Vodafone Czech Republic Corporate Social Responsibility Report April 2013 – March 2015 1 Introduction Word of Introduction from CEO Dear readers, You are looking at the fourth annual Corporate Social Responsibility (CSR) Report of Vodafone Czech Republic. It presents our CSR projects and programmes from April 2013 to March 2015. It also contains up-to- date data on the sustainability trends monitored over the long term. We believe that Corporate Social Responsibility must not be reduced to just another bullet in the corporate to-do checklist; we believe that it needs to be a carefully planned strategy. Our aim is to bring real added value to the community with our long-term projects, and we are happy that the long-lasting benefit is evident in the comparison with our previous CSR reports. I wish you a pleasant reading. Balesh Sharma CEO Vodafone Czech Republic 2 Introduction About How We Understand CSR Vodafone CR Corporate Social Responsibility is intrinsic to our business. It rests on three pillars: 3 350 In 2005, the local mobile operator Oskar joined one of Green Way the largest telecommunication 3 300 corporations, the Vodafone We reduce the ecological impact of our business, ours is the First Green Network, our Group. It now provides its head office received Golden LEED certification, services to over three million 3 250 we support clean and quiet mobility, we customers. recycle phones and rate their social and 1 environmental impact. 3 200 More at www.vodafone.cz 3 299 3 358 3 236 3 267 3 150 Mar-12 Mar-13 Mar-14 Mar-15 We are a long term leader in You and Us responsible behaviour towards Pre-paid vs. Post-paid customers We return part of our profit back to the environment, community community, we help the needy, and provide and our customers. 100 % information to customers in a transparent manner. The Vodafone Foundation CR 80 % 2 has distributed over CZK 160 million 6 to NGOs. It is one of 36 % 40 % the most generous corporate 60 % 44 % foundations in the Czech 45 % Republic. Technology Helps 40 % We provide integrated technological solutions to people with disabilities, we support the creation and spreading of socially responsible 20 % applications. We are committed to helping through 55 % 56 % 60 % 64 % 3 technology. 0 % Mar-12 Mar-13 Mar-14 Mar-15 3 Table of Contents Introduction from GREEN WAY YOU AND US TECHNOLOGY HELPS CEO 4 11 18 1 First Green Network Charitable Volunteering Technological Solutions About Vodafone Cr 5 11 18 2 Green Offices Vodafone Foundation Responsible Applications How We Understand 6 14 19 CSR E-bikes, Bicycles and Honest Approach to Helping with Mobiles 2 Scooters Customers 19 8 16 CSR Goals for Fiscal Years Motivating Others Digital Parenting 2013, 2014, 2015 9 17 20 Awards 2013–2015 22 4 Green Way These are our three Green Way basic commitments to ecology: This pillar of our CSR policy focuses on environmental protection – we 1Lowering CO2 emissions: we are committed to lowering CO2 emissions aim to reduce the impact of our by 50% by 2020 (compared to 2006/07). We reached this goal in operations on the environment. We 2010. motivate our employees and customers to do the same, and we 2We optimize our office operations to be more strive to empower them to behave in ecological. a responsible way. 3We motivate our colleagues and customers to behave responsibly. 5 Green Way First Green Electricity consumption in our network (GWh) 60 Total electricity consumption Network 50 40 The First Green Network Green energy project, launched in 2011, 30 lowers the CO2 emissions we produce. 70% of the energy 20 Conventional sources needed to power our network 10 comes from renewable sources 0 – water, sunshine, wind power, biomass and biogas 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 (approximately 45 GWh). We compensate for the remaining Despite the continuous expansion of our network (mainly LTE) and the growing number of BTS, providing coverage for the entire CR, the total energy consumption in our one-third of the energy, whose network has only risen very slowly, thanks to low-energy-consumption technology. source we cannot influence (because we rent a location or share a transmitter with other Average annual consumption per BTS (MWh) operators), by planting trees 15 jointly with the Nature 14 Conservation Agency of the 13 Czech Republic. As a tree grows 12 it gradually soaks up the LTE 11 emissions produced during our 2G modernization network’s operation. To date we 10 3G construction Energy saving measures have planted hundreds of 9 Increasing data transfers thousands of seedlings all over 8 the Czech Republic. 