Vodafone 2024 Annual Report

64 Vodafone Group Plc Annual Report 2024

Strategic report

Governance

Financials

Other information

Climate-related risk We recognise that both physical changes to the climate and the transition to a lower carbon economy pose risks and opportunities for our business. This section outlines our approach to governance, strategy, risk management, metrics and targets in relation to these climate-related risks and opportunities. TCFD recommendations We have considered our obligations under the UK’s Financial Conduct Authority Listing Rules and have detailed in the table below the 11 TCFD recommendations and whether we are fully or partially consistent. For financial year ended 31 March 2024, our disclosure is consistent with 10 out of 11 TCFD recommendations. Our disclosure is partially consistent with one recommendation, related to target-setting, which we intend to continue progressing in FY25. Governance Progress Page a. Describe the Board’s oversight of climate- related risks and opportunities C 64 b. Describe management’s role in assessing and managing climate-related risks and opportunities C 64 to 65 Strategy Progress Page a. Describe the climate-related risks and opportunities the organisation has identified over the short, medium and long term C 65 b. Describe the impact of climate-related risks C

Our disclosure of climate-related risks is well established. We conducted our first climate-related risk assessment in 2019, and have published a standalone report annually since 2021 – applying the framework of recommendations of the Task Force on Climate-related Financial Disclosures (‘TCFD’). From this year, following the incorporation of the TCFD framework into the International Financial Reporting Standards (‘IFRS’), we include our climate-related risk reporting here, within our Annual Report. We see this as the next milestone in our journey to integrate the management and disclosure of climate-related risk into our core business processes. We continue to report in line with the TCFD framework and its 11 recommendations. This year, we have also prepared this report with reference to the IFRS S2 Climate-related Disclosures standard, in preparation for aligning with this in the future. Governance Climate-related risks are integrated into our risk management framework and the Audit and Risk Committee (‘ARC’) executes responsibility for these risks on behalf of the Board. Vodafone’s proposed principal risks, watchlist risks and emerging risks are reviewed and approved by the Executive Committee (‘ExCo’) annually before being submitted to the ARC and the Board. During FY24, climate change (which was previously a distinct risk on our watchlist), was consolidated as a sub-risk of Environmental, Social and Governance (‘ESG’). This broader ESG risk will be monitored on our watchlist and reported through our risk governance structure. Read more about our risk governance structure on page 57 Read more about watchlist risks on page 62 Our climate-related risk and resilience programme sits within the Protecting the Planet part of our Purpose strategy, which is ultimately overseen and approved by the ESG Committee. The Committee’s responsibility is to oversee Vodafone’s response to climate change, as part of our Purpose strategy. The committee meets at least twice per year to provide direction on the management of risks and opportunities to Vodafone’s operations and reputation. At Executive Committee (‘ExCo’) level, the ESG and Reputation Steering Committee (‘ESGR’) is accountable for the implementation of the Purpose strategy, and has appointed an Executive sponsor (the Chief External and Corporate Affairs Officer) to oversee the implementation of the Protecting the Planet pillar of the strategy. The Committee reviews progress of delivery of the Protecting the Planet strategy quarterly, including the assessment and management of climate-related risks and opportunities. The ESGR reports half-yearly to the ESG Committee on the status of the Protecting the Planet strategy, its implementation and progress against targets to support the Board’s oversight of the management of climate-related risks. Each year, the ARC and ESG committees meet to jointly review and provide oversight for the annual climate-related risk disclosure. Read more about the governance of our Purpose strategy on page 33 Read more about our ESG Committee on pages 96 to 97 At operational level, the Group Head of Risk coordinates the annual programme to identify and assess climate-related risk, with support from the Head of Sustainable Business. Progress against the annual risk identification and assessment programme is monitored through the ESGR. Actions to strengthen our climate resilience and mitigate climate- related risks were included in our Vodafone Group Climate Transition Plan (‘CTP’). Accountability for the design and implementation of these actions and initiatives is assigned to individual senior managers, within a range of relevant business functions across Vodafone’s global business including our networks and technology operations, commercial and enterprise business units, procurement, external affairs and property teams.

66 to 67

and opportunities on the organisation’s businesses, strategy and financial planning c. Describe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario a. Describe the organisation’s processes for identifying and assessing climate-related risks Risk management b. Describe the organisation’s processes for managing climate-related risks c. Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organisation’s overall risk management a. Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process Metrics and targets b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 emissions, and the related risks c. Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets

Progress Page

67-69

Progress Page

Key

Consistent with the TCFD recommendations Partially consistent with the TCFD recommendations C PC