Sustainable Business Report - Vodafone › cms › documents › cr-report-2017.pdf ·...

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Sustainable Business Report 2017 The future is exciting. Ready?

Transcript of Sustainable Business Report - Vodafone › cms › documents › cr-report-2017.pdf ·...

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Sustainable Business Report2017

The future is exciting.

Ready?

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Table of contents

About this report 03

Assurance statement 04

Letter from Russell Stanners, CEO Vodafone NZ 05

Sustainability context 06 – 07

What matters? 07

Our business 08 – 09

Governance 09

Connecting New Zealand to the world 09

Television 10

Ready Business 10

Ready Government 10

Our supply chain 10

Our planet 11 – 12

Mobile recycling 12

Electronic network waste 12

Carbon emissions 13

Our communities 14

The Vodafone New Zealand Foundation 15

Sponsorships 15

Looking after our customers 16

Connecting rural New Zealand 17

Community engagement 17

Electromagnetic fields and health 18

Emergency response 19

Our people 20 – 21

Diversity and inclusion 22

People survey 23

Training and development 23

Health, safety and wellbeing 23

Supporting our economy 24 – 25

Tax and total economic contribution 25

Regulation 25

Investment 26 - 27

GRI content index 28 – 29

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About this reportOur report is prepared in accordance with the Global Reporting Initiative (GRI) G4 framework (Core Option) – the global standard for sustainability reporting.

This annual report aims to consider the sustainability issues deemed to be significant to Vodafone New Zealand Ltd by our stakeholders in the period 1 April 2016 – 31 March 2017. For a small market like New Zealand, all disclosures are reported on a New Zealand basis without regional break down.

Data and content for this report has been independently assured by ERM New Zealand Ltd as being a full, balanced and accurate account of our performance. There are no changes from previous reporting periods in the Scope and Aspect Boundaries.

Past Sustainability Reports can be found at: vodafone.co.nz/our-company/corporate- responsibility. The most recent previous report (2016) encompasses the period 1 April 2015 – 31 March 2016.

Please contact us if you have any feedback or require further information at: [email protected]

Vodafone Group publishes an annual Sustainable Business Report which covers Vodafone’s global operations.

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Assurance statementIndependent Assurance Statement to Vodafone New Zealand Ltd

ERM New Zealand Limited (ERM) was engaged by Vodafone New Zealand Limited (Vodafone) to provide limited assurance in relation to specified environmental data for 2016 – 2017 presented in its 2017 Sustainable Business Report (‘the Report’) as set out below.

Our conclusions Based on our activities, nothing has come to our attention to indicate that information and 2016 – 17 data marked and specified in the GRI G4 Content Index disclosed in the 2017 Vodafone New Zealand Sustainable Business Report, is not fairly presented, in all material respects, with the reporting criteria.

Our assurance activities Our objective was to assess whether the selected information is reported in accordance with the reporting criteria. We planned and performed our work to obtain all the information and explanations that we believe were necessary to provide a basis for our assurance conclusions.

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Engagement summary

Scope of our assurance engagement

Whether the information and 2016 – 17 data marked and specified in the GRI G4 Content Index disclosed in the Report is fairly presented, in all material respects, with the reporting criteria.

Reporting criteria GRI G4 Reporting Guidelines together with Vodafone indicator clarifications as described in the Report.

Assurance standard ERM assurance methodology, based on the International Standard on Assurance Engagements ISAE 3000 (Revised).

Assurance level Limited assurance.

Respective responsibilities

Vodafone is responsible for preparing the data and for its correct presentation in reporting to third parties, including disclosure of the reporting criteria and boundary. ERM’s responsibility is to provide conclusions on the agreed scope based on the assurance activities performed and exercising our professional judgement.

The following activities were undertaken as part of the assurance process: • Interviews with relevant staff to understand and evaluate the processes in place for reporting

sustainability data and the underlying data management system used for collecting and reporting the selected data.

• Visits to the Vodafone offices at Mount Eden and Smales Farm to review local processes and interview relevant staff.

• Review of reporting processes and data accuracy for specific information, such as greenhouse gas emissions and waste volumes.

• Review of the presentation of information relevant to the scope of our work in the Report to ensure consistency with our findings.

The limitations of our engagement The reliability of the assured data is subject to inherent uncertainties, given the available methods for determining, calculating or estimating the underlying information. It is important to understand our assurance conclusions in this context.

Our observations Without affecting the conclusions presented above, we have the following observations:• Vodafone NZ is highly active both in stakeholder engagement and community support, including

the ongoing achievements of the Vodafone Foundation. Revisiting the assessment of material aspects as part of Vodafone NZ’s future sustainability reporting should involve further engagement with these stakeholders to ensure the materiality assessment remains meaningful and transparent.

• The process by which Vodafone NZ collects, collates and reports sustainability related data is in some cases disjointed and difficult to track. Incident reporting, Greenhouse Gas emissions and waste management would benefit from a more coherent and clearly mapped process for recording and managing information. It is understood that further work to better align incident reporting and HR systems is already underway.

• Where possible, quantified targets should be set for measures connected to Vodafone NZ’s material aspects, such as increased diversity in recruitment.

Jonathan Perry Managing Partner, ERM New Zealand January 2018

ERM is an independent global provider of environmental, social and corporate responsibility consulting and assurance services. Our assurance statement provides no assurance on the maintenance and integrity of the Report, including controls used to achieve this, and in particular whether any changes may have occurred to the information since it was first published. These matters are the responsibility of Vodafone NZ but no control procedures can provide absolute assurance in this area. ERM NZ and the ERM staff that have undertaken this engagement work have provided no consultancy related services to Vodafone NZ in any respect.

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Letter from Russell Stanners CEO, Vodafone NZI’m pleased to share with you Vodafone New Zealand’s Sustainable Business Report for 2017. Being a sustainable business lies at the heart of Vodafone’s values. It is what drives us to connect everybody to live a better today and build a better tomorrow.

I’m immensely proud of our achievements over the past year. We announced Vodafone ReConnect, a programme supporting individuals who have taken an extended career break to return to work. We delivered phase one of the Rural Broadband Initiative ahead of schedule and as a result, more than 290,000 rural homes and businesses are benefiting from increased connectivity and coverage. We chose ten Kiwi start-ups and SMEs to take part in Vodafone xone, a unique business accelerator designed to nurture the best ideas and Kiwi talent in the research and commercialisation of world-class technology.

These fantastic results reflect the hard work of more than 3,000 staff who consistently deliver our products and services to more than 2.3 million customers. Our annual staff survey continued to reveal engagement results which put us in the top quartile in Vodafone Group and amongst the best in the world.

Our industry continues to shift and change rapidly. Kiwis everywhere are demanding more data, faster speeds and lower prices. These forces are shaping the market and changing the way we live, work and play. Continued investment in the technology and platforms that make up our network is essential – not just for us but for New Zealand’s long term economic prosperity.

Our key priorities for the coming year are to drive efficiencies through our technology systems and platforms, continue to invest in our network and continue our focus on delivering great products and services to all Kiwis. With communications technology playing an important role in ensuring New Zealand moves to a low carbon economy, this is something we will be increasingly focussing on next year and beyond.

