ESG Addendum Methodology 2025
Vodafone Group Plc ESG addendum
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Protecting our Planet
Empowering People
Building Trust
Other information
Contents
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Reporting Criteria Scope
Everyone.Connected Our Purpose is to connect everyone. We aim to build an inclusive, sustainable and trusted digital society where individuals and businesses can thrive. We address Environmental, Social and Governance (‘ESG’) topics through our purpose strategy, with the goal of enabling an inclusive, sustainable and trusted digital society. This year we continued to simplify, evolve and embed our purpose strategy across our business, with a focus on ‘Protecting the Planet’ and ‘Empowering People’ in a digital society. These pillars are underpinned by our commitment of ‘Maintaining Trust’ in e verything we do.
Protecting our Planet Read more on p. 7
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Assurance
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Protecting our Planet
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Scope 1 Methodology
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Scope 2 Methodology
12 20
Scope 3 Methodology
Carbon Enablement
28
Energy
30
Waste and Water
30 30
Intensity metrics
Empowering People Read more on p. 31
Environmental Accreditations
31 Empowering People 31 Closing the digital divide 32 Financial inclusion
33 Maintaining Trust 33 People 35
Diversity and Inclusion
35
Protection of whistleblowers
Maintaining Trust Read more on p. 33
35
Health and safety
36
Responsible supply chain
36 Board and Executive Committee 37 Other information 37 GRI Index 37 UNGC 37 SFDR
Read more about our climate goals and performance in our latest Annual Report and ESG Addendum: vodafone.com/sustainability-reports
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Vodafone Group Plc ESG addendum
Protecting our Planet
Empowering People
Building Trust
Other information
Reporting Criteria Scope This document outlines the basis of preparation for our ESG performance indicators ( ‘ KPI ’ s) which are available on investors.vodafone.com/esgaddendum. In preparing the ESG-related information and KPIs, Vodafone has made a number of key judgements, estimations and assumptions. The processes, methodologies and topics involved are complex. The ESG data, models and methodologies used are often relatively new, are rapidly evolving and are not of the same standard as those available in the context of financial information, nor are they subject to the same or equivalent disclosure standards, historical reference points, comparable benchmarks, or globally accepted accounting principles. It is not possible to rely on historical data as a strong indicator of future trajectories, in the case of climate change and its evolution. Outputs of models and methodologies are also likely to be affected by underlying data quality, which can be hard to assess, and we expect industry guidance, standards, market practice and regulations in this field to continue to evolve. We also face challenges in relation to the ability to access data on a timely basis and the lack of consistency and comparability between data that is available. This means the ESG-related forward-looking statements, information and targets discussed in our Annual Report carry an additional degree of inherent risk and uncertainty. In light of uncertainty as to the nature of future policy and market response to climate change and other ESG-related topics, including between regions, and the effectiveness of any such response, and as market practice and data quality and availability
This report excludes information on the following unless otherwise stated in the exceptions section below: – Joint ventures where Vodafone does not have operational control: VodafoneZiggo in the Netherlands, TPG Telecom in Australia, Vodafone Idea in India and Vantage Towers and its subsidiaries in Czech Republic, Germany, Greece, Ireland, Portugal, Romania and Spain; – Associates where we do not have operational control: Safaricom in Kenya and Ethiopia, and Indus Towers in India 1 ; – Partner Market networks in which Vodafone neither has any equity interests nor holds an operating license, including those Partner Markets that operate under the Vodafone brand; – Countries in which we are required to hold an operating licence in order to provide local customer support to multinational enterprise customers but where we neither own nor operate any licensed telecommunications network infrastructure; and – Retail stores that are Vodafone-branded by way of franchise and exclusive dealer arrangements but are not owned or operated by Vodafone.
develops, Vodafone may have to update the models and/or methodologies it uses, or alter its approach to ESG analysis and may be required to amend, update and recalculate its ESG disclosures and assessments in the future, its ESG ambitions, goals, commitments and/or targets or its evaluation of its progress towards its ESG ambitions, goals, commitments and/or targets. Re-baselining of ESG data may mean it is not reconcilable or comparable year on year. With the exception of the metrics outlined in the Assurance section, the information contained within this document and our ESG Addendum, collectively our ESG data, has not been independently verified or assured. All the information included in our ESG data has been taken from sources which we deem reliable. While all reasonable care has been taken to ensure the accuracy of the data, Vodafone has not arranged for independent verification of the data with respect to its accuracy or completeness. Further information on methodologies is included in the reporting methodology sections of this document. This report includes information on: – Operating companies in the countries where we had operational control during the year 1 April 2024 to 31 March 2025: Albania, Czech Republic, Germany, Greece, Ireland, Italy, Portugal, Romania, Türkiye, UK and Vodacom Group and its subsidiaries in the DRC, Egypt, Lesotho, Mozambique, South Africa and Tanzania; and – Shared operations in Albania, Egypt, Hungary, India, Romania and Spain known as Vodafone Intelligent Solutions ( ‘ _VOIS ’ ) and other group operations including Vodafone Business and Vodafone Automotive.
