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Vodafone Group Plc Task Force on Climate-related Financial Disclosures Report 2023
Overview
Risk Management
Metrics and Targets
Governance
Strategy
Appendices continued
Appendix 2: Glossary Task Force on Climate-related Financial Disclosures (‘TCFD’)
TCFD is an organisation that was established in December 2015 with the goal of developing a set of voluntary climate-related financial risk disclosures which can be adopted by companies so that those companies can inform investors and other members of the public about the risks they face related to climate change. The organisation was formed by the Financial Stability Board (‘FSB’) as a means of coordinating disclosures among companies impacted by climate change. Potential positive impact related to climate change on an organisation. Efforts to mitigate and adapt to climate change can produce opportunities for organisations, such as through resource efficiency and cost savings, the adoption and utilisation of low-emission energy sources, the development of new products and services, and building resilience along the supply chain. Climate-related opportunities will vary depending on the region, market, and industry in which an organisation operates. Potential negative impact of climate change on an organisation. Physical risks emanating from climate change can be event-driven (acute) such as increased severity of extreme weather events (e.g. cyclones, droughts, floods and fires). They can also relate to longer-term shifts (chronic) in precipitation and temperature and increased variability in weather patterns (e.g., sea level rise). Climate-related risks can also be associated with the transition to a lower-carbon global economy, the most common of which relate to policy and legal actions, technology changes, market responses and reputational considerations. Scope 1 refers to all direct GHG emissions. Scope 2 refers to indirect GHG emissions from consumption of purchased electricity, heat or steam. Scope 3 refers to other indirect emissions not covered in Scope 2 that occur in the value chain of the reporting company, including both upstream and downstream emissions. Scope 3 emissions could include: the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricity-related activities (e.g. transmission and distribution losses), outsourced activities and waste disposal. Industry standard which helps to articulate the risk management roles and responsibilities of individuals across the Group by creating three independent lines that react to and manage risks differently. A partnership between CDP, the United Nations Global Compact, the World Resources Institute (‘WRI’) and the World Wide Fund for Nature (‘WWF’). SBTi drives ambitious climate action in the private sector by enabling organisations to set science-based emissions reduction targets. In preparing the ESG-related information contained in this document, Vodafone has made a number of key judgements, estimations and assumptions. The processes, methodologies and issues involved are complex. The ESG data, models and methodologies used are often relatively new, are rapidly evolving and are not of the same standard as those available in the context of financial and other information, nor are they subject to the same or equivalent disclosure standards, historical reference points, benchmarks or globally accepted accounting principles. It is not possible to rely on historical data as a strong indicator of future trajectories, in the case of climate change and its evolution. Outputs of models, processed data and methodologies are also likely to be affected by underlying data quality, which can be hard to assess and we expect industry guidance, standards, market practice and regulations in this field to continue to evolve. There are also challenges faced in relation to the ability to access data on a timely basis and the lack of consistency and comparability between data that is available. This means the ESG-related forward-looking statements, information and targets discussed in this document carry an additional degree of inherent risk and uncertainty. In light of uncertainty as to the nature of future policy and market response to climate change and other ESG-related issues, including between regions, and the effectiveness of any such response, and as market practice and data quality and availability develops, Vodafone may have to update the models and/or methodologies it uses, or alter its approach to ESG analysis and may be required to amend, update and recalculate its ESG disclosures and assessments in the future, its ESG ambitions, goals, commitments and/or targets or its evaluation of its progress towards its ESG ambitions, goals, commitments and/or targets. Revision to ESG data may mean it is not reconcilable or comparable year on year. With the exception of the metrics outlined in the assurance sheet of our ESG addendum, the information contained within this document has not been independently verified or assured. All the information included in this document has been taken from sources which we deem reliable. While all reasonable care has been taken to ensure the accuracy of the data, Vodafone has not arranged for independent verification of the data with respect to its accuracy or completeness. Further information on methodologies is included in the reporting methodology sheets in our ESG Addendum.
Climate-related opportunity
Climate-related risk
Greenhouse gas (‘GHG’) emissions Scope levels
Three lines model
Science-Based Targets initiative (‘SBTi’)
Appendix 3: Disclaimers General ESG Statement
Metrics
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