Sustainable Business Report 2018 - Vodafone Group Plc
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Contents Introduction 1 Women’s empowerment 9 Energy innovation 19 Youth skills and jobs 32 Chief Executive statement 1 Global context 10 Global context 20 Global context 33 Sustainable business strategy 2 Vodafone and women’s empowerment 11 Vodafone, energy and climate change 22 Our future jobs strategy 35 Global transformation areas 3 Gender equality in our workplace 15 Optimising our energy consumption 24 Digital workplace experience 38 Transparency focus areas 5 Enabling customers to reduce emissions 30 UN Sustainable Development Goals 6 Engaging with our stakeholders 7 Supply chain integrity and safety 41 Principles and practice 59 Mobiles, masts and health 76 Appendix 79 Supply chain integrity 42 Our people 61 Managing and reporting on Safety 51 Human rights 67 sustainable business 80 Bribery and corruption 71 Materiality82 Environmental management 83 Scope of reporting 84 How we report our key performance indicators 85 Independent Limited Assurance Report 93 Vodafone Group Plc Sustainable Business Report 2018
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Chief Executive statement Our products and services play a central role in the daily lives and livelihoods of more than half a billion people, across 25 countries. With every passing day, mobile is enabling and our progress on our women’s empowerment goals, place to ensure our operating practices meet our accelerating a revolution in access to education, launched in 2016, can be found later in this report. expectations and placing emphasis on corporate financial services and healthcare for millions of transparency, everyone associated with Vodafone, people, offering those living in some of the world’s Climate change remains a critical global challenge and from our Plc Board to our smallest operating company poorest communities the opportunity to break free we recognise, as a significant consumer of electricity, and suppliers, can deliver the conduct and behaviours from a cycle of endemic poverty. that we have an important role to play as part of the expected of a company of our size. global effort to limit temperature rises. Our new Simultaneously, our digital networks and technologies, 2025 targets are an indication of that commitment: We believe we have good cause to be optimistic and including 4G+ mobile, fibre-optic broadband, cloud to reduce our greenhouse gas emissions by 40%; excited about the future as the digital economy drives computing and the Internet of Things (IoT) are and to purchase 100% of the electricity we use from global progress but we recognise that the world transforming businesses of all sizes, helping them renewable sources. continues to face a number of significant challenges. to operate more efficiently and prosper. This year, The UN Sustainable Development Goals (SDGs) set we invested more than €7.3 billion to maintain and Within many of our markets, youth unemployment out a series of global ambitions to tackle these. We upgrade our digital infrastructure, investment that is one of the most significant social and economic believe we can have the greatest impact on five of the provides our customers, their families, communities challenges. New technologies are both replacing SDGs through the delivery of our sustainable business and businesses with the means to connect, learn, semi-skilled roles and creating new career paths but strategy and the goals mentioned above, and highlight share, trade and advance their ambitions. young people must have the right skills to adopt our progress and contribution in this report. these digital technology jobs. Over the next four We also have a duty to work within these communities years, our new future jobs programme – What will you Finally, I would like to thank the many stakeholders to create better, more equal societies, an aim that is at be? – will support 10 million young people across 18 – including employees, customers and shareholders – the heart of Vodafone’s purpose: connecting everybody countries to develop digital skills, get career guidance whose opinions and insights help us to accelerate our to live a better today and build a better tomorrow. and access training content and job opportunities. In efforts to build and grow a purpose-led, sustainable Enabling positive social outcomes is integral to what addition, we will provide up to 100,000 under 25s with Vodafone. Looking ahead to 2019 and beyond, I relish we do and our approach to sustainable business a digital workplace experience inside Vodafone – the the prospect of our business playing an increasingly ensures that we are committed to aligning our largest commitment to training and development in important role in building a better today as well as an business goals with the delivery of societal benefits. our 33-year history. exciting future for us and our planet. Our sustainable business strategy focuses our efforts Just as important as our commitment to delivering in areas where we believe Vodafone can make the positive social outcomes is our determination to act greatest impact: women’s empowerment; energy responsibly and with integrity wherever we operate; innovation; and youth, skills and jobs. We now have what we do matters but so does how we work. By Vittorio Colao long-term goals in place for each of these areas and paying close attention to the controls we put in Group Chief Executive, Vodafone Group Plc Vodafone Group Plc Sustainable Business Report 2018 1
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Sustainable business strategy Our sustainable business strategy is built on an unwavering commitment to operating responsibly and a recognition that we have a role to play in contributing to the societies in which we operate. Our purpose is to connect everybody to live At the heart of this strategy, which we launched in a better today and build a better tomorrow 2016, are three global transformation areas, each of which has the potential to achieve positive socio- economic benefits for our customers and wider society, and each of which is aligned with and Our transformation areas support our long-term business objectives. Our strategy focuses on our ability to deliver progress at scale in the areas of: • women’s empowerment; • energy innovation; and • youth skills and jobs. Women’s Energy Youth skills In parallel, we remain committed to ensuring that empowerment innovation and jobs Vodafone behaves responsibly and ethically wherever we operate, supported by our corporate transparency programme. Four areas, each a topic of intense public debate, form the focus of our efforts as we ensure Our transparency areas detailed policies, practices and disclosures help to hold our businesses to account while contributing to the broader debate. Tax and total Supply chain Mobiles, masts Digital rights Our transparency focus areas are: economic integrity and health and freedoms • taxation and total economic contribution; contribution and safety • supply chain integrity and safety; • mobiles, masts and health; and • digital rights and freedoms. Principles and practice Vodafone Group Plc Sustainable Business Report 2018 2