Notes: 1 The sale of our stake in Indus Towers completed on 5 December 2024.
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Vodafone Group Plc ESG addendum
Protecting our Planet
Empowering People
Building Trust
Other information
Exceptions to the reporting scope: – Our joint ventures and associates where we don’t have operational control which are included in our Scope 3 GHG emissions based on our ownership as at 31 March 2025; – Retail stores where we don’t have operational control which are included in our Scope 3 GHG emissions, – M-Pesa customer numbers, which includes 100% of our associate Safaricom in Kenya and Ethiopia. Portfolio changes The inclusion or exclusion of data from subsidiaries, joint ventures or associates that have been acquired or sold, or where there is a change in control or ownership that results in a change in operational control (as defined in the GHG Protocol), is determined by the date that the transaction in question is formally concluded with all approvals received. Where a transaction is concluded in the first half of the financial year our policy is to re-baseline our ESG data to reflect the outcome of the transaction. Where a disposal transaction concludes in the second half of the financial year data will be included until the closure date and a full re-baseline will be performed in the following financial year. The impact of transactions completed in the year ended 31 March 2025 are detailed in the methodology for each metric in this document. The sale of Vodafone Spain completed on 31 May 2024 therefore we have re-baselined our ESG data for all prior periods.
The sale of Vodafone Italy completed on 31 December 2024, and in accordance with the above policy we will re-baseline our ESG data in FY26 with the impact on performance reflected as discontinued operations. All other Group activities are reported as continuing operations. This disaggregation has also been reflected in our ESG reporting across all reporting periods. In a limited number of circumstances, data granularity was not available to disaggregate the information relating to discontinued operations. Where this is the case, it is noted in the ESG Addendum in relevant footnotes to the data. Estimates and Assumptions The reported information on our operations is based on actual performance data for the period. Where actual data is not available, we have used estimates or assumptions based on actual trends. More information on these estimates or assumptions is set out in the reporting methodology sections for each metric. Data This document includes selected ESG data which should be read alongside the full ESG dataset in our ESG Addendum.
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Vodafone Group Plc ESG addendum
Protecting our Planet
Empowering People
Building Trust
Other information
Independent Limited Assurance Report to Vodafone Group Plc Scope We have been engaged by Vodafone Group Plc (“Vodafone” or the “Company”) to perform a ‘limited assurance engagement,’ as defined by International Standards on Assurance Engagements, hereafter referred to as the engagement, to report on Vodafone’s selected non-financial performance data (see Appendix 1) (the “Subject Matter”) contained in Vodafone’s 2025 Annual Report as of or for the year ended 31 March 2025 (the “Report”). Other than as described in the preceding paragraph, which sets out the scope of our engagement, we did not perform assurance procedures on the remaining information included in the Report, and accordingly, we do not express a conclusion on this information. Criteria applied by Vodafone In preparing the Subject Matter, Vodafone applied the applicable criteria set out in the Company’s ESG Addendum 2025 (the “Criteria”). Part of such Criteria were specifically designed for reporting on the Subject Matter; as a result, the Subject Matter may not be suitable for another purpose. Vodafone’s responsibilities Vodafone’s management is responsible for selecting the Criteria, and for presenting the Subject Matter in accordance with that Criteria, in all material respects. This responsibility includes establishing and maintaining internal controls, maintaining adequate records and making estimates that are relevant to the
preparation of the Subject Matter, such that it is free from material misstatement, whether due to fraud or error. EY’s responsibilities Our responsibility is to express a conclusion on the presentation of the Subject Matter based on the evidence we have obtained. We conducted our engagement in accordance with the International Standard for Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (“ISAE 3000 (Revised)”) issued by the Financial Reporting Council, and the terms of reference for this engagement as agreed with Vodafone on 28 June 2024, and in respect of the greenhouse gas emissions information included within the Subject Matter, in accordance with International Standard on Assurance Engagements 3410 Assurance Engagements on Greenhouse Gas Statements (“ISAE 3410”), issued by the International Auditing and Assurance Standards Board. Those standards require that we plan and perform our engagement to express a conclusion on whether we are aware of any material modifications that need to be made to the Subject Matter in order for it to be in accordance with the Criteria, and to issue a report. The nature, timing, and extent of the procedures selected depend on our judgement, including an assessment of the risk of material misstatement, whether due to fraud or error. We believe that the evidence obtained is sufficient and appropriate to provide a basis for our limited assurance conclusions.
