Report 2005/06 - Vodafone

ReportingThis report coversCR performanceand material issuesfor Vodafone UKonly. We havenot attemptedto duplicate theinformation in theVodafone Groupreport.Corporate responsibility atVodafone GroupThese are a few highlights from the Vodafone GroupCorporate Responsibility Report 2005/06:• Published a study on the potentialof mobiles to improve healthcare.• Set a Group-wide target to reducenetwork CO 2 emissions by 40% perunit of data transmitted by 2011.• Expanded our micro-financeproduct trial in Kenya which allowsusers to access banking servicesvia their mobile.• Published a summary of majorresearch studies into mobilephones, masts and health.• Introduced a Group Privacy Policyand Privacy Steering Group.• Worked with others in our industryto develop a common approach tomeasuring and improving supplychain standards.You can access the full report at www.vodafone.com/responsibility.05

Stakeholder engagementStakeholder engagement is an essential part of goodmanagement. Our interactions with stakeholdersinform our approach to CR and help us identify andprioritise the key issues for our business.“Feedback is really important,even when it’s critical. We don’tagree with everything ourstakeholders tell us and wecan’t always do what theywant. But listening to otherpeople helps us to makebetter decisions.”Phil KirbyDirector or Regulatory AffairsWe interact with a wide range ofstakeholders in the normal courseof business. This includes customers,employees, investors, suppliers,regulators, local government,community representatives,residents near our base station sites,journalists and pressure groups.Examples are included throughout thisreport such as:• Our Your Views employee surveyconducted quarterly (page 23).• Consultation with local communitiesand planning authorities duringnetwork deployment (page 16).• Research into public opinion aboutmobiles, masts and health (page 17).Some engagement is co-ordinated atGroup level, for example engagementwith investors, seewww.vodafone.com/responsibility.We also commission research specificallyon corporate responsibility.MORI researchWe commissioned two general researchsurveys by MORI. The first in summer2005 covered consumers, nongovernmentorganisations (NGOs) andCR experts. Twenty-seven percent of theconsumers questioned said that Vodafonetakes its responsibilities to society andthe community seriously. This figure was70% for NGO participants.Participants were asked what Vodafoneshould do to take its responsibilities moreseriously. The issues mentioned mostfrequently were:• Improve placement of mastsor reduce the number of masts.• Research into health dangersfrom masts and handsets.• Invest in the local community.• Listen to other people.• Be more responsible towardsyounger people.The second survey in March 2006 focusedon 50 opinion leaders. Participants wereasked how well Vodafone is performing onsocial and environmental issues comparedto other companies. Twentynine percent ofenvironmental NGOs and 46% of social06NGOs said Vodafone was above average.The figure was 56% for suppliers, 63%for corporate customers, and 50% forCR journalists.Brand Health TrackerOur Brand Health Tracker, which monitorsperceptions of our brand among the publicnow includes questions on corporateresponsibility. The results for 2005/06showed that in the UK 19% of respondentsfeel Vodafone is responsible and fair in theway it does business. Ten percent feel thatVodafone behaves responsibly towards theenvironment, local communities and allparts of society. These results are consistentwith the MORI research findings and showthat we need to do more to communicateour efforts on CR to a wider audience.Opinion leader researchWe held two focus groups with CRopinion leaders to get feedback on ourCR performance and reporting. This wasthe second year we have conductedthis research.What we found – Most opinion leadersfelt that our CR report was honestand addressed the right issues. Mostparticipants said that the report waslet down by a lack of clear, measurabletargets. Several noted that the report didnot show a clear link between Vodafone’svalues, business strategy and CR. Thisraised doubts about whether CR is fullyembedded in our culture.Strengths – Social investment, peoplepolicies and responsibility to customerswere the highest scoring areas. Manyparticipants said that Vodafone UK isleading the industry on content standards.Room for improvement – Network rolloutreceived a low score even though opinionleaders rated Vodafone UK higher thanlast year, and ahead of our competitors.The main concerns were: the useof agents; temporary masts; visualimpact; and community engagement.Environmental performance was thelowest scoring area. Many felt VodafoneUK was not committed to reducing energyuse. Opinion leaders were disappointedin Vodafone’s handset recycling figures.A summary of the research findings isavailable on www.vodafone.co.uk/responsibility.How we are respondingThese are some of the ways we are responding to stakeholder feedback:Responsibilityto customersSociallysignificantproductsNetwork rolloutand healthEnvironmentClimate changeimpactSupply chainHandsetrecyclingEmployeesSocialinvestmentGovernmentWe meet regularly with politicians andgovernment officials to discuss issuesrelating to our business. In 2005/06this included:• Conducting a perceptions audit of 31MPs, peers and civil servants to identifywhich CR issues they think Vodafoneshould focus on. Network rollout andradio frequency (RF) and health wasa key issue for backbench MPs. Otherissues raised included concerns on adultcontent on mobile handsets, spam,mobile phone theft and anti-socialbehaviour such as ‘happy slapping’.Most of the MPs questioned believethe industry could do more to tackleExtended Content Control to include downloadable musictracks and mobile TV. Simplified our roaming charges withVodafone Passport.Worked with partners to make our products accessible to morepeople with visual or hearing impairments.Made objective information on radio frequency (RF) and healthavailable to customers and the public. This report includes moreinformation on agents; temporary masts and visual impact inresponse to stakeholder feedback.Achieved accreditation to ISO 14001 for our offices and stores(in addition to our headquarters). Recycled over 95% of wastefrom our network.Purchased our electricity from renewable sources.Made CR one of six criteria used to select suppliers and monitortheir performance.Set a target to increase the number of handsets collectedto 250,000.Implemented employee experience plans for each business unitto drive improvements.Donated money and time to support charities directly and throughthe Vodafone UK Foundation.problems such as mobile bullying butrecognised the efforts made on contentcontrol.• Participating in the Home Office taskforceon child protection and the internet toaddress issues around child protectionand content standards.• Working with the National Mobile PhoneCrime Unit and the Home Office toaddress mobile phone theft.• Regular House of Commons drop-insessions to allow MPs to discuss issuesof importance.• Meeting with officials from theDepartment of Health to discuss thebenefits of mobile technology in publicservice delivery.

“Good section on networking, goodfacts on base station sharing andexisting structures. Vodafone is takingcommunity consultation moreseriously and I look forward to Vodafonedoing more on designing countrysidefriendlymasts in 2006/07.”Paul MinerCampaign for Protection of Rural England“They are a prettyresponsible company,certainly betterthan some of theircompetitors, but theydo have their failings.”Stakeholder commentsThis is some of the feedback we receivedfrom our opinion leader research. A summaryof the research findings is available onwww.vodafone.co.uk/responsibility.“The report is conciseand factual, not publicrelations. It includesboth negatives andpositives.”Rosamund ThomasCentre for Business and Public Sector Ethicswww.ethicscentre.org.“All credit to Vodafonefor their effort andcommitment inleading the way oncontent controls.”Alan MeyerMast Action“There’s no statement of values orprinciples. But then, what’s the pointof having business principles withoutchecking performance against them?The ethical culture of the organisationdoesn’t come through.”Nicole DandoInstitute of Business EthicsPeter RobbinsInternet Watch Foundation“The report needs to set out clearerand more ambitious targets insome key areas, rather than juststating that Vodafone will settargets going forward.”Georgina StevensWWF UK“Their overall approachis competent but CRdoesn’t seem to beintegrated into thebusiness.”Andrew WilsonAshridge Centre for Business and Society07

“Vodafone has donea lot to ensure kidscan use mobiles safely.They are a leader in thisarea and react quicklyto any concerns. Theymust remain proactiveand respond to futurechallenges such as thepotential misuse oflocation based servicesfor surveillance.”John CarrUK Children’s Charities Coalitionon Internet SafetyVodafone UK is committed tomaking sure children can usemobiles safely.Content Control is our network barthat prevents children from accessingadult sites on Vodafone live! (ourinternet portal). It works with ourinternet filter that blocks accessto illegal or 18-rated websites.We work with others such as theUK Children’s Charities Coalition onInternet Safety to understand andaddress any risks from new technologyand to develop solutions.We are working with others in ourindustry to implement safeguardsfor the use of location based services,see opposite.

