Sustainablebusiness 2019
Sustainablebusiness 2019
Sustainablebusiness 2019
Business Report
2019
5.4 million
TB of data transmitted
Women’s 54,712
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
We aim to connect an additional our 2025 goals
a significant reduction in the
50 million women living in emerging
markets to mobile
greenhouse gas emissions To reduce our greenhouse
associated with our operations. gas emissions by 50%
19.4 million 25 3%
more female customers in
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% 15%
of our management and
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
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
Safety 42 Key highlights of the year
Key highlights of the year
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 contribution
Our contribution public finances on a of the child. We present our approach on these
to theto
UNthe
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
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 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.
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
Vodafone employs over 36,500 women directly increase the global proportion of women in We employ over
Our 2025 goal
Our ambition is for Vodafone to
and provides employment opportunities for
hundreds of thousands more across our global
management and leadership. HR directors in
our local markets and professional functions 36,500
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
and services.
the proportion of female employees. The
Vodafone Group Board is updated regularly
40%
This year, the 2019 Bloomberg of our total workforce
on progress. are women, which
Gender-Equality Index recognised Achieving gender equality in the workplace,
at all levels, remains a significant challenge for We have active women’s networks in many of the enables us to have
Vodafone as one of the top a stronger gender
most businesses, especially those of a global countries in which we operate. These networks
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%
across several categories,
We have embedded our commitment to
diversity and gender balance into how we work to bring together global female senior leaders,
with 70 invited to a specific event in December
31%
including gender at Vodafone. In our induction programme for of our management
senior leaders, they are required to complete 2018. During the forum, participants shared best
employment statistics, and leadership roles.
unconscious bias training to help them practices on how to create an inclusive business
employer policies, company
recognise the assumptions and beliefs that can environment and discussed challenges facing
products and company
skew their decision making. A number of our women in the workplace.
community engagement.
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
named in The Times Top 50 develop the skills required to manage diverse hold a week-long celebration to coincide with Our Women in
Employers for Women 2018, teams. This year, we piloted a global female International Women’s Day. On March 8, 2019 Technology Network
recognising our leadership development programme, ConnectedSheCan, 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.
The programme forms part of the succession
global programme saw over 60 events being held
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 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
particularly within senior roles. Initiatives such as women make up 40% of our total workforce, 2017 29%
3
Fact Sheet No. 48, UNESCO Institute for
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
interview shortlists and setting internal targets drive our gender equality initiatives. 2018 30% Foundation and Bill & Melinda Gates
and leadership23
have helped increase the proportion of females The percentage of women in Vodafone’s
Foundation, 2015
working in technology. During the year, 21% of 2019 31% 5 Maternal mortality factsheet, WHO, 2016
global senior leadership – including ExCo
6 KPMG research for Vodafone, 2017
our technology management and leadership members – increased from 26% in 2018 to
7
D elivering the Power of Parity, McKinsey
roles were held by women22. Though this 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
this proportion. Women in senior
2018 26% 10 Based on 30-day active customer figures
This year, the ExCo team female representation leadership24
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
this business with Idea Cellular to create
members and holds quarterly webinars and Vodafone Idea.