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Global transformation areas Women’s empowerment significant users of energy and are therefore a source of those emissions. The transformative effects of mobile technology for women in low-income emerging markets are As a significant user of energy, our industry faces well recognised. Owning a mobile phone for the first a growing GHG emissions challenge. We recognise time can enhance a woman’s physical and economic that we have an important role to mitigate the security, education, skills, access to employment consequences of this growth in demand for our opportunities and her (and her dependents’) health services and have introduced two new goals: to reduce and wellbeing. the GHG emissions associated with our operations by 40%; and to purchase 100% of the electricity we use To close the existing ownership gap and drive women’s from renewable sources, both by 2025. ability to empower themselves, our goal is to connect an additional 50 million women living in 10 emerging We will also continue to help our customers to reduce markets to mobile by 2025. We also intend to use our their emissions through the use of our IoT products mobile technologies to enhance the quality of and services. women’s lives through programmes that enable financial inclusion, improve health and wellbeing, Read more on energy innovation and build education, skills and entrepreneurship. Youth skills and jobs We are strongly committed to diversity and inclusion Many of the countries in which we operate continue and believe that by improving the diversity of our to experience high levels of youth unemployment global workforce we will better reflect our customer and consequently face a range of significant social base and wider society. We believe our strong and economic challenges. Simultaneously, some commitment to diversity is a source of business advances in technology, such as robotics and strength, as evidenced by our long-term goal to artificial intelligence, are enabling the automation become an employer with such a strong track record of many categories of jobs, reducing employment for attracting, retaining and developing talented opportunities and altering the nature of work. women that, by 2025, we are widely considered to be the world’s best employer for women. We believe we can play an important role in helping Read more on women’s empowerment young people gain the skills required to thrive in the global digital economy, and we have committed to support 10 million young people to access digital Energy innovation skills, learning and employment opportunities. There is clear evidence that global temperatures We will also provide up to 100,000 young people with are rising rapidly and a consensus that man-made a digital workplace experience at Vodafone. greenhouse gases (GHGs) are having a direct impact on climate change. Communications companies are Read more on youth skills and jobs Vodafone Group Plc Sustainable Business Report 2018 3
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Global transformation goals Women’s empowerment Energy innovation Youth skills and jobs Equality of women remains a significant global challenge. By Urgent action is needed to address climate change. This year, Persistently high youth unemployment and a growing digital skills empowering women and promoting gender equality, we can we have introduced two new goals that focus on achieving gap are significant social and economic challenges. This year, we enable communities, economies and businesses – including a significant reduction in the greenhouse gas emissions launched our What will you be? programme to help young people our own – to prosper. associated with our operations. develop their digital skills and access learning and employment opportunities so they can thrive in the digital economy. Our 2025 goals Our 2025 goals Our 2022 goals We aim to connect an additional 50 million To reduce our greenhouse gas emissions To support 10 million young people women living in emerging markets to mobile by 40% to access digital skills, learning and employment opportunities Our ambition is for Vodafone to become To purchase 100% of the electricity we use the world’s best employer for women from renewable sources To provide up to 100,000 young people with a digital workplace experience at Vodafone Vodafone Group Plc Sustainable Business Report 2018 4
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Transparency focus areas Our sustainable business strategy is founded on any capacity, across the world. Further details of our on a wide range of topics including law enforcement Vodafone’s commitment to responsible behaviour in approach can be found in the Supply chain integrity surveillance, privacy, data protection, freedom of everything we do, and is essential to preserving the and safety section of this Report. expression, censorship and the digital rights of the child. long-term success of our company. We strive to ensure See our Supply chain integrity and safety section for Visit our Digital Rights and Freedoms Reporting Centre we always act lawfully, ethically and with integrity more information wherever we operate. Our strong commitment to corporate transparency is evidenced through our Mobiles, masts and health Principles and practice programmes which address four areas that are the The health and safety of our customers and the We believe that how we work is as important as what focus of intense public debate. wider public is an absolute priority for Vodafone we do and what we achieve. We are committed to the and everyone who works with us. While our mobile highest standards of ethical behaviour, as set out in Taxation and total economic contribution devices and masts operate well within the guidelines our Code of Conduct, which governs everything we do. In 2013, we became the first communications set by the International Commission on Non-Ionizing Putting those principles into practice can sometimes company in the world (and one of very few in any Radiation Protection (ICNIRP), we recognise that in a lead to complex and difficult challenges where sector) to report our total taxation and economic number of countries there is still some public concern cultures and working environments may be in conflict contribution on a country-by-country and actual regarding the electromagnetic frequency (EMF) with our corporate values and commitments. Our cash-paid basis. We continue to extend the data we emissions from mobile phones and base stations. views and how we manage the risks to our business disclose to ensure our stakeholders have the most We always endeavour to address concerns openly are explained further in this section of the