Responsibility to customers – content and privacyOur customers can now use their mobile to accessthe internet, download music tracks, watch mobileTV and view 18-rated content such as dating sites,online gambling and erotica.“We want to make surecustomers can use ourservices safely and securely,especially children. As welaunch new products andservices we build in adviceand safeguards thatgive our customerscontrol.”Tim YatesDirector,Consumer Business UnitThese services are an exciting andprofitable part of our business butbring important new responsibilities.In particular we have developedtools to help parents protect theirchildren from online risks and fromviewing adult content.Content standardsContent Control is our network bar thatprevents access to 18-rated content onVodafone live! (our mobile internet portal).It is in place as the default option onall Vodafone phones. It works with ourinternet filter that blocks access to illegalor 18-rated websites. Adult customerswho want to use 18-rated services canlift Content Control by proving their age.We assess every music track available fordownload from Vodafone live! Tracks thatare unsuitable for children are placedbehind Content Control. We work withTV production companies to make sureMobile TV programmes are editedappropriately or, if they aren’t suitable foryoung children, are only shown after 9pm.We respond quickly to all complaintsand aim to take down inappropriatecontent within six hours. We received onlytwo complaints in 2005/06 which wereresolved within six hours of coming to ourattention. We report illegal content to thepolice and illegal sites to the InternetWatch Foundation.Working with others• We use the Internet Watch Foundation’slist of illegal internet sites to strengthenour internet filter.• We are working with the Home Officeto produce a kite mark for contentfiltering software. This will increasecustomer awareness.• Vodafone is the leading source ofreferrals to the Virtual Global Taskforce,a gateway to information on onlinesafety and a means to report onlinechild abuse confidentially:www.virtualglobaltaskforce.com.Our internet filter blocksaccess to illegal or 18-ratedwebsitesInformation for parentsMany parents know less than theirchildren about mobiles and online services.This makes it difficult for them to protecttheir children.We held focus groups with parents andchildren to find out more about mobilebullying. We worked with the NationalFamily and Parenting Institute (NFPI) toupdate ‘A Parent’s Guide to Mobile Phones’.It now includes information on mobilebullying and ‘happy slapping’, the crimeof hitting or mugging someone whilerecording the assault. The guide isavailable on the Vodafone UK and NFPIwebsites (www.nfpi.org), and in our stores.Customer privacyOur customers have a right to privacy.The way we handle their personalinformation is an important part ofour responsibility to customers.We have had a privacy officer for severalyears, whose job is to make sure wecomply with UK data protection law andprotect our customers’ privacy. We don’trent, sell, share or disclose customerrelated information to third parties fortheir marketing without permission.We have to balance our customers’ rightto privacy with our obligations to complywith requests for personal informationfrom law enforcement agencies used inthe interests of public safety and security.Location based servicesLocation based services (LBS) enablepeople to be located via their mobile.This has many beneficial uses. For example,Vodafone’s ‘Find & Seek’ service helpscustomers find the nearest essentialservices or entertainment venues. LBSare also used for tracking, for exampleby companies to locate fleet vehiclesor by parents to track their children.The emergency services also use LBSwhen responding to 999 calls.It is important that weprotect personal privacyand prevent people beingtracked without consentWe don’t offer tracking services directlyto customers but we do partner withindependent LBS service providers.Our contract with the provider specifiesthat the consent of the person beingtracked must be obtained, includingchildren. For personal tracking servicesthe provider obtains consent directly fromthe person being tracked. For corporatecustomers, employee consent must eitherbe obtained by the LBS provider or bythe employer.Commitments for 2006/07Ensure that any instances ofinappropriate content (includingimages and music downloads)on Vodafone live! are removedwithin six hours of coming toour attention.09

“The nature of ourbusiness means wetravel a lot for workand need to use ourmobiles. As a company,everything has to becost effective. We’vefound that our packagefrom Vodafoneincluding VodafonePassport gives usthe best value.”Nick Zea-SmithSenior Account Executive,éclat MarketingVodafone PassportIt can be expensive to use your mobileabroad and difficult to calculatewhat the cost of a call will be. éclatMarketing is one of many Vodafonecustomers who have signed up toVodafone Passport.Passport simplifies roaming charges.Customers pay a fixed connection feeof 75p for each call they make whileabroad and then the same per minuteas they do at home. They can also usetheir inclusive minutes when abroad.Vodafone Passport is part of our effortsto make our prices more predictableand easier for customers to understand.

Responsibility to customers – pricing and marketingWe have 16 million customers. Maintaining theirtrust and loyalty to Vodafone relies on more thanoffering the right products and services.“We know that mobilepricing can be confusing.Our priority is winningthe trust of ourcustomers throughclear communication –particularly on prices.”Craig TillotsonStrategy and Wholesale DirectorWe have a responsibility to communicateclearly with our customers so theyunderstand the costs of our servicesand can make informed choices.Clear pricingPricing structures for mobiles are sometimescomplex and confusing. We are simplifyingour pricing to help customers keep trackof their spending.We are making customer bills easier tounderstand by replacing all acronymswith plain English.It can be expensive to make mobile callswhile abroad and the EU is proposing toregulate roaming charges. We launchedVodafone Passport which enablescustomers to take their home tariff andinclusive minutes abroad (see case studyon page 10).We also launched the Vodafone Dataunlimited price plan to make the cost ofusing the 3G Vodafone Mobile ConnectCard (our high-speed internet connectionfor laptops) more predictable.Vodafone Passport won ‘Best RoamingProduct or Service’ at the 2006 GSMAssociation awards. We also won a GSMaward for our ‘Stop the Clock’ televisionadvertisement.Responsible marketingOur responsible marketing guidelinescommit us to promoting our productsand services through advertising thatis legal, decent, fair and clear.We track complaints against Vodafoneadvertising. In 2005/06 the UK AdvertisingStandards Authority (ASA) made oneruling against Vodafone UK advertising,compared with three in 2004/05. TheASA found that we had over-claimedthe quality of our service.Premium rate servicesVodafone provides several premium rateservices. For instance customers can signup to receive news on their football teamby text message. Third parties also use ournetwork to provide premium rate servicessuch as ring-tone downloads.It is important that customers, particularlychildren, understand the cost of theseservices, know whether they will paya one-off fee or a regular subscriptioncharge and can cancel the service easily.Vodafone led the industry in developing acode of practice for premium rate services.This has been adapted into the ICSTIS(the industry watchdog) code of practice,with which we comply. It requires serviceproviders to give clear pricing information,for example in their advertising andthrough monthly text message reminders.Customers must be able to unsubscribeimmediately by texting ‘STOP’.We review the advertising for third partypremium rate services and respond tocustomer complaints, disconnectingservice providers where necessary.SPAM and mobile scamsUnsolicited text messages (SPAM) areintrusive and sometimes misleadcustomers into calling premium ratenumbers. We investigate complaints aboutmobile scams and customers can forwardsuspicious messages to us at 87726(VSPAM) free of charge. Our Code ofPractice includes best practice guidelinesfor mobile marketing.Commitments for 2006/07No complaints about Vodafoneadvertising upheld by theAdvertising Standards Authority.11

“Talx has revolutionisedhow I use my mobile.I can now send texts,store numbers, setreminders and see who’scalling before I answer.Vodafone gives you thesame software for free,so you pay the same asany other customer –which is brilliant.”David HalliwellCapita SymondsDavid Halliwell, who is blind, usesTalx – our text-to-speech softwarewhich we call Speaking Phone.The screen of a mobile phone displaysimportant information includingbattery life and network coverage.Yet if you’re blind or partially sighted,much of this information is lost.Vodafone Speaking Phone solves thisproblem because it speaks theinformation displayed on-screen.It makes the whole phone accessibleto customers who are blind or visuallyimpaired. For example, by enablingthem to send text messages and usethe calendar and address book.Speaking Phone was developed byVodafone in partnership with the RoyalNational Institute of the Blind (RNIB).We provide the software for free toVodafone UK customers who need it.

