business Report 2019
Vodafone Group Plc Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 2
In this report Our business
INTRODUCTION OPERATING RESPONSIBLY Vodafone Group is one of the world’s leading telecoms and technology Our year at a glance 3 Supply chain integrity 37 service providers. We have extensive experience in connectivity, Chief Executive introduction 5 Safety 42 convergence and the Internet of Things, as well as championing mobile How we connect for a better future 6 Managing key safety risks 43 financial services and digital transformation in emerging markets. Our sustainable business strategy 7 Human rights 46 Anti-bribery and corruption 48 TRANSFORMATION Our approach to political engagement 51 Women’s empowerment 9 Privacy and cyber security 53 The global context 10 Mobiles, masts and health 56 Empowering women in 650 million €43.7 billion emerging markets 11 OUR PEOPLE mobile customers* turnover Gender equality in our workplace 16 Developing skills and capability 61 Youth skills and jobs 19 Building a diverse and inclusive business 62 The global context 20 Employee wellbeing 64 Our future jobs strategy 21 Managing change and reorganisations 65 Digital workplace experience 23 APPENDIX Energy innovation 25 85 million 92,005 The global context 26 Managing and reporting on IoT connections employees Vodafone, energy and climate change 27 sustainable business 67 Our greenhouse gas emissions 28 Materiality 69 Optimising our energy consumption 30 Environmental management 70 Increasing renewable energy 32 Scope of reporting 71 Scope 3 emissions 33 How we report our key Enabling customers to performance indicators 72 37.1 million reduce emissions 34 Independent Limited Assurance Report to Vodafone Group Plc 80 mobile money customers
5.4 million TB of data transmitted
* Including all of the customers in Vodafone’s joint ventures and associates. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 3
Our year at a glance Youth skills and jobs By empowering women Progress towards and promoting gender our 2022 goals equality, we can help communities, economies Support 10 million young people and businesses – including to access digital skills, learning and employment opportunities our own – to prosper. With a growing digital 9 478,986 skills gap, we believe users have completed our Future Jobs there is a need to help Finder tool to understand their strengths young people develop the and skills and view job opportunities in skills they need to thrive the digital economy in the digital economy. Provide 100,000 opportunities for young 19 people to receive a digital learning experience at Vodafone 54,712 Women’s young people provided with workplace empowerment experience during the year Energy Progress towards Urgent action is needed to innovation our 2025 goals address climate change. We are committed to achieving Progress towards our 2025 goals We aim to connect an additional a significant reduction in the 50 million women living in emerging markets to mobile greenhouse gas emissions To reduce our greenhouse 19.4 million associated with our operations. gas emissions by 50% more female customers in 25 3% our emerging markets since 2016 reduction in our total greenhouse gas emissions in the last year Our ambition is for Vodafone to become the Our ambition is to purchase world’s best employer for women 100% of the electricity we use from renewable sources 31% of our management and 15% leadership roles held by women of purchased electricity was from renewable sources Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 4
Our year at a glance
Supply chain integrity and safety Human rights Privacy and cyber security Our people
We work with our suppliers, partners Respect for human rights, together with Vodafone has strict governance processes Our business performance and our and peers to drive high standards established processes to reduce the risk and controls in place to protect our customers’ experience of Vodafone depend across our supply chain and do our of human rights abuses, is critical to customers’ personal data, respect their on our ability to attract, develop and retain utmost to keep everyone working in our long-term success. privacy and proactively manage the cyber talented individuals at all levels. our operations safe from harm. security risks that face businesses today.
Supply chain 37 Key highlights of the year Safety 42 Key highlights of the year GNI assessment Key highlights of the year €60m invested in employee completed to ensure we have 10 Privacy training and development Key highlights of the year measures in place to protect and advance freedom of expression ‘commandments’ Supplier Academy and the right to privacy established to help drive how we 85% Launched a common industry develop and operate our products of our employees* believe that Supplier Academy to help build Tech Against and services Vodafone is socially responsible capability of suppliers Trafficking 46 53 58 Joined a new multistakeholder Vodafone Cyber Code 450 employees 85 coalition, Tech Against launched to simplify and have joined our Multicultural * Employees who responded on-site assessments conducted Trafficking, which is focused on explain our basic security controls network, which was launched to our Global within Vodafone’s supply chain modern slavery issues to all employees this year in the UK People Survey
Our reporting does not stop here vodafone.com/sustainability
Mobiles, masts and health Reporting our contribution Taxation and our total Digital Rights and The health and safety of our customers and to the UN SDGs economic contribution Freedoms Reporting Centre the wider public is a priority for Vodafone. Vodafone is committed to leveraging As a major investor, taxpayer and employer, Our transparency disclosures on matters related We endeavour to address any concerns the power of its technology, networks we make a significant contribution to the to digital human rights include our policies, regarding the electromagnetic frequency and services to contribute to the United economies of all the countries in which we approach and principles regarding government (EMF) emissions from mobile devices and Nations Sustainable operate. Our tax access to customer data, as well as our base stations by providing up-to-date, open, Development Goals. report sets out our approach to managing issues such as freedom transparent information on our website and Find out how in total contribution to of expression, censorship and the digital rights by engaging with local communities. our report. Our contributionOur contribution public finances on a of the child. We present our approach on these to the toUN the SDGs UN SDGs cash-paid basis. Find issues online in our Digital Rights and Freedoms 56 the report online. Reporting centre. Vodafone Group Plc May 2019
vodafone.com/mmh vodafone.com/sdgs vodafone.com/tax vodafone.com/drf Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 5
Chief Executive introduction
Vodafone’s purpose is to connect for a better Inspired by our purpose and supported by our society. In the first year, we have made good Our strategy continues to help drive impact future and is supported by our commitment to networks and technologies, we are working progress through our Future Jobs Finder against the UN Sustainable Development Goals improve one billion lives through an inclusive to ensure that our services, programmes and platform, with 500,000 young people, across (SDGs), and specifically those that relate to digital society while halving our environmental initiatives are helping to accelerate gender 20 different countries, learning more about quality education, gender equality, decent work impact by 2025. diversity and women’s empowerment, and are their skills and abilities and how they can use and economic growth, industry, innovation and improving young people’s digital skills across our those to find a career in the digital economy. infrastructure, and climate action. We have an important role to play in helping footprint, while we reduce our environmental to create a digital society. Digital services, like – Climate change remains one of the most Vodafone is optimistic about the benefits of impact. I am pleased with our progress and the ones we provide, are quickly becoming critical global challenges facing humanity. a digital society. High speed networks are would particularly highlight some of the the new engines of growth in the global race We have committed to reducing our accelerating the availability of new technologies programmes and initiatives that are driving that for economic prosperity and sustainable greenhouse gas emissions by 50% and to and innovative products and services that success, including: development. As digitisation dramatically purchasing 100% of the electricity we use will help our customers and wider society to increases the rate of change and pace of – In 2016, Vodafone set a target to connect from renewable sources by 2025. These are improve their lives and livelihoods. Using those innovation, it can however, also widen existing an additional 50 million women living in ambitious targets for our business, as business new technologies, we intend to continue to divides in our societies. In this fast-paced emerging markets to mobile by 2025. To growth and our customers’ growing data help to build prosperous economies, strong journey to an exciting digital age, our goal must date, we estimate that we have connected usage is resulting in increased energy demand. communities and a sustainable planet, as we therefore be to democratise digitisation, making an additional 19.4 million women, providing While there is no simple global solution, I am work to create a more inclusive digital society. technology truly accessible to everyone while opportunities for them to enhance the pleased with the progress we have made this being more mindful of its impact on our planet. quality of their lives and reach their full year to ensure that we will meet our targets in potential. Vodacom’s Mum & Baby service a credible and sustainable way. As Vodafone’s CEO, I am pleased to share our in South Africa is one example of the Sustainable Business Report 2019 with you, which Nick Read programmes we are developing in pursuit outlines our progress against our sustainable Group Chief Executive, Vodafone Group Plc of our goal. It is a platform that provides business strategy and targets. It is clear that Our strategy continues to subscribers with maternal, neonatal and child our focus on women’s empowerment, youth help drive impact against health and wellbeing information, with 98% skills and jobs and energy innovation is having a the UN Sustainable of those completing a recent independent positive impact on our customers, our colleagues survey saying they had taken action to Development Goals (SDGs) and the communities in which we work. improve their child’s health as a result of using this service. Vodafone is also committed to operating Vodafone’s purpose is – In March 2018, we committed to our target responsibly and with integrity. This report to connect for a better to support 10 million young people to access outlines the policies, approach and controls future and is supported by digital skills, learning and employment we put in place to manage key risks such as our commitment to improve opportunities by 2022. This goal was digital human rights, ensuring integrity in our developed to address the concern that, supply chain, health and safety, protecting one billion lives through an while younger people are generally more our customers’ data and respecting their right inclusive digital society while savvy digitally, many find themselves lacking to privacy. halving our environmental the necessary digital skills to capture new impact by 2025. employment opportunities in a digital Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 6
How we connect for a better future
Working across our business In our operations Our employees For communities Every day, our products and services play a central role in the daily lives and livelihoods Keeping the people who work Our business performance and Through targeted commercial of more than half a billion people, across for us safe is one of our most our customers’ experience propositions, we are helping 25 countries. We work to embed our fundamental responsibilities. depend on our ability to attract, women in emerging markets develop and retain talented overcome the barriers they face sustainable business strategy across all our We are also committed to individuals at all levels. in reaching their full potential, operations and are committed to building responding openly and benefiting both themselves and positive relations with all our stakeholders. transparently to public concerns 16 Gender equality their local communities. about mobiles, masts and health. in our workplace 58 Our people 13 Increasing access to health 42 Safety advice in South Africa 56 Mobiles, masts and health 23 Providing free coding training in Turkey
Across our network Our networks account for 94% of our total energy use. Through a number For our customers Working with our suppliers of different initiatives, we are working Our customers trust us with We work with more than 10,800 to improve energy efficiency across their personal information and direct suppliers around the our networks and purchase 100% their privacy. Protecting that world. We have collaborated with renewable electricity by 2025. information and respecting peer companies to develop an their privacy is fundamental. academy to support suppliers to 30 Our network – optimising our energy consumption improve their social, ethical and 53 Privacy and cyber security 32 Increasing renewable energy environmental performance. 37 Our suppliers Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 7
Our sustainable business strategy
We believe that Vodafone has a significant role to play in contributing to the societies in which we operate. Our sustainable business strategy articulates our intention to deliver We connect for a better future significant positive impact in three areas, each of which has the potential to improve the lives of our customers and wider society. We have established long-term targets to Our transformation areas drive change in the areas of: – women’s empowerment; – youth skills and jobs; and – energy innovation. In parallel, we remain committed to ensuring that Vodafone operates responsibly and ethically, supported by our corporate transparency programme. Four areas form Women’s Youth skills Energy the focus of our efforts as we ensure detailed empowerment and jobs innovation policies, practices and disclosures help to hold our businesses to account while contributing to the broader debate. Our operating responsibly focus areas are: Operating responsibly – taxation and total economic contribution; – supply chain integrity and safety; – mobiles, masts and health; and – digital rights and freedoms. Tax and total Supply chain Mobiles, masts Digital rights economic and safety and health and freedoms contribution
Principles and practice Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 8
Women’s empowerment Youth skills and jobs Energy innovation Transformation Our sustainable business strategy articulates our intention to deliver significant positive impact in three areas, each of which has the potential to improve the lives of our customers and wider society. We have established long-term targets to drive change that focuses on women’s empowerment, youth skills and jobs, and energy innovation.
Women’s empowement Youth skills and jobs Energy innovation By empowering women and In many of the countries where Our industry faces a growing promoting gender equality, we can we operate, youth unemployment greenhouse gas (GHG) emissions enable communities, economies remains at very high levels. Together challenge and we have an important and businesses – including our with a growing digital skills gap, role to mitigate the consequences own – to prosper. Communications this creates a significant social of the growth in demand for our technology plays a critical role in and economic challenge. Working services. We will continue to reduce helping women to improve their together, governments, educators the GHG emissions associated lives and livelihoods. By improving and companies need to find ways with our operations by purchasing the diversity of our global workforce to address future workplace needs more of the electricity we use from we will better reflect our customer and enhance the skills of people renewable sources. We will also base and wider society. entering the workforce, to enable continue to help our customers them to be better equipped to to reduce their emissions through 9 contribute to a prosperous and the use of our Internet of Things inclusive digital society. products and services. 19 25 Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 9
Women’s empowerment Youth skills and jobs Energy innovation
Women’s empowerment
The equality of women remains a significant global challenge. By empowering women and promoting gender equality, we can enable communities, economies and businesses – including our own – to prosper.
For society Within our business We are changing women’s lives Our strong commitment to diversity through mobile. is a source of business strength.
See page 11 See page 16
Our 2025 goal Our 2025 goal We aim to connect an additional Our ambition is for Vodafone 50 million women living in to become the world’s best emerging markets to mobile. employer for women.
Progress towards our goal Progress towards our goal This year, the 2019 Bloomberg 19.4 million Gender-Equality Index more female customers in our recognised Vodafone as one emerging markets since 2016. of the top companies globally leading the way towards more equal, inclusive workplaces. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 10
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The global context Our alignment to the UN Sustainable Development Goals (SDGs) Women are disadvantaged excluded from education than boys3. Evidence It is estimated that giving women and girls equal rights economically across all cultures, also suggests that women in emerging markets and opportunities could improve public health, increase are more likely to live in poverty than men4. productivity and grow prosperity, adding US$12 trillion to societies and economies. Globally, 7 Estimates state that every day approximately global GDP by 2025 . around 50% of women aged 15 or 830 women die from preventable causes related Communications technology can play a critical role in over are in paid employment, to pregnancy and childbirth5. empowering women to improve their lives and livelihoods. 1 Providing women with access to life-enhancing services compared with around 75% of men . In more developed economies, young women can help unlock socio-economic opportunities and According to the World Economic Forum, it will and men enter the workplace with equivalent champion the inclusion of women in the workplace. skills and in broadly equal numbers, but a Vodafone is committed to SDG Goal 5, which is focused take another 202 years to close the economic on achieving gender equality. ‘gender gap’ if significant changes are not made. much greater proportion of men reach middle and senior-level roles. A significant proportion Our approach also aligns with Goals 4 (quality education) Also, the comparative lack of women in senior, and 8 (decent work and economic growth), as our mobile better-paid roles means that the global average of women leave the workforce or continue technologies also support improved education outcomes for women’s earnings is half that for men2. working in more junior roles than their male and drive financial inclusion. peers. A lack of support during pregnancy and In emerging economies, the gender gap often the challenge of balancing childcare with work Key SDGs and targets affects women at an earlier age than it does in account for many women deciding to leave more developed economies, and barriers exist 4.3 By 2030, ensure equal access paid employment. Some women experience for all women and men to affordable in all areas of life, including access to education, difficulties in returning to work after a career and quality technical, vocational and healthcare and finance. An estimated 132 break. Those who return to work find fewer tertiary education, including university. million girls around the world are currently out opportunities for promotion and progression 5.1 End all forms of discrimination of school, and girls are more likely to remain 6 than their male counterparts . against all women and girls everywhere. 5.5 Ensure women’s full and effective participation and equal opportunities for leadership at all levels of decision-making in political, economic and public life. The global gender gap 5.B Enhance the use of enabling One-third technology, in particular information and communications technology, to fewer women promote the empowerment of women. Around 50% of women 8.5 By 2030, achieve full and productive 132 million girls Women aged 15 or over are in paid employment and decent work for all are currently out of school and employment, compared women and men, including for young are more likely to remain excluded are 10% with around 75% of men. people and persons with disabilities, and from education than boys. equal pay for work of equal value. less likely 8.10 Strengthen the capacity of domestic to own a mobile phone financial institutions to encourage and than men. expand access to banking, insurance and financial services for all. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 11
Women’s empowerment Youth skills and jobs Energy innovation
Empowering women in emerging markets
In low and middle-income countries, women – support education and skills; Mobile technology increases access to quality Our 2025 goal are 10% less likely to own a mobile phone than – improve health and wellbeing; and education, especially for people living in remote men. This equates to a ‘mobile gender gap’ of – enable economic empowerment. areas. Vodafone Foundation has pioneered the We aim to connect an additional approximately 200 million women deprived of development of innovative digital teaching and To contribute towards our goal, we have 50 million women living in the benefits of mobile ownership8. In addition, it remote learning technologies for deployment launched new commercial propositions for emerging markets to mobile is estimated that over 300 million fewer women among some of the most vulnerable and customers focused on helping women in than men access the mobile internet. disadvantaged communities in the world, emerging markets overcome the barriers they including people living in refugee camps in Progress towards our goal Closing the gender gap in mobile ownership face in reaching their full potential. These sub-Saharan Africa. Its Instant Network Schools and usage by 2023 would provide an estimated include Vodacom’s Mum & Baby initiative in We have made progress towards programme connects classrooms to the internet, additional US$140 billion in revenue for the South Africa, Vodafone Idea’s Sakhi safety plan our goal and now have an estimated providing remote and isolated communities mobile industry over five years9. and our Business Women Connect programme 119.8 million active female with solar power, tablet computers and teacher in Tanzania and Mozambique. customers, 6.1 million more Owning even the most basic mobile enables a training resources, together with access to than last year (and an increase woman to communicate, access information, Supporting education and skills educational content. Run in partnership with the of 19.4 million since 2016). learn, manage her finances, set up and run a Enabling girls and women to access a good United Nations High Commission for Refugees, business and even get help if feeling threatened. education can enhance their chances of thriving the Instant Network Schools programme has Mobile technology also enhances many public in life, yet many girls in emerging markets enter given over 83,500 young refugee students Estimated number of female customers and commercial services of value to women adulthood lacking basic literacy and numeracy access to a quality digital education. in emerging markets (millions) and girls in emerging markets, from accessing skills. An estimated 132 million girls worldwide vaccinations and maternal healthcare, to are out of school, including over 34 million girls 11 Baseline Goal mobile banking and online support for of primary school age . smallholder farmers. 2016 100.3 Changing women’s lives through mobile We estimate that 119.8 million of the 2017 109.7 +9.4 334.5 million active customers we serve in 10 Across our networks 2018 113.7 +3.9 emerging markets are women . However, this only represents 36% of our customer base, and 2019 119.8 +6.1 a disproportionate number of women in these 37.1 million markets still do not own a mobile phone. customers using M-Pesa, 16.9 million are women We want to bring the benefits of mobile to 0255075100 125150 women through a series of targeted commercial programmes. In 2016, we set a goal to connect See page 71 for how we report our an additional 50 million women in emerging key performance indicators markets to mobile. To reach this target, we are 6.1 million 1.5 million committed to use our mobile technologies to more female customers subscribers to Mum & Baby enhance the quality of women’s lives through than last year service in South Africa programmes that: Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 12
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Improving health and wellbeing In Tanzania, Vodafone Foundation has Empowering girls through mobile Estimates show that at least half the world’s collaborated with the United States Agency for International Development and other partners Across the world, millions of girls lack the The partnership will increase the reach of mobile population lacks access to essential health services13. Most of those people live in low to middle- to develop its Mobilising Maternal Health information, connections, tools and services platforms such as Springster, a mobile platform programme. This uses mobile technology to they need. Many of the everyday issues that designed for and created by girls. The content on income countries where access to services for screening, prevention and treatment is often limited connect mothers to healthcare with the aim affect them – relationships, contraception Springster helps girls understand and navigate of reducing rates of maternal death and injury, and gender-based violence – are often too the key social issues they face in their local area, or non-existent. Rural poor, especially women, are particularly deprived of such essential services. indirectly reducing the number of neonatal sensitive to talk about openly, if at all. Boys from health and education, to financial security deaths. Since the launch of the programme, are also one and a half times more likely to and personal safety. Through informal learning Through Vodafone and Vodafone Foundation, we over 900,000 women have been connected 12 own a mobile phone than girls . and by connecting girls with a supportive group have developed a range of mobile technologies that to treatment or free transport in emergencies. Vodafone Foundation, which focuses of peers, the Springster platform aims to break enhance primary healthcare and prevention services Known as M-Mama, the emergency transport on using connectivity to drive social change, the cycle of poverty by giving girls the tools, in emerging markets. Many of these programmes works with a network of local drivers to act as launched a partnership this year with Girl knowledge, networks and confidence they are particularly important for women and young ‘taxi ambulances’ in areas where ambulances Effect, a non-governmental organisation need to reach their full potential. children. They include Vodacom’s Mum & Baby are rarely available. When the patient makes a (NGO) with expertise in using media and Vodafone Foundation has contributed US$5 service in South Africa, which provides subscribers free call to a 24/7 dispatch centre, the call mobile technology to empower girls to million to the project, which will be used to with maternal, neonatal and child health and handler assesses the patient’s condition using change their lives. The partnership aims generate a total of US$25 million over five wellbeing information. This year we commissioned the M-Mama app, which indicates whether the to empower 7 million vulnerable girls years. The partnership aims to reach girls across KPMG to conduct a socio-economic assessment of patient needs transferring to a health facility. across eight countries, connecting them India, Tanzania, South Africa, Lesotho, Ghana, this service to understand its impact and identify If so, the nearest taxi ambulance driver identified to information, support and services they the Democratic Republic of Congo, Kenya and areas where it could be enhanced in the future (see on the M-Mama app is sent to take the woman to need, through mobile. Mozambique. the case study on page 13 for more information). the closest health facility. On arrival, the driver is paid for the journey via M-Pesa. M-Mama has helped achieve a 27% reduction in maternal mortality in the northern Lake Zones of Tanzania where it is operational. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 13
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Tackling domestic violence and abuse Increasing access to health advice for mums, dads and carers Vodafone Foundation has more than a decade According to UNICEF South Africa14, each – 98% of the mothers and pregnant women of experience developing mobile services year 4,300 mothers die due to complications surveyed said they had taken action to to support victims of domestic violence and during pregnancy and childbirth, 20,000 improve their child’s health because of abuse. This includes the TecSOS technology, babies are stillborn and another 23,000 access to the information provided by which has supported more than 100,000 die in their first month of life. Research the service; high-risk survivors of domestic violence in five shows that good access to reliable health countries, along with Easy Rescue, which has – 95% of the mothers and pregnant women information plays a crucial role in reducing supported over 300,000 women in Turkey, and surveyed said that the information maternal and infancy illness and mortality. gender-based violence hotlines in South Africa received influenced their decision to In addition, many people in South Africa and Kenya, which have connected over 300,000 breastfeed, and across the focus groups face long queues to receive health advice women to help during crises. a small number of participants indicated for themselves and their families and often that the information received had resulted This year, Vodafone Foundation commissioned have to travel long distances to reach a clinic, in them breastfeeding for longer than research to explore the impact of domestic especially in rural areas. six months; violence and abuse in the workplace (see page 17 To help address this problem, Vodacom for more information on the findings). In response – 97% of mothers and pregnant women developed Mum & Baby. This free-to-use to the issues highlighted by the research, surveyed said the service influenced (no data charges) mobile health (‘mHealth’) Vodafone Foundation announced the international their decision to visit a health centre for intervention gives customers maternal, expansion of Bright Sky, a free app that provides check-ups; and neonatal and child health information. information and advice to those affected by domestic abuse. Created in partnership with the The information is shared through weekly – 96% agreed that the information received UK-based crisis support charity Hestia, the app stage-based SMS messages. Additional helped with their decision to vaccinate enables users to locate their nearest support health-related content, such as articles, their child. If this were representative of all centre. A short questionnaire also helps users videos and tutorials, is available through a Mum & Baby subscribers, it would suggest assess the safety of a relationship and provides mobile-optimised website. Mum & Baby is that the service may have influenced the information about different forms of abuse and available in English, Zulu, Sesotho, Xhosa vaccination decisions for the children of the types of support available. and Afrikaans. The service has helped over approximately 650,000 individuals in 1.5 million parents and caregivers to take South Africa. In conjunction with this, Vodafone has launched positive actions to improve their children’s a global domestic violence and abuse policy The findings of the study will be health since its launch in 2017. (see page 17 for more information). used to help shape future plans This year we commissioned KPMG to for the service and how its social conduct an independent study to assess impact can be enhanced. the socio-economic contribution of Vodacom’s Mum & Baby service. Read the report: The study found: Vodacom’s Mum & Baby service in South Africa Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 14
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Enabling economic empowerment accounts and arrange micro-loans to help fund Helping women to feel safer in India More than 2 billion people in the world, most their businesses. M-Pesa is also widely used to manage business transactions and to pay In India, there are over a billion mobile connections and while almost half of the population is of them women, still have no access to banking 16 salaries, pensions, agricultural subsidies and female, only 59% of them own a mobile phone15. This year, Vodafone Idea (our joint venture in facilities , and women have less access to government grants. India) launched a new mobile service for female customers called Sakhi that includes a special financial services than men in 40% of the world’s set of security and safety features, including: countries17. Finding ways to improve their access With M-Pesa, women can take greater control to financial services will bring significant social over their own and their family’s finances. For Emergency Alerts benefits and economic opportunities. example, in Kenya, research estimated that Location alerts that can be sent to ten pre-registered contacts in an emergency. In 2007, together with our Kenyan associate, with mobile money access through M-Pesa, Emergency Balance Safaricom, we developed the first mobile 185,000 women have been able to switch from Ten free minutes of call time that can be used during emergencies, even with zero credit. money transfer service, M-Pesa. This is a subsistence farming to business or sales as their primary occupation19. In addition, the research Private Number Recharge simple, secure, cheap and convenient solution also found that M-Pesa has helped lift 194,000 Provides a dummy ten-digit number to ensure the privacy of customers when they recharge now offered to customers across eight markets: households, or 2% of Kenyan households, out of at retail outlets, avoiding the need for them to have to reveal their mobile number to an the Democratic Republic of Congo, Egypt, poverty. We estimate that 16.9 million women unknown retailer. Ghana, India, Kenya, Lesotho, Mozambique and Tanzania. The service enables customers were actively using M-Pesa in 2018, accounting Female customers using Vodafone Idea prepaid or postpaid services can sign up to Sakhi for free, to safely and securely send, receive and for 46% of our M-Pesa customer base. and can use the service on any type of phone, even without credit or access to mobile internet. store money via a basic mobile phone and, Goal 10 of the UN SDGs is to ‘reduce inequality To date, millions of women from both rural and urban areas have subscribed to Sakhi, giving more recently in some markets, using a within and among countries’. Within this, them the confidence to travel further from home to pursue education and employment smartphone app. target 10.c is to reduce the cost of sending opportunities, while feeling safer and less at risk of harassment. As of March 2019, 37.1 million customers remittances to less than 3% of transaction costs were using M-Pesa18, with over 11 billion by 2030. This has already been met by M-Pesa in transactions having been made through those markets where it has regulatory approval a network of more than 395,000 agents. to offer outbound remittances. In Kenya this year, in partnership with Western Union, we With a mobile phone and an M-Pesa account, launched M-Pesa Global. This service allows people on low incomes have more control M-Pesa customers to send and receive money over their financial affairs. It also reduces the across 200 countries and territories. M-Pesa associated risks of robbery and corruption in a also continues to expand its partnerships across cash-based society. Thanks to the development the globe for inward remittances, helping of additional services such as M-Shwari, migrants and their families receive their money M-Pawa and KCB M-Pesa, our customers can in a fast, secure and convenient manner. also save money through interest-bearing Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 15
