Vodacom Sustainability Strategy 1 C2 General WHY Sustainability - PowerPoint PPT Presentation

Vodacom Sustainability Strategy 1 C2 General

WHY Sustainability Building good reputation Increasing revenues  Improved reputation and trust  Opportunity for new products & (trusted by the public – be known services (e.g. Thetha Nathi, Smart Increase value to do the right thing) metering etc.)  Brand love – purpose-led  Increased customer base through  Improved employee, stakeholder new market segments (e.g. ‘close and regulator relationships digital divide’ & financial inclusion) (license to operate) – NDP, UNSDGs, Africa Vision 2063 Certain / Short term Less certain / Long term Reducing costs Reducing sustainability risks  Mandatory reporting on GHG  Reduced costs from more Reduce negative emissions efficiency in our infrastructure  Reduced regulatory risks & costs and buildings  Reduced risks of reputational  Reduced relative resource costs through environmental, consumption social and governance  Carbon Tax in SA compliance 2 C2 General

Methodology Inputs Stakeholder issues Trends and challenges Business strategy Sustainability risks Benchmarking and • Globescan • Globescan • Vodacom strategy • Carbon Trust • ESG rating companies sources • Ministry of • Ministry of team • ESG rating companies (Sustainalytics) Environmental Affairs Environmental Affairs • Vodacom business • World Economic Forum • Carbon Disclosure • WBCSD • WBCSD units • Intergovernmental Project • ESG rating companies • World Resource Institute Panel of Climate • Vodafone reputation • NBI • ESG rating companies Change study on social contract • BUSA • University studies • University studies Process Materiality assessment: Risk analysis, stakeholder response, relevance, business strategy, business context Strategic outputs Vodacom strategic pillars: Purpose Responsible business practices and disclosures Social contract Key audiences Colleagues, customers, UNGC, GRI, Government, Investor market: JSE, FTSE, CDP, communities (3Cs) WWF, NBI ESG rating, RE100 3 C2 General

Sustainability challenges Poor Health Violation system of human Increased waste rights generation Investment in Climate waste to energy change impacts Poverty set to grow by The last five USD 12.26 billion and food years were the security Shortage warmest in Water scarcity of raw history materials and drought Violence Access to against women education and children Deforestation Unemployment GBV on the rise and inequality 6 million due to hectares of lockdowns 30% Financial Underinvestment forest lost in unemployment and digital East Afri ca in infrastructure rate in SA ….and many more divide 4 C2 General

Sustainability challenges stats Globally only 9% of plastic ever Unemployment rate in SA is In Sub-Saharan Africa With the current climate produced has been recycled. An estimated 7 million 30.1% and is forecasted to 59 million change scenario, between 79% is now found in landfills, 24 million and 700 people die every year from reach 35% by December children between air pollution dumps or the environment and 2020 , Moz is 25% , Lesotho is the ages 5-17 million people will be 12% has been incinerated 23.5%, DRC is 10.4% , work instead displaced by 2030 due to Tanzania 9.7% of going to school water scarcity. According to the IPCC, human- By 2100 climate change caused emissions of carbon dioxide could cause a 30% In SA less than 50% of need to fall 45% from 2010 levels In SA 51% use smartphones loss of birds and mammal the population has access by 2030 and reach net-zero around with 9% with no phone while in species in Africa to running water and is the 2050 to prevent 1.5 °C-2.0°C Internet 39 th driest country in the Tanzania 13% use penetration in world smartphones with 62% on Africa is at More than 25% of basic phone and 25% do In SA, white maize production is Globally 70% of fresh 39.3% not own a device expected to drop by 1.6 million hungry people in the water is used for world live on the tons/year resulting in a price increase agriculture Stats SA launched a new online data portal African continent of 16% as a result of climate change to enable tracking of the Sustainable SA Moz DRC Tanzania Development Goals (SDGS) on 2 December 2019 Instabilities Political violence at Economic crisis Restriction of Shutting down the 2019 elections, Xenophobic attacks, independent internet 5 terrorist attacks corruption statistics publications looming. C2 General

Our sustainability journey Vodacom embeds sustainability in IM Recognized by FTSE4Good Index for Vodacom participates ESG performance COVID-19: Vodacom WWF in the investor led Six-point plan and NBI partner Carbon Disclosure Responds to water Vodacom Project crisis in SA through Foundation Maintain CDP drought relief established to Pending for Aug: Vodacom leadership coordinate CSI UNGC partnership recognized for IR position in SA 2011 1999 2013 2018 2020 2009 1994 1997 2009 2012 2016 2019 Recognized as a Vodacom recognized Business Recognized by Vodacom lists Best Performer on in Fortune 50 Philosophy to FTSE4Good Index for on the JSE the JSE SRI Index democratize ESG performance telecommunicat First telco to be ions Vodacom commits Responds to water awarded an ESG loan to national crisis in SA through environmental drought relief Vodacom articulates policy purpose strategy PHASE ONE PHASE TWO 6 C2 General

Sustainability trends Climate risk Circular Risks in and mitigation economy supply chain Companies are setting science-based targets in Companies are committing to resource reduction Companies have set ambitious supply chain goals alignment to the Paris Climate Agreement’s aim to strategies like redesign of products that require less which range from zero deforestation to ending keep global temperature increases below 2°C. material and energy; setting up product take-back child labor and are holding directors responsible schemes; dematerialisation, eco-design, recovering for transparency. and repurposing waste. Vodacom Vodacom Vodacom • Climate change risks in CDP – leader in CDP • Take-back schemes, starter pack, T&Cs, • Code of Ethical purchasing • 50% reduction in GHG emission by 2025 • 100% recycling of office paper. Reducing energy use and Water action taking Conscious consumerism sourcing renewables precedent Concerns about the environment is increasing More than 220 global companies are now setting Water footprint is becoming more pronounced worldwide and consumers are anxious about the 100% renewable energy targets – although a small whether companies use water for production or state of the planet. In response, they are ‘voting subset is from high emitters. water is used in areas that are susceptible to with their wallet’ and choosing brands whose values drought align with their own. Vodacom Vodacom Vodacom • Reduced water consumption by 58% in the • Eco-friendly accessories, Paper bags in • Energy mix, energy targets past three years – tap aerators, rainwater dam stores, Starter packs with less paper 7 C2 General

Sustainability trends Protecting Human Responsible capital leaders for SDGs biodiversity Business will need to come together to drive greater Issues of inclusion and diversity are becoming more Scaling up the use of technology to lift more and more holistic action to protect the world’s pronounced with ESG community also focusing on people out of poverty, improve health and these. Only 3.3% of companies on JSE have female education. remaining biological diversity, and value in ecosystem services that it provides. CEOs. Some countries like Norway have adopted mandatory quotas. Vodacom Vodacom Vodacom • Females in senior management - average of • Digital solutions that transform lives, SVS, • Partnership with the WWF 30%; DRC is 18.6%; SA is 34.5%. Connected Farmer, Citizen engagement, • Total employees is 43.5% females E-School Sustainability Sustainable Digital human finance rights & digitisation Emergence of Corporate Digital Responsibility. Emphasises the importance of privacy, civil ESG screening by investors is gaining momentum, Virtual technologies use big data to help with examples of Blackrock divesting from rights and human rights. organisations to be more sustainable. Physical companies with >25% revenue from coal and tech refer to assets such as renewable storage and Shareholder activism on Standard Bank. electric vehicles. Vodacom Vodacom Vodacom • Good data and security structure and • IoT for base stations to drive efficiency • ESG improvement plan largely linked to governance targets & policies 8 C2 General