local face-to-face meetings. Programmes such This year, 52% of the places on our Discover 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
with schools and universities to promote women by women, along with 46% of the places on our 2018 28% Women in senior 12 ‘Real girls, real lives, connected’, Girl Effect
Columbus fast-track graduate scheme. Increasing management and Vodafone Foundation, 2018
in technology, underpin our wider strategy to
have a positive impact on women taking up the proportion of women on these schemes 2019 28% 13
Tracking Universal Health Coverage: 2017
Global Monitoring Report, WHO and World
technology careers. gives us confidence that women are playing an Bank
increasingly important part in leading Vodafone. 14 UNICEF, 2019
Our performance
As of 31 March 2019, 42% of the directors of 2017 30%
15 GSMA Mobile Gender Gap Report, 2019
We have met our target of 30% of management the Vodafone Group Plc Board were women. 16 Powering Potential, BNY Mellon and UN
and leadership roles being held by women across Twice yearly, senior management reviews the Women in middle Foundation, 2018
our local markets and professional functions 2018 31% 17 The Global Gender Gap Report, WEF, 2018
proportion of women serving as directors on our management
ahead of our deadline of 2020. As of 31 March subsidiary company boards. As part of this review,
18 30-day active customers (financial
2019 31% transaction within last 30 days)
2019, women held 31% of our management opportunities for increasing gender diversity 19 ‘The long-run poverty and gender impacts
and leadership roles, and we have now set a 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 D efined 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
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
in Italy2. 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
shift labour needs and potentially reduce to engineering to accountancy – already require and vocational skills, for employment,
on self-esteem and confidence3. By tackling this
employment opportunities. These changes in some form of digital skills4. decent jobs and entrepreneurship.
issue and reducing the number of youth out of
work or in vulnerable work, societies have much technology are having an impact on the skills 4.5 By 2030, eliminate gender dispar-
Working together, governments, educators
to gain in terms of growth and reducing costs required by businesses from their employees ities in education and ensure equal
and companies need to find ways to address access to all levels of education and
associated with supporting unemployed young and altering the nature of work itself.
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.
Around 90%
In many of the countries where we operate, formalisation and growth of micro-,
small- and medium-sized enterprises,
youth unemployment remains at high levels. including through access to
209 million 53% 40% 34% 32%
of all jobs – from nursing to
engineering to accountancy
financial services.
8.5 By 2030, achieve full and productive
young people are either South Africa Greece Spain Italy – already require some form employment and decent work for all
unemployed or work but 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
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
classes. The project is now active in 100 schools. It has reached
South Africa
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
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
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.
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
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
times the volume in 20127.
+25 billion 20% of global total IP (fixed
and mobile data) traffic, up
networks will be more
than three times the
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
We have reduced our GHG emissions target is challenging in the context of our
3,000
business growth. The amount of data carried
by 1%, against the 2017 baseline. across our networks has grown exponentially 2,000
over the last decade, and this growth in global
Our total GHG emissions decreased 1,000
digital communications is predicted to continue
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. 2014 2015 2016 2017 2018 2019
focused on energy efficiency to mitigate the
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
Scope 1 Scope 2
purchased grid electricity.
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
Scope 3 emissions
Scope 3 emissions are indirect Some other categories included in our Scope Scope 3 emissions sources
GHG emissions over which we have 3 reporting are less significant in terms of (thousand tonnes CO2e)
volume but are reported because we have
no direct control but may be able 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
tonnes CO2e; We do not report on the other non-material performance score that we use to assess their
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 GHG emissions, while 76% had implemented
customer use of our products and services, publicly reported their GHG emissions, have set
which includes emissions arising from the GHG emissions reduction programmes. This
targets to reduce emissions and have identified year we also noted an increase in the number
electricity used by network connection the risks and opportunities associated with
devices (such as routers) and when charging of suppliers setting renewable energy targets.
managing their GHG emissions.
mobile device batteries – with our emissions
for the devices we sold this year estimated to
be 2 million tonnes CO2e.
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 5 Global Energy and CO2 Status Report, IEA, 2018 emissions but only our mobile data traffic (not our fixed-line data traffic).
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
Supplychain
Supply chainintegrity
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 Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
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
majority of the smartphones and tablets that each supplier an overall sustainability score and
We provide further details of our approach to this
we resell to customers are produced by major grade. These scores are also used to grant two
issue in our statutory Conflict Minerals Report
companies with internationally recognised Vodafone Supplier Awards, one for health and
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
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
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
size of the supplier in question, the contract, to improve our understanding of our supplier
As part of the JAC initiative, Vodafone audit and verification company, five
the nature of service or type of goods provided base and to introduce a range of initiatives
worked with three other operators this participating suppliers were on-boarded
and the supplier’s relationship with the wider designed to benefit those smaller suppliers.