Women’s empowerment Youth skills and jobs Energy innovation
Supporting female entrepreneurs In addition to financial services, Supporting businesswomen in Tanzania and Mozambique Vodafone’s networks and technologies Since 2016, we have built on the success of our M-Pesa money transfer and M-Pawa money support businesses of all sizes, including saving services. We are a partner in Business Women Connect (BWC), a service specifically entrepreneurs. For example, research designed for women who run micro-businesses. Created in partnership with the ExxonMobil commissioned in Ghana by Vodafone found Foundation, World Bank and Centre for Global Development, BWC enables women to save and that 70% of micro-entrepreneurs would face access useful business skills training, delivered by the NGO TechnoServe. difficulties continuing their business without a smartphone20. This constant connectivity Since its launch, nearly 6,000 Tanzanian women have benefited from BWC’s business skills allows entrepreneurs to connect with training and learned how to use M-Pawa. The World Bank has analysed the results, which show customers, search for new business ideas that women who are introduced to M-Pawa and have business skills training are statistically and track competitors’ prices. more likely to move their savings into their phones and improve their business practices. Through Vodafone Business in our local markets, Building on this success, we supported a pilot involving 500 businesswomen in Mozambique we provide products and services for small and in 2017. After the training, women’s savings by phone increased from 56% to 93%, and the medium-sized (SME) and small-office home- number keeping business records increased from 25% to 60%. The pilot also found a high use office (SOHO) businesses. Our aim is to be a of phones among urban businesswomen and a growing interest in mobile payments. digital solutions provider for this market and Over the coming year, TechnoServe and Vodacom plan to explore a new partnership in help guide small businesses through technology Mozambique to support female agents who run kiosks where M-Pesa customers can deposit choices that are moving at an unprecedented and withdraw money. One of the main objectives will be to provide financial literacy, business pace. For example, this year Vodafone Ireland and agent skills so that more women can become successful entrepreneurs. launched Open Conversations, an initiative to help our SME customers gain insights on the future of business. Women First in Entrepreneurship Vodafone also supports female entrepreneurs Through Vodafone Turkey Foundation’s through local Vodafone Foundation Women First in Entrepreneurship programmes. The Vodafone Institute in programme, more than 36,000 Germany developed F-LANE, a seven-week women have received training on acceleration programme for high-potential entrepreneurship, communications and digital impact ventures and the first finance. Once trained, they can use their accelerator in Europe aimed exclusively at new skills to make and sell handmade women. The programme’s mission is to foster items on a bespoke website. Launched in the participation of women in technological 2015, the programme is run in partnership development and to empower women of all with the Ministry of National Education ages around the world through technology. In and the Turkish Informatics Foundation. the most recent round, 180 start-ups from 57 This year, a new mobile application was countries were identified for consideration and launched to enable women to access review. The final five applicants took part in e-learning content and manage their the full programme of support, which included products. The application has been mentorship, training, networking and funding. downloaded over 21,000 times, with over 50% of the users completing the e-learning. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 16
Women’s empowerment Youth skills and jobs Energy innovation
Gender equality in our workplace Across our business
Vodafone employs over 36,500 women directly increase the global proportion of women in We employ over Our 2025 goal and provides employment opportunities for management and leadership. HR directors in hundreds of thousands more across our global our local markets and professional functions 36,500 Our ambition is for Vodafone to supplier base. We believe that achieving greater use quarterly analysis to identify and address women directly. become the world’s best employer gender equality strengthens our company challenges. Twice a year, our Group Executive for women significantly, giving us a better understanding Committee (ExCo) reviews Vodafone’s gender of the needs of the women, men, families balance and discusses key initiatives to increase Progress towards our goal and businesses who rely on our networks the proportion of female employees. The 40% and services. Vodafone Group Board is updated regularly of our total workforce This year, the 2019 Bloomberg on progress. Gender-Equality Index recognised Achieving gender equality in the workplace, are women, which Vodafone as one of the top at all levels, remains a significant challenge for We have active women’s networks in many of the enables us to have most businesses, especially those of a global countries in which we operate. These networks a stronger gender companies globally leading nature. To address this issue, Vodafone has a are founded and managed by employees. They equality base. the way towards more equal, long-term ambition to become the world’s offer women at all levels a supportive and inclusive workplaces. best employer for women by 2025. informative environment in which to network, share and learn. The Index scored Vodafone Our commitment to gender equality Women hold This year, Vodafone Business created a forum between 82% and 100% We have embedded our commitment to to bring together global female senior leaders, across several categories, diversity and gender balance into how we work 31% with 70 invited to a specific event in December including gender at Vodafone. In our induction programme for of our management 2018. During the forum, participants shared best employment statistics, senior leaders, they are required to complete and leadership roles. practices on how to create an inclusive business employer policies, company unconscious bias training to help them environment and discussed challenges facing products and company recognise the assumptions and beliefs that can women in the workplace. community engagement. skew their decision making. A number of our training programmes focus on making sure our We also celebrate women’s achievements with Vodafone was also recently recruitment processes are balanced and help to visible support from our senior leaders. We develop the skills required to manage diverse named in The Times Top 50 hold a week-long celebration to coincide with Our Women in teams. This year, we piloted a global female Employers for Women 2018, International Women’s Day. On March 8, 2019 Technology Network development programme, ConnectedSheCan, recognising our leadership more than 6,300 employees watched a global now has more than on workplace gender providing in-depth coaching and training to webinar led by our Group Chief Executive. Our equality in the UK. 15 senior leaders from across the business. global programme saw over 60 events being held The programme forms part of the succession worldwide, including roundtable discussions, 1,300 plan for employees destined for more senior roles. networking events, training, and role-modelling members Our new Group Chief Executive, Nick Read, and mentoring sessions. and we now have active continues the commitment to act as a corporate women’s networks in champion for the UN Women’s global solidarity many of the countries movement for gender equality, HeforShe. On in which we operate. a quarterly basis, we assess our progress to Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 17
Women’s empowerment Youth skills and jobs Energy innovation
In 2015, we introduced a global minimum Supporting employees suffering maternity policy covering all Vodafone employees. Our programmes in action: ReConnect Bringing our gender equality Over the past four years, more than 7,000 women from domestic violence and abuse “I know many women like me, who strategy to life in Portugal working for Vodafone have gone on maternity During the year, Vodafone Foundation are attempting to support their family leave. All of them were eligible to benefit from at Since 2017, Vodafone Portugal has commissioned research to assess the and further their professional career least 16 weeks’ fully paid maternity leave, plus full implemented a number of different impact of domestic violence and abuse on at the same time. When I heard about pay for a 30-hour week for the first six months of initiatives to support gender equality. people’s work-life and career. The study ReConnect, I thought how refreshing their return. Last year, we also launched a global For example, in the last two years, surveyed 4,715 women and men in the to find a business that sees value paternity policy that set a minimum standard 33 female employees have been workplace across nine countries (the UK, in attracting talent back into the for all men and secondary carers who work recruited through ReConnect in Germany, Ireland, Turkey, South Africa, workplace! ReConnect has helped me for Vodafone to be entitled to two weeks’ paid Portugal. In addition, the business Kenya, India, Italy and Spain). The research rebuild my confidence, achieve my paternity leave. has strengthened its recruiting found that more than one in three workers aspirations and relaunch my career.” procedures to ensure that there had experienced domestic violence and Launched in 2016 across all our markets, our Alison Davies – Senior are at least two credible females abuse, and 67% of those said that the ReConnect initiative aims to bring talented women Customer Experience in every shortlist. These initiatives, abuse affected their career progression. back into the workplace after a career break. Manager, Vodafone UK along with working closely with third Furthermore, 51% felt too ashamed to The programme includes training, coaching and party labour providers, have helped discuss their abuse at work. a specially designed induction to help those increase the number of females hired returning to refresh and enhance the professional Using these insights, Vodafone designed in front line positions (such as within skills they need to return to work and progress their and introduced a new global HR policy call centres and retail stores) by 154% careers. ReConnect joiners are also offered flexible specifically for victims of domestic in the last year. working options and a phased return to work. violence and abuse in all our markets. Vodafone Portugal has also focused Employees now have access to support Our target is to hire 1,000 ReConnect women on training leaders to promote gender and specialist counselling, as well as up across our markets by 2020. To date, 310 women equality through incorporating to 10 days’ additional paid ‘safe leave’. The have been recruited through the programme. unconscious bias workshops as extra safe leave gives them time to manage While there are a significant number of vacancies part of its leadership learning and their situation, which can be used for on offer at Vodafone at all times, it is important to development curricula. seeking professional help and counselling, ensure we match the skills the roles require with attending police or court appointments, those of the candidates who have applied. We do Finally, the business has worked to making arrangements to move house not always find the appropriate skills mix in the create a pipeline for female graduates and supporting their children. In addition, ReConnect candidates who apply. This year we through its internship programme, specialist training is provided for HR will be launching a new, more targeted campaign which has helped lead to over 60% of managers to help them support employees to attract women with the skills we need for the female graduates recruited in the last experiencing domestic violence or abuse. future, with a particular focus on digital talent. two years. As part of the internship programme, the students with the We also have flexible working, part-time and Flexibility and support for working parents most potential are invited to become homeworking policies in place across a large Vodafone Campus Ambassadors, Research by KPMG estimates that the cost to the number of our local markets, and many employees 64% of which are currently female. global economy of replacing women who do not are using our remote working technologies. These This provides the interns with an stay in the workforce after having a baby could include opportunities such as working from home opportunity to become advocates 21 be as much as US$47 billion every year . We one day a week, allowing for earlier or later start or of Vodafone through organising and encourage and support our employees to return to finish times and, in some markets, having on-site participating at university job fairs and work with us after the birth or adoption of a child. childcare services for employees. open days across the country. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 18
Women’s empowerment Youth skills and jobs Energy innovation
Women in technology In four of our local markets (Ireland, Romania, Female employees at Vodafone* Vodafone has placed specific focus on increasing Albania and Tanzania), women already hold more 1 Leave No One Behind, UNHLP, 2016 the proportion of women in technology roles, than 40% of all management roles. In addition, 2 The Global Gender Gap Report, WEF, 2018 women make up 40% of our total workforce, 2017 3 Fact Sheet No. 48, UNESCO Institute for particularly within senior roles. Initiatives such as 29% Statistics, 2018 ensuring that female candidates are included in which gives us a stronger base from which to Women in management 4 The Full Participation Report, Clinton drive our gender equality initiatives. 2018 30% interview shortlists and setting internal targets and leadership23 Foundation and Bill & Melinda Gates have helped increase the proportion of females The percentage of women in Vodafone’s Foundation, 2015 working in technology. During the year, 21% of global senior leadership – including ExCo 2019 31% 5 Maternal mortality factsheet, WHO, 2016 our technology management and leadership members – increased from 26% in 2018 to 6 KPMG research for Vodafone, 2017 roles were held by women22. Though this 7 Delivering the Power of Parity, McKinsey 28% in 2019. Women’s representation in our Global Institute, 2016 represents progress compared to previous years, senior management community remained the 2017 26% 8 GSMA Mobile Gender Gap Report, 2019 we know that there is more we can do to increase same, also at 28%. 9 GSMA Mobile Gender Gap Report, 2019 Women in senior this proportion. 2018 26% This year, the ExCo team female representation leadership24 10 Based on 30-day active customer figures for the nine emerging markets in the 50 Through our Women in Technology network, increased significantly, from 14% to 25%, with four million women goal. 2019 annual data 2019 28% we are working to better support women in roles now occupied by women (General Counsel, only includes data from Vodafone India technology roles. This now has more than 1,300 HR Director, CFO and EU Cluster Director). up to August 2018, prior to the merger of members and holds quarterly webinars and this business with Idea Cellular to create This year, 52% of the places on our Discover Vodafone Idea. local face-to-face meetings. Programmes such 2017 27% 11 Fact Sheet No. 48, UNESCO Institute for as #Codelikeagirl (see page 23), and our work graduate development programme were held Statistics, 2018 Women in senior with schools and universities to promote women by women, along with 46% of the places on our 2018 28% 12 ‘Real girls, real lives, connected’, Girl Effect in technology, underpin our wider strategy to Columbus fast-track graduate scheme. Increasing management and Vodafone Foundation, 2018 have a positive impact on women taking up the proportion of women on these schemes 2019 28% 13 Tracking Universal Health Coverage: 2017 gives us confidence that women are playing an Global Monitoring Report, WHO and World technology careers. Bank increasingly important part in leading Vodafone. Our performance 14 UNICEF, 2019 As of 31 March 2019, 42% of the directors of 15 GSMA Mobile Gender Gap Report, 2019 We have met our target of 30% of management 2017 30% the Vodafone Group Plc Board were women. 16 Powering Potential, BNY Mellon and UN and leadership roles being held by women across Women in middle Foundation, 2018 Twice yearly, senior management reviews the 2018 31% our local markets and professional functions proportion of women serving as directors on our management 17 The Global Gender Gap Report, WEF, 2018 ahead of our deadline of 2020. As of 31 March 18 30-day active customers (financial subsidiary company boards. As part of this review, 2019 31% transaction within last 30 days) 2019, women held 31% of our management opportunities for increasing gender diversity and leadership roles, and we have now set a 19 ‘The long-run poverty and gender impacts are identified and progress is tracked. We also of mobile money’, revised target for women to hold 40% of our encourage greater female participation in non- Suri and Jack, Science, 2016 management and leadership roles by 2030. executive and advisory roles outside Vodafone. 2017 40% 20 ‘Smartphones and micro- entrepreneurship: evidence from Ghana’, Women (all non- Vodafone, 2016 2018 40% management employees) 21 KPMG research for Vodafone, 2017 22 Defined as management and leadership 2019 40% roles in our Technology function and Vodafone Shared Services Technology 23 This includes women in senior leadership, senior management and middle management
* 2017 and 2018 data has been restated to exclude employees from our joint ventures in the 24 Our most senior employees (approx. Netherlands and India, and Vodafone Qatar, which was sold in March 2018. 200 employees in total), including ExCo members Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 19
Women’s empowerment Youth skills and jobs Energy innovation
Youth skills and jobs
High levels of youth unemployment and a growing digital skills gap are significant social and economic challenges. Our What will you be? programme aims to help young people develop their digital skills and access learning and employment opportunities so they can thrive in the digital economy.
For society Within our business We are supporting young people Providing young people with to thrive in the digital economy. a digital learning experience.
See page 21 See page 23
Our 2022 goal Our 2022 goal Support 10 million young people Provide 100,000 opportunities for to access digital skills, learning young people to receive a digital and employment opportunities. learning experience at Vodafone.
Progress towards our goal Progress towards our goal 533,698 54,712 young people supported to date. opportunities provided for young people to receive a digital learning experience this year. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 20
Women’s empowerment Youth skills and jobs Energy innovation
The global context Our alignment to the UN Sustainable Development Goals (SDGs) The International Labour Organization The impact and opportunity Youth unemployment is a significant social and (ILO) estimates that 209 million young of technology economic challenge in many of our markets. We believe urgent action is needed to help young people people either are unemployed or work Mobile communications and digital technology develop their digital skills and access learning and but live in poverty1. In many of the are transforming every aspect of our lives. For employment opportunities that will help them thrive countries where we operate, youth many, this is positive, bringing increased access in the digital economy. to information and services as well as the ability Our commitment to help young people to address these unemployment continues to remain to share and learn. Businesses benefit too, dual challenges supports Goal 8, which aims to promote at very high levels: 53% in South Africa, as they are able to achieve productivity and sustained, inclusive and sustainable economic growth, 40% in Greece, 34% in Spain and 32% efficiency gains. full and productive employment and decent work for all. 2 in Italy . However, some advances in technology may In a future where AI and robotics are Key SDGs and targets Unemployment can have a negative impact on lead to disruption: automation, robotics commonplace, certain skills and abilities will 4.4 By 2030, substantially increase the young people’s wellbeing; even a short period and artificial intelligence (AI) may increase be highly valued. The European Commission has number of youth and adults who have of unemployment can have a long-term effect productivity, but they are also likely to stated that around 90% of all jobs – from nursing relevant skills, including technical on self-esteem and confidence3. By tackling this shift labour needs and potentially reduce to engineering to accountancy – already require and vocational skills, for employment, 4 decent jobs and entrepreneurship. issue and reducing the number of youth out of employment opportunities. These changes in some form of digital skills . technology are having an impact on the skills work or in vulnerable work, societies have much Working together, governments, educators 4.5 By 2030, eliminate gender dispar- required by businesses from their employees ities in education and ensure equal to gain in terms of growth and reducing costs and companies need to find ways to address associated with supporting unemployed young and altering the nature of work itself. access to all levels of education and future workplace needs and develop the skills vocational training for the vulnerable, people, while ensuring better inclusion and more While digital technology is disrupting traditional of current workers and the younger generation, including persons with disabilities, shared prosperity in the long run. work patterns, this same disruption is also enabling them to be better equipped for a indigenous peoples and children in creating new employment opportunities. prosperous and inclusive digital society. vulnerable situations. 8.3 Promote development-oriented policies that support productive activities, decent job creation, Global youth employment entrepreneurship, creativity and innovation, and encourage the In many of the countries where we operate, formalisation and growth of micro-, small- and medium-sized enterprises, youth unemployment remains at high levels. Around 90% of all jobs – from nursing to including through access to financial services. 209 million engineering to accountancy 53% 40% 34% 32% 8.5 By 2030, achieve full and productive young people are either South Africa Greece Spain Italy – already require some form unemployed or work but employment and decent work for all of digital skills. women and men, including for young live in poverty. people and persons with disabilities, and equal pay for work of equal value. 8.6 By 2020, substantially reduce the proportion of youth not in employment, education or training. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 21
Women’s empowerment Youth skills and jobs Energy innovation
Our future jobs strategy
We believe that there is a need for training Our 2022 goal for young people to be ready for a digital society. This view is supported by the European Support 10 million young people Commission in its Skills Agenda for Europe7, to access digital skills, learning and which calls on governments, industry NGOs employment opportunities. and educators to work together towards this objective. Vodafone is committed to doing Progress towards our goal our part to support digital learning and digital skills for youth. Through our Future Jobs Finder and provision of digital learning What will you be? Vodafone’s What will you be? programme has experiences, we have supported Future Jobs Finder 533,698 young people to date. been designed to respond to the digital skills gap challenge. This programme has two objectives: Last year, we launched a free smartphone- This year, we collaborated with Sony Pictures deepening the understanding of youth on how based platform called Future Jobs Finder, to use the release of Spider-Man: Into the 478,986 they can contribute to the digital economy and designed to inspire and help young people Spider-Verse to introduce young people to completions of Future Jobs Finder identifying how we can provide workplace to understand their strengths and skills and the Future Jobs Finder service. A global digital digital experiences. to find the right job opportunity in the campaign drew on the film’s central theme 54,712 digital economy. that anyone can achieve their full potential By 2022, our targets are: with the right skills and support. As part of Available in 12 languages, the platform digital learning experiences provided the campaign, we ran a global competition – to support 10 million young people to access identifies young people’s skills and interests asking young people to share their career digital skills, learning and employment through a series of short tests developed with superpower. Over 28,000 people entered the opportunities; and psychologists, careers experts and training Our role in closing the digital skills gap competition. The two winners were given the providers. By responding to these questions, Despite high levels of youth unemployment, – to provide 100,000 opportunities for young opportunity to visit and learn from the team young people can better understand where demand for digital skills already outstrips the people to receive a digital learning experience who created the film and to discover how their potential lies and find live local job supply of available talent. While many young at Vodafone. digital skills are applied in animation and opportunities in multiple digital industries people are ‘digital natives’, most do not leave We have developed a new platform, Future Jobs film making. education with the depth of technical skills to that are matched to their skills. Finder, which offers young people a simple Since launching in March 2018, 478,986 create and run the technologies our economies If a user is not quite ready to apply, the but comprehensive gateway to new skills and unique users have completed the tool are increasingly reliant on, such as writing code, Future Jobs Finder also offers the ability to opportunities for employment in the digital (including 369,495 from this year), mitigating cyber security risks or designing, match training needs to online digital skill economy. Using the platform, young people introducing each of them to the top five configuring and maintaining electronic devices providers and access specific courses, many are able to identify their strengths and skills jobs that match their individual test results. and wireless or fixed-line networks. The EU and are then matched to available digital jobs of which are free (including edX, Coursera, Digital Skills and Jobs Coalition reports that and training opportunities in their region and Udacity, Cognitive Class, Udemy and the 37% of EU workers have insufficient digital beyond. This platform is free to use for young Khan Academy). 5 skills and there are clear signs that the digital people regardless of their mobile provider. skills gap is widening. By the end of next year, there could be almost 500,000 unfilled digital technology jobs in Europe6. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 22
Women’s empowerment Youth skills and jobs Energy innovation
Supporting education and building skills Italy Vodafone Italy has worked with the Ministry of Education to design a Through our local operating companies and foundations, work experience programme, Alternanza Scuola-Lavoro, to reach 2,000 Vodafone has also launched a number of programmes students in 25 schools across the country. Employee volunteers go to the schools for a day, where they guide and support students aged that help young adults develop their skills, including 15–16 on their possible future careers. The Future Jobs Finder tool is digital ones, and support the development of young introduced to students so they can discover their digital opportunities entrepreneurs. The following provides some examples and participate in workshops to help them find the right career. of the programmes we have around the world.
Egypt Spain The Vodafone Egypt Foundation has launched Knowledge is Power Through its Campus Lab initiative, Vodafone Spain has developed Schools, building on its adult literacy programme, Knowledge an online innovation platform where young people from different is Power. This programme is focused on helping public primary disciplines can work together to solve different challenges. The winners schools support students, teachers and parents through e-learning receive a €20,000 prize alongside mentoring to develop their idea. modules for the classroom. This includes literacy ICT activities to build students’ confidence. The programme also provides teacher training and supports parents with literacy and vocational training South Africa classes. The project is now active in 100 schools. It has reached 50,000 students, 2,500 teachers and 7,000 parents. Vodacom’s flagship mobile education (‘mEducation’) programme, developed in partnership with the South African Department of Basic Education, has provided information and communications technology (ICT) equipment and free internet access to 3,000 Kenya schools and 92 teacher centres across South Africa. In addition, In Kenya, the M-Pesa Foundation Academy is a state-of-the-art, over 251,000 teachers have been trained on the use of ICT in the mixed boarding high school aimed at providing an education classroom. Vodacom has also entered into partnerships with 19 for talented but economically disadvantaged students with universities to provide free access to curriculum content they leadership potential. Since 2003, through its two charitable arms, provide. More than 619,000 learners have had free access to quality the Safaricom and M-Pesa Foundations, Safaricom has impacted digital educational content through the Vodacom e-School. over 1.2 million learners by supporting primary, secondary and Vodafone Foundation’s Instant Schools is a free-to-access online vocational training institutions across the country. platform that hosts educational resources in local languages in the Democratic Republic of Congo, Ghana, Lesotho, Tanzania, Mozambique and South Africa (as e-School). There is no charge for the content or for the data to access the platform. Instant Schools Ghana has been developed in conjunction with Learning Equality – a not- In August 2018, the Vodafone Ghana Foundation launched a national for-profit provider of open-source educational technology solutions coding programme to provide training for young people on coding – and with educational partners, ministries of education and local basics. Since launch, 400 people have participated in the programme, education experts in each country. which has an ambition to reach 10,000 young people by 2023. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 23
Women’s empowerment Youth skills and jobs Energy innovation
Digital workplace experience
This year, 5,710 new recruits aged 26 or under Our 2022 goal joined Vodafone across our global footprint. We Coding Tomorrow also indirectly create employment opportunities In Turkey, the Vodafone Turkey Foundation launched its Coding Tomorrow project in 2016 Provide 100,000 opportunities for for many young people in our supply chain with the aim of tackling the digital divide by providing children aged 7–14 with free training in young people to receive a digital and retail distribution networks. We run well- coding and robotics, along with other essential skills for future employment. learning experience at Vodafone. established apprenticeship, internship and graduate schemes across our business and offer Run in partnership with the Habitat Foundation, the project focuses on helping children gain Progress towards our goal a wide range of work experience opportunities. new digital skills and become active producers of technology rather than just being passive Last year, we committed to providing 100,000 consumers of it. In addition, besides building coding capabilities, participants also develop We are over halfway towards opportunities for young people to receive a skills such as problem solving, teamwork, creativity and algorithmic thinking. meeting our goal, with 54,712 digital learning experience at Vodafone by 20228. opportunities provided for young Scratch, the free programming language developed for children by the Massachusetts people to receive a digital learning Digital work experience Institute of Technology, is used in the training. Children learn how to use Scratch to help them experience at Vodafone this year. In 2019, we provided opportunities for 46,833 think creatively and design their own interactive stories, games and creations. They are also young people through digital work experience provided with introductory training on robotics programs and learn the basics of electronics programmes. This encompassed a number of and circuit systems. Opportunities for young people to receive different programmes, including one-week a digital learning experience at vodafone To expand the reach of the project to more remote rural areas, the Vodafone Turkey placements, job shadowing and insight-into- during 2019 Foundation delivers some of the training using a specially customised truck, which travelled work days, alongside innovative experiences over 6,000 km in 2018. Since the launch of the project in 2016, more than 43,400 children such as our Coding Tomorrow programme in across 60 cities have participated, including 30,992 during the last year. Turkey and #Codelikeagirl, which offers 14 to 18-year-old girls immersive digital training during the school holidays. Since its launch in 2017, Vodafone’s #Codelikeagirl programme has reached over 3,000 girls in 23 markets. The programme, launched in partnership with Code First: Girls, has the mission to tackle the disproportion of girls in STEM (science, technology, engineering and mathematics) education. Through the programme, we offer girls aged 14–18 an immersive one-week digital experience where Direct hires (5,710) Apprenticeships they learn to code a website. The training Digital work (518) the girls receive provides basic knowledge experience (46,833) Graduates (677) of computer languages and development Internships (974) programs, allowing them to gain skills for the future.