Looking further ahead, 2020 is an important date for telecommunications, for both industry regulation and carbon targets. A review of the Telecommunications Act 2001 is underway to ensure New Zealand has the right laws for communications networks after 2020. That’s the same year New Zealand has committed to reducing its emissions by 5% compared with 1990. Changes to regulation will help ensure Kiwis get the services that they need, regardless of where they live or how they choose to connect to the world.

Russell Stanners CEO, Vodafone NZ

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Sustainability context

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Sustainability contextWe are committed to delivering a sustainable future for our business, customers and communities by doing what’s right. As the environment in which we operate changes and we respond to feedback about our material issues from our stakeholders, our understanding of ‘what’s right’ needs to evolve.

Our industry is fast moving and dynamic. New technology and changing consumer needs require continuous investment in modernising infrastructure while declining consumer costs present a number of sustainability challenges for telecommunications service providers. These challenges bring an increasing focus on privacy and security of customer data and the vulnerability of younger users.

While consumer costs are decreasing, nearly all other household expenditure is increasing. New Zealanders are benefiting from increasingly competitive pricing and Kiwis are getting more value than ever before from their telecommunications spend.

More services like as banking, communication, education, and entertainment are becoming reliant on delivery over a high quality, reliable connection. New Zealanders without access to one are ever more disadvantaged. As a result, the roll out of fibre and the Rural Broadband Initiative (RBI) has continued to accelerate.

Telecommunications technology is not only essential for New Zealand’s economic growth, but a necessity for participating in increasingly competitive world markets and for attracting new investments. We believe the sustainability of our business underpins a healthy and prosperous New Zealand and is tied directly to the success of New Zealand as a whole.

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What matters? Our stakeholders include customers, community, Iwi, Vodafone Group, media, staff, industry, non-governmental organisations (NGOs), suppliers, Government and regulators. We engage directly with our stakeholders and regularly discuss their satisfaction, opinions and concerns.

Our material issues: • Electronic waste • Carbon emissions • Giving back to communities • Responsible use of our products and services • Data privacy and security • Connecting rural New Zealand • Electromagnetic fields and health • Diversity and inclusion • Training and development • Health, safety and wellbeing • Competition • Regulation • Investment

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Our business

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Our businessVodafone New Zealand Ltd is a full-service telecommunications company, with mobile and fixed networks across the country serving Kiwi consumers and businesses. We are a wholly owned subsidiary of Vodafone Group Plc, one of the world’s largest telecommunication companies. We began operation in New Zealand in 1998 and are a team of nearly 3,000 energetic and passionate people across New Zealand. Our offices are located across the country, with our head-office located in Auckland. Our products and services can be purchased from over 70 exclusive Vodafone stores and kiosks, multi-retailer outlets and supermarkets nationwide.

GovernanceVodafone NZ is governed by its Board of Directors and day-to-day management is delegated to the CEO and Executive Team: • Russell Stanners, CEO • Ken Tunnicliffe, Enterprise Director • Matt Williams Consumer Director • Helen van Orton Customer Operations Director • Antony Welton Human Resources Director • Tony Baird Technology Director • John Tombleson Finance Director • Juliet Jones Legal & External Affairs Director • Steve Rieger Wholesale Director

Vodafone New Zealand Limited’s Board: • Russell Stanners • Antony Welton

Vodafone Mobile NZ Limited Board: • Russell Stanners • Antony Welton • Tony Baird

Vodafone New Zealand Limited has a Health & Safety committee: • John Tombleson • Antony Welton • Tony Baird

Vodafone New Zealand Limited has an Audit committee: • Robin Rood • John Otty (Vodafone Group) • Russell Stanners • John Tombleson • Juliet Jones • Tony Baird • Marcia Swain • Colin James • Tom Thursby

Connecting New Zealand to the worldOn an average day more than 13 million TXT messages are sent and received on Vodafone’s network. On a typical weekday, at least 7 million mobile calls are made on the Vodafone network. By the end of the reporting period, over 3,500 TeraBytes of mobile data and 45,000 TeraBytes of fixed line data is consumed every month. We have more than 1,500 cell sites spread across New Zealand, delivering 2G and 3G service to 98.5% of Kiwis, with 4G coverage to over 94%. In times of emergency or when there are holiday hotspots or major events around New Zealand, we deploy Cell sites on Wheels (COWs) that we use to boost capacity for a short time.

Vodafone NZ is also New Zealand’s second biggest fixed-line retailer. With almost 10,000 km of fibre around the country our customers are never far from our network. We offer ADSL, VDSL, fibre and FibreX services. Our network extends outside of New Zealand, with five international points of presence across the United States and Australia. This provides access to four of the largest Australian and US internet exchanges.

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• Mark Spooner • Mihaela Pop • Maria Nan (Vodafone Group) • Lisa Crooke (PwC) • Simon Kirkpatrick (PwC) • Chris Perree (PwC) • Julia Rose • Ian Hooker

The Board of Vodafone New Zealand Limited has ultimate and overall responsibility for our business and affairs. The Board is actively engaged in directing and approving significant decisions of the company, including the approval of expenditure above the authority limits delegated to management.

The Board of Vodafone Mobile NZ Limited has responsibility for that company’s affairs and, in particular, is responsible for protecting and enhancing the value of its spectrum assets in the interests of Vodafone New Zealand.

The Health & Safety Committee determines health and safety strategies and policies that meet or exceed our obligations at law and the standards set by the wider Vodafone Group.

The Audit Committee holds management to account when they discharge their responsibilities. This scrutiny provides internal controls and policy compliance.

Gender % Male % Female

Executive (9 persons)

78 22

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TelevisionWe deliver channels over FibreX and ultra-fast broadband (UFB) with content provided by Sky Network Television Limited Business.

Ready BusinessWe work with businesses to provide total telecommunication solutions that enable them to become more sustainable, competitive and productive.

These services include: • Network services such as mobile and fixed

voice and data.• Smartphone and tablet solutions.• Secure networks and data management services

such as hosted private branch exchange (PBX) and apps, contact centre services, security services, local area network (LAN), wide area network (WAN) and data centre services.

• Internet of Things.

Click here to read more about Ready Business

Ready GovernmentVodafone NZ is an official supplier of NZ Government Telecommunications-as-a-Service (TaaS). The Government’s new Telecommunications as a Service (TaaS) panel is designed to provide a range of cross-government telecommunications services sourced from a competitive, innovative market, which are easy for agencies to access, and assist them to provide better customer services.

The panel is administered by the Government Chief Information Officer at the Department of Internal Affairs and reflects the goals of the Government ICT Strategy. Agencies have the choice of providers and service solutions to give them flexibility to meet their business and customer needs and maximise their investment in technology services. Careers New Zealand, GNS Science, the Ministry of Justice and Ministry of Business, Innovation and Employment (MBIE) and healthAlliance have selected Vodafone from the All-of-Government TaaS supplier panel.

Our supply chainWith a portfolio of tens of thousands of suppliers, Vodafone’s supply chain operates as a global function, ensuring greater efficiency and consistent standards across all countries for ethical supply chain management. This scale gives Vodafone the power and responsibility to specify social and environmental expectations for our suppliers to meet. We do not manufacture anything ourselves but source all of our equipment for our network and the products we sell from third-party manufacturers.

Our Code of Ethical Purchasing is designed to promote safe and fair working conditions and the responsible management of environmental and social issues in Vodafone’s supply chain. It sets out the standards we wish to see achieved by Vodafone and our suppliers over time.

