esg addendum 2020 - vodafone ... report to vodafone group plc 9 introduction vodafone group plc esg...

Vodafone Group Plc

ESG Addendum 2020

INTRODUCTION AND STRATEGY Our sustainable business strategy 3

ESG PERFORMANCE DATA AND ASSURANCE ESG performance data 6 Independent Limited Assurance Report to Vodafone Group Plc 9

GRI AND UNGC COMMUNICATION ON PROGRESS CONTENT INDEX GRI Standards index 2020 13 UNGC Communication on Progress 18

APPENDIX Scope of reporting 28 How we report our key performance indicators 29

In this report

About this report Our Annual Report 2020 provides further details on Vodafone’s progress against our sustainable business strategy.

Our business

Who we are:

A leading technology communications company keeping society connected and building a digital future for everyone.

Sustainability is at the core of our purpose:

‘We connect for a better future’

We are optimistic about how technology and connectivity can enhance the future and improve people’s lives.

Through our business, we aim to build a digital society that enhances socio-economic progress, embraces everyone and does not come at the cost of our planet.

That is why we have committed to improve one billion lives and halve our environmental impact by 2025.

Read more Vodafone.com/ar2020

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http://Vodafone.com/ar2020 http://Vodafone.com/ar2020

Our sustainable business strategy

Our purpose

We connect for a better future

Responsible business practices Responsible supply chain

Mobile, masts and health

Human rights

Tax and economic contribution

Anti-bribery and corruption

Digital Society Inclusion for All Planet

We believe that Vodafone has a significant role to play in contributing to the societies in which we operate. Last year, we articulated our purpose – with the ambition to improve one billion lives and halve our environmental impact by 2025, building on a decade of initiatives, efforts and products from our business.

Our sustainable business strategy helps the delivery of our 2025 targets across three pillars: Digital Society, Inclusion for All and Planet. We aspire to enable an inclusive and sustainable digital society.

In parallel, we remain dedicated to ensuring that Vodafone operates responsibly and ethically, supported by our corporate disclosure programme. This is an area which we believe is more important than ever, given the ongoing COVID-19 crisis and the role business plays in supporting society during this period of uncertainty and change.

Our sustainable business strategy

Read more at pages 46–53 of our Annual Report 2020

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http://Vodafone.com/ar2020 http://Vodafone.com/ar2020

Sustainable business governance The Group Executive Committee (ExCo) – chaired by the Group Chief Executive – has overall accountability to the Vodafone Group Plc Board for Vodafone’s sustainable business performance. The Group Director of SDGs, Sustainable Business and Foundations defines and leads Vodafone’s sustainable business strategy worldwide and is responsible for the activities of the Group Sustainable Business team. The Group Director of SDGs, Sustainable Business and Foundations reports to the Group External Affairs Director who is a member of the ExCo.

The ExCo regularly reviews the progress of the sustainable business strategy. All external publications are reviewed by the Vodafone Group Disclosure Committee. The Committee is responsible for ensuring the accuracy and timeliness of Group disclosures and approves, on behalf of the Group Chief Executive, the controls and procedures related to the release of financial and non-financial information.

To demonstrate our commitment to delivering on our purpose, we will be introducing a number of purpose-led ambitions into our Executive global long-term incentive plan. Subject to shareholder approval at our 2020 AGM, these ambitions will be included from FY21 onwards, and will be directly linked to the progress made across our three pillars of Digital Society, Inclusion for All and Planet.

For details on our most recent materiality assessment, please refer to our Sustainable Business Report 2019. We continue to engage with a range of stakeholders to ensure we focus on the areas most relevant for our business and society. This has particularly been the case during the COVID-19 crisis.

Corporate governance Vodafone is committed to delivering strong corporate governance for our shareholders, employees, suppliers, partners and customers, especially during these times of uncertainty and instability presented by the COVID-19 pandemic. We seek to maintain the highest levels of corporate governance to support the creation of long-term sustainable value for the benefit of all our stakeholders.

Sustainable business governance structure

– Ultimate accountability for Vodafone’s sustainable business strategy.

Core accountabilities and responsibilities

– Sets overarching sustainable business direction.

– Responsible for sustainable business strategy and performance.

– Implements strategy.

– Engages with and supports the business through Group and local market teams.

– Engages with key external stakeholders.

Sustainable Business is led by Group SDGs, Sustainable Business and

Foundations Director, reporting to Group External Affairs Director (ExCo)

CEO and ExCo

Vodafone Group Plc Board

Local markets

Group functions

Group Sustainable Business team

Read more on Vodafone’s five-point plan to help counter the impact of COVID-19 at page 54 of the ARA

Read more on Vodafone’s approach to corporate governance at page 72 of the ARA

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Appendix

https://www.vodafone.com/content/dam/vodcom/sustainability/pdfs/sustainablebusiness2019.pdf#page=68 https://www.vodafone.com/content/dam/vodcom/sustainability/pdfs/sustainablebusiness2019.pdf#page=68 http://vodafone.com/ar2020 http://vodafone.com/ar2020

ESG performance data and assurance ESG performance data 6

Independent Limited Assurance Report to Vodafone Group Plc 9

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2018 2019 2020

DIGITAL SOCIETY Number of people connected to our next-generation networks (millions)* 144.0

Number of connected vehicles served by Vodafone’s Internet of Things (IoT) platform (millions) 25 31

Number of M-Pesa customers (millions) 33.0 37.1 41.5

Estimated number of female M-Pesa customers (millions) 14.9 16.9 17.0

INCLUSION FOR ALL Estimated number of female customers in Africa (excluding Egypt) and Turkey (millions) 41.6 46.3 46.2

Total number of young people supported to access digital skills, learning and employment opportunities (cumulative progress to date) 533,698 708,172

Total number of Future Jobs Finder completions (cumulative progress to date) 478,986 539,273

Total number of opportunities for young people to receive a digital learning experience at Vodafone (cumulative progress to date) 55,577 113,322

Digital work experience opportunities provided during the year 46,833 104,420

Internship opportunities provided during the year 974 1,747

Apprenticeship opportunities provided during the year 518 400

Graduate opportunities provided during the year 677 805

PLANET**

Our greenhouse gas (GHG) emissions Scope 1 and 2 (market-based method)

Scope 1 GHG emissions (million tonnes CO2e) (market-based method) 0.29 0.26 0.28

Scope 2 GHG emissions (million tonnes CO2e) (market-based method) 1.78 1.76 1.56

Total Scope 1 and Scope 2 GHG emissions (million tonnes CO2e) (market-based method) 2.07 2.01 1.84

Scope 1 and 2 (location-based method)

Scope 1 GHG emissions (million tonnes CO2e) (location-based method) 0.29 0.26 0.28

Scope 2 GHG emissions (million tonnes CO2e) (location-based method) 2.29 1.91 1.66

Total Scope 1 and Scope 2 GHG emissions (million tonnes CO2e) (location-based method) 2.58 2.17 1.94

GHG emissions (tonnes CO2e) per petabyte of mobile data carried on Vodafone’s networks 591 374 230

*Defined as 4G/5G mobile networks and over 30Mbps fixed networks **2018 and 2019 environmental performance data has been re-baselined in line with our policy that disposals are removed in the year of disposal, unless otherwise noted.

ESG performance data

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2018 2019 2020 Scope 3 emissions by source*** (thousand tonnes CO2e)

Purchased goods and services 6,400 4,000 3,700

Use of sold products 1,