See page 72 for how we report our key performance indicators Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 24
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Internships During 2019, 518 young people joined one of our Our internship programmes provide opportunities apprenticeship schemes. We offer opportunities Digital Degree Apprenticeship at the heart of our operations with our Technology for undergraduate students to work with us In the UK, we offer advanced, higher and degree apprenticeships to students aged over and Customer care divisions. for up to six months while they complete their 16 in a range of areas across the business. For example, technology apprentices are given degree. These opportunities expose students Graduates the opportunity to work in cyber security, software testing and network engineering, while to challenging business-critical activities and Our Discover graduate programme, which has our customer service apprentices support our customer-facing activities. projects, enabling them to gain relevant business been running for over 10 years, offers young experience to support their studies. Participants This year, Vodafone UK partnered with the University of Birmingham to design a Digital people with a bachelor’s or master’s degree a can apply to return to Vodafone once they have Degree Apprenticeship, providing opportunities for students to be at the forefront of digital series of assignments across our business areas graduated and can participate in our Discover innovation. Students study a BSc in Computer Science full time at the University and, as a and local markets. Over 5,300 graduates have graduate programme. During the year, 974 young Vodafone employee, also receive a competitive salary across the four years, fully funded been through our structured development people gained an experience of Vodafone’s digital tuition fees and access to all employee benefits. They gain valuable work placement schemes over the last 10 years, with 677 workplace through our internship programmes experience and obtain a role in one of Vodafone’s digital teams once they graduate. recruited this year, helping to provide us around the world. We currently have 16 students on the programme, with a commitment to bring in more with a strong pipeline of future talent. students in the future. This year, Vodafone Group piloted its Explore Our Discover programme is highly diverse; Industrial Placement intern programme with more than 52% of new entrants are female, and a small group of students currently studying recruits are drawn from 23 different countries. in the UK. The placement year is for students in Those who do not progress into a full-time role their third year of studies who need to complete with Vodafone at the end of their training are a placement in business as part of their course. well placed to secure good job opportunities The students join a team in Vodafone for the year elsewhere. with the aim of joining the Discover graduate programme after graduation. Following the With the aim of attracting more talented completion of the pilot, we hope to attract 60 youth, increasing eligibility and achieving even students to the placement programme next year. higher diversity and social mobility across the Discover programme, this year we lowered the In Spain, the Vodafone yu New Talent internships academic entry requirement to a 2:2 degree programme is aimed at students in the final classification (or equivalent) across all operating year of their bachelor’s or master’s degree. markets. Participants combine part-time work at Vodafone with their academic studies. This year, 76 interns In addition to Discover, we run Columbus, a participated in the programme. leadership fast-track graduate scheme that this year welcomed 13 graduates. This programme Apprenticeships offers graduates who have completed the 1 ILO, 2019 We continue to expand our vocational training Discover scheme an additional two-year 2 OECD, 2018 and apprenticeships across our business. These international assignment that aims to equip 3 Long-term effects of youth unemployment on mental health, Journal of Epidemiology and Community Health, 2017 programmes enable young people who have them with the knowledge and insights that 4 EU Commission, 2018 chosen not to go to university to join Vodafone in will prepare them for the next stage of their 5 The Digital Skills and Jobs Coalition, 2018 permanent roles while being supported through Vodafone career. 6 European Commission, 2018 continuous learning in order to gain a formal 7 New Skills Agenda for Europe, European Commission, 2016 qualification in their chosen fields. 8 Starting from the 2019 financial year Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 25
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Energy innovation
There is clear evidence that man-made greenhouse gases (GHGs) are having a direct impact on climate. We support the view that urgent action is needed to address climate change.
Within our business In recognition of our need to contribute to international efforts to tackle climate change, we have two targets which focus on achieving a significant reduction in GHG emissions.
See pages 30 to 32 to read how we are achieving our goals
Our 2025 goal Our 2025 goal To reduce our GHG emissions To purchase 100% of the by 50%. electricity we use from renewable sources.
Progress towards our goal Progress towards our goal 1% 15% reduction in our GHG emissions, of our purchased electricity against a 2017 baseline. was from renewable sources. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 26
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The global context
There is clear evidence that global While good progress has been made in many ICT and climate change temperatures are rising rapidly, with the countries, the pledges made to date are insufficient Providing communications services requires Our alignment to the UN Sustainable last four years being the four hottest on to achieve the goals of the Agreement. Current significant amounts of electricity. Every Development Goals (SDGs) predictions imply temperature rises of 3°C by record1, and that man-made GHGs are additional connected device and gigabyte Our commitments to reduce our GHG emissions, 2100, with warming continuing with potentially of data transmitted or stored represents though our move to purchase renewable electricity 2 3 having a direct impact on climate . We catastrophic consequences . The repercussions a potential increase in energy needs. The and improve our energy efficiency, particularly support support the view that urgent action is of climate change will be felt everywhere but with telecommunications and information and Goal 13, which is focused on climate action, and Goal 7, which includes a focus on clean energy. needed to address climate change. particularly damaging effect in low and middle- communications technology (ICT) industry income countries, which are least able to adapt. faces a growing GHG emissions challenge as The Paris Agreement on climate change commits Key SDGs and targets the sector’s carbon and energy footprint world leaders to act to limit global temperature rise Achieving the required reductions in GHG increases: a recent study estimates that 7.2 By 2030, increase substantially the to below 2°C above pre-industrial levels and calls emissions will be particularly challenging in the share of renewable energy in the global worldwide ICT energy consumption is for efforts to pursue a more challenging target of context of continuous economic and population energy mix. increasing by around 9% per year6. a maximum 1.5°C increase. Climate scientists now growth. Most analysts predict that global energy needs will be 25% higher than at present by 20404. recommend keeping below 1.5°C to avoid some While the emissions from ICT companies are 13.2 Integrate climate change measures of the worst impacts, as highlighted in the recent With over 80% of the world’s current energy growing, the services that communications into national policies, strategies and International Panel on Climate Change Special requirements met from carbon-intensive fuel companies provide can make a significant planning. 5 Report on Global Warming. sources , there is a pressing need to phase out contribution to the reduction of emissions arising the use of fossil fuels and move to lower-carbon from their customers’ operations. Through the energy sources. Internet of Things (IoT), products and processes in the workplace and in the home can become significantly more efficient and reliable. This has a positive impact on energy and GHG emissions, as well as other environmental issues.
Data and mobile growth predictions
20% 3x 100x By 2022, global mobile By 2022, the number of By 2022, global mobile data traffic will account for devices connected to IP data traffic will be over 100 +25 billion 20% of global total IP (fixed networks will be more 7 and mobile data) traffic, up than three times the times the volume in 2012 . IoT connections will from 9% in 20177. global population7. reach over 25 billion by 2025, up from 9 billion in 20188. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 27
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Vodafone, energy and climate change
We are focusing on increasing the energy efficiency of our network Climate-related financial reporting risks continue to be monitored and measured and services and are moving towards as part of our ongoing risk management As highlighted by the Bank of England process to ensure that the appropriate purchasing electricity from Governor, Mark Carney, the ‘tragedy of the management and mitigation actions are renewable sources. horizon’ is that by the time climate change taken as we work towards full alignment with becomes a defining issue for financial the TCFD recommendations. This year, as part of Vodafone’s purpose, we have stability, it will very likely be too late to committed to halve our environmental impact by do anything about it. The Task Force on The recent devastating Cyclone Idai, which 2025. In order to reflect this in our goals, we have Climate-related Financial Disclosures struck Mozambique, is an example of the increased our GHG emissions target to achieve a (TCFD) was established in 2015 to address type of extreme weather events that are 50% reduction by 2025 (previously 40%), against this misalignment and provide a voluntary predicted to occur more frequently and at a 2017 baseline. We will deliver against this reporting framework for companies to a higher intensity due to climate change. target by improving the energy efficiency of our consistently report climate risk to investors. This cyclone had a widespread impact on network and purchasing 100% of the electricity our network, with damage caused to base we use from renewable sources. We welcome the development of the TCFD stations, fibre cabling and retail stores. In recommendations and have updated our risk response, Vodacom Mozambique deployed Across our networks we have more than: management process this year to strengthen 164,000 mobile base station sites; 89,000 support for our staff as soon as was possible our consideration of the potential business and engineers to repair and re-establish servers; and 3,200 buildings (including 400 implications and impacts of climate change. technology centres). critical network connections and equipment. In addition, we undertook an independent Pop-up shops and recharging points were We spend over €700 million a year on energy, and gap analysis of our reporting against the established to allow people without access to with a significant risk of energy cost inflation in TCFD recommendations. power to charge their devices. the future, setting energy efficiency targets and Although climate change is not currently In addition, a number of employee volunteers switching to more sustainable energy sources seen as a principal risk for Vodafone, makes business and environmental sense. were deployed by Vodafone Foundation to due to the nature of our business and establish its Instant Network to the most In August 2018, we established a Green Bond the contingencies that are built into our severely affected areas, in order to provide Framework, under which Vodafone can issue networks, a number of potential risks have emergency network communications, WiFi green bonds to be able to finance or refinance been identified from a physical (e.g. storms and charging capabilities, services that are projects to help us meet our environmental or higher average operating temperatures) critically important for initial international objectives. The framework defines which and regulatory (e.g. carbon reduction and local aid efforts. projects are eligible under the use of proceeds commitments) perspective. These potential and how they are selected. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 28
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Our greenhouse gas emissions
Our GHG emissions reduction target Volume of Vodafone mobile data traffic 1,000% (petabytes) Our 2025 goal is to cut our emissions by 50% across increase in Vodafone To reduce our greenhouse our network and operations by 2025, 6,000 mobile data traffic over the gas emissions by 50%. against a baseline of our emissions for last five years the 2017 financial year. 5,000 Progress towards our goal Meeting this absolute GHG emissions reduction 4,000 target is challenging in the context of our We have reduced our GHG emissions 3,000 by 1%, against the 2017 baseline. business growth. The amount of data carried across our networks has grown exponentially 2,000 over the last decade, and this growth in global Our total GHG emissions decreased digital communications is predicted to continue 1,000 slightly from last year, predominantly for the foreseeable future. With the continued due to a reduction in the carbon emissions 500 demand for mobile data, we are increasingly associated with purchased electricity. focused on energy efficiency to mitigate the 2014 2015 2016 2017 2018 2019 cost and environmental impact of this growth. Our total GHG emissions have decreased by 3% We have started work towards our GHG from last year (2018) predominantly due to the reduction target through increasing focus on a purchasing of more electricity from renewable series of energy efficiency programmes across sources and the use of less carbon-intensive Vodafone GHG emissions (million tonnes our networks and servers, particularly in power power sources. CO2e) (market-based method) supply and cooling. We are also working with The numbers quoted in the chart on the left our local operating companies to plan the 2025 goal Baseline use the market-based method of calculating move to purchase 100% of our electricity from GHG emissions, which uses supplier emissions renewable sources by 2025. 2017 0.30 1.72 2.02 factors. Using the location-based method (using Our total global Scope 1 and Scope 2 GHG average emissions factors for the national grid), 2018 0.29 1.77 2.06 emissions were 2.00 million tonnes CO2e in 2019. our Scope 2 emissions were 1.91 million tonnes Our Scope 1 emissions include those arising CO2e and total Scope 1 and 2 emissions were 2019 0.26 1.74 2.00 from fuel consumption, such as from diesel and 2.17 million tonnes CO2e. Further details of the gas and fugitive emissions of refrigerant gases, methodology used and the relevant emissions and our Scope 2 emissions include our indirect factors applied are on page 74 of the Appendix. 0 0.5 1.0 1.5 2.0 2.5 emissions from power consumption through purchased grid electricity. Scope 1 Scope 2
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GHG emissions (tonnes CO2e) per petabyte of mobile data traffic on Vodafone’s networks Employee engagement on energy innovation In order to meet our GHG emission reduction 2017 926 targets, we need to engage our employees to gain their support. As a result, we have established 2018 577 an employee engagement programme, #RedLovesGreen. This programme raises awareness 2019 371 of the individual actions that employees can take to reduce our energy use, both as a business and as individuals, and encourages changes in behaviour 0 300 600 900 1,200 that collectively could have a significant impact.
Our key measure for GHG emissions intensity The #RedLovesGreen programme regularly improved again this year, with a reduction in engages employees via an internal social media emissions per petabyte of mobile traffic data channel to catalyse their support and raise of 36%9. This was achieved due to continued awareness of the ongoing energy efficiency mobile data traffic growth, while maintaining programmes that will help us to meet our targets. a relatively flat energy consumption through The #RedLovesGreen channel also provides efficiency measures and a shift towards a central space to share success stories, news purchasing renewable electricity. updates, tools and information. Since launching this global programme in June 2018, we have reached Emissions over which we do not have direct over 5,000 employees who engage regularly on this control (Scope 3) but which we may be able to topic, and an energy awareness e-learning module influence are reported separately on page 33. has been completed by over 7,000 employees. As a consequence of the merger of Vodafone Recently, we created an ‘energy guru’ community India and Idea Cellular to become Vodafone Idea to create energy efficiency advocates across the in August 2018, the GHG emissions for India in business to inspire other employees to take action. this financial year are now estimated as part Energy gurus receive a quarterly communications of our Scope 3 emissions. In addition, in July pack to support them in their role. They also directly 2018, Vodafone Greece acquired CYTA Hellas, a help to shape our programmes by sharing ideas provider of fixed and mobile telecommunications across our different markets and submitting ideas services in Greece; the GHG emissions from to help us improve what we are doing. CYTA Hellas will be incorporated into our 2020 reporting after its first full year of ownership. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 30
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Optimising our energy consumption
We are committed to improving the The amount of energy our business uses varies across our operations energy efficiency of our base station Vodafone energy use (GWh) sites and in our technology (data and switching) centres, which together account for 94% of our total global energy consumption. Unlike most ICT companies, which tend to have a small number of large data centres, Vodafone has a larger number of smaller technology and base station sites spread across different countries and locations. This means that much of the energy consumed across our businesses is split between multiple sites Our base station sites Our technology centres Our offices Our retail stores Total that consume relatively small amounts of energy. Consequently, optimising our energy 2017 3,651 1,510 350 51 5,561 consumption is a complex challenge. 2018 3,637 1,569 308 55 5,569 Our energy consumption has remained largely static this year despite the significant growth 2019 3,684 1,571 282 45 5,582 in customer numbers and data traffic across the network. 2019 Improving energy efficiency across (%) 66% 28% 5% 1% our network operations In 2017, Vodafone started a specific programme We use large numbers of servers and other Our energy efficiency initiatives are focused on We have continued to improve the energy to prioritise energy efficiency within the network equipment, which generate significant three key areas: performance of our radio access network business’s technology strategy and to invest amounts of heat during their operation. Cooling – sourcing and implementing more efficient equipment by: in energy projects. We expect this three-year technologies are therefore an essential part network equipment; – installing energy-efficient single radio programme to deliver energy reductions and of our strategy, as too much heat can harm access network equipment, which – reducing energy demand by installing lower- savings of approximately 10% of our energy cost. components and lead to network failure. This enables a single item of radio hardware to energy power and cooling technologies; and During 2019, we invested €57 million capital year we have met our forecast for energy savings run multiple technologies (e.g. 2G, 3G and expenditure in energy efficiency projects across for upgrading power and cooling systems across – cutting energy use by decommissioning and 4G) and now makes up the majority of the our business, which has led to annual energy our networks. We delivered savings of 116 GWh, upgrading legacy equipment. deployed radio hardware in 98% (161,000) savings of 164 GWh. equating to 2% of our total energy consumption. of our base station sites and is fully operational in 97% (159,000) of them; Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 31
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– activating energy-saving software features This year, we made further improvements to that optimise radio resources and energy our centres’ PUE, reaching an average of 1.60 Improving energy efficiency and reducing carbon emissions in the UK consumption to reflect actual voice and data (2018: 1.61). Vodafone UK operates networks and services total savings of over 63 GWh. A facilities traffic requirements in real time. To date, we In five local markets – Germany, Greece, Ireland, relied upon by more than 17.8 million mobile management Energy Performance have deployed energy-saving features across Turkey and the UK – we have also achieved ISO and fixed broadband customers. However, Contract, delivered over 27 GWh of those 2G, 3G and 4G technologies in all of our major 50001 certification. The ISO 50001 standard providing these communications services savings and decommissioning legacy markets; and provides a management framework with the requires a significant amount of energy. network switches saved around 15 GWh; – deploying active antennas – a technology aim of reducing energy consumption, costs and To minimise these impacts Vodafone UK has that boosts energy performance by and GHG emissions. implemented a GHG reduction strategy. Since – switching to renewable energy through integrating radio equipment inside the 2013, this focus has resulted in a 35% GHG exclusive power purchase agreements antenna to eliminate power attenuation over Energy efficiency in network emission reduction, despite network growth with two wind farms. cable runs – as part of the introduction of procurement and increased customer demand over the Massive MIMO technology in all our planned We work with our equipment vendors to ensure In addition, 150 environment ambassadors same period. 5G sites in Europe and also for 4G in more that increased demand and business growth have been established across the business than 150 sites in Turkey and India. do not result in a similar percentage increase in The strategy includes: to promote energy efficiency and champion electricity usage. This year we: positive behaviours. Electric hybrid vans are Energy efficiency initiatives in our technology – implementing ISO 14001 and ISO 50001 being trialled and 20 vehicle charging points (data and switching) centres this year included: – made energy efficiency a mandatory certified management systems; requirement in the procurement process for have been installed. In June 2018, all Vodafone – upgrading to more efficient power conversion all energy-intensive network and IT products; – investing in energy efficiency projects UK employees were given a ‘Keep Cup’, which equipment; for example, at our main - £11.8m was invested in efficient has already saved over 90,000 disposable technology centre in Germany we improved – developed more sustainable network technologies this year, such as new coffee cups. energy efficiency by 8% by upgrading to a technology, including the introduction of power and cooling systems, delivering state-of-the-art power supply system; machine learning algorithms to optimise the usage of radio resources with minimum – continuing the installation of the dynamic energy consumption; and thermal management control systems to reduce energy consumption from cooling. – evaluated emerging technology, including Using machine learning algorithms, the development of an innovation hub (Green system ensures that servers receive the Island) to showcase different technologies optimal amount of cooled air based on that promote sustainability and energy server load and external environmental efficiency in radio access sites. conditions. Italy completed deployment to We incorporate power optimisation in design all its 29 main technology sites this year; and specifications for new infrastructure to ensure – cutting energy use by decommissioning that each successive generation of equipment legacy assets, including data storage is more energy efficient. systems and servers. The overall energy efficiency of technology centres is often assessed in terms of their power usage effectiveness (PUE) – an industry- standard metric that compares the amount of electricity used to operate computer equipment with the amount used for all other functions. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 32
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Increasing renewable energy
Over 95% of the energy we consume to run our 2019 Vodafone energy use by source at Vodafone Egypt is a particular challenge due Our 2025 goal operations comes from grid electricity. To date, (GWh) to the hot climate, which requires additional the proportion of our electricity from renewable equipment cooling and the rapid roll-out of To purchase 100% of the electricity sources has been low, accounting for just 15% Grid electricity mobile networks to regions with poor or no we use from renewable sources. of the electricity purchased. This is currently (4,516) electricity grid. The aim is for the solar arrays to delivered through green electricity sourcing Grid renewable come online before the start of 2025 and power Progress towards our goal in the Czech Republic, Ireland and Italy, where energy (821) a substantial proportion of Vodafone Egypt’s We are working towards our target we purchase renewable electricity contracts, On-site renewable electricity requirements. and two wind farm power purchase agreements energy (5) by increasing the procurement In the UK, we have two operational wind farms, (PPAs) in the UK. Diesel and petrol of energy from renewable power (165) for which we receive the renewable energy generation sources via national This year we conducted an assessment of the Other (74) guarantees of origin certificates; this has electricity grids, selecting tariffs maturity of renewable electricity markets across increased the overall proportion of renewable with renewable attributes and our local operating companies to develop an electricity in the UK operating company to over purchasing renewable energy appropriate phased approach. In some of our 12%, saving over 20,000 tCO2e. local markets there is no renewable supply, or certificates (RECs). In South Africa, Vodacom successfully signed the sources available are not certified through Expanding renewable electricity in our a PPA this year for renewable energy for one recognised schemes. We will therefore first local markets This year, 15% of our purchased electricity municipality and is in the process of exploring look for opportunities to purchase renewable When selecting renewable electricity in our local was from renewable sources. the feasibility of signing further PPAs for other electricity in the countries where renewable markets we apply the following hierarchy: municipalities. Grid renewable energy purchased electricity markets are well developed, followed – the signing of corporate PPAs with developers (% of total electricity use) by those in which the renewables market is and suppliers of renewable energy assets to On-site renewables currently developing and will be feasible in a 2025 goal procure longer-term energy contracts. This We develop on-site renewable sources when it few years and finally those markets that we can help stimulate new renewable electricity is commercially and technically feasible to do expect to be available before 2025. generation, as well as providing excellent so, primarily by installing solar photovoltaic (PV) 2017 13.2 We are also a member of RE100 – a collaborative traceability and avoiding the double- systems at base station sites and technology counting of renewable electricity; and centres. We have over 1,200 solar PV systems 2018 15.3 initiative led by The Climate Group in partnership across our base station sites, technology centres with CDP that brings together major businesses – the purchasing of renewable electricity and offices, contributing 4 GWh of renewable 2019 15.4 committed to switching to 100% renewable power. backed by RECs – market-based instruments power. Our aim is to replace our use of diesel issued to power generators to track renewable by increasing solar generation and deploying electricity production and consumption. 0 20 40 60 80 100 diesel-battery hybrids, although this can be This year we opened a tender for the limited at remote locations prone to vandalism construction and operation of utility-scale solar or at sites with limited space or shading in parks in Egypt. Minimising energy consumption urban areas.
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Scope 3 emissions
Scope 3 emissions are indirect Some other categories included in our Scope Scope 3 emissions sources 3 reporting are less significant in terms of GHG emissions over which we have (thousand tonnes CO2e) no direct control but may be able volume but are reported because we have more control of them than for those deemed to influence. most material. These are: This year our estimated Scope 3 emissions business travel (predominantly air but also were 12.9 million tonnes CO2e. We have worked train, bus and taxi travel) – estimated to with the Carbon Trust to analyse our Scope 3 have generated 0.06 million tonnes CO2e emissions in order to identify where emissions this year of which air travel accounts for are highest and prioritise where we have the the majority; greatest opportunity to influence third-party GHG emissions. This analysis considered all emissions that arise from the operation of of the categories defined in the international base stations owned by third-party tower guidance for Scope 3 emissions published by companies in Ghana and Tanzania where Most material Other the GHG Protocol. we lease space for our radio network Joint ventures and Fuel and energy-related equipment – which we estimate to be 0.05 associates (6,000) activities (700) Of the Scope 3 emission categories, those most million tonnes CO2e ; and Purchased goods and Business travel (60) material to our business are: services (4,000) Upstream leased assets treatment and disposal of waste from our Use of sold products (50) our joint ventures Vodafone Hutchinson in operations, with emissions arising from the (2,100) Australia, Vodafone Idea and Indus Towers in Waste generated in our transportation, recycling and disposal of operations (1) India, Vodafone Ziggo in the Netherlands and network and office waste estimated to be our associate company Safaricom in Kenya 0.001 million tonnes CO2e. – with emissions estimated to be 6 million Their answers form part of the overall performance score that we use to assess their tonnes CO2e; We do not report on the other non-material Scope 3 categories. performance. We also ask selected suppliers our suppliers’ emissions in producing the to provide details of their GHG emissions goods and services that we procure from Our supplier performance management and management programmes through CDP them, particularly in our networks, IT programme covers environmental factors, (formerly the Carbon Disclosure Project). This equipment, handsets and other devices and suppliers’ GHG performance is one of the year, 139 (or 90%) of those suppliers responded, estimated to be 4 million tonnes CO2e; and factors evaluated in our annual assessment with 81% reporting that they had set a target for process. We ask suppliers whether they have customer use of our products and services, GHG emissions, while 76% had implemented publicly reported their GHG emissions, have set GHG emissions reduction programmes. This which includes emissions arising from the targets to reduce emissions and have identified electricity used by network connection year we also noted an increase in the number the risks and opportunities associated with of suppliers setting renewable energy targets. devices (such as routers) and when charging managing their GHG emissions. mobile device batteries – with our emissions for the devices we sold this year estimated to be 2 million tonnes CO2e.