Socially significant productsPart of our commitment to customerservice is making sure all potentialcustomers can use and benefit fromour products.“We want everyone to be ableto use Vodafone products –that’s why we are introducingaccessibility features andlaunching specialist productsfor people with hearing orvisual impairments.”Tim YatesDirector,Consumer Business UnitWe are looking for ways to makemobile services more accessible andto develop new products and serviceswith social benefits.AccessibilityModern handsets can be complex andconfusing to use. Vodafone Simply isour range of easy to use handsets forcustomers who just want to call andsend texts. The handsets are availablefrom all Vodafone stores.We have a range of specialistproducts for people withvisual or hearing impairmentsor limited dexterityOur Speaking Phone for the blind andvisually impaired, is available to contractand pay-as-you-go customers, see casestudy. Mobile Textphone software enablesdeaf and hearing-impaired customers tomake and receive calls in text format,through a simple, all-in-one device.Customers can get information on theseproducts at www.vodafone.co.uk/specialneeds. Choice (our instore customermagazine) uses easy to spot symbols toidentify handsets with accessibility features.Our Products and Services Guide for specialneeds customers, is available through ourwebsite, stores and customer contactcentres.We formed a Steering Group on ServiceDelivery for Disabled and Elderly Customersto make sure we are embeddingaccessibility into our products, customerservice and in our own operations. Thegroup includes representatives fromretail, products and services, customermanagement and property.Working with others – Many accessibilityproducts are developed throughpartnerships with our customers andsuppliers. Here are a few examples from2005/06:• Vodafone and Sky launched Sky MobileTV in 2005. We are now working withSky on improving accessibility for thepartially sighted. For example by enablingcustomers to ‘read’ their TV electronicprogramme guide via their SpeakingPhone.• We worked with handset manufacturerson keypad design features that make iteasier for visually impaired customersto differentiate keys.• We continued our work with the WestMidlands police force to improvecommunication between the policeand people with hearing difficulties.During 2006/07 we will be working withthe Shaw Trust on ways that technologycan help disabled people get back intowork; and with external partners todevelop the next Mobile Text Phone.Employee awareness – It is important thatemployees know about our product rangeso they can give customers the rightadvice.During 2005/06 our special needscustomer service team received specialisttraining to help them understandcustomer needs and recommend the bestaccessibility products. The training will becontinued and extended during 2006/07.We are launching an online forum forcustomer advisers to share informationand best practice.Vodafone UK product managers attendeda workshop on inclusive design.Identisafe looks like a normalID badge but has a concealedpanic buttonProducts with social benefitsWe are using our technology to developnew services with social benefits.Our Lone Worker Protection product,Identicom, is one example. Identicom lookslike a normal ID badge but has a discreetpanic button. It links the user to a 24-houremergency response service which canhelp pinpoint their position using LocationBased Services. The emergency call ismonitored and recorded for evidentialpurposes if necessary, and the appropriatelevel of emergency support is providedenabling employers to provide a saferenvironment for their employees.During 2005/06 we launched Identicomto both public and private sectorcompanies such as NHS Trusts, financialinstitutions and risk and securitymanagement firms. We are alsoconducting product trials with severalother customers.During 2006/07 we will be exploringpossible new uses for the paging network,for example to broadcast public serviceannouncements.More information on socially beneficialproducts is available in the VodafoneGroup CR Report.Commitments for 2006/07Define and prepare a project planwith external partners for thelaunch of the next version of MobileTextphone by March 2007.13

“In my experienceVodafone is themost responsible andprofessional of all theoperators, in terms of thequality of their planningsubmissions and theirresponsiveness. Thereis room for improvementthough – they shouldprovide more accuraterollout plans and domore to check thattheir agents achieveconsistently highstandards.”John WalkerPlanning, Area Team Leader,Westminster City CouncilResponding to feedbackWe are committed to meetingbest practice.This year Vodafone and the othermobile operators provided jointnetwork rollout plans to everyUK local planning authority (LPA).These provide data on existing sitesand, where possible, envisaged newsites, helping LPAs to update mastregisters and anticipate futureworkloads.In a follow-up survey of 76 LPAs, 82%said the plans met or exceeded theirexpectations. Many LPAs requestedmore detailed or accurate informationwhich we are providing where possible.We are introducing an accreditationprocess to ensure agents completetraining on our policies.We regularly audit a sample of agents’files (including planning applications).We ask for feedback on theirperformance from LPAs and followthis up with the agent if required.

Network rollout, mobile phones, masts and healthOur network of radio base stations is essentialto our business – without it our customers’ mobileswon’t work.“We know some people haveconcerns about masts or thehealth effects of mobiles. It’s inour interests to reduce theseconcerns – by communicatingopenly and giving peoplethe information they needto make informed decisions.”Paul WybrowChief Technology OfficerWe recognise that some people areconcerned about the possible healtheffects of mobiles or base stations,or the visual impact of masts.We take these concerns seriously andaim to deploy our network safely andsensitively, and communicate openly withstakeholders on health issues and ournetwork deployment plans.How big is our network?In 2005/06 we installed 1,515 newbase stations bringing the total to 11,352in March 2006 (compared with 9,837*in March 2005).The number of base stations is likely tocontinue to increase as we extend our3G network.We try to minimise the number of sitesneeded by adapting existing sites, sharingsites with other operators or locatingbase stations on existing structures(e.g. rooftops). In 2005/06, 30% of oursites were shared with other operators.Best practiceTo address community concerns aboutnetwork development the mobile networkoperators developed the Ten Commitmentsto Best Siting Practice (in England this isnow incorporated in the Government’sCode of Best Practice on Mobile PhoneNetwork Development, seewww.vodafone.co.uk/responsibility).Vodafone is committed to meeting theserequirements.In 2004/05 Deloitte & Touche LLPupdated their assessment of how the UK’sfive mobile operators comply with the TenCommitments. The review showed thatwe have continued to make demonstrableimprovement in a range of key areasrelated to consultation with local planningauthorities and local communities on basestation siting. The review also made anumber of recommendations, includingthat operators work more closely withlocal planning officers from the start ofthe siting process and attend planningcommittee meetings wherever possible(for more information, refer towww.mobilemastinfo.com/planning/best_practice.htm).In response, we have revised our policiesand procedures including updating ourPlanning Manual, to incorporate theirrecommendations. These changes havebeen clearly communicated to all oursite acquisition agents.The Ten Commitments123456789Improvedconsultation withcommunitiesDetailedconsultationwith plannersSite sharingWorkshops forcouncilsDatabase of basestation sitesCompliance withICNIRP publicexposure levelsguidanceICNIRP certificationPrompt responsesto enquiriesSupport researchinto health andmobile phonesDevelop, with other stakeholders, clear standardsand procedures to deliver significantly improvedconsultation with local communities.Participate in obligatory pre-rollout and pre-applicationconsultation with local planning authorities.Publish clear, transparent and accountable criteria andcross-industry agreement on site sharing, againstwhich progress will be published regularly.Establish professional development workshops ontechnological developments within telecommunicationsfor local authority officers and elected members.Deliver, with the Government, a database of informationavailable to the public on radio base stations.Assess all radio base stations for international (ICNIRP)compliance for public exposure, and produce aprogramme for ICNIRP compliance for all radio basestations, as recommended by the Independent ExpertGroup on Mobile Phones (IEGMP).Provide, as part of planning applications for radio basestations, a certification of compliance with ICNIRPpublic exposure guidelines.Provide specific staff resources to respond tocomplaints and enquiries about radio base stations,within ten working days.Begin financially supporting the Government’sindependent scientific research programme on mobilecommunications health issues.10Standarddocumentationfor planningsubmissionsDevelop standard supporting documentation for allplanning submissions whether for full planning orprior approval.* In our last report we incorrectly stated that in March2005 we had 11,500 base stations. We improved ourdata collection systems this year and have restatedour data for 2004/05.15