Our independence and quality management We have maintained our independence and confirm that we have met the requirements of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants and have the required competencies and experience to conduct this assurance engagement. EY also applies International Standard on Quality Management 1, Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services engagements, which requires that we design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements. Description of procedures performed Procedures performed in a limited assurance engagement vary in nature and timing from and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Our procedures were designed to obtain a limited level of assurance on which to base our conclusion and do not provide all the evidence that would be required to provide a reasonable level of assurance. Although we considered the effectiveness of management’s internal controls when determining the nature and extent of our procedures, our assurance engagement was not designed to
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Vodafone Group Plc ESG addendum
Protecting our Planet
Empowering People
Building Trust
Other information
provide assurance on internal controls. Our procedures did not include testing controls or performing procedures relating to checking aggregation or calculation of data within IT systems. A limited assurance engagement consists of making enquiries, primarily of persons responsible for preparing the Subject Matter and related information and applying analytical and other appropriate procedures. Our procedures included: – Engaging with selected members of the Company's leadership and senior management to make inquiries and discuss the governance structures around the preparation of the Subject Matter. – Meeting with key data owners from the Company to understand the processes for recording, aggregating, calculating, and reporting the Subject Matter as it relates to the Company’s consolidated figures. – Performing analytical review procedures on the Subject Matter and making enquiries of management to obtain explanations for any significant differences we identified. – Testing, on a limited sample basis, against underlying source information to check the accuracy and completeness of the data and the appropriate application of the Criteria. – Recalculating computations to assess the accuracy of data aggregation and consolidation for reporting purposes. – Examining the disclosures within the Report for the appropriate presentation of the Subject Matter, including the discussion of limitations and assumptions relating to the data presented.
We also performed such other procedures as we considered necessary in the circumstances. Conclusion Based on our procedures and the evidence obtained, we are not aware of any material modifications that should be made to the Subject Matter as of or for the year ended 31 March 2025 in order for it to be in accordance with the Criteria. Restricted use This report is intended solely for the information and use of Vodafone for the purpose of Vodafone showing it has obtained an independent limited assurance report in connection with the Subject Matter and is not intended to be and should not be used by anyone other than those specified parties.
Ernst & Young LLP 03 June 2025
London
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Vodafone Group Plc ESG addendum
Protecting our Planet
Empowering People
Building Trust
Other information
Appendix 1 – Selected non-financial performance data in scope for limited assurance: KPI Unit
Assured Value
Total Scope 1 GHG emissions
Million tonnes CO 2 e
0.27
Total Scope 2 GHG emissions (location-based method)
Million tonnes CO 2 e
2.07
Total Scope 2 GHG emissions (market-based method)
Million tonnes CO 2 e
0.01
Protecting our Planet (Year ended 31 March 2025)
Total Scope 1 and Scope 2 GHG emission (location-based method)
Million tonnes CO 2 e
2.34
Total Scope 1 and Scope 2 GHG emissions (market-based method)
Million tonnes CO 2 e
0.28
Total Scope 3 GHG emissions
Million tonnes CO 2 e
7.09
Grid renewable electricity purchased (% purchased electricity)
%
100
Women in management and senior leadership roles
%
36
Number of financial inclusion customers
Millions
77.1
Empowering People (As of 31 March 2025)
5G population coverage (outdoor 1Mbps) – Europe
%
75
4G population coverage (outdoor 1Mbps) – Africa
%
76
4G population coverage (outdoor 1Mbps) – Türkiye
%
97
Vodafone Group Plc ESG addendum
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Protecting our Planet
Empowering People
Building Trust
Other information
Greenhouse gas ( ‘GHG’ ) emissions Reporting Criteria
We provide connectivity and digital solutions that help to enable the climate transition and aim to empower others to reduce GHG emissions and improve the efficiency of resource usage. 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. Our Climate Transition Plan outlines the actions we aim to take during FY25 to FY27 to reduce our GHG emissions (including Scopes 1, 2 and 3) in line with our net zero pathway and to build business reliance in response to climate change. This year, we had a continued focus on driving energy efficiency across our mobile and fixed-line networks, phasing out the use of fossil fuels and increased renewable sources of energy for both our stationary equipment and vehicle fleet.
Protecting our planet
GHG emissions are calculated in millions of tonnes of carbon dioxide equivalent (million tonnes CO 2 e) and reported in accordance with the GHG Protocol Standards, UK Streamlined Energy and Carbon Reporting ( ‘ SECR ’ ) requirements, RE100 Technical Guidance and the Carbon Disclosure Standards Board ( ‘ CDSB ’ ) framework. We have applied the operational control approach for the accounting of our GHG emissions and the scope of the data collected is based on this method. This is defined as operations where we have control over how energy is being used (and therefore associated services). Emissions from operations where we do not have operational control but have a financial interest i.e. shareholding, or are part of our wider value chain (e.g. suppliers) where we do not have a financial interest, are accounted for within our Scope 3 GHG emissions. Standards and guidance Our methodology for the reporting of GHG emissions has been developed using the following standards and guidance: GHG Protocol standards and guidance, including the Corporate Standard (revised edition); Scope 2 Guidance and Scope 3 Calculation Guidance; and Corporate Value Chain (Scope 3) Standard; and The Climate Disclosure Standards Board Climate Change Reporting Framework (January 2022).