year to launch a Supplier Academy to build into the Academy. They were then given an
Vodafone Group, along with any other relevant This year in the UK, we committed to pay all our
supplier capability. The Academy focuses opportunity to gain practical experience of
commercial factors. As a global organisation, small suppliers (as defined by the Companies
on developing training to help suppliers performing an audit under the supervision
many of our suppliers are large multinational Act) within 30 days of receipt of their invoice.
assess and improve the social, ethical and of an independent third-party auditor. Once
companies, which may provide network We asked our suppliers to confirm whether they
environmental performance issues that may completed, suppliers were then able to
equipment or devices for customers. Vodafone fall into the category of smaller suppliers. We
arise within their own supply chains. complete 25 audits of their own, or of their
also has many suppliers that are small and have also amended our systems to enable this
suppliers’, facilities and shared the results
Following a week of classroom training medium-sized enterprises. information to be captured on an ongoing basis.
with Vodafone.
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.
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
promotes the importance of adhering to the at www.vodafone.com/safety. on risks that present the greatest potential
most fundamental responsibilities.
Vodafone Absolute Rules as good practice in our for harm for anyone working for or on behalf
We promote our approach across our 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 – always wear seatbelts when travelling
practice, not only for themselves but also for
differentiate between our own employees, in or operating vehicles;
the safety of others. For example, the Values
our contractors and our suppliers’ employees
include a commitment to intervene wherever – always use suitable personal protective
and contractors.
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 electrical equipment, circuits and gear
unacceptable. It is therefore with great regret
by 90%5 of active employees, includes a if they are not qualified;
that we report two recordable fatalities4 this
mandatory e-learning safety module designed
year. We provide the context for those deaths – never work under the influence of
to ensure that employees know how to keep
in this section on page 45. substances (alcohol or drugs) that are
themselves and others safe at work. It also
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
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
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
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
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
investigation, we concluded that our supplier local market Chief Executive, who is responsible to intervene and put the necessary controls in
During the year we recorded 999 HPIs, of which
controls were breached or were not operating for ensuring that the causes of the incident place. This year, our overall reported LTI rate
146 involved employees, 174 involved suppliers’
effectively. Specifically: are widely understood and that any necessary remained at 0.62 per 1,000 employees.
employees or contractors, 13 involved members
corrective actions are implemented. We also
– A contractor died in a vehicle-related incident of the public and 666 were infrastructure related.
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. and at Group-wide safety conferences, held six Lost-time incidents (employees only)
employee is injured while carrying out a work-
– A contractor died while trying to free a times a year. 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 incidents
being run up electricity poles when it not track LTIs for our suppliers’ employees and
do not necessarily result in injury but have the
became caught in a tree. The contractor contractors. Lost-time incident rate 0.81 0.62 0.62
potential to do significant harm. We investigate
used a metal ladder to try to free the cable per 1,000 employees
each HPI as an indicator of the potential for a In recent years, we have stepped up our
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.
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
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.
established processes to reduce the (GNI) as a Board member. The GNI is a multi- In 2018, Vodafone Group received the top score
Privacy and freedom of expression stakeholder forum created to address the in the telecommunications sector.