Network rollout, mobile phones, masts and healthcontinuedInformation and consultationConsultation is an important part ofour approach. In 2005/06 we providednetwork rollout plans for each localplanning authority (431 in total) andselected other authorities. These aredesigned to inform local authorities ofexisting base stations and envisaged newbase station site requirements in theirarea for the coming year, and enablethem to plan ahead and raise anyconcerns at an early stage. For the firsttime the plans were prepared jointlyby all mobile operators.Seventy-six planning authorities respondedto a follow up survey. This showed that82% felt the information in the plans metor exceeded their expectations.All agents are expected tounderstand and comply withour policies for responsiblenetwork deployment andto attend trainingWhen planning a new base station, asa minimum, we write to the local wardcouncillor and parish or town councilinviting comments before submitting anapplication. We make sure the planningofficer has a clear point of contact atVodafone or with our agent.We determine the level of consultationneeded using the traffic light model;see diagram opposite. For ‘green’ sites,for example a lattice tower adjacent to amotorway, we focus on local councillorsand the local planning authority. For ‘red’sites, for example an installation proposedfor an historic town centre, the level ofconsultation is higher and may includedrop-in sessions for local residents,individual letters to residents orstakeholder briefings.Visual impactWe use a selection of different designs tohelp us minimise the visual impact of oursites. Our most commonly used designshave improved significantly in the lastfew years; see pictures below. In somelocations we use more specialist designs,for example camouflaged equipment canbe used on historic buildings andchurches.AgentsDuring 2005/06 we worked with around20 site acquisition agent companies whofind new sites for our base stations andcomplete the planning and acquisitionprocess on our behalf.All agents are expected to understand andcomply with our policies for responsiblenetwork deployment and to attend training.Our Teamroom extranet has regularlyupdated resources for agents includingguidance on our consultation procedures,press articles, Vodafone fact sheets andposition statements, FAQs, and summariesof the latest research into radio frequency(RF) and health. We are launching anaccreditation process to ensure that allagents understand our policies and havecompleted training.Our regional planning and environmentalspecialists, community relations team andour EMF Advisory Unit provide guidanceand support to agents, particularly formore sensitive sites.ComplianceIn 2005/06 Vodafone UK received fourenforcement notices from planningauthorities, compared with 25 in 2004/05.In each case, we have worked with thelocal authority to resolve the issue.In 2004/05 concerns were raised bysome stakeholders in relation to theinstallation of temporary sites during therollout of our 3G network. We recognisethese concerns and try to keep the useof temporary sites to a minimum forspecial circumstances, and in line withplanning regulations.Green sites• Don’t assume you have a completepictureAmber sites• These sites can shift to green or red• Exercise great care in pre-applicationconsultationRed sites• These are not ‘no-go’ sites• Red does not indicate any health risk• Agree a consultation plan: close liaisonwith the operator’s Community LiaisonOfficer is essential• Your reputation and that of yourclient is most at riskHIGHcommunity issuesLOWTraffic light ratingmodel for publicconsultationLOWplanning and environmental issuesHIGH16

“Our customers rely on ournetwork of base stationsto provide them with goodcoverage. But we mustplan new base stationscarefully and be sensitiveto the views of localcommunities andplanning authorities.”Kevin MilroyDirector ofRegional OperationsRadio frequency fieldsAll Vodafone base stations comply withInternational Commission on Non-IonizingRadiation Protection (ICNIRP) guidelines.In fact our base stations typically haveRF field levels of 0.01% to 2% of ICNIRPguidelines.How do mobileswork?Mobile phones work on the same principle as television and radio by usingradio frequency (RF) fields to communicate information. A mobile phonenetwork requires a large number of base stations to connect calls to all ourcustomers’ handsets.Mobile phones and healthWhen a person is exposed to a RF fieldit penetrates a few centimetres into thebody and is absorbed as heat. This ismeasured using specific absorption rate(SAR) values.The International Commission onNon-Ionising Radiation Protection (ICNIRP)public exposure guidelines set safetylimits for SAR values.RF from base stationsThe diagram below shows the pattern ofradio frequency fields from a typical 15metre base station.All of Vodafone’s base stations complywith ICNIRP guidelines in areas where thegeneral public have unrestricted access.Larger base stations have exclusion zonesclose to the antennae to protect thesafety of maintenance workers andprevent public access.The pattern of radio frequencyfields from a typical 15 metre radiobase stationVodafone requires handset manufacturersto test specific absorption rate (SAR)compliance for their handsets whenused against the head and the body.All handsets sold by Vodafone complywith ICNIRP guidelines. SAR values areprovided with each new handset soldand some manufacturers also publishthe information on an industry websitewww.mmfai.org/public/sar.cfm.Current research indicates that exposureto RF below the limits set by ICNIRP hasno adverse health effect. But there arestill gaps in scientific knowledge.Vodafone funds independent researchinto mobile phones, masts and health.We publish a summary of the latestresearch findings, including studies bythe World Health Organisation, on theVodafone Group website.Exposure to the public from base stationsis at very low levels on a continuous basis.The maximum level is usually between1/50 and 1/10,000 of the ICRNIRP limitdepending on factors such as traffic onthe network or whether the mast is in anurban or rural area.Seewww.vodafone.com/responsibility/mpmhfor more information.50m 100m 150m 200m 250mAbove the ICNIRP limitUnder the ICNIRP limitUnder 1/10th of the ICNIRP limitUnder 1/100th of the ICNIRP limitUnder 1/1000th of the ICNIRP limitWe publish a summary of the latest research findings, including studies by theWorld Health Organisation, on the Vodafone Group website:www.vodafone.com/responsibility/mpmh.We aim to address concern about RFand health by making clear, objectiveinformation available to our customersand the public. For example:• We publish advice on our website forcustomers who wish to reduce exposureto RF fields from their handsets.The guidelines are consistent withWHO advice.• We monitor all enquiries on siting,planning and health issues and aimto respond within 10 working days.• Fact sheets and our ‘Facts about theNetwork’ handbook are distributed atstakeholder meetings and by our EMFAdvisory Unit.(emf.advisoryunit@vodafone.com)• Cassiopea, our base station monitoringproject, records RF fields from basestations and other sources (such as TVand radio) in seven locations. The publiccan check the combined RF levels intheir area via the internet 24 hours aday. Cassiopea is run in partnership withseven councils: Cambridge, Wycombe,Hinckley, Oxford, Portsmouth, Swanseaand Stroud. We surveyed local councillorsin Portsmouth to evaluate the results ofthe project to date. The results suggestthat councillors find the type ofmeasurements provided by Cassiopeauseful when commenting on or makinga decision on a planning application fora mobile phone base station. All thosesurveyed thought that people who areconcerned about RF emissions shouldlook at the Cassiopea results.• On request we will commission anindependent site survey to establish theRF levels from a particular base station.We provide an ICNIRP compliancecertificate with all planning applications.Our teamroom extranet includes regularlyupdated information and FAQs to helpemployees and agents answer customerquestions. The findings from majorresearch studies are summarised andgiven to agents and other relevantemployees. We ran awareness campaignsduring 2005/06 to make sure employeesknow where to find information on mobilephones, masts and health.We commissioned research into publicopinion about mobiles, masts and health.Around 1,000 people took part. Thisshowed that RF is not a major top-of-mindhealth concern, ranked 12th on the listof unprompted health concerns (thetop three issues were heart problems,smoking and food quality). But it is stillan important issue. When prompted 40%of respondents were concerned abouteither phones, masts or both.Most participants (62%) believe there isno conclusive information on this issue.But many (43%) believe the industry iswithholding important information and24% believe mobile phones can causebrain cancer or tumours. Fortyninepercent of those aware of a mast siting intheir neighbourhood were indifferent aboutit. Eleven percent were concerned, 7% didnot react because they felt they could notcontrol the situation, 5% formally objectedto the development and 4% welcomed itfor better coverage.Commitments for 2006/07Respond to all enquiries on siting,planning and health issues within10 working days.Accredit agents to ensure theycomply with our policies onsite selection and consultation,and behave in accordance with ourethos and values by March 2008.Undertake a quantitative surveyof key stakeholder opinion onVodafone’s approach to mobilephones, masts and health andset targets for improvement byMarch 2007.17

“Vodafone is one ofour largest customersand we’re delighted tobe helping it meet itsenvironmental goals bysupplying the companywith electricitygenerated from 100%renewable sources.”John BeddoesDirector of Corporate Customers,British Gas BusinessWe are reducing our climatechange impact by purchasingrenewable electricity and reducingour energy use.Our contract with British Gas Businesscovers 90% of our electricity needsand has helped to reduce our CO 2emissions by 60%. British Gas obtainsits renewable energy from a rangeof sources including biomass, windenergy, landfill and hydro.We are also working with British Gasto test automated meter reading(AMR) at our base stations to improvedata collection. This makes it easierto monitor and compare energyuse at different sites and improveenergy efficiency.We tested AMR at 40 sites in 2005/06and are now exploring options forinstalling it at new base stations andretrofitting it to existing sites.