8 Scope 1 Methodology 10 Scope 2 Methodology 12 Scope 3 Methodology 20 Carbon Enablement 28 Energy
30 Waste and Water 30 Intensity metrics 30 Environmental Accreditations
Vodafone Group Plc ESG addendum
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Scope 1 GHG emissions These are emissions from operations under our operational control and include those from: – Diesel, petrol and other fuel used by cars and commercial vehicles owned by Vodafone or leased for six months or more; – Natural gas and other heating fuels used for space heating and hot water in our premises; – Diesel and petrol used for stationary power generators in off- grid areas, or where back-up capacity is required; and – Fugitive releases of refrigerants or fire suppressants used for air-conditioning or fire control systems in network buildings and offices. Conversion factors from the UK government’s Department for Business, Energy and Industrial Strategy have been used to calculate GHG emissions from other fuel sources such as diesel, petrol, natural gas and fuel oil as well as those from vehicles.
Our reporting of renewable electricity has been developed with reference to the RE100 Technical Criteria (December 2022) 1 . Where our definition of renewable grid electricity differs from the definition applied by the RE100 Technical Criteria, this is disclosed in this methodology. Portfolio changes We include performance data from newly acquired businesses at the end of their first full year of new ownership in line with our policy on reporting environmental data. In terms of setting a revised baseline to reflect acquisitions, disposals or a change of control, our policy is determined as follows: – Acquisitions are built into the baseline using either actual or estimated data at the end of their first full year of ownership based on our assessment of operational control; – Disposals are removed from the baseline in the year of disposal if part of the Group for less than six months or in the following year if part of the Group for more than six months; – Where prior year data has been re-stated to correct any significant errors identified this will be noted along with the reason for re-statement; and – Where there is an update to the calculation methodology that causes a significant change in the previously stated data all prior year information will be restated. This year we have re-baselined our GHG emissions across all prior periods to reflect the disposal of Vodafone Spain on 31 May 2024.
Data gathering process and methods Energy usage data is based on invoices from our energy suppliers, which in some cases include the supplier’s estimated readings. Increasingly, we measure our energy consumption through smart metering, a technology that uses mobile communications to collect real-time consumption data from energy meters. Under this approach we have accounted for 100% of emissions from the operations over which we have operational control within the Scope 1 and 2 footprints. We report on data collected using local market actual or estimates sourced from invoices, purchasing requisitions or direct data measurements. Emissions from our joint ventures and associates are accounted for within our Scope 3 GHG emissions. Where actual data is not available for the full reporting period, data for the missing period is estimated using an appropriate and reasonable estimation method (for example, extrapolation using the year-to-date monthly average, or based on prior year data for the corresponding time period). Due to a time lag in the availability of actual data, the majority of GHG emissions data has been estimated for the month of March 2025. If in our future year reporting the reconciliation of estimated data against actual data identifies a material error, we will restate our reporting in accordance with our policy for restatement.
Notes: 1 Revisions to the RE100 Technical Criteria published in March 2025 have not been applied to our FY25 reporting. We intend to take these revisions into account for future reporting.
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Emissions across our value chain 1
Million tonnes CO 2 e
2020
2022
2023
2024
2025
Total Scope 1 emissions from continuing operations
0.26
0.26
0.25
0.26
0.26
Total Scope 2 emissions (market-based method) from continuing operations 2
1.44
0.77
0.67
0.43
0.01
Total Scope 3 emissions from continuing operations
7.17
8.43
8.21
7.17
6.61
Total Scope 1, 2 and 3 GHG emissions from continuing operations 3
8.87
9.45
9.13
7.86
6.88
Total Scope 1 emissions from discontinued operations 4
0.04
0.01
0.01
0.00
0.01
Total Scope 2 emissions (market-based method) from discontinued 3 operations
0.01
0.00
0.00
0.00
0.00
Total Scope 3 emissions from discontinued operations 1,4
0.68
0.62
0.56
0.51
0.48
Total Scope 1, 2 and 3 GHG emissions from discontinued operations 2, 3
0.73
0.63
0.57
0.52
0.49
Total Scope 1 emissions^
0.29
0.26
0.26
0.26
0.27
Total Scope 2 emissions (market-based method)^
1.46
0.77
0.67
0.44
0.01
Total Scope 3 emissions^ 1
7.85
9.05
8.77
7.68
7.09
Total Scope 1, 2 and 3 GHG emissions 3
9.60
10.09
9.72
8.40
7.37
Total revenue from continuing operations (EUR million) 5
37,448
Market-based scope 1, 2 and 3 GHG emissions intensity from continuing operations (tonnes per EUR million) 5
183.7
Notes:
^ 2025 Limited assurance under ISAE (UK) 3000 and ISAE 3410 by Ernst and Young, see our Methodology below for further information. The information for comparative periods has been re-baselined to reflect portfolio changes. For information about assurance in comparative periods see ESG Addendum investors.vodafone.com/esg for information on assurance for 2024 and 2023 respectively. 1. Selected information presented to include our baseline year and four comparative periods. Information relating to prior years has been re-baselined to reflect the disposal of Vodafone Spain on 31 May 2024 and 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 'Portfolio changes'. 2. Reflects increased use of renewable electricity. 3. Operations in Italy have been classified as discontinued operations. All remaining operations are reported as continuing operations. This disaggregation of information has been reflected in all comparative periods. 4 Includes data relating to our operations in Italy. 5. Information for prior periods is not presented as the organisational boundaries for financial reporting are not consistent with those used in the calculation of GHG emissions. For information about intensity metrics for prior periods, see our FY24 ESG Addendum (investors.vodafone.com/esg).
