Reducing emissions in our operations
We are committed to be net zero for emissions of our operations by 2040.
We have set a Science Based Targets initiative approved 2040 target in line with reductions required to keep warming to below 1.5c. Vodafone is the first major telecoms operator to follow the emission reduction pathway developed for the ICT sector which sets out specific emissions reduction trajectories for mobile, fixed and data centres.
Despite ever-growing use of data and expansion of our networks, this year, our total Scope 1 and 2 GHG emissions decreased by 23% to 1.09 million tonnes of CO2e, due to our ongoing focus on energy efficiency and an increase in the proportion of renewable electricity purchased.
We are committed to continually improving the energy efficiency of our base station sites and in our technology centres, which together account for 96% of our total global energy consumption. During FY21, we invested €65 million of capital expenditure in energy efficiency and on-site renewable projects across our business, which has led to annual energy savings of 135 GWh.
Our approach to reducing emissions
We have defined a hierarchy of actions which defines our approach towards meeting our commitments:
Energy Efficiency
- Our first principle is that it is best to to avoid energy consumption (and associated carbon emissions)
- Focus includes purchasing more efficient equipment as we all as deploying cooling technologies for servers and other network equipment
On-site renewables and alternatives
- Renewable generation on our sites (e.g. ground roof-top, car parks)
- Zero carbon alternatives (EVs, f-gases, H fuel cells, bio fuels)
Power Purchase Agreements (PPAs)
- Long-term supply contracts with renewable developer
- We estimate that by 2040, PPAs will cover approximately 20-40% of out electricity demand
Renewable Electricity Certificates (RECs)
- Electricity with high quality RECs / Guaratees of Origin or renewable tariffs
Certified offsets
- Carbon removal offsets via credible certified sources, covering a maximum of 5% of owned emissions
- This is our least preferred option
Optimising our energy consumption
We are committed to continually improving the energy efficiency of our base station sites and in our technology centres, which together account for 96% of our total global energy consumption. During 2021, we invested €65 million capital expenditure in energy efficiency and on-site renewable projects across our business, which has led to annual energy savings of 135 GWh.
Our commitment to energy efficiency has been underpinned by the implementation of the ‘best-in-class’ ISO 50001 Energy Management System framework. To 11 operating companies with other markets due to be implemented in the framework in the next year.
How we use energy at Vodafone
Key energy efficiency initiatives we have focused on during this year include:
- sourcing and deploying more efficient network equipment and powering-down carriers during times of low traffic
- gradually switching off the 3G network (which is typically 70% less energy efficient than 4G) and decommissioning legacy equipment in our core network
- deploying high-density pods (modular blocks with concentrated power and cooling technology) to maximise the performance of servers and minimise cooling requirements within data centres
- reducing energy demand by installing lower-energy power and cooling technologies
- using AI algorithms in our passive infrastructure, allowing us to optimise energy use in cooling
We continue to work with eSight Energy to implement an energy data management system using data feeds from our electricity suppliers and from smart meters. This system is now live across 11 markets in Europe, with smart meters installed at 45,000 sites. This year, we developed new energy modelling capabilities for active mast equipment and data centres.
Purchasing renewable electricity
This year, we spent approximately €846 million on purchasing electricity. During the year, 77% of our electricity purchased was from renewable sources (2021: 55%).
This year we reached our target of powering our entire European operations with electricity from 100% renewable sources. This was achieved from July 2021, a significant acceleration of our original target of 2025. We currently have Power Purchase Agreements (‘PPAs’) in Spain, Greece and the UK. PPAs trade at a discount to current wholesale electricity prices and provide us with more economic certainty against current volatile wholesale electricity prices, as well as helping to create new capacity within the markets.
Following our energy purchasing hierarchy approach, we prioritise energy efficient practices before considering on-site generation of renewable energy, PPAs and Renewable Electricity Certificates (‘RECs’). Whilst on-site generation of renewable electricity currently accounts for less than 1% of our overall renewable energy consumption due to space constraints on our infrastructure, we continue to trial innovative solutions, such as the micro wind towers in Germany. The remainder of our renewable energy consumption is split between PPAs 5% and RECs 94%. Most RECs are bundled either via green electricity tariffs or provided by our electricity suppliers, however a small amount are considered ‘unbundled’ for example, to cover our consumption on third party sites. The purchase of unbundled RECs is our least favoured approach, however it is necessary in certain circumstances. For example, where we are tenants and electricity is procured by a landlord, or where our preferred options are not available due to limitations in a particular market. The incremental cost of RECs (or their equivalent) is small in the context of our overall energy spend.
Learn more about Vodafone’s approach to renewablesOur strategy in action
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Contribution to the UN Sustainable Development Goals
We aim to build a inclusive and sustainable digital society. Through our connectivity and digital innovations (SDG 9) and through our partnerships (SDG 17) we can accelerate and scale delivery across multiple SDGs.
Vodafone provides women with access to life-enhancing services which help to unlock socio-economic opportunities and help to address inequality. We also champion the inclusion of women in the workplace.
Vodafone is committed to helping people develop their skills in order to address the mismatch between future workplace needs and the current skills of the new generation.
We are working to reduce the amount of energy required to run our networks and services while meeting increasing customer demand for data.