Ethics Trust is fundamental to everything we do. We need to earn the trust of our customers, colleagues and the communities where we work. Our Code of Conduct sets out our business principles and how every single person working for and with Vodafone needs to apply these. We call this Working in the Vodafone Way.

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Together with the Government and Chorus, we delivered phase one of the Rural Broadband Initiative (RBI). We have upgraded 372 towers and installed 154 new towers to deliver wireless broadband services to more than 275,000 rural homes and businesses, 78% of homes and businesses now have access to broadband at peak speeds of at least 5Mbps.

We are providing mobile services for 8,500 frontline police officers including the latest smartphones and no fewer than 3,900 tablets. These devices and apps allow them to do much of their work from a mobile phone. This has enabled police officers to spend more time on the street with their communities and less time in the station on administrative tasks. The time they save is the equivalent of having 345 extra police officers.

This partnership forms part of the All-of-Government framework designed to help Government agencies transform how they interact with citizens and reduce their total cost of communications.

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Our planet

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Our planet We aim to reduce the environmental impacts of our products and services and help our customers make more sustainable choices. We work with both our suppliers and customers to reduce the impact of our products across their life cycle, from material use through to responsible disposal. We encourage our customers to recycle devices and accessories when they are no longer needed. We are also helping enterprise customers achieve their sustainability goals through our low carbon solutions.

Mobile recyclingAcross New Zealand, over $2.5 million has been raised for New Zealand charities from the proceeds of unwanted mobile phones, with over one million phones donated since mobile phone recycling began in 2009.

Vodafone NZ is a member of RE:MOBILE; a New Zealand mobile phone recycling scheme accredited by the Ministry for the Environment. This recycling programme provides all New Zealanders with a thoughtful and environmentally friendly disposal option for their unwanted mobile handsets. The programme is supported by the Ministry for the Environment as well as Spark New Zealand and 2Degrees, with a percentage of the profits generated by this scheme donated to Sustainable Coastlines – a multi award-winning New Zealand charity. RE:MOBILE is focused on recycle, refurbish and re-market disposal options, that enable consumers to dispose of unwanted mobile handsets, knowing they are helping to reduce electronic waste going to landfills.

Electronic network wasteAs technology advances, we replace our network equipment with new, more energy efficient equipment to improve the network service for our customers and to make our operations more efficient. This produces electronic waste, most of which is recycled. In some cases, we store old equipment for future reuse within the business or until we can find a sustainable option for recycling or disposal. Our waste data is sourced from our suppliers that are regulated, licensed or have been assessed as suitably qualified through our supplier qualification process.

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Mobile units collected

2014 138,180

2015 118,850

2016 92,012

2017 82,453

Figure provided by Swapkit NZ Ltd.

Mobile phones have traditionally had a low re-sale value but with the market now dominated by higher priced smartphones this is changing and the number of phones relinquished for charity motives appears to be declining. Their increased capacity for storage and range of features means that there can be concerns with disposing it as it could hold sensitive business and personal information. More people are giving their phones to someone else or selling them. This change in consumer behaviour makes the target of increasing the number of collected phones more challenging.

Trade-In Trade-In allows customers to earn Vodafone vouchers, which can be spent in Vodafone stores, in return for their unwanted mobile phones. By offering customers value for their phones, we hope to create an additional incentive for customers to bring in their phones for reuse or recycling. Not all phones are eligible for vouchers because they may be too old or too damaged. Unsuitable phones can be dropped into the RE:MOBILE recycling bins we offer in all of our stores. All the phones collected through Trade-In are refurbished and sold for use in other markets.

2014 2015 2016 2017

Disposed (kg)

23,869 27,876 24,545 50,668

Recycled (kg)

247,579 91,206 93,443 90,776

Recycled 90% 69% 79% 64%

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Carbon emissions Telecommunications is a low carbon industry. Communications technology can play a significant role in enabling a low carbon economy by powering innovation that can reduce carbon footprints while bringing wider social and economic benefits.

We are using our technology to enable more of our enterprise customers to reduce their carbon emissions. We are a leading provider of Internet of Things (IoT) solutions that enable objects or devices such as cars, traffic or street lights and buildings to send and receive real-time information via our network. This information enables our enterprise and business customers to gain insight into how their resources are being used. This can help them cut costs and carbon emissions, for example, reducing their energy and fuel use which will improve the efficiency of their operations.

Looking ahead, it is clear that IoT technology has the potential to reduce the impact of not just businesses, but entire cities. Other products and services, such as video conferencing, cloud hosting and collaboration technologies can also bring carbon savings by reducing the need for travel and office space.

Vodafone NZ is a low carbon business. Our total carbon emissions for 2017 are slightly lower than reported for 2016, which were lower than our reported 2015 total carbon emissions. Running

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our network accounts for the majority of our total carbon emissions. Our goal is to minimise the carbon footprint of our own operations by improving the energy efficiency of our network, using more renewable energy and helping business customers where we can to reduce their emissions by using our technology. Last year we reduced electricity use in our offices by reducing three office spaces into one in Christchurch and encouraging staff to work from home two days a week while our Smales Farm office in Auckland was renovated. We were also able to reduce our transport emissions through a 32% carbon emission reduction in air travel between 2016 and 2017.

We have five cell sites on our network using renewable energy. These are on Great Barrier Island (3), Mt Nick and Kauaeranga Valley. Tourists, police and locals are among thousands benefitting from the newly built, green energy Kauaeranga Valley cell site. Every year more than 30,000 visitors check into The Department of Conservation (DOC) Kauaeranga Valley visitor’s centre. With improved broadband and mobile signal, there is an element of convenience for visitors, but the real benefit is the safety factor. If an incident happens where emergency help is required, having a cell phone signal can be the difference between life and death, as it gives search and rescue teams another communication tool to coordinate their effort.

CO2 tonnes 2015 2016 2017

Direct emissions 1031 943 1113

Purchased electricity 11421 10487 11007

Other indirect emissions 1653 2241 1527

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Our communities

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Sponsorships

We’re committed to supporting local communities and getting Kiwis closer to the things they love.

Sport We’ve been consistent supporters of some of New Zealand’s favourite teams for many years. Our partnership with the Vodafone Warriors has become stronger and more enduring every year. In 2018 we will celebrate our 20-year anniversary of supporting the Vodafone Warriors, making it the longest of its kind in New Zealand. We are also proud supporters of the Highlanders, Chiefs, Crusaders and Hurricanes.

Music We believe that home grown music feeds New Zealand’s soul and strengthens our culture, so we’re proud to support the on-going evolution of Kiwi music. We have been the principal sponsor of the annual Vodafone New Zealand Music Awards since 2004. We are also proud sponsors of the Vodafone Pacific Music Awards which acknowledges the success of Pacific artists and encourages young Pacific musicians to aspire to a higher level of achievement.

Arts and Culture We’re committed to supporting arts and culture through our partnerships with regional theatres throughout the country and the Royal New Zealand Ballet.

Community We live in an exciting digital world and our local communities are becoming more connected than ever before. Through our sponsorship of the Neighbourly Business platform, we look forward to strengthening ties to local families, groups and businesses as they continue to harness the potential of today’s connected world. Our support contributes to the day to day running and ongoing development of the Neighbourly platform which now has over 235,000 active households.