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Scope 2 GHG emissions These are emissions from electricity, heat, steam and cooling purchased to power our networks, technology centres, offices and retail stores. We report two different Scope 2 emission values: one using a ‘market - based’ method and one using a ‘location - based’ method. The market-based method applies if we have operating companies in any countries where energy certificates or supplier- specific information are available. The method involves using an emissions factor that is specific to the electricity purchased. The location-based method involves using an average emissions factor that relates to the grid on which energy consumption occurs. This usually relates to a country-level electricity, and where applicable district heating or cooling, emissions factor.
The following external factor sources have been used to calculate our market-based emissions:
Market-based emissions Emissions are calculated using a kWh to kg CO 2 e conversion factor based on one of the following sources (in order of the GHG Protocol hierarchy): – Supplier conversion factors specific to our contract; these include some markets where supplies are 100% renewable, and where we have sought evidence of singularity of supply; – Residual mix figures for 2023 – where the conversion factor reflects the removal of certificates, contracts and supplier- specific factors claimed by other organisations; and – Location-based conversion factors as described below. Location-based emissions Emissions are calculated using a kWh to kg CO 2 e conversion factor provided in the 2024 International Energy Agency ( ‘ IEA ’ ) emissions factor database which uses data for the 2022 calendar year where available (2021 is used if not available). For the calculation of emissions from district heating in Germany the Department for Energy Security and Net Zero (‘DE SNZ ’) emissions factor is applied.
Local market 1,2
Source
Date of factor
Albania
Supplier factor
2024/25
Czech Republic
Supplier factor
2024/25
DRC
Supplier factor
2024/25
Egypt
Supplier factor
2024/25
Germany
Supplier factor
2024/25
Greece
Supplier factor
2024/25
Ireland
Supplier factor
2024/25
Italy
Supplier factor 2
2024/25
Lesotho
Supplier factor
2024/25
Mozambique
Supplier factor
2024/25
Portugal
Supplier factor
2024/25
Romania
Supplier factor
2024/25
South Africa
Supplier factor
2024/25
Tanzania
Supplier factor
2024/25
Türkiye
Supplier factor
2024/25
UK
Supplier factor
2024/25
Notes: 1. Relates to emissions for our operating companies, other factors are used for emissions from shared services or other operations. 2. A calculation based on the IEA factor is used for the calculation of emissions from district cooling.
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Renewable electricity We consider grid electricity to be purchased from renewable sources if the grid electricity used in our operation is matched with renewable energy certificates (‘RECs’) , also known as energy attribute certificates (‘EACs’) . RECs certify that power has been generated and added to the grid from a renewable source such as wind, solar or hydro. In addition, we purchase a growing proportion of our electricity (matched with RECs) directly from renewable generators through Power Purchase Agreements (‘PPAs’). Renewable electricity matched with RECs also includes all renewable electricity from third-party energy suppliers which is traceable to Vodafone through a signed contract or provision of surrendered RECs. In addition to renewable grid electricity, we also generate a small proportion of the renewable electricity we use ourselves, for example through rooftop solar panels. In some of the countries where we operate (Albania, DRC, Greece, Lesotho, Mozambique, Romania and Tanzania), market mechanisms for purchasing renewable electricity (traceable using RECs) are not currently available. We match electricity used in these countries with RECs originating from grid-connected markets within the same geographical region (Africa or Europe respectively) 1 . This means that the electricity used by our global network is almost 100% matched with renewable sources from the same electricity grid or connected electricity grids. The grid electricity we used in our continuing operations that is matched with renewable sources is 99.8% to 1 decimal place. Less than 0.2% of grid electricity we use is not matched with renewable sources (RECs). This is because credible renewable
electricity purchasing mechanisms are currently unavailable in the locations where this grid electricity is used, and where such mechanisms are not available. Markets or countries with operations where we match the grid electricity, through the use of RECs, PPAs and contractual agreements for the financial year ending 31 March 2025 are: Albania, Belgium, Czech Republic, Democratic Republic of the Congo, Egypt, France, Germany, Greece, Hungary, Ireland, Italy, India, Lesotho, Mozambique, Luxembourg, the Netherlands, Portugal, Romania, Spain, South Africa, Tanzania, T ü rkiye, United Kingdom. Our reporting of purchased grid electricity (and related targets) does not include electricity self-generated using stationary power generators. Emissions from our use of stationary power generators are accounted for under our Scope 1 emissions. This differs from the RE100 Technical Criteria but avoids double counting of emissions across Scopes 1 and 2. Notes: 1 Our definition of market boundaries for renewable electricity markets differs from the RE100 Technical Criteria but remains aligned with the GHG Protocol standards because the RECs are sourced from regions reasonably linked to the Vodafone’s electricity consumption .