Report. relevant information to understand our tax position and transparently through regular local community See our Principles and practice section and economic impact. engagement and ensure the most up-to-date relevant for more information information is available on our website. Read our 2017 tax transparency report See our Mobiles, masts and health section for more information Supply chain integrity and safety Our businesses rely on a very large global supply chain Digital rights and freedoms encompassing over 15,000 businesses. We recognise In 2014, we published our first Law Enforcement there are many different labour rights and safety and Disclosure transparency report, explaining how environmental risks inherent within such a complex we respond to lawful demands for access to our supply chain and that similar risks can also arise in customers’ private data from law enforcement and the business operations under our own direct control. intelligence agencies. This report has since been Through our broad range of policies, training and audit updated and expanded and is contained within our programmes, we work with our suppliers to drive high online Digital Rights and Freedoms Reporting Centre, standards and ensure the safety, wellbeing and ethical which includes our policies, principles and approach treatment of everyone who works with Vodafone in Vodafone Group Plc Sustainable Business Report 2018 5
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix UN Sustainable Development Goals Being part of something bigger The United Nations Sustainable Development Goals (SDGs) set out a series of global ambitions to end poverty, fight inequality and injustice, and tackle climate change by 2030. By providing access to communications via our networks and innovative products and services, our core business enables people to improve their lives and livelihoods. Through our local businesses, our sustainable business strategy, our goals and programmes, and the work of the Vodafone Foundation, we estimate that we make the greatest impact on five of the UN SDGs and together indirectly contribute to UN SDG 1, to end poverty in all its forms everywhere. See http://www.vodafone.com/sdgs for more information. Ensure inclusive and equitable Achieve gender equality and Promote sustained, inclusive Build resilient infrastructure, Take urgent action to combat quality education and promote empower all women and girls and sustainable economic promote sustainable climate change and its impacts lifelong learning opportunities growth, full and productive industrialisation and foster for all employment and decent work innovation for all Examples of our contribution Examples of our contribution Examples of our contribution Examples of our contribution Examples of our contribution •O ver 419,000 people have •W e have connected an additional •O ver 111,000 unique users •O ur network infrastructure •D uring the year, we reduced the enrolled in the Vodafone Egypt 13.3 million female customers to completed of our Future Jobs comprises 310,000 base station amount of GHG emissions per Foundation’s Knowledge is Power mobile in our emerging markets Finder platform in the first 10 days sites, 65,000 computer servers, petabyte of data carried on our adult literacy programme since 2016 since launch 4,200 buildings (including network by 40% •O ver 500,000 refugee students •2 9% of our management and •W e estimate over 14,000 young 500 technology centres) •W e have helped customers to save have accessed free, quality leadership roles are held by women people were provided with a •W e invested €7.3 billion during an estimated 2.1 tonnes of CO2e education content with no data digital workplace experience the year to maintain and upgrade for every tonne generated through charges as part of the Vodafone during the year our digital infrastructure to deliver our own activities Foundation’s Instant Schools for improved coverage and access to Africa programme high speed networks Women’s empowerment Women’s empowerment Youth skills and jobs Women’s empowerment Youth skills and jobs Energy innovation Energy innovation Vodafone Group Plc Sustainable Business Report 2018 6
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Engaging with our stakeholders We work with a wide range of stakeholders, both individuals and organisations, to inform, shape and evaluate our approach to sustainable business. At the same time, many people and organisations have an interest in what we do and how we work. The following provides a summary of some of those we interacted with, alongside some examples of how we engaged and communicated with them during the year. Employees Customers Suppliers Who they are •W e employ around 104,000 people with 136 nationalities, •O ur customers range from individuals living in some of the •W e have more than 15,000 direct suppliers around the bringing together a diverse set of experiences and opinions world’s poorest communities to some of the world’s largest world – from small businesses and start-ups to multinational to help us achieve our goals by better understanding the multinational companies. companies – who provide us with a range of products and needs of our customers. services, from mobile devices to marketing services. Why they’re important to us •O ur business performance and our customers’ experience of •D elivering an outstanding and differentiated user experience •W e rely on our suppliers to deliver high-quality products and Vodafone depend on our ability to attract, develop and retain for all of our customers is a strategic priority for our business. services. At the same time, we know that poor behaviour by any talented individuals at all levels. one of our suppliers could have negative consequences for many businesses in the supply chain, including Vodafone. Examples of how we engaged during the year • E very year, we run an anonymous online Global People Survey • T hrough our Customer eXperience eXcellence (CXX) • E very year, we hold supplier safety forums to share best practice across our entire workforce to assess employee concerns and programme we aim to deliver an outstanding and and discuss ways to reduce safety risks in our supply chain. aspirations. This year, 88% of our employees responded. differentiated user experience for our customers. The My •V odafone and three other operators set up a supplier academy •W e invested more than €60 million in employee training Vodafone app, which is now live across all of our markets, focusing on training to help suppliers assess and improve the and development. This included a focus on developing provides customers with a flexible way of monitoring and social, ethical and environmental performance issues inherent management skills in agile and digital working. managing their services online. within supply chains. •W e believe that ethical conduct is just as important as •O ur Internet of Things (IoT) solutions can enable our •W e launched a new ‘Modern Slavery’ e-learning course to high performance. During the year, our Doing What’s Right Enterprise customers to improve efficiency, deliver cost support our suppliers to better manage this risk. The course employee communication campaign promoted different savings and reduce their carbon emissions. informs users about modern slavery risks throughout the areas of our Code of Conduct, such as anti-bribery and health employment cycle, equipping them with the insights they and safety. need to identify and detect potential problems. •A s part of our efforts to drive diversity and inclusion across the business, in March 2018 we ran week-long campaign to recognise and support International Women’s Day, which engaged more than 17,000 employees. Vodafone Group Plc Sustainable Business Report 2018 7