For more than ten years, Vodafone Events Centre has hosted, welcomed and entertained more than 2.2 million patrons, clients and guests. We have had thousands of events, exhibits, concerts, conferences, conventions, seminars, festivals, fairs, fashion shows, graduations, performances, plays, weddings, community activities and workshops. Vodafone Events Centre has become a special place of great memories.

The Vodafone New Zealand FoundationVodafone New Zealand Foundation Limited’s Board is: • Antony Welton (Foundation Chair) • Matt Williams • Mānuka Hēnare • Jennifer Gill • Hinurewa Poutu

The Vodafone New Zealand Foundation has a vision – to see all young people in Aotearoa, New Zealand living lives they value. With their energy and creativity, together with the right support, young people can achieve truly amazing things.

The network of Vodafone foundations has evolved since the Vodafone Charitable Trust was set up in 1991. The New Zealand Foundation is one of 27 Vodafone Foundations around the world, receiving funding from the Vodafone Foundation in the United Kingdom and Vodafone New Zealand Limited.

The New Zealand Foundation was established 15- years ago and we’ve had an exclusive focus on youth development since 2007. We’ve invested more than $25 million in local communities, primarily through our World of Difference programmes. We have used our fundraising capability and access to Vodafone networks, technology, customers and employees to support communities to make a difference.

The Vodafone Foundation World of Difference Programme supports passionate people who want to make a difference. We support them financially and professionally while they work for a New Zealand youth charity for one year. Since 2005, the

Foundation has supported more than 100 inspiring individuals with the World of Difference and World of Difference Fellowship programmes. The recipients currently on their World of Difference year are involved in projects ranging from empowering young Maori and Pasifika women through dance, to providing nationwide support for LGBTI youth.

The Vodafone Foundation also runs a range of other grant-making programmes. Our technology grants have helped develop and scale technology -based solutions to youth issues, such as Zeal’s online crisis intervention service, while our Extension Grant programme provides long term funding to exceptional grant partners.

The Vodafone NZ Foundation is also committed to supporting Vodafone staff wanting to make a positive contribution to the community. Hands Up is an opportunity for Vodafone staff to volunteer their time, skills and knowledge to youth-related organisations they’re passionate about, while still receiving their salary. Double your $ supports Vodafone staff raising money for the Foundation’s charity partners and New Zealand charities they’re passionate about. The amount they raise is matched dollar for dollar by the Vodafone NZ Foundation up to a value of $3,000. Over the 2016/17 reporting period, $169,564.99 was raised, $122,047.45 matched and 1,557 employees participated.

Detailed information on Vodafone New Zealand Foundation programmes and funding recipients can be viewed here.

Foundation Income 2014 2015 2016 2017

From Vodafone New Zealand $1,000,781 $1,562,803 $1,400,000 $1,838,004

From the Vodafone Foundation $726,810 $999,975 $1,000,000 $1,074,950

Foundation Investments 2014 2015 2016 2017

Total grants made in the financial year

$1,560,904 $1,599,448 $2,100,000 $2,966,071

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Looking after our customersMobiles and road safety Vodafone NZ offers a free AA and NZTA-endorsed service, DriveSafe to help people resist using their mobile while driving. It allows our customers to set up an automatic, ‘out of office’ style reply to TXTs they receive while behind the wheel.

Digi-parenting In October 2016, Vodafone New Zealand commissioned Colmar Brunton to carry out a Digi-Parenting Survey. The results reveal that internet safety ranks highest on the list of concerns for Kiwi parents – ahead of education, road safety and childhood obesity. Of the 500 parents surveyed from across the country, almost two thirds (62%) have a high level of concern about their children’s internet safety.

In a sign of how prevalent life online is, 61% of parents surveyed revealed that their pre-school children are now getting a daily fix of internet. The survey results also showed that parents were most concerned about the possibility of their child being exposed to inappropriate content online (37%), with the amount of time their child spends on devices ranking a close second (35%).

It’s important that as parents, and as industry members, we work together to help Kiwi families use technology in a safe and positive way, which is why we launched digiparenting.co.nz – an online hub of articles, videos and printable guides offering simple practical digital parenting advice.

Vodafone Head of Segment, Delina Shields said, “As a mother of two teenagers, I have similar concerns about how my daughters use the internet, especially on social media, but it’s about striking a balance between keeping them safe, while still allowing them to make the most of all the opportunities of the digital age.”

For more information and handy tips on how to keep your child safer online, visit: digi-parenting.co.nz/staying-safe

Unitec has deliberately developed research capability in cyber security over recent years, and now hosts the only dedicated Centre for Cyber Security Research in New Zealand. We have stringent measures in place to protect us and our customers from security breaches. Among these is the Cyber Defence Centre (CDC), a sophisticated network monitoring system closely linked to Vodafone’s Global Security Operations facilities, which ensures ready access to valuable threat intelligence. As a global company, we bring commercial experience, expertise and threat information to the research table.

We protect our customers’ data on multiple levels: • We have systems working 24/7 to detect

malicious traffic.• Our security team are constantly identifying

potential threats and blocking them, as well as staying ahead of hackers by attending and speaking at local and global security conferences.

• Major security threats are managed by a dedicated security incident team operating from our Cyber Defence Centre. We are supported by Vodafone’s Global Cyber Defence Organisation, operating around the clock and around the globe.

• Our network and systems are aligned with ISO-27001 security standards and we are currently seeking certification to this standard. A program of internal and external audits (by Vodafone Group and Vodafone NZ’s financial auditors) are undertaken to ensure we are as secure as possible.

Managing information Data privacy and security is an increasing concern as more of our daily lives go online and the data we share is used in new and innovative ways. The growing volume and sensitivity of information is driving demand for greater transparency about how this information is protected and managed. Privacy and security have become important trust and reputation issues.

Privacy At Vodafone, trust means everything to us. We follow privacy policies and data protection practices not only to comply with the law but to earn trust and confidence in us. We are committed to protecting customer data and we do not monitor the private content of communications or online activity. We follow extremely strict rules to ensure the protection of our customers’ privacy. These are underpinned by national laws which define unauthorised interception of personal information, data or calls as a criminal offence. Vodafone is committed to meeting its obligations to respond to agencies’ and authorities lawful demands – but with customer privacy at heart, will not go beyond what is mandated in law.

Vodafone publishes an annual law enforcement disclosure report which offers a detailed insight into responding to demands for assistance from law enforcement and intelligence agencies across 28 countries.

Security In August 2016 we joined forces with Unitec Institute of Technology to help combat cyber-crime which continues to evolve at an alarming rate globally. New Zealand alone is seeing more than 100 ransomware attacks every day – a 160% increase since 2014. A key outcome of this partnership will be to help raise the next generation of cyber security professionals, who will in turn help combat the rising threats to our online safety.

Cyber-bullying Vodafone NZ is proud to support The Parenting Place and Attitude in the creation of tools that educate parents and children about using technology in a healthy and positive way. Family concerns around cyber or TXT bullying and online privacy are shared by Vodafone and our relationship with The Parenting Place allows us to be involved with providing useful educational tools and services for both young people and parents. These services, including Vodafone Blacklist and Vodafone Guardian help young people and their parents to use technology safely.

