70 Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
Climate-related risk continued
Metrics and targets The metrics disclosed in this section are used to monitor the key drivers of our priority climate- related transition risks identified through our scenario analysis, particularly energy costs exposure and emissions performance. We have set targets to reduce GHG emissions from both our own operations and across our full value chain. We have set (in FY24) region-specific net zero targets for our operational emissions (Scope 1 and 2) to reflect fundamental differences and challenges in transition pathways across Europe and Africa, while maintaining our overall Science Based Targets initiative (‘SBTi’)-approved near-term science-based target 1 to reduce Scope 1 and 2 emissions (from our own operations) by 2030 and our long-term target to reduce Scope 1, 2, and 3 (from our operations and value chain) by at least 90% by 2040 against a FY20 baseline across our global business. Note: 1. Targets set for achievement within 5–10 years, in line with methodologies defined by the Science Based Targets initiative.
The Protecting the Planet section of our Annual Report, together with our ESG addendum and methodology document, details our approach to measuring and reducing GHG emissions. We measure and report our Scope 1, 2 and 3 emissions (including all 15 categories of Scope 3). In addition to GHG emissions metrics, we prioritise energy-related metrics as a key indicator of exposure to climate-related transition risk, including measuring energy use. We also measure renewable electricity purchasing, including the proportion of our energy that is contracted from power purchase agreements (‘PPAs’), which are multi-year contracts that can help to mitigate our exposure to rising energy and carbon costs by providing greater long-term price certainty. These established metrics are used in senior-level planning, prioritisation and performance discussions, demonstrating the increasing use of climate-related information to inform operational and strategic decision-making. In FY26, we continued to strengthen and expand our suite of metrics to track the delivery of our CTP, enabling more effective monitoring of progress actions across key initiatives within our plan. These metrics support oversight of improvements in energy efficiency and energy optimisation use across our infrastructure assets and estate (such as by modernising our networks and deploying latest generation energy efficient radio hardware), as well as increasing the number of sites powered by on-site renewables, and progress in decarbonising our fleet in Europe. Together, these actions contributed to reductions in Scope 1 and 2 emissions across the Group. Read more about our climate metrics and targets in the Protecting the Planet section on pages 28 to 32 Click to read our ESG methodology document: vodafone.com/esg-methodology
Climate-related considerations are also incorporated into our executive remuneration through an annual emissions reduction target aligned to our near-term science-based Scope 1 and 2 target, to reduce the emissions from our own operations by at least 90% by 2030 against a FY20 baseline across our global business. 5% of the executive Global Long-term Incentive plan is linked to this climate metric, reinforcing accountability for delivery of our climate-related programme. Read more about how ESG is incorporated into our Remuneration Policy on page 105 We seek to continually progress with establishing metrics and targets for all elements of our CTP, including measures for initiatives relating to our full suite of climate-related physical and transition risks. Our CTP also outlines the areas of uncertainty, dependencies on key external factors and risks to the delivery of our targets. We review our CTP every three years so that it remains relevant and aligned with evolving best practice and current knowledge. During the year, we further developed data collection processes and controls to support the metrics we defined and evaluated their effectiveness to strengthen data quality and support current and future disclosure of our metrics and associated targets. We report annually on the carbon emissions avoided using our digital solutions, which relates to our customer enablement opportunity, as included within our ESG addendum. Click to read more about our ESG addendum, including how we measure carbon enablement: vodafone.com/esg-addendum Read more about our approach to enablement on our website: vodafone.com/enablement Click to read our climate transition plan: vodafone.com/ctp
Climate-related risk metrics 1 Climate-related risk metrics
2026
2025
2024
Total Scope 1 and Scope 2 emissions (market- based) (million tonnes CO 2 e) Scope 3 emissions (million tonnes CO 2 e) 1 Energy use (gigawatt hours)
0.26 0.30 0.70 6.11 6.85 7.39 5,967 5,806 5,701
Note: 1. Information relating to prior years has been re-baselined to reflect the Vodafone UK merger with Three UK on 31 May 2025. See our ESG addendum and methodology document for more information: vodafone.com/esg-methodology. Vodafone is aligned to the TCFD framework in substance, with strong progress across governance, strategy integration, and Scope 1, 2, and 3 metrics. During the year, climate-related governance, management processes, and metrics were further strengthened, supported by clear ownership and the integration of ESG considerations into senior-level decision making through regular reporting (such as through our ESG SteerCo). We continue to enhance the completeness and consistency of externally disclosed climate-related metrics, supported by ongoing development of data systems, modelling and disclosure processes, with further improvements expected during the next reporting cycle.
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