EnvironmentOur business has an impact on the environmentthrough the energy and natural resources we useand the waste we generate. We are committed toreducing these impacts – this benefits our businessby increasing efficiency and reducing costs.“We want to contributetowards reducing the UK’scarbon dioxide emissions.We’re purchasing electricityfrom renewable sourcesand have set a target forreducing energyconsumption.”Mike NewensProperty DirectorNetwork waste (tonnes)DisposedRecycled39743403/04ReusedEnergy use – gas andelectricity (GWh)RetailOffices9.9415.611.104/05CO 2 emissions from businesstravel (thousand tonnes)Air travel835991766.810.31.410.903/04 04/05Road travel9.7295.47.005/061.210.305/06CO 2 emissions – network,offices and retail (thousand tonnes)3.615.342.776.1137910326103/04 04/05Other networkBase stations5.429.442.743.8112.14.20.696611325105/061.269.4Policy and managementOur environment policy commits us toimprove energy efficiency, reduce wasteand increase reuse and recycling. Energyand waste reduction targets are includedin the personal development plans forrelevant staff.Our environmental management systemfor our offices, customer managementcentres and retail outlets is accredited toISO 14001, the international environmentalmanagement standard. We aim to achieveaccreditation for our network in 2006/07.Energy and CO 2Energy – We consumed 439 GWh ofgas and electricity in 2005/06, a decreaseof 4% on last year. We implemented aUtilities Management Policy to ensurewe take a consistent approach to energymanagement across the business.Network – Most energy, approximately83%, is consumed by our network.A significant portion of this is used forcooling equipment in base stations. Wehave installed Savawatt power controlson the air conditioning units at 2,000base stations. This reduces energy usedfor cooling by around 14% at each site.During 2006/07 we will test fan coolingas a replacement for air conditioning.This can reduce energy used forcooling by up to 77% per base station.Air-conditioning accounts for 25%of total energy use per site so thisis a significant saving.We tested automated electricity meterreading (AMR) at 40 base stations (seecase study on page 18).3.928.448.6107.7Travel – 60% of employees at our officesin Newbury drove to work on their own(compared with 60% last year and 63% in2003/04). Around one third of our totalemployees are based in Newbury.We have initiatives to reduce car usage.These include our car share intranet‘Journey2Share’ and interest free commuterloans which helped 176 people buy railseason tickets, scooters or bicycles.Our CO 2 emissions havedecreased significantlyand we expect furtherreductions next yearCO 2 – In October we entered a newelectricity supply contract with British Gasto buy electricity from renewable sources.This means our CO 2 emissions fromenergy use have decreased by 60% andwe expect further reductions next year.WasteThree types of waste are significant forVodafone UK – old handsets (page 21),waste from offices and stores (such aspaper, plastic and packaging), and networkwaste (including some hazardous wastesuch as back-up batteries).Office and retail – We agreed a nationalwaste management contract for all officesand stores which will make it easier tomanage waste and increase recycling.We improved the recycling system atour offices in Newbury and Theale, andrecycled 57% of the 714 tonnes of wasteproduced by these offices compared to40% in 2004/05 and 25% in 2003/04.We have set a target to reduce paper useat these offices by 15%. As a first step,all printers in these offices are now setto duplex mode as the default option.We plan to implement recycling systemsat our other offices by March 2007.Network – Network upgrades generated312 tonnes of waste, of which 2% wasreused and 95% recycled.ComplianceThere were no environmental prosecutionsor fines. The Environment Agency isinvestigating a diesel spill from agenerator at one of our base stations.Commitments for 2006/07Reduce the energy consumption ofour current network infrastructure,offices and stores by 12.5% against2005/06 levels by March 2009.Maintain reuse or recycling ratesfor network waste at or above 97%.Recycle at least 60% of waste (byweight) from our Newbury andTheale offices by March 2007.Reduce paper use at our Newburyand Theale offices by 15% byMarch 2007.Achieve certification to ISO 14001for our whole UK business, includingour network by March 2007.Run internal awareness campaignson recycling and reducing energyuse by March 2007.RetailOffices03/04 04/05 05/06Other networkBase stations19

Supply chainIn 2005/06, Vodafone UK spent £1.9 billionon goods and services from approximately2,000 suppliers.“In a global economy theproducts we use and sellcome from all over theworld. We want oursuppliers, wherever theyare, to meet high standardson the environment andhuman rights.”Rob LeesHead of Supply ChainManagementIn a large supply chain there is arisk that some suppliers may notmeet acceptable environmentaland labour standards. We use ourinfluence to improve standardsin our supply chain.We focus on higher risk suppliers and thosewith whom we deal directly. Our criteriafor determining CR risk include the sizeof the supplier, the location of theiroperations and the type of product orservice they supply. We seek to influenceour suppliers to develop and maintain CRprogrammes for their own supply chains.Engagement with suppliers of handsets,network and IT equipment is typicallymanaged at Group level. See the VodafoneGroup Corporate Responsibility Report,www.vodafone.com/responsibility.Our Code of Ethical PurchasingOur Code of Ethical Purchasing (CEP)sets out the labour and environmentalstandards that we expect suppliers tomeet. Compliance with our CEP is acontractual requirement for all VodafoneUK suppliers.Supplier performance managementIn 2005/06 we established our SupplierPerformance Management (SPM)programme which makes CR one ofsix criteria used to select suppliers andmonitor their performance. The othercriteria are financial, technology,commercial, delivery and quality.SPM includes pre-assessments for newsuppliers with a contract value over£50,000, a risk-assessment carried outbefore a company becomes a Vodafonesupplier. Our top 40 suppliers (by spend)are re-assessed every six months andimprovement plans agreed wherenecessary. No major CR risks wereidentified in 2005/06.These assessments help us to determinehigher risk suppliers with whom we needto engage more closely.Progress in 2005/06All potential new suppliers and our existingsuppliers with a contract over £1 million(representing 70% of our supplier spend)completed self-assessments.CR is one of six criteria usedto select suppliers andmonitor their performanceWe identified one higher risk supplierwho provides promotional items used inVodafone marketing. A team from Vodafoneconducted a detailed assessment withthis supplier to assess environmental andlabour standards in their supply chain.This involved an audit of their supplier’sfactory in China which manufacturesmost of their products. The audit did notidentify major issues of concern. We madefive recommendations to the supplier tostrengthen their Code of Ethical Purchasing,factory auditing process and reviews ofsub-contractors.We carried out detailed assessmentswith our five largest suppliers, includingself-assessments, a briefing on therequirements of our CEP and somesite visits. These are all well knownmultinational companies, mostly withextensive CR programmes of their own.Employee awarenessWe are committed to making corporateresponsibility an integrated part of oursupply chain management processes.In 2005/06 all Vodafone UK procurementemployees completed online CR training.This explained the background to ourCEP, the importance of implementinghigh labour and environmental standardsin the supply chain and the responsibilitiesof purchasing managers.CR objectives and implementation of ourCEP are included in the individual andteam objectives for all procurement staff.We held a CR conference with otherVodafone local operating companiesto discuss how to influence the CRperformance of second and third tiersuppliers with whom we have nodirect relationship.Looking forwardIn 2006/07 we will implement an onlinesupplier assessment and qualificationprocess. We will agree continuousimprovement plans with our largestsuppliers. This will help us to be moreproactive and focus on helping suppliersimplement CR initiatives.Commitments for 2006/07Establish a whistle-blowingmechanism for suppliers to reportany concerns or breaches of ourCode of Ethical Purchasing.Implement an online supplierassessment and qualificationprocess.Handsets 38.1%Network infrastructure 20.1%IT 14.2%Marketing services 4.75%Property/facilities 1.58%Customer management 1.45%Human resources 1.42%(including outsourcing)Fleet 0.94%Other 17.46%20