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Enabling customers to reduce emissions
We estimate that over 31% of the more than IoT applications that help our customers reduce Through our IoT mobile services, 85 million IoT connections we operate directly emissions include: Increasing energy efficiency with we are helping our customers to enable customers to reduce their emissions, and Narrowband-IoT smart metering we expect these connections to increase over time. manage energy more efficiently With the evolution of new IoT and reduce their emissions. Over We calculate that in 2019, the total GHG technologies there is a need to develop time, IoT technologies have the emissions avoided as a consequence of our low-power methods of connecting IoT technologies and services were 5.9 million devices out in the field for applications potential to transform industry, tonnes CO2e, which is nearly three times the Smart energy meters that enable such as smart meters, connected public services and many aspects emissions generated from our own operations. businesses, municipal authorities and agriculture, smart cities or asset tracking. of people’s daily lives. The greatest CO2e savings enabled were in smart households to monitor, manage and reduce Narrowband-IoT (NB-IoT) is a new low- metering and improvements in logistics and their energy use. Worldwide we have over 9 power method of long-range wireless data Our progress fleet management. million smart meter connections using our IoT transmission between devices that can be This year we enabled our customers technology, saving an estimated 1.4 million deployed in rural areas where there is no tonnes CO2e. reliable access to power or where devices to avoid 2.9 tonnes of CO2e for every are underground or within buildings. NB- one tonne generated from our IoT technology delivers many benefits, operations. including great power efficiency, so that devices can run on batteries for 10 years or more without a charge. Ratio of GHG emission savings for customers to our own GHG footprint Smart cities – networked intelligently to Techem, a market leader in remote radio improve the efficiency of energy-intensive metering of energy consumption in services such as public transport, public road homes and commercial buildings, is using networks and street lighting. For example NB-IoT from Vodafone to track energy 2017 2.4 in the city of Guadalajara, Spain, 13,500 consumption reliably and cost-effectively LED lights were connected to a central and help customers improve their 2.6 2018 management system, reducing street energy efficiency. lighting energy consumption by 68%. 2019 2.9 “Having a better understanding of energy flows and consumption opens up new opportunities for improving 0.0 0.5 1.0 1.5 2.0 2.5 3.0 energy efficiency in the field of smart buildings and smart homes.” Dr Daniel Ghebru, Smart logistics – IoT technologies Innovation Management, Techem embedded in vehicles to optimise route management, vehicle maintenance and driver behaviour, delivering cuts in fuel consumption of up to 30%; saving an estimated 4.0 million tonnes CO2e. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 35
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Monitoring air quality in Albania Road traffic volumes have increased transmit air quality in the capital city to significantly in Albania since the early 1990s, the public. Using our IoT technology, smart which has caused environmental challenges air quality monitoring devices have been from traffic congestion and air pollution in installed in the city and integrated into the capital city Tirana: the annual average a system to monitor real-time air quality concentrations of PM10 and PM2.5 for Tirana through the ‘Tirana Ime’ application. By are above the limit values of the EU Air Quality monitoring air pollution in this way the Standard and the World Health Organization10. municipality is better able to understand traffic-related air pollution factors and Working in collaboration with the identify appropriate measures for tackling Municipality of Tirana, Vodafone Albania such pollution. has implemented a system to monitor and
Improving fleet efficiency using IoT For all fleet operators, the cost of fuel is critical to the bottom line and any improvement in fuel efficiency, however small, can help reduce costs and consequently overall emissions. We have been providing Dako, a company specialising in telematics, with the IoT connectivity it needs to support its networked logistics solutions for commercial fleets. One Dako customer, Schmalkalden Stadtreinigung GmbH (SSR), a waste management services company in Germany, has installed telematics devices into its collection vehicles. Using Vodafone IoT GPS tracking of the vehicles, connected to the Vodafone Managed IoT Connectivity Platform, the system is 1 WMO Provisional Statement on the State of the Global Climate, 2018 6 Lean ICT Report, The Shift Project, 2019 able to monitor, analyse and archive driving times, routes, driver activity and rest 2 Fifth Assessment Report, IPCC, 2014 7 Cisco Visual Networking Index, 2019 periods. This data is being used by SSR to optimise the vehicle rounds. 3 Special Report: Global Warming of 1.5°C, IPCC, 2018 8 The Mobile Economy, GSMA, 2019 4 World Energy Outlook 2018, IEA 9 Please note this intensity metric takes into account our total CO2e The next stage of the project will see the launch of a pilot to also monitor emissions but only our mobile data traffic (not our fixed-line data traffic). 5 Global Energy and CO2 Status Report, IEA, 2018 selected bins and recycling containers and alert SSR when they require emptying. 10 WHO air quality database, 2018 Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 36
Supply chain chain integrity integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health Operating responsibly We are committed to ensuring that our business operates ethically, lawfully and with integrity wherever we operate as this is critical to our long-term success. This chapter contains sections relating to some of the key risks we face and details the controls we put in place to ensure our operating practices meet our and our stakeholders’ expectations:
Supply chain integrity Anti-bribery and corruption We work to ensure integrity in our supply and political engagement chains by managing many different legal, Vodafone does not tolerate bribery or corruption social, ethical and environmental risks. We also in any form. We would rather walk away from encourage those who work with us, directly or a business opportunity than engage in actual indirectly, to adopt sustainable business practices. or even perceived corruption. Interaction with 37 governments, political parties and political commentators, civil servants, regulators and Safety independent statutory bodies is an essential Keeping the people who work for us safe is one aspect of managing our businesses around of our most fundamental responsibilities. We the world. promote our approach across our industry with 48 leading safety standards by insisting on high safety practices from our employees, contractors Privacy and cyber security and suppliers and by engaging with customers Vodafone has strict governance controls worldwide and peers. to ensure the protection of our customers’ personal 42 data and communications, respecting their privacy and proactively managing security risks. Human rights 53 Respect for human rights, including those that extend into the digital realm, is critical Mobiles, masts and health to the long-term success of our business. We are committed to responding openly and 46 transparently to public concerns about mobiles, masts and health and comply with all applicable laws in every jurisdiction in which we operate. 56 Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 37
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Supply chain integrity
We spend approximately €22 billion Supply chain risks Levels of influence Our Code of Ethical Purchasing requires all our a year with more than 10,800 direct Some of the most material risks in the The Vodafone Procurement Company (VPC) Tier 1 suppliers to ensure that their suppliers suppliers around the world to meet information and communications technology leads purchasing and supplier management. also have equivalent policies, processes and verification systems in place to manage risks and our businesses’ and customers’ needs. (ICT) supply chains include injury to people The VPC manages most of our spending with working in field operations, the harmful effects suppliers worldwide and supports the needs of ensure compliance in their own supply chains. Our businesses rely on complex and multilayer of working long hours in electronics factories, our operating companies and group functions. We collaborate with some of our Tier 1 suppliers global supply chains. For example, our direct corruption and human rights abuses in the This approach is designed to ensure objective to monitor their supplier bases directly and help suppliers often have many suppliers of their own, mining of cobalt or other metals and minerals. and consistent supplier management across them to improve standards. We also work with who in turn rely on a large number of suppliers, Vodafone’s businesses and makes it easier to our peers and suppliers to share best practice Safety is a critical priority throughout our supply and this dependency continues through several monitor and improve supplier performance. and to strengthen compliance at the top tier of tiers. Intermediaries such as distributors and chain and in particular during the installation, our supply chain. wholesalers are also involved at various points management and maintenance of our mobile We also have relationships with local suppliers We also have influence over the infrastructure in our chains. and fixed-line networks. There are grave risks that work on behalf of our local country for our employees and suppliers when carrying businesses, particularly those involved suppliers who supply, install and maintain our We work to ensure integrity in our supply chains out this work, including those related to in service-related procurement, such as networks, as well as over suppliers that provide by managing many different legal, social, ethical driving, working at height or dealing with merchandising or field operations. Our support branded products and services. We have less 1 and environmental risks. We also encourage those high-voltage equipment. for these local businesses has a positive impact influence over Tier 2 and other sub-suppliers who work with us, directly or indirectly, to adopt operating further down our supply chains, where We have developed robust systems to seek to on communities through providing employment sustainable business practices. in our local operating countries. the risks of non-compliance are higher. We work ensure that our suppliers meet our mandatory with our direct suppliers to monitor and manage Safety in our supply chain is also critically ethical, labour and environmental standards. Monitoring our suppliers’ compliance with the risks at this level. important. Vodafone has comprehensive We expect all our suppliers to follow our Code our rules can be challenging because of the measures in place in our own businesses of Ethical Purchasing and uphold the Business complexity of our supply chain, which includes Further information on the process designed to make sure everyone who works Principles in our Code of Conduct. We expect many businesses in different locations and at to qualify as a Vodafone supplier and for us goes home safely. We reinforce this our suppliers to be accountable for managing different tiers or levels. Therefore, the level of our policies can be found online at across our supply chains. risk in their operations and to understand that influence we can exert over businesses in our vodafone.com/supplychain. we expect them to hold their own suppliers supply chain varies significantly. The greatest Further information on the structure of accountable to the same high standards. our supply chain can be found online at level of influence usually exists with our Tier 1 www.vodafone.com/supplychain. When choosing a new supplier, or choosing suppliers where we have direct contractual to continue to work with one, we assess the agreements. Many of these are substantial supplier’s compliance with our rules on health, brands and businesses with proven processes in safety and responsible behaviour, just as we place to ensure high standards and sustainable assess commercial factors such as quality, cost business practices. Where a supplier is dominant and the supplier’s ability to deliver on time. in the marketplace with a particular product or service, or where Vodafone is not a significant purchaser, we have less influence. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 38
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Minerals in the supply chain chains. Vodafone also investigates the potential to provide evidence to validate their responses. Vodafone does not directly own or operate human rights risks relating to both cobalt and Suppliers can use the questionnaire to highlight factories or production plants, with the 3TG metals mining in our supply chain. We ways in which they have shared best practice in exception of a technology operation in Italy have focused on identifying products likely to their own business or their supply chains. This that is part of our Vodafone Automotive Internet contain these minerals and the locations of year we evaluated 43 key suppliers through this of Things (IoT) business. We do not directly suppliers who manufacture or are employed as approach. Our supply chain team then validates purchase raw minerals, ores or metals. The contractors to manufacture those products. and uses the information provided to assign each supplier an overall sustainability score and majority of the smartphones and tablets that We provide further details of our approach to this grade. These scores are also used to grant two we resell to customers are produced by major issue in our statutory Conflict Minerals Report Vodafone Supplier Awards, one for health and companies with internationally recognised and Artisanal Cobalt Statement. brands that report on sustainability efforts in safety and the other for sustainability. their own right. We also offer our customers a Monitoring compliance range of smartphones and tablets that carry the We expect our suppliers to continuously monitor Vodafone logo. These devices are designed and their compliance with the standards set out manufactured on our behalf by suppliers known in our Code of Ethical Purchasing. Any failures as original design manufacturers. must be immediately addressed. We also require them to report serious breaches to Vodafone Electronic products contain numerous immediately so we may ensure that they take components that may contain one or more of corrective action. the 3TG metals (tin, tantalum, tungsten and gold). For example, tin is used often as a The Vodafone approach to monitoring soldering material for electronic components. compliance with the Code of Ethical Purchasing Gold and tantalum are typically used in is determined by the nature of the risks and the components such as connectors or capacitors. kind of activity involved. High-risk suppliers, In addition, some electronic products contain including those operating in industries, sectors cobalt within their lithium-ion batteries. or countries with a history of poor standards, Smelters and refiners mine and process cobalt. are required to undergo a detailed evaluation It is then supplied to component manufacturers, process. Suppliers who work in lower-risk areas assemblers and sellers. may be required to complete self-assessment questionnaires. These minerals come from many different smelters and refiners in a complex and often Supplier questionnaires opaque supply chain. Both the smelters and Through our Supplier Performance Management refiners, and the mines from which minerals are Programme Vodafone monitors our key sourced, are many steps away from Vodafone in suppliers’ health and safety and sustainable the supply chain. If we can influence the design business performance standards, as well as their or manufacture of products, we try to ensure that commercial, product and service performance. they do not contain metals or minerals that fund We define key suppliers in terms of the nature conflict in the Democratic Republic of Congo. of their contribution to our business and the We are members of, and involved in, industry significance of our expenditure with them. initiatives such as the Responsible Minerals We require suppliers to complete an ethical, Initiative to improve transparency in supply labour and environmental risk questionnaire and Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 39
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
On-site audits We use an independent third-party company Improving performance and Detecting and tackling modern slavery We regularly undertake intensive on-site supplier to gather confidential and unbiased feedback building capability During 2017, we asked more than 8,000 audits, which include an examination of written directly from our suppliers’ employees. Engaging directly with suppliers through follow- supplier businesses to cascade our modern policies and procedures, site inspections and Anonymous and simple mobile phone-based up discussions and briefings using our monitoring slavery e-learning training through their discussions with managers and employees. worker surveys enable employees to reply to processes is one of the most effective ways of supply chains. The training, which is available This provides us with a detailed insight into pre-recorded questions in their local language improving performance in our supply chain. If there in English, Hindi and Mandarin Chinese, how suppliers’ policies translate into action. at any time and from any location. We require is evidence of non-compliance through JAC audits, is designed to increase workers’ and line participating suppliers to allow their employees our own on-site assessments or worker surveys, we Vodafone is one of 17 telecoms operators managers’ awareness and understanding to respond to questions freely and privately. The work with suppliers to develop corrective actions, who belong to the Joint Audit Cooperation of modern slavery risk. It also promotes responses provide us with important insights to improve their policies and/or strengthen the (JAC) initiative, where we share our on-site Vodafone’s Speak Up process as a way for into our suppliers’ employees’ working hours and processes they use to manage key risks. assessments, given that our industry peers workers to raise issues directly with Vodafone. conditions so we can work with suppliers to put in share the same suppliers and supply chain place appropriate remedial measures if required. This year, most of the recommendations made As a direct result of this training, during the risks. Through the JAC process, each supplier following Vodafone or JAC audits related to year, we had one report of a modern slavery- undergoes a single audit. The results of these During 2019, our approach to using worker health and safety, excessive working hours and related issue through Speak Up, from a audits are shared between JAC members and surveys was adopted by JAC member companies. business ethics. Regarding health and safety, worker at a supplier site in one of our African one member leads any required follow-up This year JAC members collectively surveyed there was an increase in recommendations markets. The individual raised a concern that with the supplier. common factories employing 16,800 workers related to fire evacuation signage, evacuation they did not have an employment contract across 12 factories in China and India. Where lighting and fire exits. There was also an increase Between January and December 2018, there and had yet to be paid. Vodafone also conducted on-site audits and in environmental recommendations, mainly were 79 JAC audits, of which 87% were within verification of supplier factories in China and regarding unsatisfactory management systems Working with an independent auditor, Vodafone’s supply chain. Of the audits in India with the same workforce population, or emissions monitoring. We work directly and Vodafone observers visited the site to review Vodafone’s supply chain, 24 were Tier 1 direct 10% responded to our anonymous survey. through the JAC governance process to ensure all the supplier’s contracting and payment suppliers, 39 were Tier 2 suppliers, five were recommendations are implemented. procedures. This included document checks, Tier 32 suppliers and one was a Tier 43 supplier. confidential employee interviews and taking In parallel, we conduct our own on-site Number of assessments conducted Recommendations for improvement a sample of the supplier’s workers’ contracts, Nu ber o ssess ents con ucte assessments for specific Tier 1 and Tier 2 suppliers from combined JAC audits* and Vodafone in job roles likely to be at risk of modern that we have identified as high risk but that are not audits in 2019 (Number of cases) slavery practices. 201 1 2 covered by the JAC initiative assessments. This After a thorough investigation, using an year, we conducted six on-site assessments: four 201 9 2 independent audit firm specialising in Tier 1 suppliers and two Tier 2 suppliers. detecting modern slavery to carry out Direct employee feedback 201 1 1 an on-site audit, no wrongdoing was While the assessment of the working hours and found. However, we identified some areas 9 for improvement to avoid any similar working conditions of our suppliers is important, concerns occurring in the future. The it can be difficult because supervisors and 0 20 0 0 0 100 supplier has since implemented the managers may attempt to falsify timesheets and other workplace records. This year, we u ber of site assess ents conducted b recommendations that resulted from the u ber of supplier site assess ents conducted audit with respect to communicating pay continued to obtain direct feedback from our b Vodafone suppliers’ employees in order to identify ealt and safet iscri ination in advance of remuneration and ensuring or in ours oun or ers modern slavery risks and areas for improvement. that employment contracts are both Business et ics reedo of association kept on file and shared with employees. n iron ent orced labour
The confidentiality of the individual was * JAC assessments are reported on a calendar-year basis. Pa ent isciplinar practices maintained through the process. ** 12 sites were assessed both on-site and via mobile surveys. * JAC audits are reported on a calendar-year basis. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 40
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The key factors underlying recommendations (ranked by frequency) Supporting LGBT+ communities in our supply chain Health and safety Discrimination – Emergency preparedness (e.g. missing – Inadequate policies to ensure equality. This year we began to measure the progress are technology companies, we shared building safety plans or missing equipment). our suppliers are making towards support for approaches on our collective successes and Young workers – Lack of safety management policies diverse groups such as LGBT+. Approximately challenges in LGBT+. We also explored how – Instances of young workers aged 16–18 and processes. half our suppliers declared that they have we could collaborate to advance greater found to be doing dangerous or night work. – Inadequate safeguards to prevent exposure LGBT+ supportive practices, such as support levels of belonging and inclusion across the – Inadequate records kept on verifying to hazardous substances. networks, or LGBT+ inclusive policies and three key areas of youth, community and worker age. practices in place. cultural change. Working hours Freedom of association – Poor resource planning and forecasting, In March 2019, Vodafone hosted ‘Partners Participants at the event included Vodafone’s – Workers denied the opportunity which leads to excessive working hours with Pride’ at our Group Headquarters in LGBT+ Global Executive Sponsor (who is also to join representative bodies. by supplier employees. Paddington. This event brought together the Group Supply Chain Director and CEO of – Worker representatives not elected freely. leaders from more than 25 of our global the VPC), the Group Chief Technology Officer Business ethics Forced labour suppliers to explore how to make a positive and a former UN Head of Human Rights and – Lack of effective ethics policies. – Excessive use of agency or temporary labour. difference in the treatment of LGBT+ Anti-discrimination. – Lack of ethics requirements towards – Employees not receiving copies of their people worldwide. Through our ecosystem their suppliers. employment contract. of suppliers and partners, many of which – Lack of whistle-blowing mechanism. Disciplinary practices Environment – Wage deductions used as a disciplinary – Lack of environmental performance targets. measure. – Missing environmental permits to conduct certain activities. 30 out of the 60 critical performance issues – Poor control on disposal of hazardous identified from JAC on-site audits were resolved substances. and signed off. The remaining 30 issues, which relate to working hours and emergency Payment preparedness, require additional time and – Improper or unclear overtime payments. investment to monitor the effectiveness – Failure to comply with minimum wage of actions before they can be signed off as requirements. completed. Vodafone will terminate a contract – Failure to keep accurate records on if any supplier persistently fails to resolve social insurance payments. compliance failures or if issues of gross misconduct occur. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 41
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Our payment practices In order to ensure that our policies and practices Providing our suppliers with direct support and building capability Our payment terms take into consideration the are appropriate for smaller suppliers, we work to improve our understanding of our supplier As part of the JAC initiative, Vodafone audit and verification company, five size of the supplier in question, the contract, base and to introduce a range of initiatives worked with three other operators this participating suppliers were on-boarded the nature of service or type of goods provided designed to benefit those smaller suppliers. year to launch a Supplier Academy to build into the Academy. They were then given an and the supplier’s relationship with the wider This year in the UK, we committed to pay all our supplier capability. The Academy focuses opportunity to gain practical experience of Vodafone Group, along with any other relevant small suppliers (as defined by the Companies on developing training to help suppliers performing an audit under the supervision commercial factors. As a global organisation, Act) within 30 days of receipt of their invoice. assess and improve the social, ethical and of an independent third-party auditor. Once many of our suppliers are large multinational We asked our suppliers to confirm whether they environmental performance issues that may completed, suppliers were then able to companies, which may provide network fall into the category of smaller suppliers. We arise within their own supply chains. complete 25 audits of their own, or of their equipment or devices for customers. Vodafone have also amended our systems to enable this suppliers’, facilities and shared the results also has many suppliers that are small and Following a week of classroom training information to be captured on an ongoing basis. with Vodafone. medium-sized enterprises. delivered by an internationally recognised As a general principle, our supplier payment Read Vodafone’s latest terms are a maximum of 60 days from the date UK payment practices report. of receipt of invoice. To help suppliers improve their cash flow, we offer our suppliers supply In South Africa, last year Vodacom increased chain financing facilities and free e-invoicing the value paid under preferential payment tools. As of 31 March, over 3,500 suppliers had terms to qualifying small, medium and micro- taken up early invoice payments on a completely sized enterprises by 55%. In addition, the voluntary basis, where payment can be taken in business offers preferential payment terms advance under agreed terms at much lower rates to businesses which are over 51% Black-owned, than they are likely to receive under traditional assisting them with their cash flows and to factoring or borrowing arrangements. reduce financial constraints. We recognise that small, innovative technology start-ups are particularly sensitive to cash flow, and to support them we introduced an ‘Innovation Fast Lane’ scheme, which has simplified contracting and enables lower payment terms, capped at a maximum of 21 days from date of receipt of invoice. We also ensure that our invoices are paid on time (2019: 99%) and we cap maximum payment terms. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 42
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Safety
We take safety extremely seriously in Work Safe Home Safe Further information on how we ensure our operations. Keeping the people We continue to develop our health and safety compliance with our policy, including Our Absolute Rules on safety who work for us safe is one of our messaging around Work Safe Home Safe, which how it is governed, can be found online The Vodafone Absolute Rules on safety focus most fundamental responsibilities. promotes the importance of adhering to the at www.vodafone.com/safety. on risks that present the greatest potential We promote our approach across our Vodafone Absolute Rules as good practice in our for harm for anyone working for or on behalf employees’ personal lives and workplace. The of Vodafone. The Absolute Rules are clear and industry with leading safety standards intention is to encourage commitment to safe underpinned by a zero-tolerance approach to by insisting on high safety practices practice rather than merely compliance with the unsafe behaviours in all of our businesses. from our employees, contractors Vodafone safety requirements. Vodafone employees and contractors, and suppliers and by engaging with Over the next year, we will introduce our and our suppliers’ employees and customers and peers. Vodafone Safety Values, which encourage contractors, must: employees to consider the benefits of safe Our commitment to safety does not practice, not only for themselves but also for – always wear seatbelts when travelling differentiate between our own employees, the safety of others. For example, the Values in or operating vehicles; our contractors and our suppliers’ employees include a commitment to intervene wherever and contractors. – always use suitable personal protective someone’s safety may be at risk. They also equipment, a safety harness and fall We want everyone working with Vodafone encourage the reporting of incidents and protection when working at height; to return home safely every day. Any injury hazards to prevent a reoccurrence. or any loss of life related to our operations is – never carry out electrical work on Our global Code of Conduct training, completed unacceptable. It is therefore with great regret electrical equipment, circuits and gear by 90%5 of active employees, includes a that we report two recordable fatalities4 this if they are not qualified; mandatory e-learning safety module designed year. We provide the context for those deaths to ensure that employees know how to keep – never work under the influence of in this section on page 45. themselves and others safe at work. It also substances (alcohol or drugs) that are Policy includes details of our Speak Up programme, illegal or in excess of legal levels or where which enables anyone to report safety concerns this impairs the individual’s ability to Our Code of Conduct makes it clear that perform tasks; everyone working for or on behalf of Vodafone anonymously if they prefer. must behave in a safe and responsible manner In addition to the Absolute Rules, our Supplier – never exceed speed limits or travel at at all times. Our Group Health, Safety and Group Policy on Health, Safety and Wellbeing speeds that are dangerous for the type Wellbeing Policy expands on the Code of sets out additional safety requirements at of vehicle or conditions; Conduct, setting out our commitment to an operating level, particularly for high-risk – never use a hand-held phone while driving establish a robust and durable health, safety activities. The policy emphasises the need for and only make calls by pulling over or and wellbeing culture. Detailed standards with suppliers to monitor compliance on a continuous using hands-free devices, when it is safe this policy establish the specific steps that must basis, report about their safety performance to do so; and be taken to manage our greatest risks. to us and have in place robust mechanisms to manage safety in their own supply chain. It also – never undertake any street or requires suppliers to put in place a safety plan underground work activities unless before they undertake a number of specified competent to do so. high-risk activities. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 43
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Managing key safety risks
Our safety strategy focuses on the most Safe driving techniques training is mandatory for There was one fatal electrocution and one Working at height significant risks for people working in operational anyone who drives a road vehicle while working major incident involving electricity this year. Mobile communications services rely on roles in our businesses. These risks are: on our behalf. However, mitigating road risk The fatal electrocution occurred in Vodacom connectivity provided by antennas placed remains challenging because we have no Mozambique when a contractor installing fibre – road risk when driving for work; on towers, masts and rooftops. We work to direct ability to control external factors such as on an electrical distribution line suffered an ensure the training of Vodafone employees – working with electricity; unsafe driving conditions, the lack of a safety- electric shock when using an aluminium ladder and contractors and our suppliers’ employees first culture or the actions of third parties on to free a cable caught in a tree. In addition, a – working at height; and contractors who work at height so that public roads. major incident occurred in our joint venture they understand the risks and take steps to – laying cables in the ground; and Vodafone Hutchinson Australia where two We have historically experienced challenges with control them. employees from a sub-contractor working on employee data privacy when using telematics – management and control of suppliers. a distribution panel suffered severe burns. We Our network site design principles stipulate the in company vehicles. However, with improved continue to ensure that electrical risk is a focus need for safe access for people working at height Historically, these risks have accounted for technology we are starting to introduce devices for all suppliers. We took the following actions and include guidance on the control measures the majority of serious incidents and fatalities with improved functionality that enables the to strengthen controls: required to manage the risks involved effectively. that have occurred in Vodafone and in our driver to identify the difference between using supply chain. This reflects the general trend Fall-arrest equipment is inspected regularly as their vehicle for business and private use. This – distributed a Group-wide safety alert; part of each of our local businesses’ preventative across the global telecommunications industry. ensures privacy around their personal driving – emphasised electrical risk at our global maintenance programmes. Traffic-related incidents remain the greatest behaviour. These privacy improvements have supplier forum; threat of harm on a daily basis, particularly in seen the introduction of telematics in a number There were eight working-at-height major emerging markets. of markets, most notably Hungary and Ireland. – conducted monitoring checks during incidents during the year, six of which involved market visits; and engineers falling from ladders while installing We consider the management and control of This year in Egypt, Vodafone Egypt created suppliers to be a significant risk because much fibre cables. To mitigate the risks of working at an app that uses telematics data to identify – revised our electrical safety standard. height and safe site access we have: of the work relating to the risks identified is adherence to road speed limits, driver fatigue In addition, we have continued to work with undertaken by our Tier 1 suppliers or Tier 2 and journey management violations and then – maintained investment in fall-arrest suppliers to ensure that: sub-suppliers. send instant notifications in cases of non- equipment and strengthened maintenance Road safety compliance. This proactive approach has – they have a documented risk management and recertification activities in all markets; Road safety remains our primary safety concern the potential to help reduce the number of process for working with electricity; – assessed suppliers who provide training on future incidents. and continues to be the primary cause of serious – those working with electricity are certified, working at height in India, Egypt, Turkey, injuries and fatalities associated with Vodafone Working with electricity competent and medically fit; Greece, Albania, Romania, the Czech Republic and Hungary; activities. This echoes the growing awareness Our Absolute Rules stipulate that anyone and focus on improving road safety across the – electrical equipment is fit for its working with electrical equipment must be – reviewed our key global suppliers and their globe, including UN Sustainable Development intended purpose; qualified and authorised to do so. Our training compliance to our working-at-height and Goal target 3.6 on road safety, which aims to module on working with electricity provides – appropriate safety controls such as safe site access procedures; and halve the number of road traffic deaths and guidance to employees on how to recognise ‘lockout-tagout’ are in place; and – strengthened safe site access controls injuries by 2020. risks and implement appropriate safety controls. – work on live electrical systems is with the introduction of a new standard prohibited (with the exception of extra-low- and guidelines. voltage systems, where additional controls are specified). Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 44
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During the year, we have also continued to work Four times a year, we host a supplier safety We continue to influence global suppliers at employees and contractors (across all tiers) and with third-party suppliers to ensure effective forum, first established in 2016, for our major Group level and will continue to include high-risk members of the public, regardless of whether controls are implemented and monitored, with network suppliers, focusing on best practice supplier reviews as part of quarterly reporting. these fatalities occur on Vodafone premises or a specific focus on ladder work. and critical risks. In addition, we plan to further investigate how to at other locations such as on public roads. We improve the speed and ease of supplier reporting investigate and report openly on our findings Laying cables in the ground High-risk supplier reviews using technology. in the case of fatalities within our reporting Expanding our fixed-line business has increased The majority of fatalities continue to involve boundary (see page 70), including instances the amount of work undertaken to lay or our suppliers, where unsafe behaviour is a Performance where we conclude that our safety controls did maintain cables at street level or underground. contributing factor. This year we completed Monitoring and reporting on our safety not function as intended or that they could have At street level, this work is hazardous, with the a review of high-risk suppliers across our Africa, performance is essential to ensure the safety been enhanced. risk of injury or death posed by penetrating Middle East and Asia-Pacific markets, focusing of everyone working with us – our employees, electricity or gas lines, trenches collapsing on Tier 1 and Tier 2 suppliers. This review helped contractors and suppliers and those suppliers’ during excavation and nearby road traffic. us better understand how local markets monitor own employees and contractors. It also helps suppliers’ adherence to our requirements. us to focus on and address the risks that are Fibre-to-the-premises and cable broadband inherent to our industry. installations require employees and contractors The review confirmed strong engagement with to work on private residential and business suppliers through local market supplier forums. We want our own teams, our suppliers, our property as well as in the street. Doing so also However, it also found that further action was stakeholders and others in our industry to poses risks such as not knowing the location required to address under-reporting by suppliers. learn from the performance data we share. of buried utilities. We are working with our Markets were subsequently instructed to In the case of fatalities, we set a wide boundary local businesses to ensure that they have the reiterate expectations to all suppliers on the for our in-scope reporting. In contrast with necessary safety plans and controls in place requirements when reporting incidents. These many businesses, which only report employee to mitigate these risks. include reporting timescales and the definition fatalities on their own premises, we report of what should be reported. fatalities involving any of our suppliers’ Control of suppliers Suppliers’ employees and contractors working on masts, towers and other equipment Equipping commercial vendors with safety training undertake most of the highest-risk activities related to the deployment and maintenance Vodafone celebrated 10 years in Ghana in June 2018. Over that time, the health and safety of our networks. In addition to our policies and agenda has seen a significant improvement, from a ‘no safety’ regime in 2008 to the point Absolute Rules, we operate a consequence where health, safety and wellbeing has been embraced as part of the core values and culture management system. This means we will in the organisation. terminate contracts if our suppliers or their sub- To date, the main safety emphasis has been on installing technology, due to the high-risk nature suppliers persistently fail to meet our standards. of these projects. However, this had meant there was less of a focus on our non-technology Effective risk management starts at the top of suppliers meeting our health and safety standards. In response, the business organised working- any organisation, so we are clear about our safety at-height training this year for its two main Tier 1 commercial suppliers and their sub-contractors. expectations to the chief executives and senior This comprised both theory and practical courses, which included working at height to assemble leadership teams of our supplier businesses. advertising banners, fall arrest and rescue, secure rope lifeline use, radio frequency awareness We expect them to focus on the operational and safe ladder use. challenges our safety experts identify. This training and associated certification will help our suppliers to work safely as Vodafone Ghana introduces 4G LTE services, which will require vendors to advertise our 4G network countrywide. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 45
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Fatalities We thoroughly investigated the causes of root cause and take suitable corrective action, of potential or actual harm to our employees. It is with deep regret that we report two each fatal incident and defined actions to help where necessary. An investigation is undertaken Greater compliance with mandatory rules on fatalities during the past year. Both occurred prevent a recurrence of a similar incident. These into an HPI at a scale proportionate to the LTI reporting enables us to identify emerging under circumstances in which, after investigations are overseen by the respective indicative level of risk. trends in operating risks, increasing our scope local market Chief Executive, who is responsible to intervene and put the necessary controls in investigation, we concluded that our supplier During the year we recorded 999 HPIs, of which for ensuring that the causes of the incident place. This year, our overall reported LTI rate controls were breached or were not operating 146 involved employees, 174 involved suppliers’ are widely understood and that any necessary remained at 0.62 per 1,000 employees. effectively. Specifically: employees or contractors, 13 involved members corrective actions are implemented. We also of the public and 666 were infrastructure related. – A contractor died in a vehicle-related incident share the lessons learned from each fatality in Egypt. His vehicle was in a collision with across the relevant Group functions. These Lost-time incidents (LTIs) a heavy goods vehicle. The contractor was discussions take place at the most senior levels LTI is the term we use when a Vodafone speeding at the time. Lost-time incidents (employees only) and at Group-wide safety conferences, held six employee is injured while carrying out a work- times a year. – A contractor died while trying to free a related task and is consequently unable to 2017 2018 2019* trapped fibre cable during a fibre-laying High-potential incidents (HPIs) perform his or her regular duties for a complete operation in Mozambique. The fibre was shift or period of time after the incident. We do Number of lost-time 86 64 64 We track and investigate HPIs – incidents that being run up electricity poles when it not track LTIs for our suppliers’ employees and incidents do not necessarily result in injury but have the became caught in a tree. The contractor contractors. potential to do significant harm. We investigate Lost-time incident rate 0.81 0.62 0.62 used a metal ladder to try to free the cable each HPI as an indicator of the potential for a In recent years, we have stepped up our per 1,000 employees and was electrocuted. more serious accident. We seek to identify the efforts to capture and analyse all incidents * Data includes LTIs from India up until 1 September 2018.
