Energy and climate change

Energy: Performance 2007/08

We said:

We would reduce carbon dioxide emissions per unit of data transmitted by 40% by 2011 (from 2005/06 baseline).

We would work with our suppliers to further increase energy efficiency of new network equipment by a third by March 2008 (from 2005/06 baseline).

We have:

Set an absolute target to reduce our CO₂ emissions by 50% by 2020
We have launched a new climate target to reduce our CO₂ emissions by 50% by 2020, from a baseline of 2006/07 (excluding India and Turkey). 2020 was chosen as a target date to align with the EU climate goals. Our strategy focuses on reducing energy use by improving the efficiency of our network operations, and purchasing green energy or generating renewable energy on site where commercially viable. Carbon offsetting is at the bottom of our hierarchy of options. See energy and climate change.

We launched a major campaign in 2008, led by our Chief Executive, to communicate the new Group target and strategy to employees in all our local operating companies (see promoting employee awareness).

Developed local energy targets in 14 local operating companies
Local operating companies in Albania, Australia, Czech Republic, Egypt, Germany, Greece, Hungary, Ireland, Italy, New Zealand, Portugal, Spain, Turkey and the UK have all developed energy targets.

Increased overall energy use and CO₂ emissions by 7%
Our total energy use was 2,996 GWh in 2007/08, a 7% increase from the previous year. This created a total of 1.45 million tonnes of CO₂ emissions, a 17% increase from 2006/07. The increase in energy use and CO₂ emissions is a result of growth in our business and the acquisition of Vodafone Turkey.

The CO₂ emissions from energy used by our network totalled 1.19 million tonnes, an increase of 19% from 2006/07. Absolute emissions have increased due to the growth of our network, with 12,939 new base station sites representing an increase of 15.4% from the previous year. However, the relative emissions per subscriber have decreased by 7% from 5.95 kg in 2006/07 to 5.55kg in 2007/08.

We have also reduced our network carbon dioxide emissions per unit of data transmitted by 50%, meeting our target of a 40% reduction by 2011 from 2005/06 baseline three years in advance. However, overall data transmission on the network has increased at a tremendous rate – by 70% in 2007/08 compared with the previous year. We have now set an absolute target to reduce our CO₂ emissions (see above).

Worked with suppliers to achieve further energy efficiency of new network equipment
Energy efficiency of new network equipment across our range of suppliers has improved by a total of more than 35% from the 2005/06 baseline. This progress was possible through the extensive deployment of new network equipment such as remote radio heads and more efficient power amplifiers.

Implemented initiatives to reduce energy use across the Group
Our local operating companies continued to establish new initiatives to improve energy efficiency and cut energy use, saving an estimated 29,100 tonnes of CO₂ from being emitted in 2007/08. Major savings were made through the modernisation of our 2G network. For example, the deactivation of unused electricity circuit devices – trialled in Germany in 2006/07 – is being rolled out to other markets, including the Czech Republic, Italy and Spain. This can reduce energy use at base station sites by up to 5%.

Free cooling at the higher temperature of 35 degrees (rather than 25 degrees) was installed at 1,100 base station sites in Portugal in 2007/08, providing significant savings. This will be rolled out across the Group in 2008/09.

We are investigating ways to reduce diesel use at base stations, for example by installing batteries that can be used instead of diesel generators at times when grid electricity is unavailable. We are also continuing to trial renewable alternatives to diesel generators at remote sites in Greece, Egypt, Germany, Italy, Portugal and Romania.

Increased our use of renewable energy by 16%
Increasing our use of green energy is an integral part of our climate change strategy. Renewable energy made up 18% of our total network energy use in 2007/08, up from 17% the previous year.

Improved data storage efficiency
As customers use their mobile phones for more sophisticated tasks such as video-conferencing and social networking, the volume of data that needs to be stored is growing rapidly. Data storage centres need energy to power and cool servers.

In 2007/08, we consolidated our data centres, reducing the total number from 12 to two central hubs plus a satellite. Each server is being used more efficiently to enable more data to be stored using the same amount of equipment. This has increased efficiency and cut the growth in online storage. Vodafone is also a founding member of a working group to define a Code of Conduct for data centres in the EU.

Participated in the Corporate Leaders Groups on Climate Change
Vodafone is part of the EU and UK Corporate Leaders Groups on Climate Change (CLGCC). In 2007/08, we continued to participate in the CLGCC and as part of this we publicly confirmed our support for the EU’s climate and energy policies. See working with others.

We will:

• Reduce CO₂ emissions by 50% against the 2006/07 baseline by 2020 (applicable across Vodafone's local operating companies operating in 2006/07)
• Develop a climate change strategy for Vodafone Essar (India) and Vodafone Turkey by March 2009.