Vodafone Group Plc Annual Report 2025 61
Strategic report
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Climate-related risk
We recognise that both physical changes to the climate and the transition to a lower-carbon economy pose risks and opportunities for our business. This section outlines our approach to governance, strategy, risk management, and metrics and targets in relation to these climate-related risks and opportunities. Task Force on Climate-related Financial Disclosures recommendations We have considered our obligations under the UK’s Financial Conduct Authority Listing Rules and have detailed in the following table the 11 Task Force on Climate-related Financial Disclosures (‘TCFD’) recommendations and whether we are fully or partially consistent. For financial year ended 31 March 2025, our disclosure is consistent with 10 out of 11 TCFD recommendations. Our disclosure is partially consistent with one recommendation, related to target-setting, which we intend to continue progressing in FY26. This year, we have updated our disclosure to include that we have conducted a detailed quantitative scenario analysis of our seven-priority climate-related physical and transition risks and opportunities across our global footprint. This analysis builds on previous assessments and has enabled us to gain a deeper understanding of our exposure to the financial impact of climate change and assess the value at risk. Governance Climate-related risks are integrated into our Group risk management framework and the Audit and Risk Committee (‘ARC’) executes responsibility for these risks on behalf of the Board. Vodafone’s
responsible for the oversight and approval of Vodafone’s response to climate change and meets five times a year. The quarterly ExCo-level ESG and Reputation (‘ESGR’) Committee is accountable for the implementation of the purpose strategy and appoints an executive sponsor (the Chief External and Corporate Affairs Officer) to oversee programme implementation, annual risk identification and assessment, monitoring and progress tracking, and review of risk management of climate-related risks and opportunities. The ARC and ESG Committee meet annually to jointly review and provide Board oversight of the annual climate-related risk disclosure. Read more about the governance of our purpose strategy on page 31 Vodafone’s Group climate transition plan (‘CTP’), a cross-functional strategic programme, includes actions and targets to strengthen our climate resilience and mitigate climate-related risks and is overseen by the ESGR. Senior managers in relevant business functions across Vodafone’s global operations have delegated accountability for the design and implementation of these actions and initiatives and are responsible for reporting quarterly to senior leadership to raise risks to plan delivery. Accountabilities for executing strategy sits within external affairs, networks and technology operations, products and services, commercial, brand and marketing and enterprise business units, procurement, and property. The ESGR identifies any significant business decisions (for example, major transactions or changes to business strategy) that could impact Vodafone’s climate resilience or change the severity or likelihood of climate-related risks. Any risks or issues identified are evaluated by the risk and sustainable business teams, and if necessary escalated through the Protecting the Planet and purpose governance structure to the ESGR.
TCFD recommendations Governance
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a. Describe the Board’s oversight of climate-related risks and opportunities b. Describe management’s role in assessing and managing climate-related risks and opportunities Strategy a. D escribe the climate-related risks and opportunities the organisation has identified over the short, medium and long term b. Describe the impact of climate-related risks and opportunities on the organisation’s businesses, strategy and financial planning Risk management a. D escribe the organisation’s processes for identifying and assessing climate-related risks b. Describe the organisation’s processes for managing climate-related risks Metrics and targets a. D isclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process b. Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 emissions, and the related risks
C C
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C
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C
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c. D escribe the resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario C
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C
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C
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c. D escribe how processes for identifying, assessing and managing climate-related risks are integrated into the organisation’s overall risk management C
C
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C
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c. D escribe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets PC
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proposed principal risks, watchlist risks and emerging risks are reviewed and approved annually by the Group Risk and Compliance Committee (‘RCC’) on behalf of the Group Executive Committee (‘ExCo’) before being submitted to the ARC and the Board. Climate change, a sub-risk of Environmental, Social and Key C Consistent with the TCFD recommendations PC Partially consistent with the TCFD recommendations
Governance (‘ESG’), remains on our watchlist risk register and continues to be reported through our risk governance structure. Read more about our risk governance structure on page 55 Our climate-related risk and resilience programme sits within the Protecting the Planet part of our purpose strategy. The Board ESG Committee is
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