ot recor b e t ities ecor b e t ities b c use ecor b e t ities b countr * There are three fatal incidents which include a number of fatalities that are still under investigation and cannot be included in our figures until the investigations are complete; a fatal incident in Italy 201 10 1 201 10 1 201 1 1 1 from FY 2017/18 that happened on 29 March 2018 is still under investigation by national authorities; a fatal incident in Turkey on 18 April 2018 is currently under investigation by national authorities; and 201 201 1 1 201 2 a fatal incident in Turkey on 5 October 2018 is currently under investigation by national authorities. Data includes fatalities from India up until 1 September 2018. 2 1 1 1 1 ** Vodacom markets include South Africa, the Democratic Republic of Congo, Lesotho, 0 2 10 12 1 0 2 10 12 1 0 2 10 12 1 Mozambique and Tanzania.
Suppliers e plo ees contractors Ve icle accident ndia e bers of t e public lectrocution Vodaco allin ob ect pt ri inal acti it ur e G ana Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 46
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Human rights
Respect for human rights, together with Our most salient human rights risks In 2017, we joined the Global Network Initiative practice on freedom of expression and privacy. (GNI) as a Board member. The GNI is a multi- In 2018, Vodafone Group received the top score established processes to reduce the Privacy and freedom of expression risk of human rights abuses, is critical stakeholder forum created to address the in the telecommunications sector. Our most salient human rights risks relate to complex challenge of protecting digital We are also actively engaged in the dialogue to our long-term success. Vodafone’s the individual’s right to privacy and freedom of rights globally. Joining the GNI strengthened on emerging technologies and their potential Code of Conduct is very clear about expression. Our Digital Rights and Freedoms and broadened our commitment to digital impact on human rights. As artificial Reporting Centre contains information related rights and followed our founding role in the our expectations and responsibilities intelligence (AI) grows in usage and impact to the protection of our customers’ private Telecommunications Industry Dialogue on regarding human rights. across geographies and industries, Vodafone communications and our views, policies and Freedom of Expression and Privacy. We recognise our responsibility to respect the approach regarding: has a responsibility to consider how our use rights and freedoms of every individual who The GNI brings together information and of this technology affects our customers, our works for us, either as an employee or through – Law Enforcement Disclosure; communications technology companies, employees and wider society. We will shortly our supply chain, and of the communities – Customer Privacy; civil society groups (including human rights publish our Vodafone AI Framework, which close to our operations. We adhere to our and media freedom groups), academics outlines our approach to protecting consumers responsibility to respect human rights as set – Respecting the Digital Rights of the Child; and investors with a shared commitment to from discrimination and taking an ethical out in the International Bill of Human Rights – Freedom of Expression and Network promote and advance freedom of expression approach to artificial intelligence. We will and the eight International Labour Organization Censorship; and and privacy worldwide. indicate when customers are interacting directly with artificial intelligence. Our framework also fundamental conventions on which the United The Ranking Digital Rights Corporate – our Legal Annexe, which gives an overview includes how we extend our standards to third Nations Guiding Principles on Business and Accountability Index ranks Vodafone annually of the relevant legal powers in place in our parties developing AI systems in collaboration Human Rights are based. on its public disclosure on its policies and its markets of operation. and on behalf of Vodafone. Our approach to managing human rights issues We have identified the most salient human GNI assessment rights risks that matter the most for Vodafone’s As part of our membership of the GNI, we writing. We continued this work until the We will issue a public report on any related operations and supply chains. We have must commit to implement the GNI Principles, March 2019 Board review meeting, working recommendations in early 2020, following established policies, governance and due putting concrete measures in place to together with our independent assessor, the release of the formal GNI report on the diligence processes to avoid, reduce and protect and advance freedom of expression who reviewed our processes, policies and the 2019 assessments. mitigate these risks. These processes and and the right to privacy. All GNI companies governance model that we use to safeguard policies, along with details on our governance undergo an independent assessment of their our user’s rights to freedom of expression and model on human rights issues, are summarised implementation of the Principles every two right to privacy, to ensure all relevant areas on our website. years, to demonstrate their efforts in practice. were covered. Further details on our human rights We started preparations for our first Vodafone completed its first formal GNI due diligence process and overall independent assessment in August 2018 by assessment in March 2019, during which the For more information on the approach can be found online at setting up a team of senior level experts from Board reviewed a detailed report on Vodafone GNI company assessments visit www.vodafone.com/humanrights across the business and across our operating and determined that we are making good faith www.globalnetworkinitiative.org/ markets to participate in the required efforts to implement the GNI Principles with company-assessments. interviews, evidence collection and report improvement over time. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 47
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Human rights risks in our supply chain i. Business Against Slavery Forum: TAT’s goal is to work with civil society, law Employees can report suspected breaches Vodafone has developed and implemented UK Home Office enforcement, academia and survivors to in three ways: identify and create technology solutions policies and processes to extend our human During the year, Vodafone’s Human Rights – via their line manager; rights commitments into our supply chain, team engaged with other companies on that disrupt and reduce human trafficking, – via the local human resources team; or as specified in ourCode of Ethical Purchasing. the issue of modern slavery through its prevent and identify crimes, and provide The Code sets out the standards we expect our participation in the Home Office’s Business remedy mechanisms for victims and support – via a confidential external hotline in their suppliers to meet on health and safety, labour Against Slavery Forum working group. This survivors through innovation, collaboration, own language, by phone or online. guidance and shared resources. (including child or forced labour) rights, ethics group was established as a partnership Our Group Risk and Compliance Committee and environmental protection. between government and business to iii. Joint Money Laundering Intelligence reviews reports about the effectiveness of the accelerate progress in the fight against Taskforce (JMLIT) Speak Up process and benchmarks it against modern slavery and to create and facilitate Highlights in our supply chain The JMLIT has been developed in partnership those used by other multinationals. You can the sharing of best practice. Vodafone activities to mitigate human rights with the UK government, law enforcement read more about Speak Up on page 50. continues to be actively involved in this risks during the year: agencies and more than 40 major UK and working group in 2019. international banks under the leadership – we launched a common industry In October 2018, Vodafone provided input of the Financial Sector Forum. Vodafone supplier academy to build into the independent review of the Modern shared its approach to modern slavery and capability; Slavery Act 2015, chaired by Baroness Young. the company’s e-learning training module at – we joined new multi-stakeholder The roundtable discussion gathered the the JMLIT Expert Working Group on Human coalition Tech Against Trafficking views and expertise of the private sector Trafficking and Organised Crime. (TAT), which is focused on modern on the operation and effectiveness of, and Further details on our approach and slavery issues; and potential improvements to, provisions in the Modern Slavery Act. Vodafone is also policies relating to modern slavery – we conducted an investigation into a member of the Transparency in Supply can be found in our Slavery and Human a modern slavery grievance. Chains Advisory Group, which supports Trafficking Statement. the Government’s modern slavery agenda Read more on our approach to supply and is one of six groups that feed into the chain integrity on page 37. Home Office’s Modern Slavery Strategy and Employee reporting Implementation Group. Vodafone UK’s CEO, Everyone who works for or on behalf of Vodafone Working with others to tackle Nick Jeffery, is also a member of the UK must report any behaviour at work that may modern slavery Home Office’s Business Against Slavery be unlawful or criminal or could amount to an Forced, bonded or compulsory labour, human CEO Forum, which facilitates senior- abuse of our policies, systems or processes trafficking and other kinds of slavery and level private sector engagement on the and therefore a breach of our Code of Conduct. servitude represent some of the gravest forms implementation of the Modern Slavery Employees are encouraged to use our Speak of human rights abuse in any society. We remain Act in large FTSE companies. Up process to report a wide range of unlawful committed to taking appropriate steps to ensure ii. Tech Against Trafficking (TAT) and unethical activities, including bribery, that everyone who works for Vodafone – in This year, Vodafone became a member of the fraud, price-fixing, suspected abuses of human any capacity, anywhere in the world – benefits rights, privacy breaches, safety risks, bullying, from a working environment in which their Tech Against Trafficking (TAT) initiative. Hosted by Business for Social Responsibility (BSR), harassment, conflicts of interest and the fundamental rights and freedoms are respected. potential for serious harm to the environment. The following provides some examples of how TAT is a coalition of technology companies we have engaged on this issue during the year. collaborating with global experts to help eradicate human trafficking using technology. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 48
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Anti-bribery and corruption
Our anti-bribery policy – using Vodafone’s global online gift and programme for the coming year in the bribery risk hospitality registration platform, as well as ‘line of sight’ report, which is updated regularly by Vodafone does not tolerate bribery or corruption Vodafone does not in any form. Our policy is summarised in our ensuring there is a process for approving local our General Counsel. sponsorships and charitable contributions. tolerate bribery or Code of Conduct. It states that employees or The table overleaf summarises the principal risk others working on our behalf must never offer or In addition, facilitation payments are strictly categories and the mitigation measures corruption in any form. accept any kind of bribe. Our anti-bribery policy prohibited by our policy. Employees are provided we take for each. is consistent with the UK Bribery Act and the US with practical guidance on how to respond to Foreign Corrupt Practices Act and any breaches demands for facilitation payments. The only can lead to dismissal or termination of contract. exception is when an employee’s personal safety The policy provides guidance about what is at risk. In such circumstances, when a payment constitutes a bribe and prohibits the giving is made under duress, the incident must be or receiving of any excessive or improper gifts reported to the local compliance team as soon as and hospitality. It also makes clear that where possible afterwards. our policy differs in degree from an equivalent Local markets regularly monitor implementation local law, we must follow the more stringent of of the anti-bribery policy as part of the annual the two. Group Policy Compliance Review assurance Governance and risk assessment process, which reviews key anti-bribery controls. In addition, rotating reviews in local markets Our Group Chief Executive and Group Executive enable us to assess the implementation of Committee (ExCo) oversee Vodafone’s work the anti-bribery programme on the ground in to prevent bribery and corruption. They are more detail. This year, reviews were conducted supported by local market Chief Executives, who in Turkey and Hungary. The Group Policy are responsible for ensuring that our anti-bribery Compliance Review also included a desktop programme is implemented effectively in their review in all local markets. The overall findings local market. Local specialists and a dedicated demonstrated good implementation of key Group team that is solely focused on anti-bribery controls and processes. Areas for improvement policy and compliance support them in turn. related to supplier management and monitoring, As part of our anti-bribery programme, every and these are being addressed. Vodafone business must adhere to minimum Vodafone’s Risk and Compliance Committee global standards, which include: assists the Group ExCo to fulfil its accountabilities – ensuring there is a due diligence process for with regard to risk management and policy suppliers and business partners at the start compliance. The anti-bribery programme was of the business relationship; one of the compliance programmes reviewed by the Risk and Compliance Committee during – completion of the global e-learning training the year. The output of the Risk and Compliance for all employees, as well as tailored Committee meeting is reported to the Group classroom training for higher-risk teams; and ExCo. The key actions are documented for the Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 49
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Risk Response High-risk markets We undertake biennial risk assessments in each of our local operating companies and at Group level We operate in a number of countries where there is a heightened risk of bribery and corruption. so we can understand and limit our exposure to risk. The principal risk categories are included below. Business acquisition and integration Our due diligence process before any decisions to acquire, or merge with, another entity takes into When we acquire or merge with another entity, we risk inheriting its potential bribery and corruption account its current and past anti-bribery and corruption processes and performance. Red flags risks. These may persist if we do not identify and promptly address them. identified during the due diligence are reviewed and assessed. Following any acquisition, we implement our anti-bribery programme. Spectrum licensing We encourage governments and regulators to release spectrum to the market through competitive, Communications operators require access to sufficient radio spectrum to deliver mobile and some transparent and well-managed auctions. A specialist policy team oversees our participation in all fixed-line services. Spectrum is a limited sovereign resource and therefore valuable. Whenever negotiations and auctions to reduce the risk of attempted bribery. We provide appropriate training governments allocate spectrum to operators there is a risk of bribery. and guidance for employees who interact with government officials on spectrum matters. We have also published our ‘Spectrum policy in emerging markets’ report, which provides further support for employees in these markets. Building and upgrading networks Our anti-bribery policy makes it clear that we never offer any form of inducement to secure a permit, Communications networks are infrastructure intensive. They require access to, and leasehold lease or access to a site. We regularly remind all employees and contractors in network roles of this arrangements on, both public and private land. We currently have more than 164,000 mobile base- prohibition, through tailored training sessions and communications. station sites across multiple countries, and ensuring we can maintain and upgrade them requires constant engagement with landowners, community leaders and municipal authorities. This engagement must be undertaken in compliance with our anti-bribery policy. Working with third parties Everyone who works for or on behalf of Vodafone, including suppliers and other relevant third Our supply chain is complex, involving more than 10,800 vendors, contractors and sub-contractors. parties, must comply with the business principles set out in our Code of Conduct and Code of Ethical As a result, there is a risk of improper conduct when third-party services are procured and delivered, Purchasing. Select high-risk third parties are trained to ensure awareness of our zero-tolerance policy. particularly in countries where corruption is endemic. We screen our potential suppliers for anti-bribery compliance and ensure they understand our anti- bribery policy. We regularly remind current suppliers of our policy requirements and complete detailed compliance assessments across a sample of higher-value and higher-risk suppliers. Winning and retaining business In addition to the mandatory anti-bribery and corruption training completed by all Vodafone Vodafone Business accounts for around 30% of our global revenues. We serve some of the world’s employees, we provide mandatory targeted training for our Vodafone Business and Partner Markets largest companies and public sector organisations. Competitive tenders are how Vodafone Business sales teams and other employees in higher-risk roles. In addition, we also maintain and monitor a global contracts are appointed and there is a risk that improper inducements may be sought or offered register of gifts and hospitality to ensure that inappropriate offers are neither accepted nor extended by by either party. Vodafone also partners with local operators across the world, with alliances with 28 our employees. partners in over 41 countries. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 50
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Engaging employees to raise In most instances, employees feel comfortable Engaging civil society awareness of bribery risk about raising concerns with a line manager or We want to play our part in tackling bribery and Every Vodafone employee has an obligation human resources colleague. However, they corruption along with other stakeholders who to help us address the risk of bribery and can also use a confidential third-party hotline, share our concerns and standards. We play an corruption. To ensure our employees understand accessible in their local language online or by active role in the Transparency International how they can each play a part, we run a high- telephone. Speak Up operates under a non- Business Integrity Forum and the Institute of profile communications programme,Doing retaliatory policy, meaning that everyone Business Ethics. What’s Right. This uses a range of materials to who raises a concern in good faith is treated highlight some of the most common compliance fairly, with no negative consequences for their employment with Vodafone, regardless of the challenges facing employees, including handling Supporting a compliance culture in Lesotho personal data, accepting gifts and conflicts of outcome of any subsequent investigation. In October 2018, Vodacom Lesotho held Lesotho, non-governmental organisations interests. The global campaign makes use of Senior executives review every Speak Up report its first Annual Compliance Forum, with and local media. multiple communication channels to engage and the Group Risk and Compliance Committee the objective to create a platform for with employees and raise awareness and To demonstrate the importance of the topic reviews the whole programme. This year, 738 sharing experiences on compliance issues understanding of the policy, including digital for Vodacom Lesotho, members of our separate concerns were reported using Speak such as anti-bribery, anti-corruption, news articles, games and quizzes. local executive committee participated in a Up on a wide range of issues (though only a anti-money laundering and ethical number of different panel discussions during The Doing What’s Right programme also features very small fraction were related to bribery and leadership. Attendees at the Forum included the day including sharing our approach to e-learning training, which includes a specific corruption). In our latest Global People Survey, representatives from the government mitigate risks associated with bribery, privacy anti-bribery module and uses gamification to 84% of respondents said they would use Speak (including the Minister of Communications), and money laundering. enhance the learning experience. To date, over Up to report unethical behaviour of any kind. other businesses, the Central Bank of 90% of active employees around the world have Engaging suppliers and third parties completed the e-learning training1. In addition, Through their contracts with us, our suppliers, for higher-risk employees, such as those working partners and other third parties make a in procurement, network operations, Vodafone commitment to implement and maintain Business sales and government relations, proportionate and effective anti-bribery tailored face-to-face training programmes are compliance measures. Every year, we review the used to cover relevant scenarios. anti-bribery controls put in place by a sample of Training in our Code of Conduct is incorporated suppliers. We do this in collaboration with them into our standard induction processes for new to ensure they understand what we expect, and recruits and all employees compete refresher to enable us to share best practice with them. training every two to three years. This also gives us the opportunity to learn from our suppliers’ experiences in this area. Speak Up All Vodafone employees are encouraged to If our review highlights inadequacies, and report any suspected breaches of our Code of assuming there is no immediate risk of improper Conduct as soon as possible. We call our process conduct, we support the supplier involved to for this Speak Up, and we make it as easy to use improve their practices and to ensure that these as we can for any kind of employee concern. inadequacies are corrected appropriately. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 51
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Our approach to political engagement
At Vodafone, everyone who works for and – the operating challenges that arise meetings by senior individuals from within and create better-quality services for customers with us must follow rules designed to reduce from obligations specified under the our businesses. across Europe. the risk of improper behaviour and the telecommunications licences awarded When our interests are represented by a third This year Vodafone engaged with EU institutions perception of such behaviour (even when this by governments, which we must operate party in a public policy or political meeting with on the main issues relating to the Digital has not actually occurred) in dealings with lawfully; no Vodafone executive present, the third party Single Market, in particular when it comes to politicians, civil servants, regulators, advisors – proposed legislation or new or amended must comply with internal political engagement infrastructure regulation, platform regulation, and others involved regarding policy or regulations that would affect how we operate processes and approval mechanisms. We also cyber security and privacy. Examples include government operations. or would have an effect on our customers’ maintain an internal register of any external the following legislative proposals: Vodafone’s Code of Conduct has specific rules experience; parties who engage in policy discussions on – the European Electronic Communications regarding gifts, hospitality and sponsorship our behalf. – spectrum matters; Code, finalised in summer 2018, which involving politicians and government officials Offers of hospitality for government provides the regulatory framework for all and states that no political donations can be – provision of communications services by electronic communications networks and made. It also clearly states that Vodafone may Vodafone as a major supplier to government representatives services across the EU; not intervene in party political matters. We bodies and other public sector customers; When appropriate, we may invite government review relationships with government officials representatives to business meals or a hospitality – the ePrivacy Regulation, which is still under – security matters, particularly those focused in our supplier on-boarding due diligence event. We apply internal governance rules to negotiation and covers confidentiality of on Vodafone’s role as an operator of critical processes. We also provide specific anti-bribery invitations of this kind and those rules in our communications; national infrastructure; and corruption training to employees whose global Code of Conduct are strictly enforced. – the Platform-to-Business Regulation, roles involve interacting with policymakers – privacy and data protection matters Where a regulatory decision relating specifically concluded in early 2019, which strengthens and advisors. (discussed in detail in our Digital Rights and to our business is under consideration or the fairness and transparency obligations of Freedoms Reporting Centre); Everyone must also abide by the rules imminent, we expressly prohibit gifts and platforms; and governing political activity conducted in a – online child protection and the digital rights hospitality of any kind to any parties involved – the Cybersecurity Act, which creates a personal capacity, as articulated in our Code of of the child (referred to in detail in our Digital in making that decision. We also stipulate that new EU-wide cyber security certification Conduct. Employees cannot use any Vodafone Rights and Freedoms Reporting Centre); every gift or offer of hospitality for a government framework. resources – from communications services representative, or sponsorship with government – financial inclusion and mobile money and meeting rooms to their own working time over the value of €100, must be approved (prior The Brexit negotiations were also a topic services such as the M-Pesa service; and – to provide support for any political campaign, to acceptance) by our Group External Affairs of engagement for Vodafone in Brussels. political party, political candidate or any – industrial policy and the growth of the IoT, Director, who is a member of the Vodafone We disclose these political activities and affiliated organisation. including the development of intelligent Group ExCo. related expenditure, as mandated, through Why and how we engage politically networking across a wide variety of Engaging with the EU institutional the EU Transparency Register. devices, services and processes in the stakeholders Interactions with ministers, opposition home and workplace. politicians, elected representatives, civil We actively engage with all EU institutions on servants and independent statutory bodies, While we do use external political consultancies the future of the digital economy in Europe, such as regulators and political or sector for internal advisory support and back-office including the Digital Single Market. specialist advisors, are an essential part of activity such as monitoring of parliamentary As a company with significant businesses in managing our businesses around the world. debates, wherever possible, our strong 12 EU Member States, we believe we have the Our discussions may include: preference is to ensure that Vodafone is expertise and experience to comment on policy represented in public policy and political initiatives intended to drive economic growth Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 52
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Political engagement in Africa, – a parliamentary inquiry on telecoms and Middle East and Asia-Pacific (AMAP) draft national broadband strategy in Kenya; During the year, in Vodafone’s AMAP region, – the Vision 2030 ICT strategy in Egypt; Vodafone engaged with governments and regulators on a number of topics, including – a regulatory application for the merger of national ICT strategies, communications Vodafone Hutchinson and TPG, and a 5G legislation consultations, spectrum policy, auction in Australia; and data, security, net neutrality, payments, SIM – new communications legislation in registration and consumer issues. This was New Zealand. mainly done through policy, legislative and regulatory consultation and decision-making Hiring former public servants processes conducted by such authorities in Vodafone recognises that potential (or perceived accordance with the applicable law. Examples potential) conflicts of interest can arise of engagement during the year included: when Vodafone or its subsidiaries hire people whose most recent prior employment was in – supporting regulatory approvals for the a government or other public sector role. The merger between Vodafone India and Idea potential for a perceived or actual conflict of Cellular in August 2018, and Vodafone Idea interest is particularly acute if the individual is rights issue in April 2019; employed subsequently by Vodafone to work – the new National Digital Communications on projects that are directly relevant to their Policy issued by the Indian government in previous role. September 2018; We believe that every individual should be free – the Electronic Communications Amendment to apply their skills – and choose who they work Act Bill and ministerial policy directions on for – as they see fit. However, we also believe the wholesale open access network and it is important to have rules in place to ensure high-demand spectrum assignment in that former government or other public sector South Africa; employees do not have undue influence over, or inappropriate levels of access to, their former – a priority markets review and data pricing colleagues on relevant issues. inquiry by South Africa’s communications Our Revolving Doors Statement provides a and competition regulators respectively; mandatory global approach that prohibits former – radio spectrum auctions in Tanzania (July government or other public sector employees 2018) and Mozambique (October 2018); from working on projects for Vodafone that are relevant to their former role, from engaging – Mozambique 2G and 3G service licence directly with any former colleagues, or from renewals in July 2018; interacting directly with departments or other – the Communications Bill and 4G licence bodies with which they worked in their previous application in the Democratic Republic role. This formal ‘cooling-off’ period lasts a of Congo; minimum of six months or for the duration of any local market government or public sector ‘purdah’ rules, whichever is the longer, and applies to all employees at all levels. 1 This rate excludes employees in Germany due to local works councils restrictions. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 53
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Privacy and cyber security