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Scope 3 GHG emissions The GHG Protocol Corporate Standard defines 15 categories of Scope 3 emissions. All 15 categories have been assessed for inclusion within our reporting. Where categories are excluded because there are no emissions, this is reviewed annually to ensure it remains valid and as part of our continued efforts to improve transparency and completeness of disclosure for our total GHG emissions footprint. We are committed to continual improvement in the quality and completeness of our Scope 3 emissions data inventory. We partner with carbon accounting specialists Normative to model and calculate our annual Scope 3 emissions. Normative are experts in carbon reporting who support us in identifying improvements to the completeness and accuracy of the input datasets and making improvements to our methodology in line with evolving industry best practice. This year we completed a review of our methodologies resulting in restatement of our Scope 3 emissions for all reported periods. This was undertaken to improve our data quality and estimation approach alongside the need to reflect portfolio changes and latest developments in industry standards and emission factors. The methodological changes made this year have significantly impacted emissions for Categories 1, 2, 4, 8, and 14, for further details see table below. As the methodology for measuring Scope 3 GHG emissions is developing and industry standards may change, we will continue to evolve our methodology, and this may result in in a need to amend or update our disclosures and/or our ESG ambitions,
goals, commitments and/or targets or our evaluation against these. We calculate our emissions for upstream and downstream transportation and distribution using a hybrid approach of spend- based and product specific data, which does not differentiate between upstream and downstream transportation and distribution activities. In 2022 we improved our calculation methodology to enable emissions from capital goods and transportation and distribution to be reported separately from purchased goods and services. Prior to 2022, emissions from capital goods were included in the data reported for purchased goods and services together with emissions from all transportation and distribution. The table below provides a breakdown of our Scope 3 emissions alongside an overview of the methodology for our Scope 3 calculations. Where Department for Energy Security and Net Zero (‘DESNZ’) 1 emission factors are referenced, these refer to the conversion factors for company reporting of greenhouse gas emissions (published by DESNZ in July 2024).
Note:
1 Department for Energy, Security and Net Zero (‘DESNZ’).
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We use a hybrid approach to calculating Scope 3 category 1 emissions.
Changes made to the methodology this year include:
1. Purchased goods and services Emissions from the extraction, production and transportation of goods and services purchased by Vodafone (through operating expenditure).
For the majority of purchased goods and services, we use a spend-based approach whereby our procurement spend on each product category is multiplied by a corresponding environmentally extended input-output ( ‘ EEIO ’ ) emission factor (drawn from third-party EEIO datasets). For a sub-set of purchased goods, namely mobile phone devices that are purchased from original manufacturers for retail to our customers, we use a product-specific approach, whereby the units of product purchased are multiplied by a corresponding cradle-to-gate product carbon footprint ( ‘ PCF ’ ). The PCF data is drawn from EcoRating datasets. For a sub-set of purchased services procured from 20 service-based suppliers, we use a supplier-specific approach whereby our procurement spend on each supplier is multiplied by the supplier’s organisational carbon footprint intensity (market-based Scope 1 and 2 plus upstream Scope 3 emissions) in tCO 2 e/mEUR, as disclosed through publicly available 2024 Climate Disclosure Project ( ‘ CDP ’ ) disclosures. We use a spend-based approach to calculating the emissions for capital goods purchased. Capital expenditure on each type of capital good is multiplied by a corresponding EEIO emission factor (drawn from third-party EEIO datasets).
– Improved granularity of third-party EEIO emission factors by transitioning from OECD UK-based, single region datasets to Exiobase global, detailed multi-region datasets; and – Further improvements to the mapping of EcoRating PCF data (to mobile handset models based on storage capacity and handset type e.g. smart or feature phone) applied to calculate emissions using the product-specific approach.
Changes made to the methodology this year include:
2. Capital Goods Emissions from the extraction, production and transportation of capital goods purchased by Vodafone (through capital expenditure).
– Improved granularity of third-party EEIO emission factors by transitioning from OECD UK-based, single region datasets to Exiobase global, detailed multi-region datasets.