03/2004 03/2005 03/2006 03/2007 03/2008 03/2009 03/2010 03/2011 03/2012 03/2013 03/2014 03/2015 The average consumption per one base transceiver station (BTS) has decreased significantly over the past 2 years despite LTE deployment, thanks to 2G modernization and economical measures, such as the replacement of old, inefficient air-con and power supply units, and installation of better cooling and heating management to save energy. 6 Green Way We also strive to behave • Energy saving policies Electronic invoices (%) Green ecologically in our offices. Our (automatic power off, etc.) 100 former head office at Vinice, • Responsible handling of 90 Offices Prague, met dozens of waste 80 demanding criteria until our • Limited use of disposable 70 move to the new offices in products 60 December 2014, allowing us to • Extensive use of recycled 50 use the Ministry of Environment’s paper 40 Eco-label for environmentally 30 responsible services. We gradually decrease the number of company cars and the 20 In our new head office we amount of fuel used. Of 430 cars 10 0 continue to meet these (March 2010) we are now down March 2012 March 2013 March 2014 March 2015 criteria: to 246 (March 2015). We prefer Electronic invoices Paper invoices • Energy saving office diesel engines because of their lower consumption. We are also planning to launch electronic invoices for our business clients in the equipment future. Printing paper bought (tons) Contracts – customers with a minimum monthly spend limit 25 (non-business) 100 20 90 80 15 70 60 10 50 40 5 30 20 0 10 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 0 Recycled paper (70% recycled) March 2014 March 2015 Non-recycled paper (22% recycled) Electronic invoices Paper invoices Significant reduction in the use of paper is linked to electronic invoices and agreements, see below. We expect that electronic agreements will make up 85% of all contracts in 2016. 7 Green Way In our new offices we remained It was built with recycled were recycled Car fuel consumption (millions of litres) true to our CSR values and materials and local resources, • 83 % of the construction chose a building with golden with emphasis on high quality of materials can be used again 1.2 LEED certification (Leadership the interiors and traffic • The coolants and in Energy and Environmental accessibility. extinguishers in the building 1.0 Design) awarded since 2000 to do not damage the ozone 0.8 the buildings with significantly Savings and environmental layer. efficient and environmentally impact in numbers: • Good transport accessibility 0.6 responsible operation. Our – exactly 20 steps away head office uses approximately • 40% less water used from a metro stop. 0.4 one-third less energy than • 27% less energy needed similar buildings. • 31 % construction materials 0.2 0 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 Diesel Petrol CITY WEST BUILDING C1 – VODAFONE CZ Prague, Czech Republic HAS FULFILLED THE REQUIREMENTS OF THE FOLLOWING LEVEL OF CERTIFICATION ESTABLISHED BY THE U.S. GREEN BUILDING COUNCIL IN THE LEED GREEN BUILDING RATING SYSTEMTM AND VERIFIED BY THE GREEN BUILDING CERTIFICATION INSTITUTE. LEED FOR CORE & SHELL January 2015 S. RICHARD FEDRIZZI, PRESIDENT & CEO MAHESH RAMANUJAM, PRESIDENT U.S. GREEN BUILDING COUNCIL GREEN BUILDING CERTIFICATION INSTITUTE 8 Green Way E-bikes, Bicycles and Scooters Vodafone employees have ridden electronic bikes since 2011. There are 2 at the call centre in Chrudim and 3 at the head office in Prague. In addition, there are 5 regular bicycles and 3 kick scooters. Employees can use them to get to meetings or lunch quickly. The e-bikes are easier to ride because an electric motor helps the biker reach the destination faster and with less effort. Every day as many as five colleagues borrow each of the e-bikes to run their errands. 9 Green Way Number of phones returned Motivating 8000 Others 7000 6000 Eco-Class Rating A total of 230 aspects are In 2012 we launched the Eco- monitored (e. g. materials used, 5000 Class rating which clearly tells transport, energy efficiency, customers how spare parts availability, ease of 4000 environmentally friendly their recycling). The final rating is on 3000 new phone is both with respect the scale from 1 (the worst) to to manufacturing and the 5 (the best), giving an easy to 2000 supply chain. understand, yet comprehensive idea of the phone’s 1000 It takes into account the entire environmental impact. 0 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/2012 2012/13 2013/14 2014/15 life cycle of a mobile phone – from how the raw materials are This information is available to obtained to the final disposal. all customers in shops and online. Recycling Anyone can bring a phone or its If you have an older mobile Every phone (and its parts and accessories for phone at home which is still accessories) has a certain life recycling.