Vodafone has strict governance 1. Privacy Management Policy to provide law enforcement assistance processes and controls in place to This policy sets out the resources and to government agencies and authorities, A globally consistent protect our customers’ personal data, privacy risk control processes that must through either lawful interception or approach to privacy be in place in each of our local markets to retention of communications data. Vodafone’s privacy programme applies a respect their privacy and proactively ensure compliance with applicable local Our Digital Rights and Freedoms Reporting global, high standard to managing privacy manage the cyber security risks that data protection and privacy laws and with Centre contains additional information challenges irrespective of whether there Vodafone’s privacy programme. face businesses today. related to the protection of our customers’ are local data protection or privacy laws. Our commitment to privacy and security is a 2. Law Enforcement Assistance Policy privacy, in our privacy disclosure, and the Managed across Vodafone markets vital part of our responsibility to our customers This policy addresses the balance between actions of government agencies and both inside and outside the European and is central to our Code of Conduct that our customers’ right to privacy and freedom authorities to ensure public safety, in our Economic Area, Vodafone’s privacy everyone who works for us and on our behalf of expression and the statutory requirements law enforcement disclosures. management policy is based on the must follow. European Union General Data Protection This chapter contains information on our privacy Regulation. Our privacy programme is underpinned by 10 privacy ‘commandments’ that go beyond legal and cyber security programmes and the policies compliance and drive how we develop and operate our products and services in a way that Vodafone’s privacy management policy that govern how we collect, use, manage and respects our customers’ privacy and the trust they place in us: sets a framework within which local data protect our customers’ personal data. protection and privacy laws are respected, Design for privacy Manage data carefully and sets a baseline for those markets Privacy Incorporate privacy and security into Maintain data quality, delete where there are no such specific legal We believe that everyone has a right to privacy, the design of products and services, unnecessary or outdated data and requirements. wherever they live in the world. That is why and manage risks. do not take unnecessary copies. Vodafone applies a global approach to managing privacy. Collect relevant data Respect individual rights Only collect and process data that Design products to allow individuals to We know that respecting our customers’ privacy is necessary and relevant for the exercise their right to access, request is essential to maintaining their trust in our purposes for which it was collected. deletion and portability. business. Managing privacy risks effectively – and putting customers in control of their Protect confidentiality No unauthorised disclosures data – is core to our approach. Our privacy Protect confidentiality of Do not disclose personal data to programme governs how we collect, use and communications and sensitive unauthorised bodies and make sure manage our customers’ personal data to make personal information. suppliers comply with Vodafone’s privacy and security requirements. sure we respect the confidentiality of their Provide a privacy notice communications and any choices that they have Provide a clear, transparent and Secure data made regarding the use of their data. understandable privacy notice. Apply technical and organisational controls against unauthorised access, Privacy policies Provide choices use, disclosure or loss. Two privacy policies underpin Vodafone’s Obtain and manage necessary programme and approach and help to permissions when using the content of Protect children’s privacy make sure we address specific areas of high communications, traffic data, location Protect children’s data and, where privacy risk. The Group ExCo oversees the data and marketing and analytics. necessary, acquire parental consents. implementation of these policies. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 54
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Cyber security We also run global awareness campaigns. In Outlining our approach to privacy: identified and mitigated. Detailed personal Using a combination of fixed, mobile and cloud and 2019, we launched the Vodafone Cyber Code (see page 55), which has been designed to Our privacy approach is governed by an data processing registers and data-retention hosting services, we provide high-quality, reliable simplify and explain the basic security controls unwavering respect for an individual’s right practices are maintained and updated and secure networks that are relied on by our to all employees. Embedded in our Code of to privacy. From ownership and oversight by continuously. Our supplier compliance customers around the world. Our approach to cyber Conduct, the Cyber Code is the cornerstone of senior management to robust assurance, processes mean we only appoint suppliers and information security makes sure our processes, how we expect all employees to behave when it elements include: that meet our privacy standards. procedures, programmes and people safeguard the security and privacy of our customers’ information comes to best practice in cyber security. Accountability Transparency across Vodafone. Our security controls are layered Our vision is a secure digital future for our A member of the Group ExCo oversees Our privacy notices provide straightforward, and integrated by design. customers, which is why we employ people with Vodafone’s privacy programme. A global easy to understand and relevant information specialised cyber security expertise around the privacy officer, ultimately reporting to to our employees and customers. Our Risk management is central to our approach and world. This vision drives a focus on protecting our ExCo, manages the programme at Group permission management platforms enable our is fundamental to maintaining the security of our services, products, systems and data via a single level. At a local level, accountability for the customers to control how Vodafone uses their services across every aspect of our business. To and integrated cyber security programme, in implementation of the privacy programme data. We also publish extensive information help us identify and manage emerging risks, we order to maintain the security of our customers’ sits with the local operating company. Each about our approach to managing governments assess our business strategy, new technologies, privacy and personal information. market has a local ExCo-level owner and a requests for access to customer data. government policies and regulation and cyber privacy officer tasked with implementing the Human-centred decision making threats. We conduct regular reviews of the most Cyber security policies programme locally, with a dotted line to the Big data analytics use cases are subject to significant security risks affecting our business Vodafone’s approach to cyber security is global privacy officer. privacy and ethics reviews to identify and and develop strategies to detect, prevent and underpinned by a portfolio of policy principles respond to them. Group and local operating companies each mitigate possible privacy or data ethics that include the following. challenges. Data scientists sign up to our Code have a privacy steering committee that Building on best practise from a range of – Doing what is right when using Vodafone of Ethics for Analysts before they are given brings together privacy and security teams, expert organisations and initiatives from information and equipment in order to access to our analytics platform. When we and a senior person from each of the relevant around the world, our cyber security policies protect ourselves, our company and, most are required to balance the right to privacy business departments (e.g. commercial, and programmes are applied across our entire importantly, our customers. technology, HR and finance). Detailed against other obligations in support of a free telecoms network and IT systems. Against these key performance indicators are reported and secure society, we work to minimise policies and programmes the principles of the – Making sure that we, and anyone we manage, regularly to senior management. privacy impacts. ISO 27001 standard are applied, to which our only have access to the information and assets we require in order to perform our Engagement core data centres and networks are certified. Assurance roles. Each Vodafone entity has numerous systems We actively engage with stakeholders, Our security systems and processes are for processing personal data and all high-risk including civil society, academic institutions, continually updated and monitored to prevent, – Securing our information and systems at processes are subject to regular testing. New industry and government, in order to share detect, deter and respond to cyber threats. We least as strongly in the cloud as we do on- products, services and operations undergo our expertise and best practices with others, invest in our technologies and embed security premise. to contribute to the discussions that shape privacy by design and assurance processes into all of our products and services from the – Reporting any suspected malicious or public policy and to learn from others. to make sure that possible privacy risks are outset. We test our mobile network security unauthorised activity through local or controls with an independent third party to make Group security teams so this can be managed sure they are effective. and remediated. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 55
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
– Considering the content of all information we handle, labelling the information with the Elements of our cyber security Network Vodafone Cyber Code correct classification and applying protection approach: Our focus has been to secure our existing Always use multi-factor according to the classification level. Our cyber security approach focuses on 2G, 3G and 4G network and systems, and we independently test the security of our authentication for remote – Making sure that anyone physically minimising the risk of cyber incidents that networks every year. With the launch of 5G systems that hold sensitive accessing our property is authorised affect our networks and services. We take a taking place in Europe this year, we are working information. to do so. multi-layered approach to security to keep our employee and customer information safe. to deploy 5G securely by building on our 4G – Considering and integrating security into We implement controls that prevent attackers experience. With greater security by design Never allow unsupported all new/updated projects, processes or from gaining access through our perimeter, features, 5G will offer a similar or better level end-of-life systems in technology with which we are involved. and also protect our internal network, of protection than equivalent features in 4G Vodafone infrastructure, when it comes to protecting customers from – Being aware of any risks to the information applications and data with specific measures or release insecure products interception, impersonation and location and systems we use, and working in a way including encryption and restricting access. or services. tracking. that minimises this risk. Our approach includes: Security by design – Holding our suppliers to the same policies Defence Always apply the latest We apply our security policy, including for protecting Vodafone information as the No organisation will ever be immune to security patches, close critical technical and procedural standards, wherever ones to which we hold ourselves. Making sure cyber attacks. A key part of a strong cyber and high vulnerabilities and we build and deploy new solutions (security we work with technology and security teams security programme is the ability to prevent configure systems securely. by design). For secure IoT solutions, Vodafone to identify the requirements that apply to the majority of attacks and quickly detect and respond to attacker activity. Vodafone has helped establish the GSMA IoT Security each supplier. Never click on links faces threats similar to any large company Guidelines, and the accompanying self- or download without knowing – Implementing strong general security that holds customer data. However, there assessment scheme. Where we work with who it is from. Report practices to: are also specific threats that relate to the partners or third parties to build and deploy IoT solutions, we advocate the approach suspicious behaviour. - capture and monitor activity logs telecommunications industry and different geographic locations. We build our networks taken and co-developed between Vodafone to identify malicious or unauthorised and Consumers International, as seen in their behaviour; to defend against attack so our customers Always remove access when can trust that our networks are secure, fast publication of the Consumer IoT Trust by staff change roles or leave - apply patches to remediate vulnerabilities and high quality. We also make sure we build Design Guidelines. Vodafone. Secure privileged and keep software up to date; diversity into our networks and services to Engagement access and only use it for - configure systems in a way that reduces avoid reliance on any one supplier. We actively engage with stakeholders, privileged tasks. security risks, e.g. by carrying out hardening Workforce user controls including civil society, academic institutions, or installing anti-malware tools; and We apply user controls to our whole workforce. industry and government, in order to protect Never share or reuse Vodafone, respond to cyber threats and work - secure the connections between systems, This includes data loss prevention, anti- your passwords. malware, endpoint protection and detection, together to share best practice. Given our Longer is stronger. both internally and externally, to protect expertise and extensive experience, we also communications from unauthorised access building security and phishing protection. Our Cyber Code helps to drive the appropriate engage with a wide range of organisations or modification. to help improve the understanding of cyber employee culture and highlights the Always classify, label security thinking and practice, and contribute behaviours they need to display in order to and protect information to public policy, defence operations, technical support our cyber security programme. you work with. standards, information sharing and analysis, risk assessment and governance. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 56
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Mobiles, masts and health
The health and safety of our Health Organization (WHO). These guidelines It is important to note that the frequencies customers, the wider public, our are science based and include substantial safety proposed for 5G are covered by existing employees and our contractors is margins. They are regularly reviewed and reflect international and national RF-EMF exposure decades of research. guidelines. These international guidelines an absolute priority for Vodafone. are based on extensive reviews of published In 2018, ICNIRP concluded a review of the scientific research. They apply to 5G just as they Mobile devices use radio waves to send and EMF-related science published since its last do to existing 2G, 3G and 4G technologies and receive calls and data from a network of exposure guidelines were produced (in 1998). other radio frequencies such as radio and base stations. These radio waves are a type In its draft, published for public consultation TV transmissions. of electromagnetic field (EMF). They occur in July 2018, it makes recommendations to naturally or are produced from man-made account for new types of exposure scenarios and A number of national government health sources and are around us all the time. They improved scientific assessment accuracy. Based advisory bodies (in Germany, Finland, Norway are produced by any electrical appliance on the conclusions of many independent expert and the UK) have reviewed the science relating connecting to the mains power supply and reviews, it remains the case that no health risk to 5G and published statements. These state: switched on. Most experts agree that there has been established for mobile devices or base – ICNIRP guidelines apply up to 300 GHz, well is no evidence that mobile phones or base stations that comply with ICNIRP guidelines. The beyond the maximum frequencies under stations adversely affect human health when review covers all the frequencies allocated to the discussion for 5G; operated within international science-based delivery of new 5G services. The publication of 1 guideline compliance limits . the final ICNIRP guidelines following the public – electromagnetic fields from base stations will Our vision consultation is expected in 2019. not rise significantly with the introduction of 5G. Overall exposure is expected to remain Vodafone’s vision is to lead within the industry Vodafone complies with national regulations in low in relation to the guidelines and so there in responding to public concerns about mobile all markets and will continue to do so across the are no consequences for public health; and phones, masts and health, by demonstrating range of new devices for 5G, new radio masts leading-edge practices and encouraging and small cells. Despite the current scientific – as long as the levels set by ICNIRP are others to follow. Through our Group-wide risk consensus, we recognise that some people are adhered to, the overall research shows management and compliance assessment and concerned about mobiles, masts and health. that electromagnetic fields from mobile our local community engagement, together We always endeavour to address their concerns technology are not hazardous to with coordinated regular best practice sharing openly and transparently through regular local human health. through the year, we ensure that we deliver on community engagement and sharing the latest One health authority, the German Federal Office our commitments. research on our website. for Radiation Protection, has recommended International science-based guidelines 5G and EMF that more research is needed into millimetre Our base stations and the mobile devices we With the development of 5G technology and its wave range. supply to our customers operate according commercial launch during 2019, we have been to the guidelines set by the International working across the industry to ensure that new Commission on Non-Ionizing Radiation technology continues to be compliant with Protection (ICNIRP), an independent advisory national regulations and international (ICNIRP) body that works in collaboration with the World guidelines for EMF. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 57
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Monitoring scientific research Every year, our Group EMF Manager conducts We have a science-monitoring process and in-depth on-site compliance assessments in regularly review research conducted into two local markets. This year, the visits were mobiles, base stations and health. On our to Germany and Hungary. In Germany, the website and in our reports, we focus on research assessments showed that all our controls were that is designed, carried out and reported implemented correctly. The visit demonstrated independently by experts on behalf of a national a well-established programme delivered across or international health agency where all the relevant functions of Vodafone Germany and published results and conclusions are subjected well supported at a senior level. In Hungary, the to peer review. We publish links to many of those assessment showed that managers are generally scientific research publications on the mobiles, risk conscious, routinely monitor key business masts and health section of our Group website. areas and implement mitigation plans on a timely basis with effective oversight. There was National, regional and international research one remedial action, which was to improve the programmes respond to the priorities set by the procedures ensuring that only people who have WHO, which does not undertake research itself. been EMF trained are permitted to work on site. Ensuring that objective, well-funded research programmes are completed is essential to fully This year, we developed and rolled out an understand the potential risks. Consequently, e-learning course about mobiles, masts and we contribute funds indirectly, through national health. It included a simple introduction to how government research programmes, to some of mobiles work and provided information and tips these independent studies. This is to make sure for our people to use when talking with friends that the methodology, outcomes, analysis and and family about mobiles, masts and health. publications are objective. This e-learning module is available via the Vodafone University platform to all employees Studies continue in this area including those and has been translated for use in Vodacom prioritised by the WHO that monitor the health DRC, Vodacom Mozambique, Vodafone Portugal, effects on children of their mobile use and any Vodafone Greece and Vodafone Spain. Since health effects from long-term use of mobiles. launch, the training has been completed by Governance and compliance over 500 employees and is also available to partner markets, joint ventures and tower Our Group EMF Leadership Team, chaired by the company partners. Group Director for Health, Safety and Wellbeing, determines our strategy on mobiles, masts and Our website provides in-depth health and oversees compliance in our local information about mobiles, masts and markets. The team meets regularly and health, including links to independent reported twice this year to the Vodafone Group scientific research. Plc Board about developments in science, policy and compliance.
1 International guidelines set by ICNIRP were incorporated into the Council Recommendation of 12 July 1999 on the limitation of exposure of the general public to electromagnetic fields (0 Hz to 300 GHz). Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 58
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations Our people We employ around 92,000 people and work with over 10,000 contractors globally. Our business performance and our customers’ experience depend on our ability to attract, develop and retain talented individuals at all levels.
Our people are fundamental to every aspect of our Vodafone strategy and are committed to delivering a superior network performance and providing exceptional customer experience. This chapter outlines our approach to supporting our employees through developing skills and capability, building a diverse and inclusive business, supporting wellbeing and managing change.
Developing skills and capability 60 Building a diverse and inclusive business 61 Wellbeing 63 Managing change and reorganisations 64 Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 59
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations
Our people
We strive to create an open, diverse Employee engagement Vodafone’s Global People Survey results (%) and inclusive environment in which Every year, we run our online Global People all employees feel equally valued and Survey across our entire workforce to help 2018 2019* us to assess our employees’ concerns and understand that ethical conduct is Overall response rate 85 87 aspirations. It is anonymous, confidential and critical to our business success. conducted by a third-party provider. Our senior Employee Engagement Index 79 80 We are very clear about the behaviours we leadership team uses it to identify shortcomings Manager Index 80 82 expect from everyone who works for Vodafone. highlighted by employees and to plan remedial These are defined by our global policies and action. Managers and their teams also discuss Engagement and values and implement changes based on the findings. set out in our Business Principles and Code of I am proud to work for Vodafone 83 85 Conduct. They are also reinforced in The Digital This year, 87% of our employees responded: a Vodafone Way, the guidance we provide to all our Vodafone is socially responsible 83 85 two percentage point decrease on the previous employees on how they should behave in order year. The 2019 survey demonstrated that 85% of Training to ensure Vodafone is admired and respected employees who responded are proud to work for by our customers and by society as a whole. I have opportunities to learn the skills 77 80 Vodafone. The overall Engagement Index score Speed, simplicity and trust remain our three and knowledge I need to do my job well – demonstrating employees’ desire to continue core principles. working with Vodafone and their inclination to Diversity and inclusion recommend us as an employer – increased by Employee statistics* People in my team are treated 85 90 one percentage point this year, to 80%. fairly regardless of their age, gender, 2017 2018 2019 Respondents were also asked for their views disability, sexual orientation, cultural background or beliefs Average number 92,200 91,980 92,005 of their individual line managers. The resulting of employees Manager Index score also remained high, at 82%, People have an equal opportunity to 78 82 and 88% of employees said they felt they are succeed at Vodafone, regardless of their Part-time employees 8,310 7,979 7,560 treated with respect as an individual. age, gender, disability, sexual orientation, cultural background or beliefs Total number of 12,378 11,644 12,339 voluntary leavers I am treated with respect as an individual 85 88
Total number of 4,225 3,912 3,680 I feel able to be myself at work 83 87 involuntary leavers I am comfortable expressing my views and 80 83 Newly hired 16,380 14,837 17,276 opinions at work employees Health, safety and wellbeing Average turnover 18% 17% 17% rate (%) The Absolute Rules for Health and safety 88 89 are taken seriously at Vodafone * 2017 and 2018 data has been restated to exclude employees from our joint ventures in the Netherlands and India, and Vodafone Qatar which My manager takes genuine interest in the 83 84 was sold in March 2018. wellbeing of his/her employees
* The survey was conducted in October 2018. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 60
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations
Developing skills and capability
Our industry is evolving at great speed. Equipping our people with the right skills Developing digital leaders world came together in locations throughout the New platforms and technologies are Building our employees’ skills through Clear, effective and flexible leadership is critical Vodafone footprint, listening to industry experts driving demand in artificial intelligence continuous development programmes is to our business success. All of our leaders, from and Vodafone leaders and working together to an essential component of driving business the supervisor early in their career to the most fine-tune their capabilities to become the senior machine learning, cloud computing leaders that Vodafone needs for the future. and data analytics. This means we performance, and this year we invested more senior global executive, are expected to serve as than €60 million in learning and development. positive role models for their teams. Engaging our employees on our policies need to look continuously at what Our programmes take many forms, from This year we identified the key shifts that Everyone who works with us makes a formal critical skills our people need to have structured learning and formal training, to leaders need to make in order to lead effectively commitment to follow our Code of Conduct at personal coaching and mentoring. During the to ensure we have the organisational in a digital environment. With this information, all times. Our Doing What’s Right training and year, we provided an average of 20 training hours capability to succeed now, and that we we refreshed our global leadership communication programme is key to embedding for every employee, with 97,300 of our people are investing in developing the skills development programmes. in our daily work a shared understanding over the year completing at least one course on of the Code of Conduct across Vodafone. we will need in the future. Vodafone University, our global learning platform Our new Digital Leadership Essentials Throughout the year, Doing What’s Right that allows our employees to access local and programme was completed by 83% of all Last year, we launched a strategy to increase communications promoted different areas of our global learning content from any device. new managers within their first 120 days. our information technology capabilities and Code, from Speak Up, anti-bribery and privacy This programme enables new leaders to build rolled out programmes to ensure people adopt Our employees welcome these programmes; to competition law, security, and health and their self-awareness and practise key techniques agile ways of working so we can respond much in the 2019 Global People Survey, 80% of safety. Doing What’s Right training is included to build high-performing individuals and more quickly to the needs of our customers. employees surveyed said that they benefited in our standard induction processes for new teams. Also this year, we launched an online Over the last year, 8,500 of our employees have from opportunities to learn the skills they employees, and current employees complete programme in partnership with LinkedIn completed training on the agile mindset and needed to do their jobs well. refresher training every two to three years. scrum methodology. There has also been an Learning to provide all our colleagues with increased focus on building capabilities in data Throughout this year, a core focus was access to leadership development. The Read more on our approach to increase analytics (the ability to analyse and interpret developing digital skills across the organisation programme emphasises the importance of the number of digital opportunities large volumes of data), application program and leadership and management skills influencing others, leading and working in provided by Vodafone to young people interfaces, coding, robotics and automation. needed for agile and digital working. We also teams, simplifying internal processes and on page 25. evolved our Vodafone University to enable ensuring that decisions and actions are taken With our network being a core part of our recommendations for relevant courses based on with the customer in mind. strategy, we are also reviewing our capabilities identified skills and launched a programme with We invest in leaders of the future, and this year in this area. For example, to support the rollout LinkedIn Learning, a content platform with over over 60 participants engaged in our refreshed of 5G, we are reskilling our engineers in data, 10,000 pieces of new content. automation and coding to help Vodafone create Inspire programme. Participants from across the the best platform to deliver 5G services. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 61
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations
Building a diverse and inclusive business
It is fundamental that our employees in, Vodafone’s activities. This expectation, Focusing on LGBT+ inclusion LGBT+ youth feel they belong. In our 2019 mandated in our Code of Conduct, applies We focus on creating an inclusive working This year we increased our focus on supporting annual Global People Survey, 87% across all of our businesses, to our employees’ environment for employees who identify the LGBT+ youth community. Vodafone interactions with all individuals regardless of of our employees felt they were as lesbian, gay, bisexual, transgender or commissioned research to survey more than gender, sexual orientation, gender identity, other sexual orientation and gender identity 3,000 LGBT+ young people across 15 countries able to be themselves at work. Our disability, race, age or any other factor. categories (LGBT+). Our global executive sponsor and multiple industries. The research found that employees should never be subject In our aspiration to become the world’s best for LGBT+, who is a member of our senior more than half (58%) of young LGBT+ people to discrimination and 90% of our employer for women by 2025, increasing the leadership team, provides leadership on LGBT+ are not open about their sexual orientation or employees said they felt treated fairly, proportion of women in management and inclusion and raises the profile of LGBT+ topics. gender identity at work because they worry regardless of age, gender, disability, senior leadership roles is a core focus of our A further 20 executive sponsors from the senior they will face discrimination from managers and sexual orientation, gender identity, global diversity and inclusion programmes. leadership team in local markets and at Group colleagues. It also found that one in three (31%) level support their area of business. LGBT+ people admitted that they went ‘back into cultural background or beliefs. Read more about our goals and the closet’ when they started their first job. This programmes to achieve our aspiration For the second year, Stonewall recognised We expect those who work with us to conduct figure rises to 41% among 18 to 25-year-olds. in the Women’s empowerment section Vodafone as a Top Global Employer. We also themselves with dignity and respect in their of this report. received additional recognition in the form of To help create a culture where employees can dealings with customers, co-workers, partners, a Global Senior Champion Award in 2018. In be open about their sexual orientation and suppliers, local communities and any other Also see our Gender Pay Gap Report the UK, Vodafone jumped 10 places from our gender identity, Vodafone has launched a stakeholders affected by, or with an interest online, produced for our UK businesses. previous year’s ranking to reach position 32 in number of initiatives. the Stonewall Top 100 Employers list this year, Vodafone has also shared the research with the LGBT+ Friends Network also being Vodafone is committed to supporting LGBT+ people at work with: it conducted with a number of FTSE 100 highly commended. companies and our suppliers, and hosted LGBT+* inclusive messaging on job adverts and career channels Understanding our LGBT+ population roundtable discussions to encourage other This year, for the first time, colleagues across employers to also take up these initiatives. A global ‘buddying’ programme for LGBT+ graduates Europe, New Zealand and South Africa had the Our established global LGBT+ employee option to provide their sexual orientation and network, LGBT+ Friends, supports managers gender identity as part of the annual Global People A refreshed Code of Conduct which will support LGBT+ inclusivity and employees and connects them with active Survey. 1.3% of the population identified as lesbian networks in 14 countries. or gay, 1.1% as bisexual and over 4% indicated that Graduate, induction and leadership training programmes they would ‘prefer not to say’. In addition, less than During the year, we supported Pride events in to support, retain and help attract LGBT+ employees 1% of the population identified as transgender. 15 of our local markets. Our Group Chief Executive We believe there is an opportunity for more work also hosted a global webinar and was joined by Toolkit for managers to create an LGBT+ inclusive workplace to be done so that our LGBT+ employees feel chief executives from 11 different markets. In comfortable to identify themselves. addition, we participated in Spirit Day (which highlights challenges such as bullying for young An interactive learning programme for all accreditation LGBT+ people), holding events in nine countries.