The Attitude Connected programme, funded and supported by Vodafone, focuses on the important topic of teen internet and mobile phone use. Connected provokes young people to think critically about the benefits and dangers of these mediums so they can survive and thrive in the ‘connected’ world. Key topics include social networking, bullying, pornography, sexting, relationships and keeping their internet and mobile phone use in balance with the rest of life. It has reached tens of thousands of young people and their parents across New Zealand.

Attitude Connected Presentation

2015 2016 2017

Number of schools presented to

320 247 264

Number of students presented to

49,587 46,238 36,961

Number of parents presented to

869 681 1,253

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We’re excited to see how high-speed broadband and further mobile coverage will give Kiwi farmers the time and freedom to focus on what’s important to them.

Waipu Four Square owner and former Vodafone Warrior’s Captain, Steve Price said the new Waipu cell site will have a positive impact on the local community.

“We’re really no different to any other urban centre when it comes to the way we use wireless technology. Our phones and computers are an essential part of life and business, whether it is keeping in contact with our family, suppliers or placing stock orders and doing our accounting in the cloud. We’re pretty excited by what this new cell site will mean for Waipu,” he said.

Connecting rural New ZealandRural Broadband Initiative Since 2011, Vodafone has built 154 new rural cell sites around New Zealand in partnership with the Government and Chorus, with this final cell site delivered three months ahead of schedule. The RBI allows network access for rural New Zealand communities, providing better connectivity for households and businesses.

Being connected regionally, nationally and internationally ensures rural businesses remain competitive and keep innovating. Vodafone remains committed to extended coverage to rural New Zealand, and we will continue to invest in our network, so all our customers gain access to the same benefits and opportunities as those living in urban areas. We have a goal of reaching 100% high- speed broadband coverage and mobile, excluding national parks, alps, and forests, as well delivering on the Government’s aim of providing 50Mbps broadband speeds to all Kiwis by 2025.

Community/environmental • Compliance with Resource Management Act• Compliance with local authority district plan• Alignment with the Urban Design Protocol• Compliance with NZS 2772.1:1999 RF

exposure levels• Visual impact on the landscape• Road safety impacts of roadside cabinets• Noise emissions• Community sensitivity around certain sites

such as schools• Environmental impacts and impacts on biodiversity

Network requirements • Enhanced network coverage or capacity• Strong and safe construction• Any requirements for line of sight with other

mobile sites• Easy access and maintenance• Available location for lease• Access to fibre backhaul for high-speed

wireless broadband

Community engagement Where Vodafone needs to build or alter cell sites, we conduct community engagement in accord-ance with the Telecommunications Carriers’ Forum (TCF) Community Engagement Guidelines launched in 2009. The guidelines were created in response to requests for improved consultation and notification prior to consent applications or site construction. In part it was also due to reduction in regulated obligations on network builders to consult with councils and local communities following the 2008 National Environmental Standard for telecommunications facilities.

A suitable location for a new cell site must fulfil the technical network requirements for improved coverage for our customers, while balancing the expectations of the community and impacts on the local environment. There are a number of criteria to take into account:

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Electromagnetic fields and healthWe recognise there is public concern about the potential health effects of radiofrequency (RF) emissions from mobile phones and cell sites. We take responsibility on this issue and our approach to managing potential health effects is based on using scientific evidence, independent RF field monitoring and engaging with stakeholders.

Over the past two decades, a large number of studies have been performed to assess whether mobile phones pose a potential health risk. The latest World Health Organisation (WHO) fact sheet, reviewed in October 2014, concluded that to-date, no adverse health effects have been established for mobile phone use.

All mobile phones sold by Vodafone comply with international exposure standards. The SAR (specific absorption rates) value measures the strength of RF effect on a person. The International Commission on Non-Ionizing Radiation Protection (ICNIRP) has guidelines for a recommended maximum SAR value of two watts per kilogram. SAR values for individual mobiles can be found at: sartick.com

All Vodafone cell sites operate in compliance with The New Zealand radiofrequency (RF) field exposure Standard NZS 2772.1:1999 Radiofrequency fields – Maximum exposure levels – 3 kHz to 300 GHz. The Standard sets limits on exposures to RF fields in the frequency range covering all RF sources in New Zealand (transmitters and industrial uses) and provides guidance on verification of compliance. The limits are based on Guidelines published in 1998 by the International Commission on Non-Ionising Radiation Protection (ICNIRP), and reaffirmed by ICNIRP in 2009 following a further review of the relevant research. We measure and monitor the total electromagnetic field (EMF) strength near our mobile base stations every year. EMF Services, a division of Monitoring and Advisory Services NZ Ltd (MAASNZ), selects the locations to undertake the monitoring and measurement of RF fields and supervises and verifies the correctness of all information, entirely independent of Vodafone.

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“A few days into the deployment there was a moment when it hit me just how critical having communication is and how the context of a situation turns the ordinary into extraordinary. We use social media every day to update mundane stuff, but the aftermath of Cyclone Winston ramped everything up a huge notch. People were now using social media to let family members and friends all over the world know they were alive, or that their house was gone,” Lise added.

It also meant other emergency response teams tasked with co-ordinating the relief and rebuild effort could get things moving in the right direction.

“Data really is now just as critical as voice calls. Yes, for families it’s still really important to hear their loved one’s voice, but for responders like the Fijian Army and the New Zealand Defence Force, which came in to support communities, it’s about being able to send emails, photos, video, spreadsheets – where water is needed, for example, or how severely damaged the port was.”

“The New Zealand Fire Service’s Urban Search and Rescue team were conducting building integrity audits on the island. Having access to our Wi-Fi meant they could send in-depth, technical information that can only really be accurately conveyed through data and not over the phone. For locals it also means businesses like banks can start trading, people can get money and pay for food and petrol, begin to rebuild their life,” Lise said.

Emergency response When disaster strikes, there’s a special kind of person who races in when everyone else is trying to get away from the danger.

We’re used to the everyday acts of heroism from emergency services like the fire service, and police officers – but in the modern world, getting the right message for help in time is just as important.

For Lise Mackie, who’s part of Vodafone New Zealand’s Instant Network team, that lesson was thrown into stark relief when Cyclone Winston ripped through Fiji in February 2016, devastating its outer islands.

She was the team leader of a small team of Vodafone volunteers, specially trained to deploy emergency communication systems to quickly establish phone and Wi-Fi services in areas with the most need.

She still thinks about the scene that greeted them arriving at the outer island of Vanua Balavu.

“What we weren’t prepared for, in addition to the extent of the widespread damage, was that we were the first to offer any kind of aid from the outside world. We were the local’s first source of news about what had happened to the rest of Fiji. They all knew what had happened to their own island, but they had no news of anything wider as they just had no way of communicating,” Lise said.

The team swung into action, establishing satellite telecommunication links as quickly as possible with the specially designed portable equipment they took with them.

Team member Callum Ferguson was on his first deployment. While he’d seen photos of what to expect, hearing the Vanua Balavu villagers’ stories made everything real.

“It was just incredibly scary for the people when it struck. With the sea surges, they had fish and sea snakes in their houses. When we landed things were wrecked, but people were still carrying on, trying to keep going.

“The local doctor had opened his house to those who’d lost their own – he took us in as well. People were so open and appreciated what we were doing, as soon as we said O.K. now you can make calls, to see their excitement it was just a really lovely feeling, you saw what an impact it had,” Callum said.