Handset recyclingConsumers upgrade their mobile handset frequently– on average every 18 months. Handsets that arethrown away generate waste and can release harmfulsubstances into the environment if they aren’tdisposed of correctly.“Old handsets are valuableand can be reused andrecycled. We need tomake sure our customersknow we want their oldhandsets and will putthem to good use.”Chris EdwardsHead of Device ManagementHandsets returned by customers(thousands)154.6163.5141.0203.402/03 03/04 04/05 05/06Processing of handsets, batteriesand accessories (tonnes)122402/03 03/04 04/05 05/06Recycled7219Reused93373729Handset reuse and recycling benefitsthe environment, charities and peoplein low income countries.Our approachWe collect old handsets from customersat our stores and via our FREEPOSTVodafone address. These are sent toFonebak, the European-wide handsetrecycling programme, for refurbishmentor recycling.We give £10 – £20 for each phone(depending on its resale value) that iscollected from our retail customers.Customers can donate this money tothe National Autistic Society (NAS).Many handsets that are returned arein good condition and are refurbishedfor resale in lower income countries.A refurbished handset costs less thana new phone helping more people inAfrica, Asia and Eastern Europe enjoy thesocial and economic benefits of mobiles.Handsets that can’t be reused are recycled.We donate all profits to the NAS.Our involvement in the Fonebakprogramme will help us ensure we arein compliance with the Waste Electricaland Electronic Equiment (WEEE) Directivewhen it comes into force.Performance in 2005/06In 2005/06, we collected 203,400handsets, up from 141,000 the previousyear. During the year 28.6 tonnes ofhandsets were refurbished for reuse and36.5 tonnes were recycled. £578,000was generated for the NAS.All profits from our handsetrecycling are donated to theNational Autistic SocietyWe worked to raise consumer awarenessof our return programme by improving thecollection bins in our stores and throughan advertising campaign with the (NAS).We worked with our corporate customersto increase handset returns. Twenty threeof our top 50 corporate customers(measured by number of accounts) nowhave Fonebak schemes in place and weare on track to reach our target of 35 byMarch 2007.However, the number of handsets wecollected is equivalent to a very smallproportion (3%) of the new handsetswe sold. We want to increase this figureand have set a target to collect 250,000handsets during 2006/07.We conducted research into the barriersto handset recycling. This showed thatmany people keep their old phone as aspare or to give to a friend or relative.People are more likely to hand in theirphones if they know it is going to a goodcause or will support a charity.Plans for 2006/07We are planning a number of initiativesto encourage people to hand in theirphones, including:• A phone amnesty and ‘My Ideas’suggestion scheme to encourageemployees to return old handsetsand suggest ways of increasingthe number of handsets collected.• Working with our suppliers toencourage recycling.• A phone recycling campaign inour retail stores.Commitments for 2006/07Collect 250,000 handsets during2006/07.Encourage 35 of our top 50corporate customers to participatein Fonebak by March 2007.21

“I’ve worked forVodafone for 12 yearsand always tried tobe an ambassador forthe company. To berecognised in thisway by my colleaguesmakes it even moreworthwhile.”Sue ParkerVodafone LegendSue Parker, Divisional Head, VodafoneRetail is an official VodafoneLegend. She was nominated for theaward by her colleagues for herinspirational leadership andcommitment to helping others.Sue is a champion for corporateresponsibility and Vodafone’scommunity work. She has encouragedcolleagues, suppliers and customersto get involved and raise thousands ofpounds for charities such as Childrenin Need, Jeans for Genes Day, ComicRelief, the tsunami disaster appeal andthe National Autistic Society. Sue’spassion was instrumental in VodafoneRetail winning the Thames ValleyBusiness Award for Corporate SocialResponsibility.The Legends programme recognisesVodafone people who have madeoutstanding contributions. One hundredemployees were rewarded in 2005/06and won a trip to Dubai with their guest.

EmployeesVodafone UK has 11,600 employees. We work hardto create a workplace where employees can thriveand succeed. This is vital to our business successbecause creating the right employee experiencemotivates our people to deliver the best serviceto our customers.“Generally we find thatpeople are very motivatedto work for Vodafone. But wedon’t take this for granted.Our employment policiesand reward packages helpus to maintain theirloyalty in thelong-term.”Matthew BrearleyDirector, Human ResourcesGender diversity – managementand all employees (%)74577055Employee experience frameworkEach business unit has developed anemployee experience plan to driveimprovements.Employee engagement and communicationWe measure employee perceptions quarterly through the Your Views survey andconduct a full employee survey every two years.264304/05 04/05 05/06 05/06Men (all employees)Women (all employees)30Accident incidence rate(per 1,000 employees)1.71.51.8Men (managers)Women (managers)1.72451.42We improved our rating against the HayEmployee Engagement Index to 71.4%in March 2006, compared with 68% theprevious year. Our target is to be rankedin the top 25% of UK companies in theIndex by March 2007. Based on the mostrecent Index scores, this means we needto achieve a rating of 75.6%. Vodafonecame 13th in the 2006 Sunday Times 20Best Big Companies to Work For Awards.DiversityWorkforce diversity supports innovationand creativity. Our equal opportunitiespolicy commits us to treat all employeesfairly and without discrimination.These are some of the Your Views results from March 2006(completed by around 2,100 employees):My line manager treats my team fairly and without discriminationMy manager takes a genuine interest in my well-beingRate your team on managing change and the introduction of new waysof workingThe training and development I receive enables me to perform effectivelyin my current roleRate the career opportunities available to you within Vodafone UKYour Viewssurvey March2006 (%favourable)827974594101 02 03 04 05Employees can report any concerns totheir line manager or anonymously via ourindependently managed phone service.We do not have complete data on ethnicitybut estimate around 9% of employees arefrom ethnic minorities. 35% of employeesdid not state their ethnicity.We are developing a three-year strategy topromote ethnic, gender and age diversity.Health, safety and well-beingOur health and safety policy covers allrelevant risks from driving and workingat height to ergonomics for officebased employees.We launched several well-being initiativesincluding:• Wellness Checkpoint – an onlinehealth assessment tool used by a thirdof employees during the year.• Quit smoking clinics which helped 70employees give up.• Occupational Health case managementwas tested in two contact centres andhelped reduce long-term sicknessabsence.Nearly 25% of our employees workflexibly, part-time, or from home.Learning, development and careersPerformance Dialogue is our annualappraisal process. In 2005/06, 100%of employees confirmed they had aperformance review and developmentdiscussion with their manager.We spent over £5 million on training. Weare launching Training Academies, a onestopshop for all learning and careerdevelopment needs for each businessfunction. Half of our employees now haveaccess to an Academy. A LeadershipAcademy for managers was launched inApril 2006.We improved our careers intranet siteand met our target to fill 70% of ourvacancies internally.Recognition and rewardOffering the right rewards helps usto attract, retain and motivate the bestpeople. The compensation package forall employees includes an element ofperformance related pay which is linkedto individual and business goals.We launched the Vodafone LegendAwards to recognise 100 employees whohave achieved outstanding things. Thisculminated in an all expenses paid trip toDubai for the winners and their chosenguest.Vodafone Group’s AllShares, Sharesaveand Share Incentive Plans ensure allemployees have the opportunity to ownshares in the company.Change and redundanciesWe closed two contact centres at BrindleyPlace and Woodlands resulting in 640redundancies. We set up Career Centres atboth sites to help affected employees findnew jobs within Vodafone or elsewhere.Nearly 170 of those employees affectedfound new jobs at Vodafone.Work from the centres has been distributedamongst other Vodafone contact centresand those run by our outsourcingpartners. We work with five outsourcingpartners who run UK contact centresemploying 3.5 million people. We startedworking with a contact centre in India thatwill handle customer email enquiries.Commitments for 2006/07Be ranked in the top 25% of UKcompanies in the Hay EmployeeEngagement Index by July 2007.23

“Our relationship withThe Vodafone UKFoundation is worthmore than money.The opportunityto learn from theirbusiness expertise andshare ideas with othercharities is helpingYouthNet support evenmore young people.”Sarah HookerYouthNetaskTheSite – a successfulpartnership between YouthNetand The Vodafone UK FoundationaskTheSite is an online Q&A servicecreated by YouthNet with supportfrom The Vodafone UK Foundation.It is part of TheSite.org, YouthNet’swebsite for 16–24 year olds andenables young people to get advicein confidence.In its first year askTheSite answeredover 4,200 questions from youngpeople, giving them guidance andsupport. A further 32,000 visitaskTheSite’s archive every monthto read and learn from previouslyanswered questions.YouthNet’s relationship with TheVodafone UK Foundation is part of alarger three year four-way partnershipwith Shelter and the Samaritans.This is based on an open-book policywith all organisations sharing research,expertise and results.Vodafone employees also give a rangeof voluntary support to YouthNet.