risk of human rights abuses, is critical Our most salient human rights risks relate to complex challenge of protecting digital
to our long-term success. Vodafone’s the individual’s right to privacy and freedom of rights globally. Joining the GNI strengthened
We are also actively engaged in the dialogue
Code of Conduct is very clear about expression. Our Digital Rights and Freedoms on emerging technologies and their potential
and broadened our commitment to digital
impact on human rights. As artificial
our expectations and responsibilities Reporting Centre contains information related rights and followed our founding role in the
intelligence (AI) grows in usage and impact
regarding human rights. to the protection of our customers’ private Telecommunications Industry Dialogue on
communications and our views, policies and across geographies and industries, Vodafone
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
fundamental conventions on which the United with artificial intelligence. Our framework also
–
our Legal Annexe, which gives an overview The Ranking Digital Rights Corporate
Nations Guiding Principles on Business and includes how we extend our standards to third
of the relevant legal powers in place in our Accountability Index ranks Vodafone annually
Human Rights are based. parties developing AI systems in collaboration
markets of operation. on its public disclosure on its policies and its
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
approach can be found online at For more information on the
setting up a team of senior level experts from Board reviewed a detailed report on Vodafone
www.vodafone.com/humanrights GNI company assessments visit
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
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
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:
policies and processes to extend our human During the year, Vodafone’s Human Rights identify and create technology solutions
– via their line manager;
rights commitments into our supply chain, team engaged with other companies on that disrupt and reduce human trafficking,
prevent and identify crimes, and provide – via the local human resources team; or
as specified in our Code of Ethical Purchasing. the issue of modern slavery through its
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.
(including child or forced labour) rights, ethics group was established as a partnership guidance and shared resources.
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 The JMLIT has been developed in partnership those used by other multinationals. You can
Highlights in our supply chain
the sharing of best practice. Vodafone with the UK government, law enforcement read more about Speak Up on page 50.
activities to mitigate human rights
continues to be actively involved in this agencies and more than 40 major UK and
risks during the year:
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
potential improvements to, provisions in Further details on our approach and
slavery issues; and
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 fraud, price-fixing, suspected abuses of human
any capacity, anywhere in the world – benefits This year, Vodafone became a member of the
Tech Against Trafficking (TAT) initiative. Hosted rights, privacy breaches, safety risks, bullying,
from a working environment in which their harassment, conflicts of interest and the
fundamental rights and freedoms are respected. by Business for Social Responsibility (BSR),
TAT is a coalition of technology companies potential for serious harm to the environment.
The following provides some examples of how
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
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
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
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
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
challenges facing employees, including handling employment with Vodafone, regardless of the
outcome of any subsequent investigation. Supporting a compliance culture in Lesotho
personal data, accepting gifts and conflicts of
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 reviews the whole programme. This year, 738 To demonstrate the importance of the topic
sharing experiences on compliance issues
understanding of the policy, including digital separate concerns were reported using Speak for Vodacom Lesotho, members of our
such as anti-bribery, anti-corruption,
news articles, games and quizzes. Up on a wide range of issues (though only a local executive committee participated in a
anti-money laundering and ethical
very small fraction were related to bribery and number of different panel discussions during
The Doing What’s Right programme also features leadership. Attendees at the Forum included
corruption). In our latest Global People Survey, the day including sharing our approach to
e-learning training, which includes a specific representatives from the government
84% of respondents said they would use Speak mitigate risks associated with bribery, privacy
anti-bribery module and uses gamification to (including the Minister of Communications),
Up to report unethical behaviour of any kind. and money laundering.
enhance the learning experience. To date, over 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
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
Supply chain integrity Safety Human rights Anti-bribery and corruption and political engagement Privacy and cyber security Mobiles, masts and health
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 I nternational 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.
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
2018 2019*
all employees feel equally valued and Survey across our entire workforce to help
understand that ethical conduct is us to assess our employees’ concerns and 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
set out in our Business Principles and Code of and implement changes based on the findings. 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 is socially responsible 83 85
Vodafone Way, the guidance we provide to all our 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 and knowledge I need to do my job well
Speed, simplicity and trust remain our three
– demonstrating employees’ desire to continue
core principles. Diversity and inclusion
working with Vodafone and their inclination to
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 disability, sexual orientation, cultural
Respondents were also asked for their views 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 age, gender, disability, sexual orientation,
treated with respect as an individual.
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
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations
Developing skills and capability Building a diverse and inclusive business Wellbeing Managing change and reorganisations
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
information and best practice through our
contributes to productivity, reduces 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 & opportunities for improvement. People
Purpose &
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
Appendix
Find out more about our governance
process, the scope of our reporting,
environmental management,
materiality and read Grant
Thornton’s Assurance Statement.