It’s the kind of experience that can leave a big impact on everyone’s lives – including those on the Instant Network team.

For Callum the ties live on. He exchanges regular phone calls with the local doctor and brought his three children on a visit back to Vanua Balavu six months later to see where Dad had been, and who he’d been helping.

“You do keep that place in your heart. For my kids seeing this remote village, and the culture where everyone pulls together and is grateful for what is given, it’s an amazing experience,” he added.

Those on the Instant Network team dropped everything in their everyday normal working lives to go, within hours of being asked to help.

“It’s about us being great neighbours. If someone needs help, it’s the right thing to do,” Lise said.

“You learn so much. Each deployment makes us a better unit, improvising with equipment, learning from the culture you’re in. Would I be happy to be called up again? I’d go at the drop of a hat,” Callum added.

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Our people

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Our peopleA responsible business must also be a responsible employer. It is essential to our ongoing success that we ensure our people feel confident, appreciated and inspired and have opportunities to develop and are motivated to excel.

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Vodafone NZ employee facts

2014

3,359

18%

2015

2,803

18%

2016

2,851

18%

2017

2,932

17%

Total number of permanent and fixed term employees

Location of Vodafone employees

Voluntary employee turnover

Vodafone employee turnover by age

Vodafone new employee hires by age

Auckland

Wellington

Christchurch

Other Nth Island

Other Sth Island

74%

14%

8%

2%

2%

Auckland

Wellington

Christchurch

Other Nth Island

Other Sth Island

73%

15%

8%

2%

2%

Auckland

Wellington

Christchurch

Other Nth Island

Other Sth Island

71%

16%

9%

3%

1%

Auckland

Wellington

Christchurch

Other Nth Island

Other Sth Island

67%

15%

13%

3%

2%

Under 30

30 – 50

50+

56%

41%

3%

Under 30

30 – 50

50+

44.4%

27.3%

30%

Under 30

30 – 50

50+

44.1%

51.6%

4.3%

Under 30

30 – 50

50+

46.9%

46.3%

6.7%

Under 30

30 – 50

50+

65%

32%

3%

Under 30

30 – 50

50+

61%

37%

2%

30

30 – 50

50+

49.6%

27.7%

22.7%

Under 30

30 – 50

50+

57.6%

37.7%

4.7%

2014

Total voluntary employee turnover

Age category breakdown

Age category breakdown

Age category breakdown

Age category breakdown

Total voluntary employee turnover

Total voluntary employee turnover

Total voluntary employee turnover

2015 2016 2017

18% 23% 18% 17%

Under 30

30 – 50

50+

10.1%

7.4%

0.5%

Under 30

30 – 50

50+

9.3%

11.5%

2.2%

Under 30

30 – 50

50+

7.9%

9.3%

0.8%

Under 30

30 – 50

50+

8%

8%

1%

2014

6% 6% 5% 5%

94% 94% 95% 95%

2015 2016 2017Part-time employees

Full-time employees

56% F44% M

62% F38% M

55% F45% M

54% F46% M

36% F64% M

34% F66% M

37% F63% M

38% F62% M

Under 30 years

30 – 50 years

50 years +

30% 30% 27%

60% 59% 58%

10% 11% 15%

2015 2016 2017Employee ages

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Women We are committed to creating a balanced workforce for all. To achieve this, we take gender diversity into account in all activities across the business such as talent management programmes and recruitment. We are a signatory to the UN Women’s Empowerment Principles. We were a founding sponsor of Global Women which supported us to build the capability of our emerging women leaders. We have three active networks that support Vodafone Women; Women’s Network, Women in Technology and Enterprise Women’s Network which delivers activities and programmes specific to those functions to encourage and empower our women to help them be their best.

In 2015, Vodafone became one of ten organisations that pledged to support the UN Women’s HeForShe campaign – a global solidarity movement that calls upon men to take action to support women and advocate for gender equality.

Diversity and inclusionVodafone believes that work place diversity and creating a culture where everyone’s voice is valued is key to being a sustainable business. There are over 20 different ethnicities, numerous religions and sexual orientations represented within our business. Acknowledging and honouring diversity is essential to maximising and capitalising on different skills, styles and sensibilities of our people. We pursue equality of opportunity and inclusion for all employees through our employment policies and aim to create an inclusive environment where everyone feels respected and valued. The priorities for our diversity and inclusion strategy are to create a more gender balanced workforce and increase youth and Māori representation across the organisation.

Young talent Graduate Programme Vodafone’s Discover graduate programme is about experiencing different parts of our business. Graduates are rotated across different business units to gain experience, mentoring and on-the-job training as part of our commitment to building a diverse talent pipeline. Our Discover Graduate Programme has diversity targets each year to recruit 50% Māori and 60% Women. Once inside the Vodafone business, all graduates have the opportunity to develop their cultural intelligence with the help of a digital learning application that provides Te Reo and tikanga Māori support.

Apprentice Programme In conjunction with The New Zealand School of Education (NZSE) Vodafone has offered four two-year scholarships, up to the value of $20,000 each, to school leavers undertaking higher education to study in either Christchurch or Auckland. The target course is a New Zealand Diploma in Engineering/Information Technology. Vodafone has an existing apprenticeship programme and the scholarships will further boost the success of the programme. Post-study, some students may be offered a role as a graduate, where they will rotate across Vodafone’s various technology teams at the head office in Auckland or at the new Innovation Centre in Christchurch.

Internship Programme Vodafone NZ has a strong relationship with Auckland University of Technology (AUT) and its Bachelor of Business Co-Operative Work Placement. Co-operative Education (Co-op) is a work placement undertaken by all Bachelor of Business students in their final year of study at AUT. Co-op is an applied approach to business education where students learn in the workplace as well as undertaking a related programme of academic study.

In March 2017 to coincide with International Women’s Day we announced Vodafone ReConnect, a six-month re-integration programme supporting individuals who have taken an extended career break of one to five (up to 10) years to return to work. The ReConnect programme offers candidates the option to work for 30 hours and be paid for 40. We want to provide all our ReConnect colleagues the support they need to transition back into the work environment while carrying out meaningful work that will enable them to progress in their careers.

Māori One Company, Local Roots is an organisation value that has driven Vodafone’s engagement with the Māori community. We enjoy a strong history and connection with tangata whenua, one that we believe is inherent to every Kiwi who calls Aotearoa home.

We’re committed to engaging with mana whenua across the country and aim to ensure their role is honoured appropriately. For example, we worked with Ngāi Tahu subsidiary Matapōpore for the construction of our Christchurch based innovation hub, from the ground breaking ceremony to the official opening of the building by the Prime Minister and our CEO Russell Stanners.

Te Pu Whero is Vodafone’s Māori Leadership group who provides advice and support to Vodafone relating to Kaupapa Māori initiatives and events. The group was established in 2012 whose members are based across the country, in various departments who lead and coordinate events that help develop cultural capability of the Vodafone team.

Since 2011 Vodafone has celebrated Matariki and Te Wiki O Te Reo Māori each year creating an opportunity for employees to connect with and learn about the Māori culture and language. Vodafone has sponsored the Māori Language Awards since 2011 and in 2017 became a sponsor of the Māori Business Leaders Awards hosted by the University of Auckland.

