28 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
Protecting the Planet
Scope 1 and 2 GHG emissions The biggest driver of our operational emissions (referred to as ‘Scope 1 and 2’) is the burning of fossil fuels to generate the energy needed to run our networks. We are working to reduce these emissions every year to achieve our climate targets. The emissions reduction trajectory used to set our climate targets is aligned to our long-term ambition to reach net zero across our value chain by 2040. As part of our Climate Transition Plan, we mapped this trajectory with interim milestones to reach net zero in our own operations in Europe by 2028 and in Africa by 2035. Separate net zero targets for Europe and Africa recognise the significant differences in the challenges we face in these two regions. Our emission reduction trajectory also includes our near-term Science Based Target initiative (‘SBTi’) validated target to achieve 90% reduction in Scope 1 and 2 emissions globally by 2030. We monitor our progress in reducing Scope 1 and 2 emissions in comparison to this trajectory. By doing so, we seek to reduce our environmental impact, strengthen the resilience of our network and enhance confidence among our business customers with regard to our ESG commitments. Strategy Our climate transition plan outlines the actions we are taking during the period FY25 to FY27 to reduce emissions in line with our climate targets and to build climate resilience into our business. Our approach to reducing our Scope 1 and 2 emissions comprises six priority areas of action: 1. We improve energy efficiency and optimise energy use across our infrastructure assets and estate by modernising our networks, reducing electricity consumption,making improvements in network configuration, consolidating parts of our fixed network and data centre estate, and
We continued improving energy efficiency across our global network operations, with a particular focus on deploying latest generation energy efficient radio hardware, activating new smart power-saving features, and developing artificial intelligence use cases for energy management. For example, we developed a ‘0 bit, 0 watt’ software, resulting in a reduction in energy usage of up to 90% during periods of idle use, and introduced AI based energy tracking tools for anomalies detection. These tools helped us unlock energy consumption insights that have led to energy savings. We strengthened our focus on innovation and undertook trials aiming to test new technologies within our network. We led a distributed energy storage system pilot in the Czech Republic to test how large scale grid-connected batteries could support grid balancing; the stabilisation of electricity grids through a syncing of supply and demand. We launched a pilot project in the United Kingdom to explore how large-scale battery systems connected to the grid could support more flexible and sustainable energy. Using batteries to balance electricity supply and demand improves grid flexibility by storing power when it is plentiful and releasing it back to the grid when it is needed. This grid flexibility is increasingly needed to enable the transition from fossil fuels to more intermittent renewable sources of energy. In addition to exploring grid flexibility, we recognise the growing need to match electricity use in our own operations to times when the grid is most renewable. We undertook further research on this topic, and explored how this can be implemented within our energy management systems, and seek to develop our approach in the future.
implementing ISO 50001 certified energy management systems across our markets. 2. We connect our base stations to the electricity grid where economically feasible, so that we can rely less on power generators. We develop proof of concepts and conduct research to find alternative low- or zero-carbon sources of power to help find cleaner energy solutions. 3. We increase the number of sites across our mobile access and fixed line networks and property estate with on-site renewable electricity generation and power storage where technically and economically feasible. 4. We seek to reduce the accidental release of Fluorinated gases (‘F-gases’) by improving the maintenance and operation of our cooling and fire suppression systems. We are also transitioning to lower global warming potential (‘GWP’) gases where possible. 5. We increase the use of Electric Vehicles (‘EVs’) powered by electricity from renewable sources in our fleet in Europe through fleet electrification, installation of EV infrastructure and employee engagement to increase EV adoption. 6. We aim to match the grid electricity we use with renewable electricity certificates (‘RECs’), including through Power Purchase Agreements (‘PPAs’). In markets where RECs are not yet available, we seek to innovate and establish new ways of purchasing renewable grid electricity. This year We advanced the deployment of our climate transition strategy across our markets. We delivered progress in deploying innovations in network energy efficiency and grid flexibility, and progress in electrifying our vehicle fleet in Europe.
As demand for digital connectivity grows, it is increasingly important for telecommunications companies to decarbonise their operations and value chains. We are working to reduce our greenhouse gas (‘GHG’) emissions every year and aim to achieve net zero in our own operations in Europe by 2028, in Africa by 2035, and across our value chain by 2040. Through these efforts, we seek to reduce our environmental impact and become a more resilient, competitive and future-ready business. 100% grid electricity purchased and used globally matched with renewable sources 1 31% reduction in Scope 1,2,3 GHG emissions since 2020 Note: 1. Correct to zero decimal places. Less than 0.2% of grid electricity used by Vodafone Group in FY26 is not matched with renewable sources. This is because in a small number of locations where we operate, there is no available renewable electricity purchasing mechanism and these locations are not grid-connected to any markets where such mechanisms are available.
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