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 Digital rights including privacy, data protection and security
– insights from our engagement with
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
– local communities; materiality tool (specifically designed for use
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
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.
that comply with international regulations, but in markets by assessing existing schemes across our
Compliance with environmental local markets which include: trade-in and device In South Africa, where water scarcity is a
emerging markets managing waste can be more
regulations buy-back schemes, drop-off boxes in retail stores, significant issue, Vodacom has invested in a
challenging. Access to appropriate waste facilities
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 activities of Vodafone Foundation as these in operational control
– our operating companies in 21 countries
customers but where we neither own nor complement much of the Group’s sustainable The inclusion or exclusion of data from business
where we have operational control: Albania,
operate any licensed telecommunications business strategy. However, Vodafone units that have been acquired or sold, or where
Czech Republic, Egypt, Germany, Ghana,
network infrastructure; and Foundation’s activities overall are not within there is change in operational control (for
Greece, Hungary, Ireland, Italy, Malta,
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.
Democratic Republic of Congo (DRC), by Vodafone. and NGOs. Vodafone Foundation is a UK
registered charity (1089625) and receives Our policy on environmental data reporting is to
Lesotho, Mozambique and Tanzania; and include performance data from newly acquired
Exceptions: annual contributions from Vodafone Group Plc.
– operations under Vodafone Global Enterprise Through its Connecting for Good programme, businesses at the end of their first full year of
– our M-Pesa customer numbers and our new ownership. In terms of setting a revised
and Vodafone Group Services. Vodafone Foundation leverages the technology
50 million women emerging market target, baseline to reflect acquisitions, disposals or a
Performance data excluded from the scope of which both include our associate Safaricom in and expertise within Vodafone to maximise
its charitable impact. Vodafone Foundation’s change of control, our policy is that:
this Report: Kenya and Vodafone customers in India (data
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 globally with a wide range of partners to meet its either actual or estimated data at the end of
2018, prior to the merger of this business with
operational control: VodafoneZiggo in the charitable objectives. Vodafone Foundation also their first full year as a controlled subsidiary;
Idea to create Vodafone Idea. We are working
Netherlands, Vodafone Hutchinson Australia, sits at the centre of a network of 27 local social
on appropriate methodology to account for – disposals are removed from the baseline in
Vodafone Idea and Indus Towers in India and investment programmes, referred to as the
the change in the business going forward); the year of disposal; and
our associate Safaricom in Kenya; local foundations. Vodafone Foundation has a
– our safety performance numbers include funding partnership with these local foundations – any identified errors >1% of the Group total
– Partner Market networks in which Vodafone
data from India up until 1 September 2018. to provide public benefit by investing in are re-baselined wherever possible.
neither has any equity interests nor holds an
operating licence, including those Partner Any additional exclusions are noted in the text. programmes that support communities in
Vodafone’s operating countries. Trade mark notice
Markets that operate under the Vodafone
On 31 August 2018, Vodafone announced the Vodafone, the Vodafone Speech Mark,
brand;
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
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.
The Future Jobs Finder tool is a global online Direct hires N/A Any individual hired into full or part-time
to access digital skills, learning and
platform and as such could be completed by employment who is aged 26 or below at the
employment opportunities
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
to access digital skills, learning and employment Workplace Work experience Offered to individuals between 14 and 19
tool is heavily targeted towards young people
opportunities by 2022. This goal incorporates experience and years of age. This is an opportunity to join
(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
people to receive a digital learning An example includes Vodafone Turkey
Future Jobs Finder tool (read more about the
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
we offer to young people to receive a digital #Codelikeagirl Inviting girls aged 14–18 to learn how to
Jobs Finder tool is defined as the number of
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
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 table below. We have undertaken a qualitative
Ireland Supplier factors Zero and 0.641
singularity of supply; assessment of the extent to which we can
Italy Supplier factor and residual mix Zero and 0.308
– residual mix figures for 2017 – where the influence and reduce emissions in the most
Lesotho IEA Zero and 0.465 material categories. Further details of the
conversion factor reflects the removal of
Malta Supplier factor and residual mix 0.443 and 0.661 methodology and results for each relevant
certificates, contracts and supplier-specific
Mozambique IEA factors claimed by other organisations; and category are also shown.
