34 Vodafone Group Plc Annual Report 2025
Strategic report
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Protecting the Planet
Climate change The telecommunications sector is estimated to contribute between 1.8% and 2.8% of global greenhouse gas (‘GHG’) emissions 2 . At Vodafone, we are committed to minimising the impact that activities within our business and across our value chain have on the environment. Reducing the GHG emissions from activities in our value chain is a key part of Vodafone’s purpose strategy and our commitments to help protect the planet. Scope 1 and 2 GHG emissions Vodafone’s Scope 1 and 2 GHG emissions come directly from continuing operations under our operational control and indirectly from the energy we purchase and use in those operations. These emissions contribute towards climate change. The largest driver of our operational emissions is the burning of fossil fuels to generate the energy needed to run our networks. Our climate transition plan outlines the actions we aim to take during the period FY25 to FY27 to reduce emissions in line with our climate targets and to build climate resilience into our business. This year, we continued to reduce GHG emissions from our operations and the energy we purchased and used in those operations, with a continued focus on driving energy efficiency across our mobile and fixed-line networks, phasing out the use of fossil fuels and increasing renewable sources of energy for both our stationary equipment and vehicle fleet. Key actions undertaken to improve energy efficiency included the deployment of the latest generation radio hardware, the activation of smart power-saving features, the use of artificial intelligence in energy management, the introduction of flexible storage, and incentives to move towards smart metering in our operating companies. We are also working with partners to
drive innovation in this space with a particular focus on energy flexibility solutions that can help us balance fluctuating energy demand and supply. To progress the phase-out of fossil fuels in our operations, this year we installed microturbine technology in Romania and progressed a proof-of- concept trial of a metal hydride hydrogen energy storage system in South Africa. These trials seek to develop solutions that will help us transition towards low or zero-carbon alternative fuels, such as hydrogen, in the future. We also commenced studies to assess the feasibility of using biofuel-diesel blends to power off-grid network assets in Egypt and have begun deploying hydrotreated vegetable oil (‘HVO’) biofuel to power parts of our network in the UK. Biofuels offer a renewable fuel that can be used to reduce our diesel consumption and associated emissions as we transition away from diesel. To improve energy storage and flexibility at our sites, we identified sodium-ion batteries as a potentially suitable and cost-effective technology. This year, we commenced trials of sodium-ion batteries at two European sites and in South Africa. Following positive preliminary results, we are looking to extend the trial to involve suppliers that are bringing new commercial products to this market. We continued to electrify our fleet by introducing a new policy to transition to battery Electric Vehicles (‘EVs’) for company cars in Germany and centralise the management of our European vehicle fleet. This year, we are proud to have matched 100% of the grid electricity purchased 1 and used in our global operations with electricity added to the grid from renewable sources. We have achieved this through increasing use of power purchase agreements (‘PPAs’) and purchasing renewable energy certificates (‘RECs’) in markets where they are available.
Our approach to reducing our Scope 1 and 2 emissions comprises six priority areas of action: 1. Energy efficiency: 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 implementing ISO 50001 certified energy management systems across our markets. 2. A lternative fuels: 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. On-site renewables: 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. F luorinated gas (‘F-gas’) strategy: We seek to reduce the accidental release of 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. E V fleet: We increase the use of 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. Renewable electricity purchasing: We aim to match the grid electricity we use with RECs, including through PPAs. In markets where RECs are not yet available, we seek to innovate and establish new ways of purchasing renewable grid electricity.
We provide connectivity and digital solutions that help to enable the climate transition and aim to empower others to reduce GHG emissions, by improving the efficiency of resource use. We are working to minimise the environmental footprint of our operations, our value chain and our products and services – through reaching net zero and improving the circularity of the technology we use and sell. This year, we continued to embed our Protect the Planet strategy across our business. 100% grid electricity purchased and used globally matched with renewable sources 1
84% reduction in Scope 1 and 2 GHG emissions since 2020
Notes: 1. Correct to zero decimal places. Less than 0.2% of electricity we use is not matched with renewable sources because credible renewable electricity purchasing mechanisms are currently unavailable in the locations where this electricity is used and these locations are not grid-connected to any markets where such mechanisms are available. 2. World Bank and ITU, 2024.
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