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Local communities Regulators and governments Non-governmental organisations (NGOs) Non-Governmental Organisations Who they are •V odafone has operations in 25 countries. Our products •W e engage proactively with policymakers to inform the •W e engage and work with many different NGOs around the and services form part of every local community where we policy frameworks that affect our customers, investments world, on a variety of topics that range from conflict minerals operate. These communities range from remote villages to and competitive stance. to digital human rights. some of the world’s largest cities. Why they’re important to us •O ur business is dependent on gaining the trust and support •W e have an opportunity and a responsibility to work with • E ngaging with NGOs is essential to help us understand of local communities. We aim to do this through being open, governments and regulators to ensure that regulation broader societal concerns and perspectives. transparent and by respecting local cultures and traditions. enables every citizen to benefit from the positive impact of our networks and services, as well as technological innovations including big data analytics, artificial intelligence and IoT. Examples of how we engaged during the year •W e work closely with local communities to ensure we • T his year, we continued our work to help make the Gigabit •V odafone is a Board member of the multi-stakeholder Global understand any concerns they have about the location of Society a reality, a vision that we share with the European Network Initiative, which brings together ICT companies, our base stations. For example, this year in South Africa, Commission. In April 2017, Vodafone organised a stakeholder civil society groups, academics and investors with a shared Vodacom engaged with stakeholders on over 40 separate event with European Union institutions to advocate for commitment to promote and advance freedom of expression occasions to outline their plans, hear concerns and future-proof gigabit networks in the context of the European and privacy worldwide. demonstrate compliance measurements. Electronic Communications Code. • T his year, we engaged with ActionAid and Oxfam to •O ur local businesses support the communities in which they • T ogether with the Vodafone Institute, we held a series of ensure our approach to responsible tax practices and tax operate in many different ways. For example, in India this year, events attended by European institutions exploring big transparency are comprehensive and address the areas of Vodafone India supported local road safety programmes for questions about digitisation and a more connected future. greatest concern. citizens to understand safe driving behaviours and the • I n March 2018, we organised a high-profile event to launch •W e have worked with Transparency International through importance of observing traffic rules. In the Czech Republic, our international future jobs programme What will you be?, its Business Integrity Forum to inform our compliance and we ran a public ‘Giving Tuesday’ fundraising campaign that aimed at helping young people to develop their digital skills disclosure practices and strengthen our anti-bribery and raised over €65,000 for a local health charity. and to access learning and employment opportunities. corruption programme. Vodafone Group Plc Sustainable Business Report 2018 8
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Women’s empowerment Equality of women remains a significant global challenge. By empowering Empowering women women and promoting gender equality, and promoting we can enable communities, economies and businesses – including our own – gender equality to prosper. Our 2025 goals We aim to connect an additional 50 million women living in emerging markets to mobile Our ambition is for Vodafone to become the world’s best employer for women 9
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Global context Equality of opportunity between men and women supports long-term social stability and economic Our alignment to the SDGs progress. Over the past two decades, the global ‘gender opportunity gap’ has narrowed, particularly It is estimated that measures to give women and girls equal rights and opportunities could improve public health, increase in areas such as education and health; however, major challenges remain. productivity and grow prosperity, adding US$12 trillion to global GDP by 20258. Women are disadvantaged economically across all Women also have an increased likelihood of being Communications technology can play a critical role in cultures, societies and economies. While the gender engaged in informal or other vulnerable forms empowering women to improve their lives and livelihoods. gap is greatest in patriarchal societies within emerging of employment. This is particularly prevalent in Through providing women with access to life-enhancing economies, inequalities still persist even in the developing markets, where only 13.6% of women services, which help unlock socio-economic opportunities and most developed economies. Globally, around 50% benefit from wage and salaried employment, championing the inclusion of women in the workplace, Vodafone of women aged 15 or over are in paid employment, compared with 24.3% of men6. is committed to SDG Goal 5. Our approach also aligns to Goals 4 and 8, as our mobile technologies also support improved compared with around 75% of men1. One study education outcomes and drive financial inclusion. estimates that it will take another 217 years to close A lack of support during pregnancy and the challenge the economic ‘gender gap’ if significant changes are of balancing childcare with work account for many Key SDGs and targets not made, while the comparative lack of women in women deciding to leave paid employment. Some 4.3 By 2030, ensure equal access for all women and senior, better-paid roles means that the global average women experience difficulties in returning to work men to affordable and quality technical, vocational and tertiary education, including university. for women’s earnings is just above half that for men2. after a career break; others return to work but find fewer opportunities for promotion and progression In emerging markets, the gender gap tends to affect than their male counterparts7. This is a lost women at an earlier age than it does in mature opportunity: for the many women affected and economies. An estimated 130 million girls around the for the global economy deprived of their skills. 