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Vodafone Group Plc Task Force on Climate-related Financial Disclosures Report 2023
Overview
Risk Management
Metrics and Targets
Governance
Strategy
Strategy continued
Figure 4: Vodafone’s material climate-related risks and opportunities Category Description
Potential impact before mitigations High-level description of mitigating strategy
Time horizon
Physical risks
Damage to infrastructure caused by increasing frequency and severity of extreme weather events, such as wildfires, flooding, and storms Interruption to or reduction in the quality of services due to increased precipitation and extreme weather events Supply chain disruption due to climate impacts on key suppliers Increases in global temperatures leading to an increase in the consumption of energy for cooling Increasing stakeholder scrutiny over our environmental performance, impacting revenue, market share and reputation
Increasing capital costs to replace damaged assets
Improve climate resilience of network assets at highest risk
Loss of revenue and/or market share
Improve climate resilience of critical network infrastructure
Disruption to business continuity, increased operating costs
Engage suppliers to promote actions to strengthen their climate resilience, and improve supply chain resilience, for example through diversification of suppliers Continue to roll out energy efficiency programmes to optimise energy use Improve transparency and disclosure of ESG data and climate transition plans to meet stakeholder expectations Continue to roll out energy efficiency programmes to minimise risk exposure. Increase electricity procured through long-term purchase power agreements (to provide greater certainty on energy costs) Transition our business to net zero in our full value chain (Scope 1, 2 and 3) by 2040 to minimise risk exposure. Engage with policymakers to advocate for appropriate carbon regulation and fiscal measures Continue to roll out energy efficiency programmes to minimise risk exposure. Engage with policymakers to advocate for appropriate energy efficiency regulation and fiscal measures Engage partners in our value chain to promote alignment of carbon targets and actions, including energy efficiency improvements Integration of climate impact and carbon enablement into design of products and services Continued integration of ESG (including carbon footprint) into supplier procurement processes
Increasing operating costs
Transition risks
Loss of revenue and/or market share
Rising price of energy (renewable and non-renewable)
Increasing operating costs
Emerging carbon regulations and carbon taxation Increasing operating costs
Changing mandates and regulations over infrastructure energy efficiency Third-party dependency impacting our ability to meet carbon targets and improve efficiencies
Increasing capital costs
Loss of revenue and/or market share
Opportunities
Development of new product lines enabling customers to better manage climate-related impacts
Increase in revenue and/or market share
Reduced costs through sustainable procurement
Reduced operating and capital costs
Short-term ( impact could be felt in the next 0-3 years) Medium-term (impact could be felt in the next 3-5 years) Long to very long-term (impact could be felt in the next 5-28 years)
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