36 Vodafone Group Plc Annual Report 2025
Strategic report
Governance
Financials
Other information
Protecting the Planet continued
Our performance 1,2
purchase). We have restated prior years’ Scope 3 emissions results in line with this methodology. In FY25, our Scope 3 GHG emissions decreased by 8% to 6.61 million tCO 2 e (tonnes of carbon dioxide equivalent), compared to the previous year. This is an 8% decrease, compared to our FY20 baseline year, primarily driven by a reduction of equity stake in our investments. Our total Scope 3 emissions fluctuate with the level of our equity investment in other companies, particularly those in regions where the energy transition remains challenging, such as in India. With 23% of our Scope 3 emissions attributable to investments (category 15), our total Scope 3 emissions performance remains sensitive to changes in the equity stake in these companies. This fluctuation was the main driver of emission reduction in FY25 compared to our baseline. Other Scope 3 category emissions increased by 10%, compared to the previous year. This is a 6% decrease, compared to our FY20 baseline year. This increase was driven by purchasing more devices to sell to customers, with a higher proportion of sales coming from carbon-intensive devices like smartphones instead of feature phones. Our total procurement spend also increased this year, partly due to a higher volume of goods and services purchased, and partly influenced by factors like the price of goods, inflation, and exchange rates. Over the coming years, we intend to track and report our progress in addressing the external dependencies for our Scope 3 emissions performance to monitor the continuing risk to our 2030 target. The calculation of our annual Scope 3 emissions (and its comparison to FY20 base year) remains sensitive to changes in modeling methodologies, which we seek to continuously improve as better data becomes available. The accuracy and completeness of the underlying data used to calculate the emissions has improved since FY24, leading to increased reports of emissions in some Scope 3 categories.
Unit
2025 6.88 0.27 0.04 0.20 0.03 0.26 0.01 6.61 0.49 0.01 0.01 0.00 0.48 2.34 2.17 0.17 100
2024 7.86 0.69 0.04 0.62 0.03 0.26 0.43 7.17 0.51 0.00 0.00 0.00 0.51 2.27 2.02 0.25
Total Scope 1, Scope 2 and Scope 3 GHG emissions (market-based method) from continuing operations Total Scope 1 and Scope 2 GHG emissions (market-based method) from continuing operations of which: Europe Scope 1 and Scope 2 GHG emissions (market-based method) 3 of which: Africa Scope 1 and Scope 2 GHG emissions (market-based method) 4 of which: Other Scope 1 and Scope 2 GHG emissions (market-based method) 5 Scope 1 GHG emissions from continuing operations Scope 2 GHG emissions (market-based method) from continuing operations Scope 3 GHG emissions from continuing operations 6 Scope 1 GHG emissions from discontinued operations Scope 2 GHG emissions (market-based method) from discontinued operations Scope 3 GHG emissions from discontinued operations 6 Total Scope 1 and Scope 2 GHG emissions (location-based method) Total Scope 1, Scope 2 and Scope 3 GHG emissions (market-based method) from discontinued operations 6 Total Scope 1 and Scope 2 GHG emissions (market-based method) from discontinued operations
Million tonnes CO 2 e Million tonnes CO 2 e
Million tonnes CO Million tonnes CO Million tonnes CO
2 e 2 e 2 e
Million tonnes CO 2 e Million tonnes CO 2 e Million tonnes CO Million tonnes CO 2 e Million tonnes CO 2 e Million tonnes CO 2 e Million tonnes CO 2 e 2 e Million tonnes CO Million tonnes CO 2 e 2 e Million tonnes CO 2 e Million tonnes CO 2 e
from continuing operations from discontinued operations
Renewable electricity from continuing operations Percentage of purchased grid electricity used and matched with renewable sources from continuing operations 7
%
84
Vodafone total energy use from continuing operations
Gigawatt hours
5,453 5,271
Notes: 1. D ata is calculated using local market actual or estimated data sources from invoices, purchasing requisitions, direct data measurement and estimations. Carbon emissions are calculated in line with the GHG Protocol standards. Scope 2 market-based emissions are reported using the market-based methodology in effect as at the date of this report. For full methodology see our FY25 ESG Addendum Methodology document: investors.vodafone.com/esgmethodology. 2. Information relating to prior years has been re-baselined to reflect the disposal of Vodafone Spain on 31 May 2024. See our ESG Addendum Methodology for more information on portfolio changes. 3. Includes operating companies in Albania, Czech Republic, Germany, Greece, Ireland, Portugal and the UK. 4. Includes operating companies in Vodacom. 5. Includes our operating company in Türkiye and our shared operations. 6. A ll information for comparative periods have been restated to reflect changes to our methodology for calculating Scope 3 GHG emissions. See our ESG Addendum Methodology (investors.vodafone.com/ esgmethodology) for more information on our approach to calculating Scope 3 GHG emissions. 7. Correct to zero decimal places. Additionally, we are continuing to reduce our Another important area for reducing our value chain emissions relates to the business operations of
full value chain globally by 2040. This includes the absolute reduction of our Scope 1, 2 and 3 emissions by at least 90% by 2040. To support this ambition, we have set a target to halve the emissions from our full value chain by 2030. In FY25, we implemented a major change in methodology for calculating our Scope 3 emissions, moving to a new software platform. This has led to an improvement in data quality, enabled by greater granularity of the region-specific emission factors underlying the calculation of spend-based emissions categories (particularly categories 1 and 2, which relate to goods and services that we
downstream GHG emissions through our efforts to drive awareness among consumers and enterprise customers of the environmental impact of product use. This year, Vodafone Business launched a carbon calculator in the UK to provide business customers with data on the GHG emissions impact of our key products and services. We continue to offer our own branded energy-efficient products to customers, such as Vodafone’s TV 3 (Giga TV Home) and TV PLAY (GigaTV Home Sound) Set Top Boxes, which this year were the first products worldwide to obtain the Green Product Mark by TÜV Rheinland.
companies we invest in. This is highly dependent on the energy transition in the countries where these companies operate, which in turn is dependent on government policy. We acknowledge that we have limited influence over such external factors. Nevertheless, we have continued to focus our effort on engaging our value chain partners through knowledge-sharing interactions and advocating for the clean energy transition globally. Vodafone’s long-term SBTi-validated science-based target is to achieve net zero emissions across our
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