5.1 End all forms of discrimination against all women and girls everywhere. world are currently out of school and are more likely 5.5 Ensure women’s full and effective participation to remain excluded from education than boys3. and equal opportunities for leadership at all levels Evidence also suggests that women in emerging Globally, around 50% of women aged of decision-making in political, economic and public life. markets are more likely to live in poverty than men4. 15 or over are in paid employment... 5.B Enhance the use of enabling technology, It is estimated that every day approximately 830 in particular information and communications technology, to promote the empowerment women die from preventable causes related to of women. pregnancy and childbirth5. £ £ 8.5 By 2030, achieve full and productive In more developed economies, young women and employment and decent work for all women and men enter the workplace with equivalent skills and compared with around 75% of men men, including for young people and persons with disabilities, and equal pay for work of equal value. in broadly equal numbers, but subsequently a much 8.10 Strengthen the capacity of domestic financial institutions to encourage and expand access to greater proportion of men reach middle and senior- banking, insurance and financial services for all. level roles. A significant proportion of women leave £ £ £ the workforce or continue working in more junior roles than their male peers. Vodafone Group Plc Sustainable Business Report 2018 10
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Vodafone and women’s empowerment Closing the ‘mobile gender gap’ Changing women’s lives focused on women living on low incomes. These include Vodafone India’s Smart Snehidi, which makes The GSMA estimates that in low and middle-income through mobile mobiles affordable for more women and enables countries, women are 10% less likely than men to own We estimate that 113.7 million of the 354 million them to use their devices to run small businesses. a mobile phone. This equates to a ‘mobile gender gap’ active customers we serve in emerging markets Other examples include our Business Women Connect of approximately 184 million women deprived of the are women11. We have already developed mobile programme in Tanzania and Mozambique and benefits of mobile ownership9. In addition, over technologies that can help women to change their Vodacom’s Mum & Baby initiative in South Africa. 1.2 billion women do not use the mobile internet. lives. However, a disproportionate number of women Some of the reasons for this are economic, but many still do not own a mobile phone. others are linked to cultural norms. 3.9 million more female Closing the mobile gender gap would have a positive We want to bring the benefits of mobile to women customers in emerging through a series of targeted commercial programmes, socio-economic impact for women and society as a and in 2016 we set a goal to connect an additional markets in 2018 whole. It also represents a commercial opportunity 50 million women living in those markets to mobile. equivalent to around US$15 billion annually to mobile We are also committed to use our mobile technologies operators in middle and low-income countries10. Progress towards our 50 million women goal to enhance the quality of women’s lives through programmes that focus on: Communications technology plays a critical role Estimated number of female • enabling financial inclusion; in empowering women to improve their lives customers in emerging markets (millions) and livelihoods. Owning even the most basic • improving health and wellbeing; and mobile enables a woman to communicate, access • building education, skills and entrepreneurship. Baseline Goal information, learn, manage her finances, set up and run a business, and even get help if feeling threatened. We believe this focus and our actions will make 2016 100.3 Mobile technology also enhances many public and a material difference to women, families and commercial services of value to women and girls in communities within the societies in which we operate. 2017 109.7 +9.4 emerging markets, from accessing vaccinations and maternal healthcare to mobile banking and online We have made significant progress towards our 2018 113.7 +3.9 support for smallholder farmers. goal and now have an estimated 113.7 million active female customers, 3.9 million more than last year (and 13.3 million since 2016). To contribute towards 0 25 50 75 100 125 150 Our 2025 goal: We aim to connect our goal, we have launched commercial propositions an additional 50 million women living in emerging markets to mobile Vodafone Group Plc Sustainable Business Report 2018 11
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Enabling financial inclusion for example. M-Pesa is also widely used to manage business transactions and to pay salaries, pensions, More than 2 billion people in the world, most of them agricultural subsidies and government grants. women, still have no access to banking facilities12. This makes it difficult for them to manage household Access to M-Pesa helps women take greater control finances, save money or run a business. Finding ways over their own and their family’s finances. They can to improve their access to financial services will bring use it to save money to pay for a child’s education significant social benefits and economic opportunities. or secure a small loan to set up a home business. In Kenya, research published this year estimated In 2007, together with our Kenyan associate, Safaricom, that 185,000 women have been able to switch from we developed the first mobile money transfer service, subsistence farming to business or sales as their M-Pesa – a simple, secure, cheap and convenient primary occupation as a result of mobile money access solution that we now offer to customers across eight through M-Pesa14. In addition, the research also found Supporting businesswomen in Tanzania and Mozambique markets: the Democratic Republic of Congo, Egypt, that M-Pesa has helped lift 194,000 households, or 2% Ghana, India, Kenya, Lesotho, Mozambique and In sub-Saharan Africa, we are helping women who run their own small of Kenyan households, out of poverty. We estimate that Tanzania. This year, following detailed reviews that enterprises to access financial services through M-Pesa, enabling them to 14.9 million women were actively using M-Pesa in 2018, found the service was no longer commercially viable, grow their businesses and improve their livelihoods. accounting for 43% of