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Upstream fuel and energy emissions are calculated by applying DESNZ emission factors for upstream well-to-tank ( ‘ WTT ’ ) and transmission and distribution ( ‘ T&D ’) emissions to Vodafone’s fuel and energy consumption data. International Energy Agency (‘ IEA ’) emissions factors are applied for international electricity consumption.
There were no significant changes to the methodology for this category for this year.
3. Fuel and energy- related activities Emissions from the extraction, production and transportation of fuels and energy purchased by Vodafone and not already included in Scopes 1 and 2. It includes emissions from electricity transmission and distribution.
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We use a hybrid approach to calculating Scope 3 category 4 emissions.
Changes made to the methodology this year include:
4. Upstream transportation and distribution Emissions from the transportation and
For mobile phone devices that are purchased from original manufacturers for retail to our customers, we continued to use our original methodology for calculating these emissions. For these, we estimate the weight of products purchased based on desk-based research and multiply this by the distance between China (representing the origin location for the majority of our products) and the top five countries of purchased goods (representing the market destination of the majority of our products). A modal split of 5% air freight and 95% shipping has been assumed and average DESNZ emission factors for freight have been applied to estimate emissions. For all other goods purchased and sold, we use a spend-based approach where our procurement spend on transport and distribution related product categories is multiplied by a corresponding environmentally extended input- output (‘EEIO’) emission factor (draw n from third-party EEIO datasets). . This approach accounts for transportation and distribution irrespective of whether it is upstream (category 4) or downstream (category 9). Therefore category 9 emissions are accounted for within this category. Where CDP data is used to calculate category 1 emissions, we do not disaggregate emissions data relating to transportation and distribution for those purchased services. The emissions from transportation and distribution related to those services are therefore accounted for within our category 1 emissions. Emissions are estimated by applying DESNZ emission factors to tonnage of waste generated by our operations across all of our operating companies (not including post-consumer waste from our products)..
– Calculation of emissions for the upstream transportation and distribution of all other purchased and sold goods based on transport and distribution-related procurement spend categories. Previously emissions were calculated by determining the percentage of the EEIO factor attributed to upstream emissions and multiplying by the spend across all procurement categories
distribution of products purchased by Vodafone between the manufacturing
location of our Tier 1 suppliers and our own operations.
There were no significant changes to the methodology for this category for this year.
5. Waste generated in operations Emissions from the disposal and treatment of waste generated by our activities.
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Air travel emissions are calculated based on the distance travelled multiplied by the air travel emission factor for the corresponding ticket-class and flight length. Emission factors are drawn from the DESNZ emission factors. The emissions factors applied were drawn from DESNZ, for domestic (UK internal), international (non-UK), and long-haul and short-haul (to/from UK) flights. Data for the distance travelled is extracted from the database of Vodafone’s third -party travel booking provider. Distance data is included for both outward and return legs of all flights booked with an outward departure date within the reporting period. Rail travel emissions are calculated based on the distance travelled multiplied by a DESNZ rail travel emission factor. Other business travel emissions are calculated based on Vodafone’s spend (on road, bus and taxi travel) as measured through our travel expenses system, multiplied by corresponding EEIO conversion factors. Emissions are estimated by multiplying the total number of employees (average FTE) per country by the estimated average distance travelled per day, estimated number of working days per year, estimated days working from the office and home per week, estimated proportion travelling by a particular mode of travel and energy use at home, and DESNZ emission factors.
There were no significant changes made to the methodology for this category this year.
6. Business travel Emissions from transportation of
employees for business- related flights (air travel) and business-related travel by road and rail.
There were no significant changes made to the methodology for this category this year.
7. Employee commuting Transportation of
employees between their homes and worksites and energy use from home working during the reporting year.
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The most significant upstream leased assets in Vodafone’s value chain are radio base station sites leased from third-party tower companies. At the majority of these leased sites, Vodafone owns and operates radio equipment. The electricity consumed by equipment owned and operated by Vodafone falls within our operational control boundary and is therefore accounted for in our Scope 2 emissions. The energy consumption of ancillary equipment (or ‘passive’ equipment) at these leased sites, which is owned and operated by the third- party landlord, is not within Vodafone’s operational control boundary, and therefore contributes to Vodafone’s Scope 3 category 8 emissions. These emissions are estimated based on the number of leased radio base station sites multiplied by the estimated average energy consumption of passive equipment, multiplied by the location-based emissions factor corresponding to the location of the site. The estimated average energy consumption of passive equipment is based on energy consumption data (electricity and diesel) of passive equipment at radio base station sites owned and operated by Vodafone. Where transportation of sold products is paid for by Vodafone (through the procurement of services from third-party logistics suppliers), the corresponding emissions are accounted for within Scope 3 category 4. On the basis that downstream transportation and distribution activities (which generally occur within country) are not significant compared to upstream transportation and distribution activities (which generally involve international freight), the emissions for this category have not been disaggregated to account for downstream transportation and distribution separately from upstream transportation and distribution.
