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Vodafone Group Plc Task Force on Climate-related Financial Disclosures Report 2023
Overview
Risk Management
Metrics and Targets
Governance
Strategy
Metrics and Targets Measuring and managing climate impact
Metrics and targets are used to assess and manage material climate-related risks and opportunities. The TCFD recommends that organisations disclose the metrics and targets they use to assess and monitor climate-related risks and opportunities, including their Scope 1, 2 and, if appropriate, 3 emissions. Climate-related risks and opportunities are considered in our financial, operational, technological and wider environmental, social and governance (‘ESG’) performance, and we therefore use a wide variety of metrics to measure the current and potential impact. We cover the metrics related to understanding our physical climate-related risks on page 8, so this section focuses on transition risks. Greenhouse gas emissions We are committed to measuring and reducing our share of global greenhouse gas (‘GHG’) emissions, in line with the Paris Agreement, and have been reporting on energy and carbon emissions since 2001. Our main carbon emissions metrics are also subject to independent limited assurance. Our latest emissions footprint and targets can be found in Figures 10, 11 and 12 and in our latest ESG Addendum. For the 2021 and 2022 awards, the ESG measure includes a specific greenhouse gas reduction ambition linked to our 2025 aim of reducing our emissions by 50% against a FY17 baseline. For the 2023 and 2024 awards, it includes a specific carbon emission reduction ambition linked to our 2030 aim of reaching net zero for own operations (Scope 1 and 2) against a FY20 baseline. Read more about how ESG is incorporated into our remuneration policy on pages 93-106 in our Annual Report Next steps in our TCFD programme: We will continue to evolve our suite of metrics to measure our progress against our forthcoming climate transition plan, including progress in implementing measures to mitigate climate-related risks and opportunities.
Figure 10
Scope 3 emissions sources (m tCO 2 e) Figure 12
Our Planet goals 2030 Net zero emissions from our operations and from energy we purchase and use (Scope 1 & 2) 1, 2, 3 Halve emissions from our value chain (Scope 3) 1, 2 Enable 350 million tonnes of carbon emissions to be avoided through green digital solutions 4 2040 Net zero emissions across our full value chain (Scope 1, 2 & 3) 2, 3 1. Near-term targets are SBTi approved (since 2020) and are subject to re-validation as part of the current process to seek SBTi approval of our long-term (2040) net zero target. Our current SBTi approved near-term target includes reducing Scope 1 and 2 emissions by 95% by 2030. 2. Against a baseline of financial year ending 31 March 2020. 3. This year we amended our terminology from ‘fully abate’ to ‘net zero’, to align with definitions in the SBTi’s Corporate Net Zero standard. Going forward, we will seek to align our 2030 and 2040 net zero targets with the SBTi definition of net zero, which means that we will reduce our carbon emissions in absolute terms by 90-95% by our target year (in line with a science-based 1.5 degree pathway), and neutralise any residual emissions through high quality carbon offsetting.
0.49
2.73
Purchased goods & services 1.97 Fuel and energy related activities 0.78 Use of sold products 1.10 Joint ventures and associates 3.03 2.73 Capital goods Other (inc. transportation and distribution, business travel, upstream leased assets, waste) 0.49 Total 10.10
1.97
3.03
1.10 0.78
Environmental metrics Underpinning our net zero emissions goal, we have targets to impact our emissions-generating activities. Reductions in emissions are also part of our climate-related risk and opportunity management. For example, increasing the energy efficiency of our infrastructure reduces carbon emissions and lessens the potential impact of increasing infrastructure cooling costs as average ambient temperatures rise due to global warming. We measure and optimise our energy use to limit our exposure to transition risks, such as energy price rises. We also have metrics in place to measure the climate opportunity associated with developing and deploying products to help society decarbonise (known as carbon enablement), and have set targets for increasing this by 2030. Figure 13 provides a summary of the environmental targets we have set. Read more about our metrics and targets in our ESG Addendum investors.vodafone.com/esgaddendum
Scope 1 and 2 GHG emissions (m tCO 2 e) Figure 11
1.42 1.12
1.08 0.80
0.97 0.69
Scope 1 emissions (million tonnes CO 2 e) Scope 2 emissions (million tonnes CO 2 e)
0.30 FY21
0.28 FY22
0.28 FY23
Please note rounding causes differences in total number
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