our M-Pesa customer base. we withdrew M-Pesa in Romania and Albania. Since 2016, we have built on the success of our M-Pesa and M-Pawa mobile Ensuring that M-Pesa offers secure and reliable As of March 2018, 34.7 million customers were using money services and are a partner in Business Women Connect (BWC), a services that protect the rights of its customers is M-Pesa13. They made over 9 billion transactions, service specifically designed for women who run micro-businesses. Created critical to maintain the trust and integrity of our through a network of more than 356,000 agents. in partnership with the ExxonMobil Foundation, World Bank and Centre mobile payments system. In April 2018, the GSMA for Global Development, BWC enables businesswomen to save and access awarded M-Pesa its Mobile Money Certification in With a mobile phone and an M-Pesa account, people useful business skills training, delivered by the NGO TechnoServe. Since its Kenya and Tanzania, following independent tests on low incomes have more control over their financial launch, nearly 6,000 Tanzanian women have benefited from BWC’s business conducted against nearly 300 stringent requirements. affairs. It also reduces the associated risks of a cash- skills training and learned how to use M-Pawa. based society, such as robbery and corruption. Thanks to the development of additional services such as Building on this success, we aim to bring the benefits of the BWC programme M-Shwari, M-Pawa and KCB M-Pesa, our customers to business women in other sub-Saharan countries, including Mozambique, can also save money, using interest-bearing accounts, 14.9 million women where we supported a successful pilot involving 500 women. and arrange micro-loans to help fund their businesses, used M-Pesa in 2018 Vodafone Group Plc Sustainable Business Report 2018 12
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Improving health and wellbeing It is estimated that at least half the world’s population lacks access to essential health services15. Most of Making healthcare more affordable these people live in low to middle-income countries in Kenya where access to screening, prevention and treatment In Kenya, only one in five of the population services is often limited or nonexistent. has some form of financial protection from healthcare costs16. Safaricom’s M-TIBA is a Through both Vodafone and the Vodafone service that allows anyone to send, save and Foundation, we have developed a range of mobile spend funds specifically for medical treatment technologies that enhance primary healthcare and using their mobile phone. Money stored in prevention services in emerging markets. Many M-TIBA can only be used to pay for treatment Providing mums and carers with free health advice of these programmes are particularly important and medication at M-TIBA-registered clinics Internet access is often the key to finding a job, helping a child get a better for women and young children. They include the and hospitals. education, getting health information, or keeping in touch with friends Vodafone Foundation’s Mobilising HIV Identification and family. In South Africa, Vodacom’s Siyakha (‘we are building’) platform and Treatment programme, which uses mobile M-TIBA is helping streamline the management aims to lower the cost of communicating while simultaneously seeking to technologies to improve access to treatment for HIV- of large-scale health financing schemes from increase people’s digital and social connectivity. Designed for people on a positive children and pregnant women in Lesotho. insurers, the government and donors and is very low income, Siyakha offers free access to websites related to education Over 139,000 people have been tested for HIV through helping to make healthcare more accessible. and job searches, and offers lower priced products and services. this programme, with over 2,700 identified as HIV There are now more than one million users of positive and subsequently offered HIV treatment. M-TIBA, almost half of whom are women. Since This year, Siyakha services were expanded to include a number of new launching in 2016, partners using the service features, including a mobile-based platform for pregnant women called Tackling violence against women have processed over 210,000 healthcare visits Mum & Baby. This service provides parents and caregivers with free health Global estimates indicate that around one in three and have paid out nearly €2 million in information and includes videos that are useful at the different stages of women worldwide will experience physical or sexual medical costs. pregnancy, through to the first five years of a child’s life. For many accessing violence in their lifetime, often at the hands of a this service, this is the first time such health information has been made partner or ex-partner. The Vodafone Foundation As mobile penetration in Kenya is above easily available to them. Mum & Baby is designed to be user-friendly and is has developed a number of products and services 95%, M-TIBA is emerging as a secure and accessible online and via SMS. It is also available in five local languages. designed to support people’s safety and security in scalable platform to roll out essential health vulnerable domestic circumstances. These include our finance products. Topics covered include sexual health and reproduction, pregnancy tips, Easy Rescue smartphone app, which enables women breastfeeding, immunisation, mother-child bonding, early childhood in Turkey to alert friends covertly that they need help, development, nutrition and HIV/AIDS. During the year, 1.2 million registered simply by shaking their phone. Another example is the users accessed this free health information – many of whom were fathers. TecSOS emergency alert service, which has been used 210,000 healthcare visits In just one year, the Siyakha platform has reached 7.5 million people and continues to grow. across five countries by more than 100,000 people facilitated by M-TIBA in Kenya (predominantly women) at risk of domestic abuse. Vodafone Group Plc Sustainable Business Report 2018 13