New Zealand Supplier factor 0.013 The estimation of Scope 3 emissions is a very
– location-based conversion factors as
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).
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
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. and then shared with the Group Health, Safety a Vodafone employee is injured while carrying
Any supplier that provides a product or service to
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
and environmental risks, as defined by the Code report, record and investigate all incidents. An his or her regular duties for a complete shift or
Vodafone audits are conducted by either
of Ethical Purchasing. Existing or new suppliers incident management system is used for the period of time after the incident.
Vodafone’s internal auditors or by independent
are then selected for assessment depending on a reporting, recording, investigation and action
auditors on site at the supplier’s operation The lost-time injury rate is calculated as the
number of different risks, including the supplier’s tracking of incidents.
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 a selection of case studies from Smart Bin case study
contractors are carried out by an independent
develop supply chain practices in the industry) to assume that if our controls could have varying from 7.5% to 25% 6
Telensa city data and
survey service provider, Elevate, using see BBP Better Metering
are audited through JAC assessments. Vodafone been enhanced, the outcome may have been 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 Vodafone M2M smart 7
Transport for London
voice response (IVR) system. The independent electric charging vehicle
network infrastructure products and services, incident from occurring at all. We therefore metering
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 – reduce hospitalisation
and other work sites. The mobile phone-based indicate savings from
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 – A guide to Telematics, used.
response. The IVR questions are provided in
standalone assessment. whether an employee, contractor, suppliers’ Energy Saving Trust;
audio form in the workers’ local language, and Telematics Explained
employee or contractor (of any Tier) or a
Joint Audit Cooperation (JAC) their responses are captured using touch-tone
member of the public.
FIAG; and Mix Telematics
Furl Savings
assessments keypads. The service works on all mobile phones,
JAC audits are reported on a calendar-year basis including very low-cost basic devices. Where a fatal incident is under investigation
while Vodafone audits are reported on a financial by national authorities, we are typically unable
Tier to gain access to the authorities’ findings, and
year basis. The majority of JAC audits focus on
In the context of the Sustainable Business therefore, unable to conclude our internal
suppliers in Vodafone’s supply chain.
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
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 This limited assurance report, including our
less in extent than for, a reasonable assurance 31 May 2019
selection of selected carbon conversion conclusion, is made solely to Vodafone in
engagement. Consequently, the level of
factor calculations, and other calculations accordance with the terms of our engagement
assurance obtained in a limited assurance
used by Vodafone to collate the Subject letter dated 18 March 2019. That agreement
engagement is substantially lower than the
Matter Information including by reference permits disclosure to other parties, solely for
assurance that would have been obtained had
to widely recognised and established the purpose of Vodafone showing that it has
a reasonable assurance engagement been
conversion factors; obtained an independent limited assurance
performed. Accordingly, we do not report a The maintenance and integrity of Vodafone’s
reasonable assurance conclusion. – re-performing a selection of selected report in connection with the Subject Matter
website is the responsibility of the Directors
calculations used by Vodafone to collate the Information. Our work has been undertaken
Work performed of Vodafone; the work carried out by us does
Subject Matter Information; so that we might state to Vodafone those
not involve consideration of these matters
Considering the circumstances of the matters we are required to state to them in an
– agreeing a selection of the relevant prior and, accordingly, we accept no responsibility
engagement our work included, but was not independent limited assurance report and for no
period and baseline data to previously for any changes that may have occurred to
restricted to: other purpose.
reported data where these were used in the the reported Subject Matter Information, the
We have not considered the interest of any
– assessing the suitability of the Reporting calculation of the Subject Matter Information, Report or the Reporting Criteria presented
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