39 Vodafone Group Plc Annual Report 2024
Strategic report
Governance
Financials
Other information
Our performance 1,2,3
Unit
2024 0.69 0.26 0.43 1.75 6.07 0.01 0.01 0.01 0.36 0.77 0.71 0.27 0.44 2.11 6.84
2023 0.91 0.25 0.66 1.70 6.92 0.02 0.01 0.00 0.37 0.89 0.92 0.26 0.66 2.06 7.80
Total Scope 1 and Scope 2 emissions (market-based) from continuing operations
Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e Million tonnes of CO 2 e
Scope 1 emissions from continuing operations Scope 2 emissions (market-based) from continuing operations Scope 2 emissions (location-based) from continuing operations Total Scope 3 emissions from continuing operations 4
Total Scope 1 and Scope 2 emissions (market-based) from discontinued operations Scope 1 emissions from discontinued operations Scope 2 emissions (market-based) from discontinued operations Scope 2 emissions (location-based) from discontinued operations Total Scope 3 emissions from discontinued operations 4 Total Scope 1 and Scope 2 emissions (market-based)
Scope 1 emissions
Scope 2 emissions (market-based) Scope 2 emissions (location-based) Total Scope 3 emissions 4
Renewable electricity Percentage of purchased electricity from renewable sources Vodafone total energy use from continued operations
%
84 100
75 100
Percentage of purchased electricity from renewable sources from continuing operations in Europe %
Gigawatt hours
5,217
5,052
Notes: 1. Data is calculated using local market actual or estimated data sources from invoices, purchasing requisitions, direct data measurement and estimations. Carbon emissions are calculated in line with GHG Protocol standards. Scope 2 market-based emissions are reported using the market-based methodology in effect as at the date of this report. For full methodology see our ESG Addendum Methodology document: investors.vodafone.com/esgmethodology. 2. Data includes all entities within the control of Vodafone Group Plc during FY24, both continuing operations and discontinued operations (Italy and Spain), unless otherwise stated. 3. During the current year, information relating to 2023 and 2022 has been restated to reflect portfolio changes completed during 2023 and 2024. 4. Data for 2023 has been restated to reflect changes to our methodology for calculating emissions, see our ESG Addendum Methodology document for more information: investors.vodafone.com/ esgmethodology.
We continued to implement the ISO 50001 Energy Management Standard globally across our operations. Certification was achieved by an additional five of our operating companies, bringing the total number of ISO 50001 certified markets to 16. Digitalisation of the energy system, data and analytics are key enablers for optimising energy consumption across our operations. Our energy data management and digital artificial intelligence and machine learning (‘AI-ML’) based analytics system, which collects and stores data from our electricity suppliers and from smart meters, is now live across 10 markets in Europe and one market in Africa, with smart meters installed at over 40,000 sites. Click to read more about our energy efficiency initiatives: vodafone.com Switching to renewables The majority of the energy we use in our operations comes from purchased grid electricity. Our network also uses electricity generated by stationary generators, which are mostly powered by fossil fuels (diesel or petrol). Our fleet of vehicles is fuelled by a mix of diesel, petrol and, increasingly, purchased electricity. This year, we continued our efforts to phase out fossil fuels from our operations in favour of renewable energy sources. Purchasing renewable electricity Our goal is to match 100% of the grid electricity we use globally with electricity added to the grid from renewable sources by 2025. This year, 100% of the grid electricity used in our European network (FY23: 100%), and 84% globally, (FY23: 75%), was matched with electricity from renewable sources. While maintaining our renewable electricity purchasing in Europe, our main focus this year has been on creating new models for renewable electricity purchasing in Africa, where renewable electricity markets are significantly less mature. In South Africa, we signed a first-of-its-kind ‘virtual wheeling’ agreement with the national power producer – Eskom – which allows Vodacom to secure renewable electricity from independent power producers (‘IPPs’) that are connected to the national grid. The first phase is underway and will see IPPs providing approximately 30% of Vodacom South Africa’s power demand. Previously, this was not possible for a company of the size and complexity of Vodacom, which has over 15,000 low-voltage mobile sites in 168 municipalities. This innovation was co-developed by Mezzanine (a Vodacom subsidiary) and Eskom.
We are optimistic this project can make a positive difference to the energy transition in South Africa, where regular planned power cuts are implemented as Eskom seeks to prevent national blackouts resulting from demand exceeding generation capacity. This virtual wheeling model enables broader private sector participation, which can help accelerate efforts to solve the country’s energy crisis. In Egypt, we implemented an agreement, signed at COP27 in November 2022, with the Egyptian Ministry of Electricity and Energy to purchase renewable electricity from the New and Renewable Energy Authority (‘NREA’). The agreement is the first of its kind in Egypt, where a national system of renewable electricity certificates is not yet established. As part of this agreement, the Egyptian Ministry of Electricity and Energy will match the electricity used by Vodafone Egypt’s mobile network with electricity added to the grid from renewable sources over a one-year period, renewed annually. This supports the investment case for growing the Egyptian renewable energy sector and the development of a market mechanism to sell and purchase renewable electricity and offers a reference for other corporate renewable electricity buyers to follow. In Europe, we continued to increase the proportion of electricity we source directly from renewable generators through power purchase agreements (‘PPAs’). We signed additional renewable supply in FY24 representing an increase in our long term contracted PPA volumes by over 20%. We now have PPAs established in Germany, Greece, Portugal and the UK. Those currently in operation delivered around 24% of the grid electricity we used in Europe 1 . From 2026 our PPAs will be fully operational and they will generate approximately 39% of our grid electricity demand in Europe 1 . PPAs provide us with more price certainty against current volatile wholesale electricity prices. The remainder of our electricity consumption is matched with renewable energy certificates (‘RECs’) that we purchase through our energy suppliers or from the REC market. Click to read more about our renewable electricity purchasing strategy: vodafone.com/renewables Note: 1. Relates to electricity consumed by our continuing operations that has been purchased exclusively for use by Vodafone via a PPA.
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