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Building education, skills and entrepreneurship Enabling girls and women access to a good education Supporting digital start-ups focusing can enhance their chances of thriving in life, yet many on female empowerment girls in emerging markets enter adulthood lacking F-LANE, a seven-week acceleration programme basic literacy and numeracy skills. An estimated for high-potential digital impact ventures, was 16 million girls aged 6 to 11 will never even start developed by the Vodafone Institute in school (twice the number of boys17) and even more Germany as the first accelerator in Europe start school but drop out early. In rural India, one aimed exclusively at women. The programme’s estimate suggests that only around one in 100 girls mission is to foster the participation of women reaches the final year of school18. in technological development and to empower women of all ages around the world through Studies confirm that low and middle-income and technology. In the most recent round, 180 transition countries could add US$92 billion to their start-ups from 57 countries were initially economies if girls receive 12 years of schooling19. identified for consideration and review. However, in these countries, access to education beyond basic primary school level can often be The final five applicants took part in the full difficult and expensive. programme of support, which included mentorship, training, networking and funding. Mobile technology increases access to quality The finalists were: Mamabird (USA), which education, especially for people living in remote transports life-saving medical supplies via areas. The Vodafone Foundation has pioneered the drones to women and children in remote development of innovative digital teaching and remote African communities; FinMarie (Germany), an learning technologies for deployment among some of online investment platform created by women the most vulnerable and disadvantaged communities for women; BreastIT (Uganda), a start-up that in the world, including people living in refugee camps has pioneered portable ‘ultrasound sensitive’ Women First in Entrepreneurship in sub-Saharan Africa. gloves to enable breast screening in Vodafone Turkey is helping thousands of women to understand the inaccessible areas; Doctory (Pakistan), an opportunities offered to them by digital communications technologies, Its Instant Network Schools programme connects innovative medical services and appointment specifically as entrepreneurs. Through the Women First in Entrepreneurship classrooms to the internet, providing solar power, booking search engine; and Free_D (London), Programme, launched in 2015 by the Vodafone Turkey Foundation in tablet computers and teacher training resources, which helps women involved in or at risk of partnership with Ministry of National Education and Turkish Informatics together with access to educational content to trafficking to rebuild their lives by learning Foundation, more than 26,000 women have received training on remote and isolated communities. The Foundation is competences in 3D printing. All five entrepreneurship, communications and finance. Once trained, they can championing access to quality education for refugees participants pitched to international investors use their new skills to make and sell handmade items on a bespoke website, and other marginalised learners, with a target to at an event in Berlin in May for the opportunity where more than 31,000 product entries are now listed. connect up to 3 million young people living in refugee to further develop their business with an camps to a digital education by 2020. You can read investment of €50,000, as well as access to Over the next year, a digital platform will be launched to enable women more about progress on page 37. coaching and mentoring support. to access e-learning content, as well as advertise their products and reach more customers. Vodafone Group Plc Sustainable Business Report 2018 14
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Gender equality in our workplace Gender equality in our workforce Our short-term goal is to increase the proportion of women in management and leadership roles globally We seek to be a company whose global workforce to 30% by 2020 (2018: 29%). To help us meet this reflects the customers we serve and the broader goal and recruit, retain and develop talented women societies within which we operate. We employ over at every level of our workforce, we have developed 38,500 women directly and provide employment programmes, including our ground-breaking maternity opportunities for hundreds of thousands more across policy and our ReConnect initiative, which make it our global supplier base. We believe that achieving easier for women to return to work after a career break. greater gender parity will strengthen our company significantly, as it enables us to better understand the needs of the women, men, families and businesses 29% of our management who rely on our networks and services. and leadership roles globally Achieving gender equality in the workplace remains a are held by women significant challenge for most businesses, especially Our commitment to gender equality begins at the at the most senior levels. In order to help address top of the company. Vodafone’s diversity and gender this issue in our business, we set ourselves a long- equality activities are overseen by the Vodafone term ambition to become an employer whose track Group Board and are led directly by our Group Chief record in attracting and retaining female talent is Executive, Vittorio Colao, who is one of 10 global chief so strong that by 2025 we are widely considered as executives who act as corporate champions for the the world’s best employer for women. In addition, if UN Women’s global solidarity movement for gender Reducing gender bias in our recruitment ads we demonstrate leadership as a ‘beacon employer’ equality, HeforShe. wherever we operate, we believe other businesses will During the year we piloted a new approach that aims to reduce the potential emulate our approach, expanding the opportunities for gender bias in our job adverts. Adjusting the vocabulary used in our for women even further. “Companies often struggle to recruit advertisements in a three-month trial has helped us to increase the number of women who we’ve recruited into specific roles by 7%. This specialist and retain women in management technology is now used to avoid gender bias in an average of 840 Vodafone and leadership roles. Innovations job adverts a month globally. Our 2025 goal: Our ambition is for such as our global maternity policy Vodafone to become the world’s and our ReConnect programme can These results were achieved by reducing the amount of jargon, abbreviations and ‘macho’ language traditionally included in job ads. Words such as ‘win’, best employer for women by 2025 make a real difference to women ‘kick’, ‘outstanding’ and ‘aggressive’ were replaced with words such as ‘bold’, ‘improve’, ‘top tier’ and ‘extraordinary’. The changes were subtle but they had who work for us today and who will a significant impact. Even removing a well-worn phrase such as ‘competitive work for us in the future.” salary’ from an advert can make it more appealing to women, as they are Vittorio Colao, Vodafone Group Chief Executive often more interested in being treated fairly. Vodafone Group Plc Sustainable Business Report 2018 15
