66 Vodafone Group Plc Annual Report 2025
Strategic report
Governance
Financials
Other information
Climate-related risk continued
Metrics and targets Following completion of our quantitative scenario analysis of our full suite of priority climate-related risks and opportunities, we are now able to estimate and monitor the financial value associated with both our physical and transition climate-related risks. This enables us to deepen our understanding of our exposure to the financial risks from climate change, using scenario analysis as a tool for risk management, planning and decision making. We have set targets to reduce GHG emissions from both our own operations and across our full value chain. In FY24, we set region-specific net zero targets for our operational emissions (Scope 1 and 2) in recognition that the transition pathway and challenges are fundamentally different in Europe and Africa. Although our transition pathways differ by region, we maintain our overall Science Based Targets initiative (‘SBTi’)-approved near-term science-based target 1 to reduce the emissions from our own operations (Scope 1 and 2) by at least 90% by 2030 across our global business, against a FY20 baseline. Note: 1. Targets set for achievement within 5–10 years, in line with methodologies defined by the Science Based Targets initiative.
The Protecting the Planet section of our Annual Report, together with our ESG Addendum and Methodology document, details our approach to measuring and reducing GHG emissions. We measure and report our Scope 1, 2 and 3 emissions (including all 15 categories of Scope 3). We also have metrics in place to measure energy use; one of the key underlying factors in our exposure to climate-related transition risk. This year, we defined and put in place additional metrics to monitor our progress in delivering our CTP. For example, we began measuring the proportion of our energy that is contracted from power purchase agreements, which can help to mitigate our exposure to rising energy and carbon costs by providing greater long-term price certainty. We report annually on the carbon emissions avoided using our digital solutions, which relates to our customer enablement opportunity, as included within our ESG Addendum. Read more about our climate metrics and targets in the Protecting the Planet section on pages 34 to 38 Click to read our ESG Methodology document: investors.vodafone.com/esgmethodology
Climate-related considerations are factored into our executive remuneration, by way of an annual emission reduction target. This is linked to our near-term science-based target to reduce the emissions from our own operations (Scope 1 and 2) by at least 90% by 2030 across our global business, against a FY20 baseline. 5% of the executive long-term incentive plan is linked to this climate metric. We continue to progress with establishing metrics and targets for all parts of our CTP, including progress measures for initiatives relating to our full suite of climate-related physical and transition risks. Our CTP also outlines the areas of uncertainty, dependency on key external factors and risks to the delivery of our targets. Although we are not yet disclosing metrics and performance against targets for our full suite of climate-related risks, this year we have embarked on establishing definitions for new metrics identified and have begun to develop data collection processes and controls, which will support data quality in any future disclosure of metrics and associated targets. Read more about how ESG is incorporated into our Remuneration Policy on page 105 Click to read more about our ESG Addendum, including how we measure carbon enablement: investors.vodafone.com/esgaddendum Read more about our approach to enablement on our website: vodafone.com/enablement Click to read our Climate Transition Plan: vodafone.com/ctp
Climate-related risk metrics Climate-related risk metrics
2025
2024
2023
Total Scope 1 and Scope 2 emissions (market- based) (million tonnes CO 2 e) Scope 3 emissions (million tonnes CO 2 e) 1 Energy use (gigawatt hours)
0.27 0.69 0.92 6.61 7.17 8.21 5,453 5,271 5,107
Notes: 1. Data for 2024 and 2023 has been restated to reflect changes to our methodology for calculating Scope 3 emissions, see our ESG Addendum and Methodology document for more information: investors.vodafone.com/esgmethodology.
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