Social investmentWe donate money, products and services togood causes, and encourage our employeesto give their time to charity. Much of oursupport is given through The Vodafone UKFoundation which focuses on charities thathelp young people aged 16 – 25.“We believe in sharing someof our success with charitiesand communities near oursites. This enables charitiesto continue their importantwork and helps makeVodafone a nicer placefor our people to work.”Sarah ShillitoManager, Vodafone UK FoundationOur approachSocial investment should be about morethan a simple donation. We focus muchof our funding on a small number ofcharities, where we can make the mostdifference. We share our business andmarketing expertise to help our partnercharities better understand the corporatesector and create stronger, more tailoredfundraising applications. This helpsthem to sustain their projects for thelong-term, well after our financial supporthas come to an end.In 2005/06, we gave £7.82 million tocharity, over £5.39 million of which wasgiven through The Vodafone UKFoundation.The National Autistic SocietyIt was the second year of our three yearpartnership with the National AutisticSociety (NAS). Employees and customersraised or donated £230,000 for the charityand £578,000 was generated through ourhandset recycling scheme: (see page 21).Our funding helped the NAS conduct thefirst National Survey on Autism to find outmore about perceptions of autism andraise awareness of its work. We ran anadvertising campaign with the NAS toincrease understanding of autism andencourage people to raise money byreturning their old handsets.We helped the NAS hold a Day for Autismin London’s Leicester Square and addeda link to the online autism resourcewww.info.autism.org.uk on Vodafone live!We ran an advertisingcampaign with the NationalAutistic Society to increaseunderstanding of autismThe Vodafone UK FoundationOur Foundation supports national charitiesworking with young people, localorganisations near Vodafone sites andcharities for which our employees havechosen to fundraise.Between 2004 and 2007 the Foundationwill donate £6 million to three partnercharities: Shelter, Samaritans and YouthNet.We are working closely with these charities,sharing our technology and marketingexpertise. The charities are also workingtogether, sharing skills and resources.Between 2004 and 2007the Foundation will donate£6 million to three partnercharities: Shelter,Samaritans and YouthNet.These are some of the ways the charitiesbenefited in 2005/06:We are supporting Samaritans to engagemore young people via email andcontinued to fund a nationwide campaignto raise awareness of jo@samaritans.org.Samaritans received 154,000 emails (an18% increase from the year before), 172branches are now online and 770 newvolunteers were trained in offeringemotional support by email.We are helping Shelter to reduce youthhomelessness and housing problems. In2005/06, Shelter launched ‘Know yourrights’, a campaign to advise young peopleon the housing problems they face.Following the ‘Know your rights’ tour, aphone poll showed 98% of young peoplewho sought advice via the ‘Know your rights’website pages had solved their problems.YouthNet runs TheSite.org, a websiteproviding free and confidentialinformation and advice for young people,24 hours a day, seven days a week.Over 400,000 16–24 year olds visitTheSite.org every month; and YouthNetis now launching new services tosupport more young people through theirmobile phones.Employee involvementMany Vodafone UK employees volunteerin their local community, give from theirpay and organise fundraising events.In 2005/06, employees gave £239,703through payroll giving. Vodafone UK wasawarded a silver Payroll Giving QualityMark from the Institute of Fundraising.The Vodafone UK Foundation matchesemployee fundraising (up to £500) fortheir chosen charity, and every pennyraised for its flagship charities. In 2005/06,employees raised £1.2 million through925 events. The Foundation gave£842,000 in matched funding.All employees can take 24 hours’ timeoff each year to volunteer for charity.In 2005/06, our employees gave 1,777hours as volunteers.We recognise Vodafone employeevolunteers and fundraisers through ourUK Foundation Community Awards. Alleligible employees receive a £50 donationfor their chosen charity.Commitments for 2006/07Increase the balance of fundingto local community projectsnear Vodafone sites outsideWest Berkshire (where we areheadquartered) from 40% to 50%by March 2007.Launch the application process forour new flagship charity partnershipby March 2007.Announce three new flagshipcharity partners by March 2008.25

IssueCommitment 2005/06ProgressNew commitmentsDeadlineEnvironment(continued)Implement recycling programmes at all ourUK offices by March 2006.Develop a waste reduction strategy byMarch 2006.Relaunched recycling schemes at our Newburyand Theale offices. We expect to have implementedrecycling programmes at our other offices bySeptember 2006.Developed a strategy and plannedcommunications to increase employeeawareness of recycling.—Recycle at least 60% of waste (by weight)Marchfrom our Newbury and Theale offices. 2007Reduce paper use at our Newbury and ThealeMarchoffices by 15%. 2007Achieve certification to ISO 14001 for ourMarchwhole UK business, including our network. 2007Achieve certification to ISO 14001 for our whole UKbusiness, including our network, by March 2007.Environmental management system for offices,Duecustomer management centres and retail March 2007outlets accredited to ISO 14001.Run internal awareness campaigns onMarchrecycling and reducing energy use. 2007Implement STARK, a utilities management database,to monitor energy use at our sites and targetinefficient sites for improvement by March 2007.STARK implemented.Run internal awareness campaigns on recyclingand reducing energy use by March 2007.Awareness campaigns are plannedDuefor 2006/07. March 2007Supply chainDeliver CR supply chain training to 80% of supplychain personnel by March 2006.100% of supply chain personnel receivedCR supply chain training.Establish a whistle-blowing mechanism forMarchsuppliers to report any concerns or breaches 2007of our Code of Ethical Purchasing.Complete detailed CR evaluations with fivesuppliers based on risk by March 2006.Completed detailed CR evaluations withsix suppliers.Implement an online supplier assessmentMarchand qualification process for suppliers. 2007Adopt a risk-based approach to all new suppliers toVodafone UK by March 2006.Suppliers complete self-assessments as part ofour supplier performance management programme.This enables us to identify higher risk suppliersfor further engagement.Handset recyclingSet a target for increasing the number of redundanthandsets collected from customers.Target set to collect 250,000 handsetsduring 2006/07.Collect 250,000 handsets duringMarch2006/07. 2007Encourage 35 of our top 50 corporate customersto participate in Fonebak by March 2007.23 of our top 50 corporate customers have DueFonebak schemes in place. March 2007Encourage 35 of our top 50 corporateMarchcustomers to participate in Fonebak. 2007EmployeesExtend training academies to cover 50% of ouremployee population by March 2006.Over 50% of employees now have access toa training academy.Be ranked in the top 25% of UK companiesJulyin the Hay Employee Engagement Index. 2007Measure and review employee engagement trendsquarterly by March 2006.Employee engagement trends measuredand reviewed quarterly through theYour Views survey.Fill 70% of all job vacancies internally byMarch 2006.70% of all job vacancies filled internally.Establish Vodafone Legends Awards to recogniseoutstanding employee achievements byMarch 2006.Vodafone Legend Awards launched.Establish Employee Experience Plans for everybusiness unit by March 2006.Employee Experience Plans established in allbusiness units.Be ranked in the top 25% of UK companiesin the Hay Employee Engagement Index byJuly 2007.We improved our rating against the HayDueEmployee Engagement Index and are on July 2007track to meet our target by July 2007.Social investmentEstablish a network of like-minded companiesto develop and share best practice on socialinvestment by March 2006. Initially this will focuson innovation, employee engagement, project andprogramme measurement.Encourage employees and customers to donate£1 million to the National Autistic Society (NAS)by March 2006.Increase awareness of the NAS partnership andexpand programme activities by March 2006.We have started to work with other companiesto develop and share best practice onsocial investment.Employees and customers raised or donated£230,000 for the NAS and £578,000 wasgenerated through our handset recycling scheme.Ran an advertising campaign with the NAS to increaseunderstanding of autism and encourage people toraise money by returning their old handsets. Helpedthe NAS hold a Day for Autism in London’s LeicesterSquare. Added a link to the online autism resourcewww.info.autism.org.uk on Vodafone live!.Ongoing—Increase the balance of funding to localMarchcommunity projects near Vodafone sites 2007outside West Berkshire (where we areheadquartered) from 40 to 50%.Launch the application process for our newMarchflagship charity partnership. 2007Announce three new flagship charityMarchpartners. 200827