2014 2015 2016 2017

Women as % of all employees (Vodafone only)

37%

Women as % of new employee hires

44%

Women as % of employee turnover

45%

Women as % of all employees (Vodafone only)

38%

Women as % of new employee hires

46%

Women as % of employee turnover

42%

Women as % of all employees (Vodafone only)

38%

Women as % of new employee hires

46%

Women as % of employee turnover

43%

Women as % of all employees (Vodafone only)

39%

Women as % of new employee hires

46%

Women as % of employee turnover

47%

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Training and developmentCareer progression is important to our people and to our business. Training allows staff to strengthen skills, build confidence, perform better and stay on the cutting edge of industry developments. Investing in training creates a supportive workplace and shows our people they are valued.

Vodafone New Zealand continues to successfully deploy the Tertiary Education Commission’s Direct Funding Scheme (DFS), designed to encourage companies to give more industry training opportunities to their employees. In our first year of the Vodafone Qualifications Program (VQP), which delivers New Zealand Qualifications Authority (NZQA) into our business, we have had 450 people achieve a formal NZQA qualification from the national qualifications framework. Currently, we have over 1,100 people enrolled in the VQP busy completing a qualification.

The investment has enabled us to translate what our employees are doing in their normal working day into real, valuable New Zealand qualifications. As a result, our people feel empowered and engaged and our company continues to succeed.

In addition to enhancing efficiencies and empowering our people, Vodafone has been instrumental in assisting the Government to shape an on the job training model for businesses across New Zealand. We have created best practice methodologies that have changed the way on the job training programmes have been traditionally implemented. We have worked in partnership with The Skills Organisation to map existing NZQA qualifications criteria to the achievements our people experience in their roles every day.

Vodafone expects to have supported approximately 1,500 employees in achieving NZQA certifications at NZQA Levels 3-5, by the end of 2017.

People surveyThe annual Vodafone People Survey gives our people an opportunity to give feedback on what it’s like to work for Vodafone. Last year, 85% of staff participated in our People Survey. Our scores place us in the upper quartile of Vodafone markets around the world and we are amongst the highest performing companies globally for employee engagement.

Communication and consultation is essential for us to have reach across our business. For this reason, we have a Safety Committee to assist the Health, Safety & Wellbeing team in their tasks and bring forth topics that need consideration.

This includes: • Fostering positive health & safety management

practices in the workplace• Performing local building safety inspections• Managing Health and Safety committee

meetings and promoting safety initiatives through team meetings

• Identifying hazards and performing risk assessments

• Promoting employees’ health, safety and wellbeing awareness

• Assisting with internal health and safety audits

To encourage a good health and safety culture, we run senior leadership safety tours where members of our executive team tour key sites. The objective of these tours is for them to meet staff and have a dialogue about health and safety to drive improvements in behaviour and culture.

Health, safety and wellbeingWe believe a healthy workplace is a place that has simple and effective systems and minimal confusion. It is a place with high morale, low turnover and low absenteeism. We are constantly looking at better ways to achieve a healthy workplace and support the Vodafone Way of Working. As an ACC Accredited Partner, we work to ensure employees and contractors know how to identify and manage risks and take responsibility for their safety and the safety of those around them. We believe all accidents and injuries are preventable.

When managing risk, we believe in insight over hindsight. Our local risk management program is aligned to business risks and priorities. This programme is underpinned by Vodafone’s Absolute Rules – our critical risk controls.

1 Always wear seat belts when travelling in or operating vehicles.

2 Always use suitable personal protective equipment a safety harness and fall protection when working at height.

3 Never carry out electrical work on electrical equipment, circuits and gear if you are not qualified to do so.

4 Never work under the influence of substances (alcohol or drugs) that are illegal or in excess of legal levels or where this impairs the individual’s ability to perform tasks.

5 Never exceed speed limits of travel at speeds that are dangerous for the type of vehicle or conditions.

6 Never use a hand-held phone while driving and only make calls by pulling over or using hands-free devices when it is safe to do so.

7 Never undertake any street or underground activity unless competent to do so.

The People Survey is managed externally by an independent 3rd party (Korn Ferry).

2015 2016

Engagement Index

82Manager Index

86Employee

Net Promoter Score

75

Engagement Index

80Manager Index

85Employee

Net Promoter Score

73

People survey results

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Supporting our economy

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RegulationA review of the Telecommunications Act 2001 is underway to ensure New Zealand has the right laws for communications networks after 2020. This will help meet the needs of consumers and businesses, and to help keep our economy growing. We are now entering the legislative stage, and Vodafone will engage throughout that process. We aim to ensure that the final Act has the long-term interest of our consumers at its heart, by constraining monopoly power, and encouraging competition where possible. We are also encouraging all service providers to share the responsibilities of security, privacy and network robustness.

Supporting our economyWe are a major investor, taxpayer, employer and purchaser of local goods and services but our economic impact extends far beyond our direct financial contribution to the economy. We contribute indirectly to our economy by investing in the next generation of digital infrastructure and services. This is a key sustainability focus for us because it will benefit the productivity of business, industry and the wider economy.

Tax and total economic contributionVodafone New Zealand pays a significant amount of tax to the New Zealand Government, including the tax it collects on the Government’s behalf. Vodafone’s Tax Risk Management Policy sets out the Group’s tax management framework (available at: vodafone.com/content/dam/vodafone-images/sustainability/downloads/tax-strategy-2017.pdf).

This is aligned with the OECD’s Business and Industry Advisory Committee (BIAC) Statement of Tax Principles (available at: biac.org/policy_groups/taxation and issued in September 2013), which have been endorsed by New Zealand’s Inland Revenue.

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InvestmentVodafone xone Ten Kiwi start-ups and SMEs were chosen in 2016 to take part in Vodafone xone, a unique business accelerator designed to nurture the best ideas and Kiwi talent in the research and commercialisation of world-class technology.

The winning finalists are innovators from a diverse range of sectors, such as smart home, sports broadcasting, agriculture, education, health, big data and drones. The people behind them are passionate entrepreneurs, and we’re excited to be supporting them and helping them to succeed on an international scale.

Each team is receiving a total package worth more than $150,000, including $25,000 in seed-funding and world class mentoring as part of a six-month programme. In addition, the companies receive access to a collaborative working space inside Vodafone’s new $50 million purpose-built headquarters in Christchurch, and technology development through the Vodafone xone Innovation Lab.

Government agency Callaghan Innovation is backing Vodafone xone, coming on board as a partner and committing $900,000 over the next three years to help fund the Innovation Lab for research and development. The facility, containing specialised technology worth $19 million, will be open to the xone companies, and will also be of high value to businesses operating outside the xone accelerator programme.

As well as being an international launch pad for Kiwi start-ups, New Zealand companies of all sizes can access the world-class tech facilities on offer at the Vodafone xone Innovation Lab – to test and develop their internet-of-things, smart network and mobile ideas.

The ten Vodafone xone companies are: Wireless Guard: University of Canterbury graduates, making homes safer and setting minds at ease by transforming existing doors and windows into smart, connected, secure devices.

Haptly: Auckland-based drone technology developer, improving pasture-based farming through real time autonomous drone tracking and management for beyond line of sight applications.

Blerter: Auckland-based developer of health and safety apps that help companies keep their workers safe. Blerter makes health and safety processes easy, engaging and fun – helping to ensure everyone goes home safe each night.