Changes made to the methodology this year include:
8. Upstream leased assets Operation of assets leased by Vodafone, including third-party network sites. This includes the relevant sites leased from tower companies.
– Improved granularity of third-party EEIO emission factors by transitioning from OECD UK-based, single region datasets to Exiobase global, detailed multi-region datasets.
There were no changes to the reporting for this category for this year.
9. Downstream transportation and distribution Transportation of sold products from the point of sale to the customer.
Therefore, no emissions are reported against this category.
Vodafone does not sell products that require further processing before use. Therefore, this category of emissions is not relevant, and no emissions are reported against this category.
There were no changes to the reporting for this category for this year.
10. Processing of sold products Downstream processing of sold products (prior to use phase).
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These emissions include the emissions from electricity required to use electronic devices that Vodafone sells, including mobile phone handsets, fixed line equipment (such as broadband routers) and other electronic devices. Emissions are calculated based on the number of devices, multiplied by the estimated average lifetime energy use of each device, multiplied by the location-based emissions factor in the country of product sale. The estimated average lifetime energy use of mobile phone handsets is drawn from EcoRating data sets, if available, or else from desk-based research of publicly available information on the energy use of similar devices. For all other devices, use-phase electricity consumption is estimated based on proxies for the average energy use of similar products (based on publicly available information). These emissions do not include the emissions from the use of SIM cards sold by Vodafone, on the basis that SIM cards can be used in a wide range of equipment with a wide range of electricity consumption and do not themselves create emissions. These emissions are calculated based on the estimated weight of products sold by end-of-life disposal channel (based on average rate of waste electronic recycling versus landfill), multiplied by the corresponding DESNZ emission factor for each end-of-life channel. The average rate of waste electronic recycling versus landfill is calculated using the average recycling rates in five of our markets (Germany, UK, Italy, South Africa, Türkiye), based on desk research of publicly available information.
Changes made to the methodology this year include:
11. Use of sold products
– Improved use-phase electricity consumption data based on storage capacity of mobile handsets.
Emissions from the use of goods and services sold by Vodafone, principally from the energy used by network equipment, such as routers, and the energy required to charge mobile devices.
There were no significant changes to the methodology for this category for this year.
12. End-of-life treatment of sold products Waste disposal and
treatment of products sold by the reporting company at the end of their life. 13. Downstream leased assets Emissions from the use of products or equipment leased to third parties.
These emissions are calculated using the number of leased assets derived from leased revenue information reported in our financial statements, multiplied by the lifetime electricity consumption and the corresponding IEA emission factor.
There were no significant changes to the methodology for this category for this year.
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Retail stores where Vodafone has operational control (including ability to specify the equipment installed in the store and how it is operated, irrespective of whether the store is owned or leased by Vodafone) fall within our operational control boundary and are therefore accounted for in our Scope 1 and 2 emissions. Vodafone operates a franchise model in some of its markets, where retail stores are not under Vodafone’s operational control, and where the energy required to operate the store is primarily determined by the decisions of a third-party franchisee. These franchised retail stores fall outside Vodafone’s operational boundary and are therefore accounted for in our Scope 3 emissions. These emissions are calculated by multiplying average energy use per retail store (based on the average electricity and natural gas use in retail stores in Germany) by the corresponding IEA and DESNZ emission factors for that country, multiplied by number of franchise retail stores in each market. Emissions from joint ventures and associates are calculated based on Vodafone ’ s equity ownership and the corresponding proportion of the company’s Scope 1 and 2 emissions. In FY25, these investments included network operators in Australia, the Netherlands, India, Ethiopia, Kenya and infrastructure partners in Europe and India. The company’s carbon emissions are based on the latest available annual carbon footprint data, either provided directly to Vodafone through engagement with the investee company, or from publicly disclosed company carbon reporting for the latest available reporting year. A proportion of the total annual Scope 1 and 2 emissions of the investee company is reported based on our equity share as at the end of the reporting period. Scope 3 emissions from investee companies are not currently included in this category as we have not yet been able to determine the significance of the Scope 3 emissions to each investee company’s’ total emissions.
Changes made to the methodology this year include:
14. Franchises Operation of franchises in the reporting year, not included in Scope 1 or 2.
─ Detailed assessment of our retail portfolio against our methodology resulted in inclusion of additional franchises.
Changes made to the methodology this year include:
15. Investments Emissions from activities financed by Vodafone through investments in joint ventures and associates where Vodafone has significant influence.
– Adjustments to account for disposal of the equity in our investee company Indus Towers which was transacted throughout the financial year. In accordance with our re- baselining policy, we have included emissions for this investee until the date of disposal based upon the changes to our equity ownership. Our emissions will be re-baselined in FY26 to adjust for the complete disposal, which occurred in the second half of the financial year.
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