*Lesbian, gay, bisexual, transgender and other identities Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 62
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations
Increasing cultural understanding Multicultural network launch and awareness across countries In response to feedback from our ethnic Vodafone is a multicultural company. We employ minority community, this year we launched our people from 131 different nationalities across Multicultural Inclusion Network at Vodafone UK 21 local markets, with members of our global and Group functions based in the UK to create senior leader team drawn from more than 28 an internal support group for managers and different nationalities. employees. Baroness McGregor Smith attended the launch event on 3 October 2018, and the We encourage our managers to broaden their network currently has over 450 members. An understanding of other cultures and believe they executive sponsor and a network chair have benefit professionally from assignments outside been appointed, along with leads for different their home nation. 45% of our senior leaders locations across the UK. have completed an international assignment at some point during their career with Vodafone. Creating awareness about our disabled population Understanding our ethnically diverse population in the UK In order to improve the inclusivity of our approach, this year we created a digital This year we worked to understand more ‘disABILITY’ site for all our employees, which about the experiences of our colleagues from provides guidelines, videos and toolkits to ethnic minorities, particularly in the UK. With create awareness around this topic, increase the support of EMPower, Black and Asian the knowledge of our colleagues and give colleagues participated in focus groups to build guidance on what they can do to create a more an understanding of their experiences and what inclusive culture. We also conducted a review further support is needed. of our websites to increase the accessibility for In addition, this year the annual Vodafone our colleagues. Every year Vodafone features Global People Survey included ethnicity as a internal and external best practices on what demographic, asking people to declare this on markets are doing for colleagues, customers, a voluntary basis. The survey found that of the communities or co-partners during a global 13,470 respondents from the UK (representing webinar. Over 2,800 colleagues viewed last over 80% of the UK employee population), 11% year’s webinar, which featured personal stories were from Black or Asian ethnic groups, and a from colleagues and showcased products that further 4% indicated they were from mixed or Vodafone has developed to support customers other ethnic demographics. with disabilities. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 63
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations
Employee wellbeing
Helping our employees to stay safe, requirements. Market wellbeing teams develop fit and healthy is a priority for us. It initiatives tailored to local needs and share contributes to productivity, reduces information and best practice through our Health, Safety and Wellbeing Network. Our absenteeism and creates an attractive global Health, Safety and Wellbeing objectives working environment for all employees. measure employee wellbeing. Year on year, In 2016, we launched our wellbeing framework. our annual Global People Survey question ‘My The framework focuses on six key aspects manager takes genuine interest in the wellbeing of wellbeing and is designed to support the of his/her employees’ achieves consistently high development and implementation of employee scores (84% in the most recent survey). wellbeing activities in all of our markets. The framework is a guideline to help us to achieve optimal wellbeing for all of our people, Supporting employees to thriVe respecting cultures, available resources and In October 2018, we launched a new digital web and mobile wellbeing platform, thriVe, for employees who work for Vodafone UK and UK-based Group Our wellbeing framework employees. The UK launch was the first stage in the forthcoming rollout of the platform to all Vodafone markets. The mobile platform provides access to a number of health and wellness tools, Digital Emotional & along with information and resources for Balance Mental people working in more remote locations. thriVe is also available to our employees’ family and friends, encouraging employees to engage more broadly Physical Financial to help motivate and support others to maintain a healthy lifestyle. thriVe offers a wellbeing self-assessment to help people identify strengths and Connections & Purpose & opportunities for improvement. People Community Growth can then set goals and participate in challenges to help drive their progress. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 64
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations
Managing change and reorganisations
The pace of change in technology and recruitment events. We also offer training means that our industry is always to improve interview techniques and CV- evolving. Vodafone must continue writing skills. Any reorganisation is conducted in compliance with local legislation and in to respond to the changing world to consultation with employee representatives, remain sustainable and take advantage works councils and local unions. of new opportunities and challenges. Supporting employees through change in Spain Employee consultation Vodafone Spain is one of our markets where we have made a number of organisational Over the last year, there have been a number We recognise the rights of employees to join changes during the year to support our new strategy and operating model. As part of of organisational changes in both the global trade unions. In Europe, we also consult with the restructuring process, we reached an agreement with all eligible works council offices and local markets. Demand for services our employees through the Vodafone European representatives and, in addition to enhanced severance packages, the collective continues to grow exponentially, but this is not Employee Consultative Council, which meets agreement included a nine-month outplacement programme and the provision of the case with prices, which means that Vodafone twice a year and gives employee representatives specific training for employees seeking to become entrepreneurs in the future. Both of has had to respond to continue to compete in an opportunity to raise any concerns with our these provisions aimed at helping employees remain in the workforce once they have all segments within our markets. In addition, our executive management team. left Vodafone. customers demand an agile, simple and instant relationship with us, which means that we need a simpler organisational model that strengthens coordination and synergies between teams. We will continue to invest in strengthening our business model to protect our capacity to invest and design a more competitive organisation. When we need to reorganise part of our business, we engage with employees directly to discuss the implications of the planned reorganisation and the options available to those individuals potentially affected by it. Proposed changes are communicated clearly in team briefings and (when appropriate) one-to-one meetings led by line managers and human resources teams. Our managers and human resources partners work closely with teams to support them through the change and answer any questions employees might have. Where proposed changes result in redundancies, we aim to help affected employees find new jobs, either by identifying other opportunities within Vodafone that suit their skill set, where appropriate, or through outplacement services Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 65
Appendix Find out more about our governance process, the scope of our reporting, environmental management, materiality and read Grant Thornton’s Assurance Statement.
Managing and reporting on sustainable business 66 Materiality 68 Environmental management 69 Scope of reporting 70 How we report our key performance indicators 71 Independent Limited Assurance Report 79 Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 66
Managing and reporting on sustainable business
Vodafone’s sustainable business management We publish an annual statutory Conflict and reporting systems focus on activities Minerals Report (in line with US regulatory and risks that are both potentially material requirements) and an annual Slavery and Human to our business and are of greatest interest Trafficking statutory statement (in line with the to our many and diverse stakeholders. In this requirements of the UK Modern Slavery Act appendix to the Report, we provide an overview 2015). This year, we also published Vodafone’s of the governance processes that underpin our second UK Gender Pay Gap Report as required approach and summarise the methodology under the Equality Act 2010 (Gender Pay Gap used to identify the most important business Information) Regulations 2017. These statutory and socio-economic themes that are now at documents are available on the Sustainable the centre of our sustainable business strategy. Business section of our website. We report on progress against our sustainable In this appendix, we provide an overview business strategy annually, in parallel with of our governance and our environmental the Vodafone Group Plc Annual Report, which management approach, a summary of the contains key highlights and progress on our scope of our sustainable business reporting, sustainable business strategy. During the year, a list of our key performance indicators and we also publish separate transparency reports an Assurance Statement from Grant Thornton. on two areas of significant public debate: In addition, our Index of Conformance with Tax and our total economic contribution to the Global Reporting Initiative (GRI) Standards public finances and on law enforcement and can be found on our website here. freedom of expression matters within our Digital Rights and Freedoms Reporting Centre. Additionally, we provide detailed information regarding electromagnetic frequency emissions from mobile devices and base stations in a dedicated area of our website.
GRI Standards Index Our 2019 Sustainable Business Report has been prepared in reference to the GRI’s Sustainability Standards 2016. The GRI Standards allow companies to report their material impacts for a range of economic, environmental and social issues. Read our 2019 GRI Standards Index Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 67
Governance core business owners within the Group’s global Our sustainable business strategy has been senior leadership team while supporting the Sustainable business governance structure designed to ensure close alignment between our operational delivery of Vodafone’s sustainable business goals and the maximum possible socio- business agenda in conjunction with sustainable economic benefit achievable as a consequence business specialists in each of our local markets. Core accountabilities and responsibilities of these goals. Realising that ambition requires The Group Executive Committee (ExCo) – Vodafone Group Plc Board strong corporate governance at multiple levels chaired by the Group Chief Executive – has of our businesses. Leadership vision is critically overall accountability to the Vodafone Group – Ultimate accountability for Vodafone’s important – so too is ensuring a commitment to Plc Board for Vodafone’s sustainable business sustainable business strategy. effective operational implementation. performance. The Group Director of Corporate Affairs defines and leads Vodafone’s sustainable The Group Sustainable Business team defines CEO and Executive Committee (ExCo) and leads Vodafone’s activity in this area. The business strategy worldwide and is responsible strategy summarised in the Report was created for the activities of the Group Sustainable with input and advice from a wide range of Business team. The Group Director of Corporate Affairs reports to the Group External Affairs stakeholders – as we explain below – and was – Sets overarching sustainable Director who is a member of the ExCo. formally approved by the Group Executive Sustainable Business is led by Group business direction. Committee in November 2015. The ExCo regularly reviews the progress of Corporate Affairs Director, reporting to – Responsible for sustainable business the sustainable business strategy. All external Group External Affairs Director (ExCo) The Vodafone Group Sustainable Business strategy and performance. team works with Vodafone’s local market and publications – including this Report – are professional function teams to advance the reviewed by the Vodafone Group Disclosure various programmes, projects and initiatives Committee. The Committee is responsible for – Implements strategy. ensuring the accuracy and timeliness of Group discussed in this Report. Implementation of Group Sustainable Business team – Engages with and supports the business disclosures and approves, on behalf of the Group the sustainable business strategy relies on through Group and local market teams. leadership within the relevant business areas Chief Executive, the controls and procedures together with a strong partnership with the related to the release of financial and non- – Engages with key external stakeholders. Vodafone Group Sustainable Business team. The financial information. The Vodafone Group Plc team provides expert advice and guidance to Board receives an update on the progress of the Group sustainable business strategy once a year. Local Group functions markets Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 68
Materiality
During 2016, we conducted a materiality In designing our sustainable business strategy, Our ten priorities assessment of our ten priorities, using the GRI we took into account factors including: Principle of Materiality, to identify the most – insights from our engagement with Digital rights including privacy, data protection and security important social, economic, environmental peers, NGOs and civil society activists and and ethical factors of greatest relevance to sustainable business specialists; our businesses and to society as a whole. That Socio-economic benefits arising from our products and services assessment was informed by the views of a wide – a review of existing and emerging issues that range of stakeholders and, in turn, led to the are the focus of ongoing public debate in creation of our sustainable business strategy. multiple countries; Management of supply chain risks Understanding stakeholder views – global socio-economic trends, such as Many people and organisations have an climate change and youth unemployment; Health and safety interest in what we do and how we work. – a review of the issues covered in the GRI Our stakeholders include: Standards; Business conduct and ethics – consumer and enterprise customers; – the priorities identified in the United Nations – shareholders and investors; Sustainable Development Goals (SDGs); and Corporate taxation and total economic contribution £ – employees; – an evaluation of how the Principles of the Blueprint Framework for Better Business – suppliers and partners; would apply to Vodafone. Public concerns regarding electromagnetic frequency emissions – governments and regulators; We used the Global e-Sustainability Initiative’s materiality tool (specifically designed for use – local communities; Employee equality and diversity within the communications industry) to analyse – non-governmental organisations (NGOs) these factors and then rank them in a materiality and civil society activists; and matrix. That analysis resulted in the identification Energy consumption and greenhouse gas emissions CO2 – industry peers. of 24 issues that we considered to be the most material, both for Vodafone and for society as a whole. We then mapped those 24 issues against Customer relationships the five Principles of the Blueprint Framework for Better Business to identify ten overarching priorities of equal impact and importance. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 69
Environmental management
All of our local markets operate environmental – the Waste Electrical and Electronic management systems that encompass factors Equipment Directive in EU countries; such as energy consumption, waste management – the EU’s Registration, Evaluation, and water usage. These systems are certified to Authorisation and Restriction of Chemicals international standard ISO 14001 in the Czech Directive; and Republic, Greece, Portugal, Romania, South Africa, – the EU’s Energy Efficiency Directive. Spain and the UK. We have a number of initiatives in place to reduce Managing waste the energy used in our office buildings and We implement resource efficiency and waste administrative systems, and to help our employees management programmes in all our local markets reduce their own carbon impact. Several of in order to minimise emissions from the end-of- our offices are LEED (Leadership in Energy and life treatment of network waste, IT equipment Environmental Design) certified and rated on the and other office waste. Our Group policy on waste basis of their design, construction, operation and management prioritises the reuse or recycling of maintenance. The following Vodafone buildings unwanted equipment, safely and responsibly, to have been awarded certification under the help keep resources in use for as long as possible, Commercial Interiors category: extracting the maximum value from equipment – Vodafone Spain headquarters, Germany while in use and then recovering and re-using headquarters, office and call centre in Turkey materials before recycling them responsibly. headquarters – platinum standard; Our electronic-waste (e-waste) impact – Vodafone Czech Republic headquarters – includes network waste such as base station gold standard; and equipment, air conditioning units, cables, waste from handsets, routers, transmission This year, we have established a new goal to aim Managing water – Vodafone Italy – gold standard for its equipment and device waste such as mobile for 100% reuse and recycling of our network Compared with businesses in other industries, offices in Padua and silver standard for its phones, accessories and tablets. In developed waste. We have also investigated ways to improve we do not use water intensively. This year, we used headquarters in Milan. markets, we use specialist e-waste contractors the reuse and repair of devices across our local 0.94 million m3, a decrease of 4.5% on last year. markets by assessing existing schemes across our Compliance with environmental that comply with international regulations, but in emerging markets managing waste can be more local markets which include: trade-in and device In South Africa, where water scarcity is a regulations challenging. Access to appropriate waste facilities buy-back schemes, drop-off boxes in retail stores, significant issue, Vodacom has invested in a Our environmental management systems are is often limited and there may be few legal freepost return envelopes and repair services to number of water efficiency initiatives to reduce designed to ensure compliance with relevant safeguards in place to ensure that potentially encourage customers to repair or return their old water consumption. These have included legislation in each local market as well as with hazardous substances are handled responsibly. devices and routers. planting water-wise, indigenous plants and European regulations, including: All our local markets are required to keep records installing rainwater harvesting at Vodacom’s In our own operations, we generated an estimated head office in Johannesburg. – the EU’s Restriction of the Use of Certain of their e-waste equipment and to use recycling 8.5 million kg of waste and we recovered and Hazardous Substances in Electrical and suppliers that are regulated, licensed or have recycled 93.9%. Globally, 99.5% of our network Electronic Equipment Directive; been assessed and approved through our supplier waste was sent for reuse and recycling. qualification processes. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 70
Scope of reporting
Performance data included in the scope of – countries in which we are required to hold Vodafone Foundation Setting revised baselines after this Report: an operating licence in order to provide local Within this Report, we highlight some of the acquisitions, disposals and changes customer support to multinational enterprise – our operating companies in 21 countries activities of Vodafone Foundation as these in operational control customers but where we neither own nor where we have operational control: Albania, complement much of the Group’s sustainable The inclusion or exclusion of data from business operate any licensed telecommunications Czech Republic, Egypt, Germany, Ghana, business strategy. However, Vodafone units that have been acquired or sold, or where network infrastructure; and Greece, Hungary, Ireland, Italy, Malta, Foundation’s activities overall are not within there is change in operational control (for New Zealand, Portugal, Romania, Spain, – retail stores that are Vodafone-branded the scope of this Report. Vodafone Foundation example, through a merger), is determined by the Turkey, the UK, Vodacom in South Africa by way of franchise and exclusive dealer supports projects around the world that are run date that the transaction in question is formally and Vodacom Group’s subsidiaries in the arrangements but are not owned or operated in partnership with charitable organisations concluded with all approvals received. and NGOs. Vodafone Foundation is a UK Democratic Republic of Congo (DRC), by Vodafone. Our policy on environmental data reporting is to Lesotho, Mozambique and Tanzania; and registered charity (1089625) and receives Exceptions: annual contributions from Vodafone Group Plc. include performance data from newly acquired – operations under Vodafone Global Enterprise businesses at the end of their first full year of – our M-Pesa customer numbers and our Through its Connecting for Good programme, and Vodafone Group Services. new ownership. In terms of setting a revised 50 million women emerging market target, Vodafone Foundation leverages the technology and expertise within Vodafone to maximise baseline to reflect acquisitions, disposals or a Performance data excluded from the scope of which both include our associate Safaricom in change of control, our policy is that: this Report: Kenya and Vodafone customers in India (data its charitable impact. Vodafone Foundation’s from Vodafone India is taken from August independence is key to its ability to work – acquisitions are built into the baseline using – joint ventures where Vodafone does not have 2018, prior to the merger of this business with globally with a wide range of partners to meet its either actual or estimated data at the end of operational control: VodafoneZiggo in the Idea to create Vodafone Idea. We are working charitable objectives. Vodafone Foundation also their first full year as a controlled subsidiary; Netherlands, Vodafone Hutchinson Australia, on appropriate methodology to account for sits at the centre of a network of 27 local social Vodafone Idea and Indus Towers in India and – disposals are removed from the baseline in the change in the business going forward); investment programmes, referred to as the our associate Safaricom in Kenya; local foundations. Vodafone Foundation has a the year of disposal; and – our safety performance numbers include – Partner Market networks in which Vodafone funding partnership with these local foundations – any identified errors >1% of the Group total data from India up until 1 September 2018. neither has any equity interests nor holds an to provide public benefit by investing in are re-baselined wherever possible. programmes that support communities in operating licence, including those Partner Any additional exclusions are noted in the text. Trade mark notice Markets that operate under the Vodafone Vodafone’s operating countries. On 31 August 2018, Vodafone announced the brand; Vodafone, the Vodafone Speech Mark, completion of the merger between Vodafone The future is exciting. Ready?, Vodacom and India and Idea to create Vodafone Idea. Vodafone M-PESA are trade marks of Vodafone. Other Idea is a joint venture controlled by Vodafone product and company names mentioned in and the Aditya Birla Group. Vodafone no longer this document may be the trade marks of their has operational control of this business, and respective owners. therefore, Vodafone Idea is no longer included into the Group performance data, apart from the exceptions highlighted above. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 71
How we report our key performance indicators
This section of the Report outlines the basis of Calculation of progress against our target of Progress against the goal of bringing - the Net Promoter Score conducted across preparation of the key performance indicators 30% women in management and leadership the benefits of mobile to an additional the Vodafone customer base in each local (KPIs) reported in the Women’s empowerment, roles includes the diversity figures for all 50 million women in emerging markets market; and Energy innovation, Youth skills and jobs, and management bands. by 2025 - the Vodafone brand tracking survey conducted Supply chain integrity and safety sections of the We also report on the percentage of female For the purposes of this goal, the definition of in each local market. Sustainable Business Report. management and leadership employees in our a connected woman is a SIM connection that is The number of women connected is then We publish our reporting definitions and Technology function. This is calculated using estimated to belong to a female primary user. estimated by calculating the percentage of methodology so that readers can understand data sources from two KPIs: This goal is calculated as the number of female customers as a proportion of the total the basis upon which the disclosures have • the percentage of management and leadership additional connected women at the end of number of Vodafone connections in each local been prepared and be in a position to make females in the Technology function (comprised the ten-year target period against the initial market, aggregated across the nine countries comparisons across different reports. of employees from local operating companies 31 March 2016 baseline. Progress towards the listed above. 1. Women’s empowerment and Vodafone Group); and ten-year target is reported at the end of each financial year. Given the nature of the target demographic – Diversity performance: % of female • the percentage of management and typically, women on very low incomes in poor employees leadership females supporting the The 50 million women target applies across nine communities – it is assumed that the very large We report the percentage of female employees Technology function within Vodafone emerging markets where we have an operating majority will not have a mobile phone in their across our four global employment bands: Shared Services. presence and where we believe we have the own right and, therefore, will not be customers greatest scope to make a difference. These of competitor mobile networks. However, it is not The diversity figures are based on the number of • senior leadership (our top approximately 200 are Egypt, Ghana, India (Vodafone customers possible to distinguish between women who are employees (full-time/part-time) as at 31 March. employees) including ExCo members; only) and Turkey plus through our sub-Saharan new to mobile and women who already have a • senior management (1,100–1,600 These numbers are not pro-rated. An employee subsidiary Vodacom Group, DRC, Mozambique, mobile and are switching networks. is defined as a person with an employee South Africa, Tanzania and Kenya through our employees); The calculation via customer survey of the (as opposed to consultant or contractor) associate Safaricom. proportion of women reached is subject to • middle management (6,000–7,500 relationship with Vodafone (or its operating The process used to estimate the number of the risks inherent to this kind of sampling and employees); and companies), who is paid by Vodafone (or its women connected is as follows: does not distinguish between existing and new operating companies) through the payroll. • the non-management employees who make customers. Assumptions are therefore made This includes graduates and people on • the total number of connections (for both up the rest of the population. based on the entire customer population in international assignments as well as people on male and female customers) is calculated a market. Each of these categories is defined through a work experience who are on the payroll or have based on the closing number of active consistent global role-banding process overseen been at Vodafone (or an operating company) for customers at the end of each financial by the Vodafone HR function. longer than six months. The numbers exclude year; and pensioners and non-employees. • the percentage of female mobile customers is calculated using information from two surveys over a selection of customers in each market: Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 72
2. Youth skills and jobs of five digital job types that best suit. This data Opportunity Sub-category Definition Number of young people supported is collated via the use of Google analytics. Direct hires N/A Any individual hired into full or part-time to access digital skills, learning and The Future Jobs Finder tool is a global online employment opportunities platform and as such could be completed by employment who is aged 26 or below at the anyone, and we do not actively track the age of point of joining Vodafone. Our goal is to support 10 million young people the users who are completing the tool. As the Workplace Work experience Offered to individuals between 14 and 19 to access digital skills, learning and employment tool is heavily targeted towards young people experience and years of age. This is an opportunity to join opportunities by 2022. This goal incorporates (e.g. through targeted social media campaigns), our internal target, which is to provide 100,000 we report the total number of unique users training Vodafone for up to one month unpaid to gain opportunities for young people to receive a who complete this step of the tool, rather than experience of the working world. digital learning experience at Vodafone. It also segmenting the age of users. Digital learning workshops Opportunities to gain a direct digital incorporates additional initiatives, such as the learning experience, facilitated by Vodafone. number of people who have completed our Number of opportunities for young An example includes Vodafone Turkey Future Jobs Finder tool (read more about the people to receive a digital learning tool on page 21). experience at Vodafone Foundation’s Coding Tomorrow programme (see page 23). The number of completions of the Future We report on the number of opportunities #Codelikeagirl Inviting girls aged 14–18 to learn how to Jobs Finder tool is defined as the number of we offer to young people to receive a digital unique users who complete the first quiz in learning experience at Vodafone. This number is code through a four-day workshop the tool, which focuses on the user’s interests broken down into five categories, each of which Apprenticeship N/A Open to individuals aged 16+ who will and affinities and matches the results to a set is defined through consistent global guidelines join Vodafone to study for a professional (see table on the right). qualification and work at the same time. Internship N/A Open to individuals aged 18+, offering short- term assignments from between one and 12 months. Graduate N/A Our Discover programme offers graduates a recruitment two-year placement with Vodafone, where they will rotate across business divisions. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 73
3. Energy innovation Data gathering process and methods Scope 1 Scope 2 Overview We use an electronic data collection process to These are emissions within our direct control and These are emissions from electricity (and heat/ We report energy and greenhouse gas (GHG) gather our data. In the majority of the countries include those from: steam) purchased to power our networks, where we operate, energy usage data is based technology centres, offices and retail stores. emissions data for the following indicators: – diesel, petrol and other fuel used by cars and on invoices from our energy suppliers. In some commercial vehicles owned by Vodafone or We report two different Scope 2 emission values: – energy consumption by fuel source (in GWh); countries, those bills are based on the supplier’s leased for six months or more; one using a ‘location-based’ method and one estimated readings. – energy consumption by type (in GWh); using a ‘market-based’ method. The location- – natural gas and other heating fuels used for Where data does not match our reporting period based method involves using an average – renewable electricity consumption (as a space heating and hot water in our premises; percentage of total grid electricity); exactly – for example, where we only have 11 emissions factor that relates to the grid on months of data – we forecast this information by – diesel and petrol used for generators in which energy consumption occurs. This usually – Scope 1 GHG emissions (in carbon dioxide extrapolation. For sites where energy invoices off-grid areas, or where back-up capacity is relates to a country-level electricity emissions equivalent (CO2e)); are unavailable, we estimate this information required; and factor. The market-based method applies if based on typical site consumption. the company has operations in any markets – Scope 2 GHG emissions (in CO2e) using both – fugitive releases of refrigerants or fire where energy certificates or supplier-specific the location and market-based methods of Increasingly, we measure our energy suppressants used for air-conditioning or fire information are available. The method involves calculation; consumption through smart metering, a control systems in network buildings and using an emissions factor that is specific to technology that uses mobile communications to offices. – Scope 3 GHG emissions (in CO2e); the electricity purchased. We have reported collect real-time consumption data from energy Conversion factors from the UK government’s Scope 2 figures using both the location-based – total GHG emissions Scope 1 and 2 (in CO2e); meters. and Department for Business, Energy and Industrial and market-based methodologies. Renewable electricity definition Strategy have been used to calculate GHG – total GHG emissions per unit of mobile data Our figures for renewable electricity include all emissions from other fuel sources such as diesel, (in tonnes CO2e/petabyte data). renewable electricity from third-party renewable petrol, natural gas and fuel oil as well as those Standards and guidance suppliers which is traceable to Vodafone through from vehicles. A conversion efficiency of 30% has been used for diesel generators. Our methodology for the reporting of GHG a signed contract or provision of surrendered emissions has been developed using the renewable energy certificates (RECs). The figures following guidance and standards: exclude any renewables for which RECs have been passed on and retired by a third party. – GHG Protocol standards and guidance, including the Corporate Standard, Scope 2 Guidance and Scope 3 Calculation Guidance; – CDP guidance including the 2018 Climate Change Responders Pack and the Technical Note on Accounting of Scope 2 Emissions; and – the Climate Disclosure Standards Board Climate Change Reporting Framework. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 74
The following external factors have been used to calculate our market-based emissions. Location-based emissions Scope 3 Emissions are calculated using a kWh to CO2e With the Carbon Trust, we have conducted an in- Local market Source Conversion factor conversion factor provided by the IEA for the depth analysis of our Scope 3 emissions. These (kg CO2e/kWh) calendar year 2017, which was the latest dataset are indirect emissions that we do not directly Albania International Energy Agency (IEA) available at the time of publication. control but that we may be able to influence. Czech Republic Supplier factor and residual mix Zero and 0.614 They include emissions from our suppliers in Market-based emissions providing us with goods and services; emissions DRC IEA Emissions are calculated using a kWh to CO2e from our joint ventures where do we not have Egypt IEA conversion factor based on one of the following full operational control; and emissions Germany Supplier factors Various sources (in order of priority): associated with the use of our products Ghana IEA – supplier conversion factors specific to our and services by our customers. Greece IEA and residual mix 0.625 contract; these include some markets where The GHG Protocol Scope 3 Standard defines Hungary IEA and residual mix 0.413 supplies are 100% renewable, and where 15 categories of emissions as detailed in the this is this case, we have sought evidence of Ireland Supplier factors Zero and 0.641 table below. We have undertaken a qualitative singularity of supply; assessment of the extent to which we can Italy Supplier factor and residual mix Zero and 0.308 influence and reduce emissions in the most Lesotho IEA Zero and 0.465 – residual mix figures for 2017 – where the conversion factor reflects the removal of material categories. Further details of the Malta Supplier factor and residual mix 0.443 and 0.661 certificates, contracts and supplier-specific methodology and results for each relevant Mozambique IEA factors claimed by other organisations; and category are also shown. New Zealand Supplier factor 0.013 – location-based conversion factors as The estimation of Scope 3 emissions is a very Portugal Supplier factor and residual mix 0.411 and 0.383 described above. approximate process. The values given in the Romania Supplier factors Various table are not precise and are not intended to be South Africa IEA read as absolute figures. Rather, they provide an indication of where the most significant Spain Supplier factor and residual mix 0.270 and 0.446 emissions in our value chain arise and help Tanzania IEA 1.010 and IEA us to target our action. Turkey IEA 0.1500 and 0.3995 UK Supplier factors and residual mix 0.210, 0.281 and 0.367 Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 75
GHG Protocol category What does this mean for Vodafone? Emissions Methodology for assessment Ability to influence (million tCO2e) Purchased goods and services; Emissions from the extraction, production and 4.0 Calculated using an environmentally extended economic input-output approach High for some suppliers, more capital goods and services transportation of goods and services purchased by – this uses macro-economic modelling to determine the GDP value of different limited for others Vodafone (includes capitalised goods and services). sectors of the economy, and to associate that with the GHG emissions incurred by those sectors. At its simplest, the total GHG emissions of the sector are divided by the total GDP value generated by the sector to produce an emission factor of x kgCO2e/€ value. By multiplying these emission factors by the amount we spend on goods and services in each sector, we can obtain a rough estimate of our emissions for purchased goods and services. Fuel and energy-related activities Emissions from the extraction, production and 0.7 Upstream fuel and energy emissions are calculated by applying emission factors Moderate transportation of fuels and energy purchased by Vodafone produced by the UK Department for Environment, Food and Rural Affairs (DEFRA) and not already included in Scopes 1 and 2. It includes to Vodafone fuel and energy consumption data. emissions from electricity transmission and distribution. Upstream transportation and distribution Not calculated as this category is not material. Waste generated in operations Disposal and treatment of waste generated by our activities. 0.0008 Calculated by applying emission factors from DEFRA to data for waste generated High by Vodafone ready for treatment and disposal. Business travel Transportation of employees for business-related activities. 0.06 Calculated by applying emissions factors from DEFRA to distances travelled for High business by different modes (air, rail and personal car).