Spalk: Auckland university graduates, unlocking alternative sports commentary for teams and broadcasters, by synchronising live game video with commentators around the globe.

Solarbright: Christchurch-based innovator in LED-lighting. Developer of a solar-powered road cat’s eye, contributing to road safety and capable of communicating big data.

IoTStream: Early-stage Auckland start-up. Making the Internet-of-Things accessible through a network, data and storage platform that makes product development easier and faster.

Parking Sense: Cambridge based growth stage start-up, offering an off-street parking guidance system for car parks around the world. Provides a management system, dynamic pricing ability and guidance to car parks.

Linewize: Christchurch-based developer of a cloud managed content filtering system, giving schools and parents at home complete control and visibility over internet use.

Catch.it: Allows viewers to easily share via social media snackable, streamed moments as they happen. Founded by a former NZ soccer player.

LINC-ED: Christchurch former school principal and teacher, turned web/app developers. LINC-ED promotes the sharing of learning and creativity in a simple format that helps parents to understand their children’s next steps.

For further information go to: vodafonexone.nz

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to the existing Southern Cross cable connecting New Zealand to Australia and the USA. The cable also serves as an important digital link to fast-growing Asian economic markets by enabling better connectivity to the five major international cable systems currently serving Australia.

As an industry we’ve seen tremendous growth in trans-Tasman Internet traffic with New Zealand’s international capacity requirements growing 60% year-on-year and projected 11,000% growth over the next 10 years. We’re delighted to see the TGA cable in service and ready to support the current and future needs of consumers, and the growth aspirations of New Zealand businesses.

Trans-Tasman telecommunications cable The Tasman Global Access (TGA) cable is officially in service and carries vast quantities of Internet traffic between New Zealand and the world.

Spark, Vodafone and Telstra have invested approximately $100 million to build the TGA cable which stretches 2,288km from Ngarunui Beach in Raglan, to Narrabeen Beach in Sydney Australia. The cable has been constructed to deliver more international bandwidth and capacity for New Zealand, and to strengthen diversity and resiliency within the country’s telecommunications infrastructure.

The TGA landing at Raglan on the North Island’s West Coast provides important cable route diversity

for farmers to use state-of-the-art technology to run their farms from virtually anywhere, at any time.

President of Waikato Federated Farmers Chris Lewis, says running the family farm is a totally different experience since having Rural Broadband installed. “It’s given me the ability to communicate with our suppliers in central Hamilton and run business applications from the paddock. My phone is just as important as my gumboots these days – I’m contactable anywhere on the farm thanks to Vodafone.”

We recognise the contribution and value of rural New Zealand and we welcome further investment in this area.

Rural Broadband Initiative Research into the social and economic impacts of UFB and RBI show that these initiatives will grow New Zealand’s GDP by $5.5 billion over 20 years. Farming is a true powerhouse of our economy and enabling Kiwi farmers to adopt advanced technology is important for them, and New Zealand, to remain competitive. High speed broadband and mobile coverage is an essential part of that and we’re proud to support the rural sector with our expanded broadband network.

With phase one of the RBI build now complete ahead of schedule, more than 290,000 rural homes and businesses can benefit from increased connectivity and coverage, opening opportunities

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GRI content index All general standard and specific disclosures have been externally assured.

General Standard Disclosures

General Standard Disclosures Page External

Assurance

STRATEGY AND ANALYSIS

G4-1 5 Y

ORGANISATIONAL PROFILE

G4-3 Vodafone New Zealand Limited Y

G4-4 Y

G4-5 Auckland, New Zealand Y

G4-6 Y

G4-7 Wholly owned subsidiary of Vodafone Group Plc Y

G4-8 Y

G4-9 Annual Report for the year ended 31 March 2017 can be found here Y

G4-10 We did not have any significant variations in employment numbers this year. We do not have any people recognised as self-employed but we do have outsourced providers.

Y

G4-11 Y

G4-12 Y

G4-13 Y

G4-14 Y

G4-15 Telecommunications Carriers’ Forum Community Engagement Guidelines, UN Women’s Empowerment Principles, Joint Audit Cooperation, Conflict Free Sourcing Initiative and New Zealand Urban Design Protocol, HeforShe.

Y

G4-16 Telecommunications Carriers’ Forum, New Zealand Business and Parliament Trust, Business NZ, Sustainable Business Council, New Zealand Initiative, Trans-Tasman Business Circle and Hugo Group, Federated Farmers, Philanthropy New Zealand.

Y

IDENTIFIED MATERIAL ASPECTS AND BOUNDARIES

G4-17 Annual Report for the year ended 31 March 2017 can be found here Y

G4-18 Y

G4-19 Y

G4-20 All reported aspects are material within the business Y

G4-21 Y

G4-22 Y

G4-23 None to report Y

STAKEHOLDER ENGAGEMENT

G4-24 9 Y

G4-25 Y

G4-26 Y

G4-27 Y

REPORT PROFILE

G4-28 1 April 2016 – 31 March 2017 Y

G4-29 2016 Y

G4-30 Annual Y

G4-31 [email protected] Y

G4-32 Core Y

G4-33 4 Y

GOVERNANCE

G4-34 9 Y

ETHICS AND INTEGRITY

G4-56 10 Y

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GRI content index *Historic data presented for this indicator (2013 and earlier) has not been re-assured.

Specific Standard Disclosures

Material Aspects DMA and Indicators Page External

Assurance

Indirect economic impacts

G4-DMA 7 Y

G4-EC7 Y

Emissions G4-DMA* 13 Y

G4-EN15* Direct emissions (Scope 1) reported as TCO2e using DEFRA 2016 emission factors as per Vodafone Group. Purchased Electricity (Scope 2) reported as TC02e using New Zealand Ministry for the Environment 2016 Emission Factor. Other indirect emissions (Scope 3) reported in TCO2e as per data provided by external travel partner.

Y

Products and services

G4-DMA* 12 Y

G4-EN28* The number of mobile units collected, rather than reclaimed, is reported because collected makes better sense in this context. Our customers do not return packaging materials to us and we do not have processes in place for the recycling of packaging materials.

Y

Occupational health & safety

G4-DMA 22 Y

G4-LA6 Vodafone reporting systems capture personal incidents caused by accident. Reporting this way is aligned with New Zealand current Workers Compensation requirements. We only recorded statistics for major project or serious incidents suffered by contractors. This was acceptable best practice in New Zealand. In line with the Workplace Health and Safety Act reform, we are undertaking a Deep Dive review across contractor recording and reporting to improve this metric to provide consolidated reporting. We follow the International Labour Organization (ILO), Code of Practice on Recording and Notification of Occupational Accidents and Diseases, 1996.

Y

Training & education

G4-DMA 22 Y

G4-LA10 We do not have formal transitional programs in place. However, all employees have access to Employee Assistance Program services which include financial planning, transitional advice and counselling.

Y

G4-LA11 100% There is a clear process for performance review for all employees.

Y

Diversity & equal opportunity

G4-DMA* 22 Y

G4-LA12* 21 – 23 Y

Customer privacy G4-DMA 29 Y

G4-PR8 Over the period 1 April 2016 – 31 March 2017, we substantiated 36 privacy complaints. There were no complaints involving the Privacy Commissioner. Given our customer base of 2.3 million, this amounts to less than 0.00002% of our customers. There were no identified leaks, thefts, or losses of customer data.

Y