Our vision and approach Transformational solutions Operating responsibly Our vision and approach We aim to use our products and services to help transform societies and contribute to more sustainable living. Find out more about our vision and how we manage sustainability Our vision sets out our ambition to deliver connectivity and innovative services to improve people’s livelihoods and quality of life. Central to achieving this vision is our longstanding commitment to manage our operations responsibly and ethically. CEO introduction 4 Our vision 5 Managing sustainability 7 About our reporting 14 3 Vodafone Group Plc Sustainability Report 2013/14 Our vision and approach Transformational solutions Operating responsibly CEO introduction The beliefs, aspirations and concerns of our diverse highest priorities. We also reflect the public debate arising stakeholders shape our performance as much as any from allegations regarding government surveillance with the business decision. Everyone we deal with – our customers, publication of our first Law Enforcement Disclosure report. shareholders, partners, suppliers, employees, elected This illustrates our approach to responding to law enforcement representatives, regulators, NGOs and the media – rightly demands across 29 countries, including information about expects everyone at Vodafone to act responsibly and intelligence agency and authority demands on a country-by- with integrity at all times. Financial results alone are country basis, where statistical data can lawfully be disclosed. not enough: the societies and communities within which Corporate taxation is also an ongoing focus of public debate. we operate want companies to focus on enhancing lives Here, too, we have sought to inform discussions by producing and livelihoods, not just enhancing returns to their a detailed and transparent insight into our views and approach. shareholders. Overlooking that expectation would risk Our Tax and Total Economic Contribution report – updated undermining our prospects for long-term value creation. in December 2013 – provides a detailed overview of our role Our core business is founded on a powerful social good: we in funding public finances, including a country-by-country exist to help more than 430 million customers in more than 27 breakdown of cash taxes paid: Vodafone is the first international countries communicate, share, create, learn and grow. The rapid communications operator to do so. expansion of communications networks is having a profound These issues – and others also addressed in this report – are of impact on the way people manage their daily lives. The social interest to a wide range of stakeholders. We are accountable consequences are significant: for example, as we explain in a new to all of you. We hope this report is informative and we look section in this report, mobile can be enormously empowering forward to further discussions over the year ahead. for many women in emerging markets. High-speed data networks are also changing how companies and public sector organisations operate, enhancing productivity and effectiveness and in many cases reducing energy needs, therefore helping to address global warming. The report sets out how our technologies enable our customers to reduce their climate change impact, and gives an overview of our continuing efforts to Vittorio Colao, reduce our operational energy consumption and CO2 emissions. Chief Executive, Vodafone Group Plc The data revolution is shaping household habits and enterprise strategies in ways that were little more than science fiction a generation ago. However, radical change often leads to complexity, new emerging risks and new kinds of concerns. Foremost amongst the latter is growing public anxiety about access to citizens’ private information by commercial entities and government authorities. As we explain in this report, the protection of our customers’ privacy is one of our 4 Vodafone Group Plc Sustainability Report 2013/14 Our vision and approach Transformational solutions Operating responsibly Our vision Vodafone’s ambition is to contribute to sustainable living by In developed markets, our products and services continue to delivering connectivity and innovative services to our 434 play an important role in tackling one of the biggest global million customers – 70% of whom live in emerging markets. challenges we face – climate change. Smart working and our machine-to-machine (M2M) technologies offer significant Communications technology is already a vital tool in people’s potential to help organisations and individuals reduce their lives and is helping to transform large parts of the world. It is energy use and carbon emissions, enabling them to live, work also contributing to global trends, such as first-time access to and operate more sustainably. the internet for people in emerging markets and the ability to connect not just people but things like machinery and Maintaining the trust of our customers and other stakeholders vehicles via the ‘internet of things’. Researching and developing and remaining accountable to them is critical to our brand opportunities that can contribute to sustainable living through and vital to achieving our vision. To earn and retain that trust our technology remains at the core of our vision. we continue to build on our longstanding commitment to manage our operations responsibly – from keeping our people We see significant opportunities to grow and enhance our safe and managing our carbon footprint, to protecting our business by developing commercially viable, scalable services customers’ privacy and conducting our business in an ethical that support sustainable development and differentiate our and transparent way. brand. Vodafone’s mobile money transfer product, M-Pesa, is already a well-established and growing part of the business and has become the basis for a range of other services that can also improve livelihoods. We continue to build on the work we are doing in areas such as agriculture, education and health, where technology is recognised as a critical tool that can make a significant difference to people’s lives, and we are working with partners to develop this further. We are also exploring how mobiles can improve working lives and livelihoods in emerging markets and the role they can play in empowering women to be able to contribute economically and access improved outcomes in healthcare and education. 5 Vodafone Group Plc Sustainability Report 2013/14 Our vision and approach Transformational solutions Operating responsibly Our vision Unleash the power of Vodafone to contribute to sustainable living for all Our approach and current focus areas Delivering transformational solutions Operating responsibly and ethically Mobile technology is improving livelihoods and quality of life Operating responsibly is essential to our licence to operate globally. We are exploring commercial opportunities where our and delivers commercial advantages to the business, helping products and services can bring further benefits to society and to turn potential risks into opportunities and enhancing the we are researching the potential for our technology to further contribution of our products and services to sustainable contribute to sustainable living. living. By acting with honesty and integrity we can secure the trust of our customers, which is integral to the long-term success of our business. Finance Women Privacy and security Responsible supply chain Low carbon solutions Smart working Tax and our total economic contribution Environmental footprint Agriculture Health Health and safety Human rights Education Mobiles, masts and health 6 Vodafone Group Plc Sustainability Report 2013/14 Our vision and approach Transformational solutions Operating responsibly Managing sustainability Find out more about how we listen to our stakeholders, identify material issues and manage sustainability across the Group We have robust policies and systems in place to manage the wide range of sustainability issues we encounter in our business activities. Listening to our stakeholders helps us prioritise these issues by identifying those that are most important to them and to us. Governance 8 Code of Conduct and other policies 8 Stakeholder engagement 9 Public policy 11 Material issues 12 Awards and recognition 13 7 Vodafone Group Plc Sustainability Report 2013/14 Our vision and approach Transformational solutions Operating responsibly Managing sustainability Governance Our Group Sustainability team focuses on: The Group Executive Committee (ExCo) is responsible for our • Compliance – issues management and data collection to sustainability performance and receives a formal update on ensure we operate responsibly and comply with external sustainability at least once a year as well as a monthly written regulations and internal policies update. A report is also made annually to the Vodafone Group • Commercial opportunities – to leverage the sustainability Plc Board. credentials of our business and our products and services as a The Group Director of Sustainability and Vodafone Foundation commercial differentiator reports to the Group External Affairs Director (an ExCo member) • Communications – researching and improving understanding and heads a team of experts who act as trusted advisors to of the role of communications technology in the societies our local market sustainability leads and issue owners, who and communities in which we operate, and in addressing implement sustainability initiatives across