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Vodafone image Embedding our commitment We now have active women’s networks operating in most of the countries in which we operate. These to diversity networks have been founded by employees and are Our mandatory Code of Conduct makes it clear that managed by them. They offer women at all levels a respect for diversity is integral to the behaviours supportive and informative environment in which to expected from everyone who works for Vodafone. network, share and learn. As an example, our Women We do not tolerate discrimination in any form in Technology Network now has more than 1,600 and strive to ensure that every colleague has the members and holds quarterly webinars and local opportunity to thrive in a workplace that is welcoming face-to-face meetings. and supportive. We have a number of programmes in place that embed our commitment to diversity and gender balance. Celebrating International Women’s Day It is also included in our induction programme for We want to raise the profile of female role models senior leaders, who are also encouraged to complete and celebrate women’s achievements with visible unconscious bias training to help them recognise the support from our senior leaders. One way we assumptions and beliefs that can skew their decision- do this is by running a week-long campaign to making. In addition, we have introduced new training coincide with International Women’s Day. programmes focused on the recruitment process and on skills required to manage diverse teams. More than 3,600 employees watched a global webinar on 8 March 2018, which was personally Ensuring women hold 30% of endorsed by our Group Chief Executive. This was just one event in a week-long global programme, our management and leadership which included over 60 events such as roundtable roles by 2020 discussions, networking events, training, and role- On a quarterly basis, we assess our progress against our modelling and mentoring sessions. 2020 global target to increase the global proportion of women in management and leadership to 30%. As part of the celebrations, 100 women within HR directors in our local markets and professional Vodafone received a ‘Women in Red’ award in functions use quarterly analysis to identify and address recognition of their efforts in supporting gender challenges to identify and address challenges. Twice equality initiatives and inspiring other women a year, our Group Executive Committee (ExCo) reviews across the business. In total, we estimate that Vodafone’s gender balance; and the Vodafone Group more than 17,000 employees engaged with the Board is also regularly updated. International Women’s Day campaign. Vodafone Group Plc Sustainable Business Report 2018 16
Introduction | Women’s empowerment | Energy innovation | Youth skills and jobs | Supply chain integrity and safety | Principles and practice | Mobiles, masts and health | Appendix Flexibility and support can choose earlier or later start or finish times; and More than 5,600 employees full-time employees of Vodafone India can take an for working parents unpaid sabbatical, from 90 days to more than one year. in the past three years have Research by KPMG estimates that the cost to the global In addition, Vodafone Egypt has introduced on-site benefited from 16 weeks’ fully economy of replacing women who do not stay in the workforce after having a baby could be as much as childcare services for employees at its head office. paid maternity leave US$47 billion every year20. We are focused on encouraging and supporting our employees to return to work with us, after the birth or adoption of a child, confident that they can grow their careers while raising a family. ReConnect – bringing skilled people back into the workforce Worldwide, there are an estimated 55 million Our target is to hire 1,000 ReConnect women over In 2016, we became one of the first organisations in women with valuable management experience three years across our markets, including 500 into the world to introduce a global minimum maternity who are not in work following a career break. This management roles. To date, 186 women have been policy covering all Vodafone employees. Over the is a lost opportunity for women and for the global recruited through the programme, lower than past three years, more than 5,600 women working economy. Research from KPMG highlighted that anticipated. While there are a significant number for Vodafone have gone on maternity leave; all were if all these women were to re-enter the workplace of vacancies on offer at Vodafone at all times, it is eligible to benefit from at least 16 weeks’ fully paid without displacing others, the associated value important to ensure we match the skills the roles maternity leave, plus full pay for a 30-hour week for of the additional economic activity generated require with those of the candidates who have the first six months of their return. globally could be around €151 billion21. applied. We do not always find the appropriate skills mix in the ReConnect candidates who apply and are One of the reasons why working mothers take on However, getting back into work after a substantial now working on more targeted campaigns to attract most of the childcare is the historical reluctance of break can be difficult; in recent research, 80% women with the skills we need for the future. many employers to extend maternal flexible working of women who have taken a career break said arrangements to include fathers. In March 2018, we more support was needed to help them return This year, a number of markets held ReConnect launched a global paternity policy that set a minimum successfully to the workplace22. events to publicise the programme and to offer standard for all men (and secondary carers) who work women access to the advice and training they for Vodafone to be entitled to two weeks’ paid paternity Last year, Vodafone launched ReConnect , an need to feel confident to re-enter the workplace. leave. In some cases, this was an increase from two days, initiative aimed at bringing talented women back We promoted ReConnect at career fairs, and in and employees in 15 countries will benefit positively. into the workplace after a career break, across all November 2017 we hosted a ReConnect event our markets. The programme includes training, in the UK with 10 of our suppliers and Enterprise We also have flexible working, part-time and home- coaching and a specially designed induction customers, and have also encouraged and working policies in place across a large number of to help returners refresh and enhance the supported one of our suppliers to establish their our local markets and many employees are using professional skills they need to return to work own returners’ programme. In March 2018, we held our remote working technologies to find a better and progress their careers. ReConnect joiners are another event in the UK that included a careers work–life balance. For example, our employees in also offered flexible working options and a phased fair, a CV drop-in clinic, an interview workshop and Vodafone Italy are encouraged to work from home return to work. a LinkedIn masterclass. one day a week; those who work for Vodafone Turkey Vodafone Group Plc Sustainable Business Report 2018 17
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