Vodafone Group Plc Annual Report 2025 35
Strategic report
Governance
Financials
Other information
Protecting the Planet continued
We have successfully engaged with governments and utility providers to establish innovative agreements and market mechanisms, such as our virtual wheeling trial in South Africa and our renewable electricity agreement in Egypt. These agreements are supporting the development of nascent renewable electricity markets in Africa. In some markets (namely Mozambique, Lesotho, Tanzania, Romania and Albania), RECs or similar energy attribute tracking systems are not available for corporate buyers. This continues to limit the ability of corporates to signal market demand for renewable electricity. In the markets where we face such constraints, we support renewable purchasing in nearby grid-connected countries to support the energy transition in the wider region. There is one location (North Cyprus) where we operate where it is not feasible to match our electricity use with renewable sources, because there is no energy attribute tracking system in place and no grid connection to a market where such a mechanism exists. This location constitutes less than 0.2% of our global grid electricity use. Reducing the emissions from our own operations (Scope 1 and 2 GHG emissions) by at least 90% globally by 2030, in line with the pathway required to limit global warming to 1.5°C by 2100, is part of Vodafone’s near-term target, which has been validated by the Science Based Targets initiative (‘SBTi’). To support this ambition, we have set two pathways towards net zero operations, specific to the regions where we operate. In Europe, we aim for net zero emissions from our operations no later than 2028. In Africa, we aim for net zero emissions from our operations no later than 2035. These goals include a minimum 90% emissions reduction, with any remaining emissions neutralised through carbon offsetting in line with the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles from the net zero target year.
Our climate transition plan outlines actions we are taking during the period FY25 to FY27 to reduce our GHG emissions (including Scope 3 GHG emissions) in line with our net zero pathway and build resilience into our business in response to climate change. Our approach to Scope 3 emission reduction comprises seven priority areas of action: 1. C arbon data analytics: We seek to improve the availability, accessibility and consistency of our Scope 3 data through industry collaboration and the development of internal organisational processes and systems capability. 2. Key supplier engagement: We aim to engage with our key suppliers to align their climate ambitions with ours and accelerate the implementation of their decarbonisation plans. We also seek to consider supplier climate ambitions, plans and performance during the procurement and supplier selection process. 3. Investment company engagement: We seek to support the companies we invest in to develop, implement and, if possible, accelerate the decarbonisation of their networks and operations. 4. L onger lifetime devices: We establish services that extend the lifecycle of devices, such as repair, insurance and trade-in. 5. L ower-carbon devices: We aim to make lower-carbon, more circular choices more widely available and attractive to consumers. 6. Device manufacturer engagement: We engage with original equipment manufacturers through industry forums and seek to align with them on climate ambitions and plans. 7. Raising consumer awareness: We communicate with our customers to encourage them to choose lower-carbon and more energy efficient devices, and to use them in ways that reduce emissions during the use phase.
Where local market conditions and capabilities allow, we will endeavour to stretch our ambition to reach net zero ahead of our regional targets. For example, Vodafone Germany is striving to achieve net zero operations by the end of 2025, three years ahead of our 2028 European regional target. In addition, we set targets related to our transition towards renewable energy to support our net zero ambitions. These regional targets are underpinned by action plans to support our transition towards renewable energy. For example, by aiming to electrify our fleet of company vehicles in Europe through phasing out internal combustion engine vehicles by the end of 2028. This year we’ve introduced new metrics to measure our progress against our climate transition plan, including the amount of energy procured through PPAs and the percentage of EVs in our fleet. Scope 3 GHG emissions Vodafone’s Scope 3 GHG emissions are an indirect result of the Company’s activities or business model. Our Scope 3 GHG emissions originate from the production of goods and services that we buy (upstream GHG emissions, Scope 3 categories 1–8), the use of our products or services by our customers (downstream GHG emissions, Scope 3 categories 9–13) and the activities that we finance through our investments (Scope 3 category 15). Although these activities are not within Vodafone’s direct operational control, we recognise that they are essential to our business model and that we can play a role (as a customer, supplier and/or investor) to influence our value chain partners to reduce their GHG emissions.
Achieving our 2030 target to halve emissions from our full value chain has dependencies. These include improving data sharing with our suppliers and across industry. Click to read more at: vodafone.com/ctp In the current climate transition planning period (FY25 to FY27), our focus is on laying the essential foundations for future Scope 3 emission reduction by engaging in cross-industry collaboration, aligning objectives with our value chain partners, and establishing robust data to support management decision-making. Currently, one of the key drivers of year-to-year trends in our Scope 3 emissions is improvements in the quality of data inputs, emission factors and/ or calculation methods. We continue to invest in improving the quality, accessibility and availability of carbon footprint data to enable better measurement and reduction of Scope 3 emissions across our industry. In parallel, we are engaging with strategic stakeholders to encourage GHG emission reductions in our value chain. This year, we actively engaged with our key suppliers to accelerate action to decarbonise the telecommunications value chain through industry initiatives such as the Joint Alliance for Corporate Social Responsibility (‘JAC for CSR’), an association aiming to develop CSR practices across the industry. We also developed guidelines for device manufacturers on designing more sustainable products through the Eco Rating consortium, an initiative to evaluate the environmental impact of mobile phones and communicate this to consumers at the point of sale. Furthermore, we continue to introduce sustainable procurement practices for specific product categories. This year, we conducted a large-scale procurement tender for network equipment, which included consideration of suppliers’ climate performance. We also introduced new global guidelines for media buying, which led to a 34% reduction in the carbon footprint of our global media and advertising activities.
Powered by FlippingBook