Independent assuranceWe commissioned Deloitte & Touche LLP to review our data collectionand reporting process for selected data in the environment, health &safety and social investment sections of this report (indicated by ◊),for the year ended 31 March 2006. In addition, and without affecting theirassurance conclusions, Deloitte made several recommendations forcontinuing to improve the collection, validation and reporting of thesedata. The recommendations are included on our websitewww.vodafone.co.uk/responsibility.Independent assurance statementby Deloitte & Touche LLP (‘Deloitte’)to Vodafone Ltd on the 2005/06Corporate Responsibility Report(‘CR report’).What we looked at: scope of our workVodafone Ltd (‘Vodafone UK’) haveengaged us to give limited assuranceas to whether the environmental, socialinvestment and occupational health &safety performance data described withinthe report indicated by the followingsymbol ◊ are not materially misstated.What we found: our conclusionsBased on the work we performed, weare not aware of anything that causes usto believe that the environmental, socialinvestment and occupational health &safety performance data described withinthe report indicated by the followingsymbol ◊ are materially misstated.What we did: assurance process andstandardsEngagement assurance standards• We conducted our work in accordancewith the International Standard onAssurance Engagements 3000 (ISAE3000) issued by the InternationalAuditing and Assurance Standards Board(IAASB) for carrying out assuranceengagements on non-financialinformation.• This is a limited assurance engagement,which is designed to give a similar levelof assurance to that obtained in a reviewof interim financial information.Assurance procedures• This standard requires that we reviewthe systems, processes and controls thatdeliver the selected performance data.• Our work consisted primarily of makinginquiries of company personnel andcarrying out analytical procedures andsample tests as follows:– Understanding, analysing and testingon a sample basis the collation,aggregation, validation and reportingof the selected performance data; and– Reading and analysing the content ofthe report against the findings of ourwork, industry Corporate Responsibilitypractices and other relevantinformation and, as necessary, makingrecommendations for improvement.• The limited assurance proceduresengagement excludes proceduressuch as testing of source data andis substantially less in scope than areasonable assurance* engagement.Accordingly we do not providereasonable assurance on thosematters specified in this statement.Responsibilities of directors andindependent assurance providersVodafone UK’s responsibilities• The directors are responsible for thepreparation of the CR report and for theinformation and statements containedwithin it. They are responsible fordetermining Vodafone UK’s objectivesin respect of CR performance and forestablishing and maintaining appropriateperformance management and internalcontrol systems from which the reportedinformation is derived.Deloitte’s responsibilities, independenceand team competencies• Our responsibility is to independentlyexpress conclusions on the reliability ofmanagement’s assertions on selectedsubject matters as defined within thescope of work above.• Our multi-disciplinary team of CRand assurance specialists performedthe engagement in accordance withDeloitte’s independence policies, whichcover all of the requirements of theInternational Federation of Accountants(IFAC) Code of Ethics and in some areasare more restrictive. We have confirmedto Vodafone UK that we havemaintained our independence andobjectivity throughout the year,including the fact that there were noevents or prohibited services providedwhich could impair that independenceand objectivity.• This statement is made solely toVodafone UK in accordance with ourletter of engagement for the purposeof the directors’ governance andstewardship. Our work has beenundertaken so that we might stateto Vodafone UK those matters weare required to state to them in thisstatement and for no other purpose.To the fullest extent permitted bylaw, we do not accept or assumeresponsibility to anyone other thanVodafone UK for our work, for thisstatement, or for the conclusionswe have formed.Deloitte & Touche LLPLondon, United Kingdom21 September 2006* The different levels of assurance engagement aredefined in the International Standard on AssuranceEngagements 3000 (ISAE 3000) issued by theInternational Auditing and Assurance StandardsBoard. Reasonable assurance is similar to the auditof financial statements; limited assurance is similarto the review of a six-monthly interim financial report.28

Performance and data summaryThis table summarises our key performance data. The following symbol(◊) indicates performance data reviewed by Deloitte as part of their CRassurance work; see page 28.2005 2004 2003/06 /05 /042005 2004 2003/06 /05 /04FinancialRevenue (£ million) 5,048 5,065 4,744Adjusted operating profit (£ million) 698 779 1,039Number of customers (million) 16.3 15.5 14.1Supply chainExpenditure with suppliers (£ million) 1,900 1,200 –Detailed supplier assessments 6 3 –Procurement employees completing online CR training 100% – –Content standardsComplaints about content on Vodafone live! 2 – –Responsible marketingComplaints against Vodafone advertising upheld by 1 3 –the Advertising Standards AuthoritySocially significant productsCustomers using Speaking Phone 1,335 1,127 709Network rollout, RF and healthNumber of base stations 11,352 9,837* –Shared sites (%) 30 20 –◊ Enforcement notices 4 25 –Environment◊ Energy use – gas and electricity (GWh) 439 456 318◊ CO2 emissions from our offices, stores and network (000 tonnes) 75.4 190.7 137.7◊ CO2 emissions from business travel by air and car (000 tonnes) 11.5 12.03 17.1◊ Employees at our offices in Newbury that drove to work ontheir own (%) 60 60 63◊ Network waste generated (tonnes) 312 436.6 1,011◊ Network waste reused or recycled (%) 97 97 –◊ Office waste generated from our Newbury andTheale offices (tonnes) 714 688 –◊ Office waste recycled from our Newbury and Theale offices (%) 57 40 25◊ Environmental prosecutions 0 0 –◊ Environmental fines 0 2 –Handset recyclingHandsets sold (million) 6.57 – –◊ Handsets returned by customers (thousands) 203.4 141 163.5◊ Processing of handsets, batteries, accessories reused (tonnes) 28.6 37 19◊ Processing of handsets, batteries, accessories recycled (tonnes) 36.5 93 72Number of top 50 corporate customers participating in Fonebak 23 7 –EmployeesNumber of employees (000) 11.63 11 9.5Rating against the Hay Employee Engagement Index (%) 71.4 68 –Women employees (%) 45 43 44Women in management (%) 30 26 26Employees from an ethnic minority (estimated %) 9 9 –◊ Accident Incidence rate per 1,000 employees 1.42 1.72 1.8Employees working flexibly, part-time, or from home (%) 25 23 20Training spend (£ million) 5 7 –Employees with access to a training academy (%) 50 – –Redundancies 640 – –Vacancies filled internally (%) 70 – –Social investment◊ Total charitable contributions (£ million) 7.82 7.5 –◊ Total employee fundraising (£ million) 1.2 1.4 –◊ Vodafone UK Foundation matched funding (£ million) 0.84 – –Total employee payroll giving (£ million) 0.23 – –Employee volunteering (hours) 1,777 – –– data not available* In our last report we incorrectly stated that in March2005 we had 11,500 base stations. We improvedour data collection systems this year and haverestated our data for 2004/05.29