Employee commuting Not calculated as this category is not material. Upstream leased assets Operation of assets leased by Vodafone, including third- 0.05 Emissions have been estimated either by dividing the cost of electricity and Moderate party network sites. This includes the relevant sites leased diesel for these sites by unit price/kWh, or by extrapolating based on the number from tower companies in Greece (Victus), Tanzania, Ghana of leased sites and an average emission value per site obtained from Vodafone- and the UK (CITL). owned sites. Downstream Not calculated as this category is not material. transportation and distribution Processing of sold products Not relevant to Vodafone as we do not produce products for further processing. Use of sold products Emissions from the use of goods and services sold by 2.1 Calculated by multiplying the number of products sold by the energy usage for Low Vodafone, principally from the energy used by network that product and electricity emission factors on a country basis. The total is the equipment, such as routers, and the energy required to sum of all values. charge mobile devices. End-of-life treatment of sold products Not calculated as this category is not material. Downstream leased assets Not relevant to Vodafone as we do not have equipment or assets that we own and lease to third parties. Downstream leased assets Not relevant to Vodafone as we do not have equipment or assets that we own and lease to third parties. Franchises Not calculated as this category is not material. Investments Operation of investments not included in Scope 1 or 2 – our 6.0 For joint ventures in Australia, Kenya, India and the Netherlands, Scope 1 and 2 High joint ventures in Australia, Kenya, India and the Netherlands. emissions are based on actuals and Scope 3 emissions are extrapolated from Vodafone’s emissions. A percentage of emissions are reported based on our equity share. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 76
GHG savings for customers enabled by abatement from one of our IoT smart meter our products and services connections is 3% of annual GHG emissions from Our Internet of Things (IoT) products and a domestic home. services help our customers to reduce For each product and service, a unit of sale has electricity, gas and the consumption of other been identified – for example, the number of fuels through applications such as smart meters, smart electricity meter connections that we road navigation systems, fleet management and have sold. This unit of measurement is then mobile health. In each of these applications, our multiplied by the GHG abatement savings for IoT services are providing connectivity, enabling each type of application to provide the total our customers to reduce their GHG emissions. saving for that application. The value for each More examples are provided in the Energy product and service category is then added innovation section of the Report. together to give the total GHG emissions abated To quantify the GHG savings for our customers by our technology. enabled by our products and services, we have It should be noted that a number of suppliers calculated – in conjunction with the Carbon will contribute to providing an IoT application Trust – the total quantity of emissions that that enables a customer to avoid or reduce GHG we have helped our customers to avoid. The emissions. We have not attempted to apportion concept of the enabling effect of information emissions savings between ourselves and other and communications technology was introduced suppliers in the value chain. We are careful in in the SMART 2020 report, and the methodology our reporting not to claim the avoided emissions has since been developed by the Global as our own. Instead, we are clear that we are e-Sustainability Initiative (GeSI) and others. The one of a number of parties who have helped our GeSI Mobile Carbon Impact Report has been customers reduce their GHG emissions. Further used as guidance for many of our calculations, details of products and services, the mechanism according to the Carbon Trust methodology. for abating emissions and the abatement factors The starting point for the calculation is a used are provided in the table overleaf. list of our products and services that help Reporting the ratio of the GHG emissions customers avoid using energy or fuel. The full we help our customers reduce for every list is provided in the following table. For each tonne of GHG we generate from our own product or service, a GHG-saving mechanism operations has been identified and quantified based on an external study, an internal Vodafone study We report the quantity of GHG emissions that or documented expert assumptions. For we are enabling our customers to avoid – as example, we know that smart electricity meters calculated by the methodology laid out above – can typically reduce a domestic customer’s as a ratio against that of our total Scope 1 and 2 electricity usage by 3% per year – so the GHG GHG emissions. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 77
IoT application Description GHG abatement mechanism GHG abatement factor Smart metering (domestic) IoT-enabled meters, which regularly record utility Smart meters are seen as an important tool to reduce domestic utility Average electricity and gas usage reduction assumed is 3% consumption (gas, electricity or water) and communicate the consumption and manage utility networks more efficiently. Many studies per annum1. information back to the energy or utility company to allow have demonstrated that the installation of smart meters and associated remote reporting. initiatives have resulted in energy consumption reductions. Smart metering As per above but for commercial properties, which often Smart meters in commercial property provide visibility to building Average electricity and gas usage reduction assumed is (commercial) have multiple smart meters to isolate different areas of managers as to where and when an organisation is consuming energy 16.8% per annum2. consumption. or water. Smart meters have been shown to lead to energy savings, as consumption can be optimised remotely. Smart logistics and fleet management Connected telematics system that consist of an in-vehicle Connected buses can communicate with traffic light systems to prioritise Fuel saving assumed is 6%. This is applied to average annual (bus) unit (IVU) connected to a central server. This feeds back real- bus routes, improving fuel efficiency. GPS location services can also be emissions for a bus. time information on the GPS location of the vehicle, and may used to inform passengers of bus arrival times. Both features can help to include other performance metrics such as fuel consumption increase bus patronage and improve emissions per passenger. and driver performance. Smart logistics and fleet management Connected telematics system that consist of an IVU Fleet management systems may be used for optimised routing and Fuel saving assumed is 6%. This is applied to average annual (cars) connected to a central server. Within a car fleet this is avoiding congested areas, which directly reduces fuel consumption. emissions for a car3,4. primarily used for satellite navigation and feedback on driver Telematics systems can offer real-time feedback to drivers on their driving behaviour. Information may also be used for usage-based performance and behaviour. This technology is an enabler; the efficiency insurance. gains can only be realised if the driver acts in response to the feedback. Smart kogistics and fleet management As per above but for LGVs and HGVs. Commercial vehicle Optimised delivery and dispatch routing for goods vehicles ensures that Fuel saving assumed is between 2% and 10%, dependant (light and heavy goods vehicles (LGVs/ applications include optimised delivery and dispatch routing, unnecessary journeys are minimised, resulting in improved fuel efficiency. on classification and application. This is applied to average HGVs)) tracking of fuel consumption and monitoring of driver Telematics systems can offer real-time feedback to drivers on their driving annual emissions for an LGV or HGV. performance. performance and behaviour. This technology is an enabler; the efficiency gains can only be realised if the driver acts in response to the feedback. Smart logistics and fleet management Connected telematics system that consists of an IVU Carbon savings are achieved by taxis having fewer miles travelled without a Fuel saving assumed is 5%. This is applied to average annual (Taxis) connected to a central server. This is usually connected to customer, based on optimised central control and dispatch of the taxis. emissions for a taxi. passenger mobile applications to locate and summon nearby taxis. Multiple users may be connected to pool journeys.
5 Smart logistics and fleet management IoT-enabled units within smart bins communicate with waste The primary enablement mechanism is reduced journeys by waste Abatement factor of 5kgCO2e per smart bin was used . (smart bin) collection services to notify when they are full and prevent collection vehicles, resulting in fuel savings. unnecessary journeys being made by waste collection vehicles. Street lighting IoT-enabled street lighting allows variable levels of lighting, The carbon saving is achieved by avoiding the use of street lighting when Reduction in energy consumption of street lights assumed depending upon the time of day and extent to which people it is not necessary. Lower levels of lighting may also be used in less busy is 20%6. are nearby. areas.
Electric vehicle (EV) charging IoT-enabled EV charging points interact with electric vehicles The use of an EV over a traditional fuel vehicle has significant carbon Annual distance driven was calculated from the charge or driver mobile apps to direct drivers to the most appropriate savings. It is assumed each EV journey provided by the charging point provided by a charging point . The saving is the difference EV charging point, giving drivers the confidence to carry out replaces a traditional fuel journey. in emissions for that distance between an average petrol more journeys in EVs. vehicle and an EV7. Healthcare Connected devices allow chronic or high-risk patients to The emissions associated with one hospital stay are avoided by allowing Assumed 42% reduction in hospital admissions8. be monitored within their own home. This prevents excess the patient to remain at home. There are also the avoided emissions from journeys to and from the hospital by both patients and not having to make the car journey to and from the hospital. healthcare professionals, and frees up hospital beds. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 78
4. Supply chain integrity performance The JAC companies hold quarterly steering 5. Safety performance data Lost-time incidents Selection process for assessment committee meetings to review progress in Safety data is collected by the local markets Lost-time incident (LTI) is the term used when remediating shortcomings identified in JAC audits. Any supplier that provides a product or service to and then shared with the Group Health, Safety a Vodafone employee is injured while carrying Vodafone is screened for potential social, ethical Vodafone audits and Wellbeing team. The local market must out a work-related task and is unable to perform report, record and investigate all incidents. An his or her regular duties for a complete shift or and environmental risks, as defined by the Code Vodafone audits are conducted by either incident management system is used for the period of time after the incident. of Ethical Purchasing. Existing or new suppliers Vodafone’s internal auditors or by independent reporting, recording, investigation and action are then selected for assessment depending on a auditors on site at the supplier’s operation The lost-time injury rate is calculated as the tracking of incidents. number of different risks, including the supplier’s or factory using the JAC methodology and percentage of LTIs compared to the average scale, the countries in which the activity takes checklists. Follow-up audits are counted as Recordable fatalities number of employees over the reporting year. place and the nature of the activity. individual audits. We report all fatal incidents related to our Suppliers to Vodafone who also supply two Anonymous mobile phone-based surveys operations when – after investigation and or more other members of the Joint Audit review – we conclude that our controls were 1 Energy Demand Report, 4 Abatement factor derived Anonymous and confidential mobile phone- Ofgem from Smart Bin case study Cooperation (JAC) initiative (an association of not operating as effectively as required. We also based surveys of supplier employees and 2 Average figure used from 5 Abatement factor derived telecom operators aiming to verify, assess and consider circumstances where it is reasonable contractors are carried out by an independent a selection of case studies from Smart Bin case study develop supply chain practices in the industry) to assume that if our controls could have varying from 7.5% to 25% survey service provider, Elevate, using 6 Telensa city data and are audited through JAC assessments. Vodafone been enhanced, the outcome may have been see BBP Better Metering smart lighting pre‑recorded questions and an interactive Toolkit and ASB Bank and audits are typically focused on suppliers of different, including potentially preventing the 7 Transport for London voice response (IVR) system. The independent Vodafone M2M smart network infrastructure products and services, incident from occurring at all. We therefore metering electric charging vehicle provider is present on site distributing calling factsheet, 2014 Vodafone-branded consumer equipment report accidents both on our owned sites and 3 Various published and cards directly to groups of workers in factories unpublished studies 8 Telehealth interventions (such as mobile phones or set-top boxes) and also in areas that are outside our full control – and other work sites. The mobile phone-based indicate savings from reduce hospitalisation Vodafone Automotive IoT products. We also use for example, on public roads. We report every 5–15%, dependant on level by 55% and reduce A&E survey figures represent the number of unique admissions by 29%. An anonymous mobile phone-based surveys of life lost within the control definition stated of intervention. Examples mobile phone callers registering a survey of some published sources: average figure of 42% was workers to complement an on-site audit or as a above, irrespective of the individual’s status – used. response. The IVR questions are provided in A guide to Telematics, standalone assessment. whether an employee, contractor, suppliers’ Energy Saving Trust; audio form in the workers’ local language, and employee or contractor (of any Tier) or a Telematics Explained their responses are captured using touch-tone FIAG; and Mix Telematics Joint Audit Cooperation (JAC) member of the public. assessments keypads. The service works on all mobile phones, Furl Savings JAC audits are reported on a calendar-year basis including very low-cost basic devices. Where a fatal incident is under investigation by national authorities, we are typically unable while Vodafone audits are reported on a financial Tier year basis. The majority of JAC audits focus on to gain access to the authorities’ findings, and In the context of the Sustainable Business suppliers in Vodafone’s supply chain. therefore, unable to conclude our internal Report, a ‘Tier’ is defined as the level of investigation or include in our reporting until any The JAC audits are conducted by independent contractual separation between Vodafone and investigations are complete. We note any fatal auditors paid for by the JAC member companies. its suppliers downstream in the supply chain. incidents in our reporting that are still under Reports are issued in a standard format focused Tier 1 is defined as a direct supplier to Vodafone investigation. on verifying social, environmental and ethical with whom a contract or purchasing terms factors. Audits that are funded and conducted by are established. Tier 2 is defined as an entity Vodafone on behalf of the JAC initiative are not with whom a Tier 1 supplier has a contract or reported under the total number of Vodafone relationship. Tier 3 is defined as an entity that has audits to avoid double-counting. a contract or relationship with a Tier 2 supplier, and so on for Tiers downstream in the supply chain. ‘Tier’ in this context does not signify strategic importance or segmentation. Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 79
Independent Limited Assurance Report to Vodafone Group Plc
Grant Thornton UK LLP (‘Grant Thornton’ or of reporting’ and ‘How we report our key – measuring or evaluating and presenting the We apply International Standard on Quality ‘we’) were engaged by Vodafone Group Services performance indicators’ sections (together Subject Matter Information in accordance Control (UK) 1, ‘Quality Control for Firms Limited to provide limited assurance to Vodafone ‘the Reporting Criteria’) of the Appendix of the with the Reporting Criteria; and that Perform Audits and Reviews of Financial Group Plc (‘Vodafone’) over the Subject Matter Report. The Subject Matter Information needs Statements, and Other Assurance and Related – the preparation of the Report and the Information described below for the year ended to be read and understood together with the Services Engagements’ and accordingly we Reporting Criteria and their contents. 31 March 2019. Reporting Criteria. maintain a comprehensive system of quality Our responsibilities control including documented policies and Limited assurance conclusion Inherent limitations We are responsible for: procedures regarding compliance with ethical Based on the procedures we have performed Our procedures were designed to consider the requirements, professional standards and and the evidence we have obtained, nothing has collation of the Subject Matter Information and – planning and performing the engagement to applicable legal and regulatory requirements. come to our attention that causes us to believe were not designed to test the underlying market obtain limited assurance about whether the that the Subject Matter Information has not been level data. Our procedures were conducted at Subject Matter Information has been collated Assurance standards and level collated, in all material respects, in accordance the Vodafone Group Head Office and remotely in accordance with the Reporting Criteria; of assurance with the Reporting Criteria. at Grant Thornton offices. Physical visits to other We performed a limited assurance engagement – forming an independent limited assurance Vodafone locations did not take place. in accordance with International Standard This conclusion is to be read in the context of conclusion, based on the work we have on Assurance Engagements 3000 (Revised) what we say in the remainder of this report. The absence of a significant body of performed and the evidence we have ‘Assurance Engagements other than Audits established practice on which to draw obtained; and and Reviews of Historical Financial Information’ Subject Matter Information to measure or evaluate the Subject Matter – reporting our limited assurance conclusion (ISAE 3000) and, in respect of the greenhouse The scope of our work was limited to assurance Information allows for different, but acceptable, to Vodafone. gas emissions information included within over the information included within Vodafone’s measurement or evaluation techniques the Subject Matter Information, in accordance Sustainable Business Report (‘the Report’) for and can affect comparability between Our independence, professional with International Standard on Assurance the year ended 31 March 2019 as set out in entities and over time. In particular we standards and quality control Engagements 3410 - ‘Assurance Engagements Appendix 1 to our report (‘the Subject Matter draw attention to the methodological and We have complied with the independence on Greenhouse Gas Statements’ (ISAE 3410), Information’). assumption-based limitations Vodafone and other ethical requirements of the Code of issued by the International Auditing and have disclosed in the Reporting Criteria. Our assurance does not extend to any other Ethics for Professional Accountants issued by Assurance Standards Board. These standards information that may be included in the Report Directors’ responsibilities the International Ethics Standards Board for require that we plan and perform this or displayed on Vodafone’s website for the The Directors of Vodafone are responsible for: Accountants which includes independence and engagement to obtain limited assurance about current year or for previous periods unless other requirements founded on fundamental whether the Subject Matter Information is free otherwise indicated. – the design, implementation and principles of integrity, objectivity, professional from material misstatement. maintenance of internal control relevant to Reporting Criteria competence and due care, confidentiality and the preparation and presentation of Subject professional behaviour. The Reporting Criteria used for the measurement Matter Information that is free from material or evaluation of the Subject Matter Information misstatement, whether due to fraud or error; and to form our judgements are Vodafone’s Basis of Preparation as set out in the ‘Scope – selecting and/or establishing suitable Reporting Criteria; Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 80
A limited assurance engagement is – performing selected limited substantive – reading the Report and narrative substantially less in scope than a reasonable testing including agreeing a selection of accompanying the Subject Matter assurance engagement in relation to both the collated Subject Matter Information to a Information in the Report with regard to the the risk assessment procedures, including selection of the Vodafone market level data Reporting Criteria, and for consistency with an understanding of internal control, and submissions submitted by Vodafone markets our findings. Grant Thornton UK LLP the procedures performed in response to the to the Vodafone Group Head Office; Chartered Accountants assessed risk which vary in nature from, and are Intended use of this report Reading – considering the appropriateness of a less in extent than for, a reasonable assurance This limited assurance report, including our 31 May 2019 selection of selected carbon conversion engagement. Consequently, the level of conclusion, is made solely to Vodafone in factor calculations, and other calculations assurance obtained in a limited assurance accordance with the terms of our engagement used by Vodafone to collate the Subject engagement is substantially lower than the letter dated 18 March 2019. That agreement Matter Information including by reference assurance that would have been obtained had permits disclosure to other parties, solely for to widely recognised and established a reasonable assurance engagement been the purpose of Vodafone showing that it has conversion factors; obtained an independent limited assurance performed. Accordingly, we do not report a The maintenance and integrity of Vodafone’s report in connection with the Subject Matter reasonable assurance conclusion. – re-performing a selection of selected website is the responsibility of the Directors Information. Our work has been undertaken calculations used by Vodafone to collate the of Vodafone; the work carried out by us does Work performed so that we might state to Vodafone those Subject Matter Information; not involve consideration of these matters Considering the circumstances of the matters we are required to state to them in an and, accordingly, we accept no responsibility engagement our work included, but was not – agreeing a selection of the relevant prior independent limited assurance report and for no for any changes that may have occurred to restricted to: period and baseline data to previously other purpose. the reported Subject Matter Information, the reported data where these were used in the We have not considered the interest of any – assessing the suitability of the Reporting Report or the Reporting Criteria presented calculation of the Subject Matter Information, other party in the Subject Matter Information. Criteria as the basis of preparation for the including re-performing a selection of the on Vodafone’s website since the date of our Subject Matter Information; calculations; To the fullest extent permitted by law, we do not limited assurance report. accept or assume responsibility and deny any – assessing the risk of material misstatement – performing analytical review procedures liability to any party other than Vodafone for our of the Subject Matter Information, whether over the collated Subject Matter Information, work or this limited assurance report, including due to fraud or error, and responding including a comparison to the prior period’s our conclusion. to the assessed risk as necessary in the amounts having due regard to changes in the circumstances; business; – conducting interviews with relevant – evaluating the overall presentation of the Vodafone management and examining Subject Matter Information; and selected documents to obtain an understanding of the processes, systems and controls in use for collating and reporting the Subject Matter Information; Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 81
Subject Matter Information (Appendix 1) Underlying Subject Matter Subject Matter Information The Underlying Subject Matter and Subject Women’s empowerment Matter Information are listed here. The information in this Appendix needs to be read Progress towards our 50 million women goal: number of estimated additional female customers (million) (cumulative progress to date) 19.4 together with the attached limited assurance Women in senior leadership team (including ExCo members) (%) 28 report and the Reporting Criteria. Women in senior management (%) 28 Women in middle management (%) 31 Women (all non-management employees) (%) 40 Women in management and leadership roles (%) 31 Women in technology management and leadership roles (%) 21 Energy innovation Vodafone energy use: Total (GWh) 5,582
Vodafone GHG emissions: Scope 1 (million tonnes CO2e) 0.26
Vodafone GHG emissions: Scope 2 (market-based method) (million tonnes CO2e) 1.74
Vodafone GHG emissions: Total Scope 1 and 2 (market-based method) (million tonnes CO2e) 2.00
Vodafone GHG emissions: Scope 3 (air travel only) (million tonnes CO2e) 0.06
Vodafone GHG emissions: Scope 2 (location-based method) (million tonnes CO2e) 1.91
Vodafone GHG emissions: Total Scope 1 and 2 (location-based method) (million tonnes CO2e) 2.17 Energy and GHG emissions: Electricity purchased from renewable sources (%) 15.4
GHG emissions per petabyte of mobile traffic on Vodafone’s mobile networks (tonnes CO2e/petabyte) 371
Number of total emissions avoided as a consequence of IoT technologies and services (million tonnes CO2e) 5.9 Ratio of GHG emission savings for customers to own GHG footprint (ratio) 2.9 Youth skills and jobs Number of young people gaining experience of Vodafone’s digital workplace through apprenticeships 518 Number of young people gaining experience of Vodafone’s digital workplace through internships 974 Number of young people gaining experience of Vodafone’s digital workplace through the graduate programme 677 Number of young people gaining experience of Vodafone’s digital workplace through the work experience programme 46,833 Number of young people (under 26) directly hired by Vodafone 5,710 Progress towards our goal of providing 100,000 opportunities for young people to receive a digital learning experience at Vodafone 54,712 (cumulative progress to date) Number of Future Jobs Finder completions (cumulative completions to date) 478,986 Progress towards our goal of supporting 10 million young people to access digital skills, learning and employment opportunities 533,698 (cumulative progress to date) Introduction Transformation Operating responsibly Our people Appendix Vodafone Group Plc Sustainable Business Report 2019 82
Underlying Subject Matter Subject Matter Information Supply chain integrity and safety Number of supplier site assessments conducted by the JAC 79 Number of supplier site assessments conducted by Vodafone 6 Number of sites assessed using a mobile survey of workers 12 Number of factory workers surveyed using mobile survey 1,693 Total recordable fatalities 2 Recordable fatalities – members of the public 0 Recordable fatalities – number of suppliers’ contractors/employees 2 Recordable fatalities – number of employees 0 © 2019 Vodafone Group Plc Registered Office: Vodafone House The Connection Newbury Berkshire RG14 2FN
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