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Footprints

Making a difference one step at a time Vodafone India Annual Sustainability Report 2011-12

Introduction CEO speak About the report Vodafone India at a glance Mission statement Awards Pursuits that are making a difference
Fast Forward Green building initiative The ReSolve campaign Green networks Data centre Switching centres Video conferencing

TABLE OF CONTENTS
3 4 5 7 9 10 11

People that are making a difference


Streamlining Human Resource function Focusing on diversity and inclusion Talent management Towards a safer workplace Health, Safety and Wellbeing Employee recognition

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Products that are making a difference


Enabling a smart future Machine to Machine (M2M) solutions m-Education Our solution m-Health e-Mamta Partnering with the suppliers Partnering with the communities World of Difference Partnering with the customers

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Partnerships that are making a difference

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Processes that are making a difference


Zero tolerance towards fraud Making Information secure Risk management Legal and regulatory compliance Towards an efficient supply chain e-Sourcing initiative Managing inventory Reducing e-Waste footprint EMF safety Shared services centre International Safety rating system Network safety Building a future fit organisation

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Sustainability matrix Glossary

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We believe that for a sustainable tomorrow, we need to invest in our today!


At Vodafone India, we understand that the need to engage in sustainable practices is no longer a choice. We want and need to contribute positively to the three pillars of sustainability social, economic and environmental. These three pillars are integral to the way we run our business and design our policies. Our Mission, Vision and Values clearly reflect our commitment, not only to our direct stakeholders but also to the society we function in. We are committed to act responsibly and to maintain the trust of our customers, our employees and other stakeholders. We are committed to devise innovative business solutions to reduce environmental impact. We are committed to deliver products and services that help build a sustainable future. Our journey towards sustainability is a part of our responsibility towards our stakeholders, who trust us to follow the highest standards of corporate governance. Reporting on sustainability helps us analyse where we stand today in our journey and ask ourselves what more can we do tomorrow.

CEO SPEAK
Steps taken today, should inspire tomorrow
At Vodafone India, we understand that what is good for society is also good for business. Thanks to the nature of our business, we are intrinsically sustainable our technology improves the daily life of people everywhere. But thats not enough. In true sense, a responsible business is one that is good for people, good for the environment and good for our shareholders. And we aspire to be no less. Our first sustainability report, released last year, was very crucial for us. It made us realise where we stood in our journey to contribute to and practice internal and external sustainability. Today, we have taken a few more steps in that direction. I am happy to present our second sustainability report Footprints, and to share the progress that we have made so far with all our stakeholders. We have been chosen as one of the best companies to work for in India, and our initiatives in the field of rural innovation, CSR and like-wise have made us the most admired telecom operator in India. During last year, we made significant progress in our energy saving initiatives and laid key emphasis to foster a culture of health, safety and wellbeing, within the organisation and in our supply chain. In fact, sustainability was made a part of our business policy, in our India specific mission statement, released at our Management Conference in April 2012. As a result driven company, I am keen to set targets in areas wherever possible be it the use of energy, paper, water, and so on and measure our improvement vs. them. We would like to be seen as leaders in the telecom industry, in terms of transparent and ethical practices and as a company that contributes to the society it functions in. Our reporting still remains work in progress, as there is so much to do and to learn. Being a responsible business is not only about what we do for our employees, our customers and for the society, but also about what we do in partnership with them. Let me close by simply saying thank you to all who have contributed to those efforts so far.

Marten Pieters MD & CEO

Vodafone Sustainability Report 2011-12

ABOUT THE REPORT


We first published our sustainability report in 2011, but our sustainability journey started much earlier. Initiated in 2007, our journey towards sustainability began from the sense of responsibility we feel towards our stakeholders and the society that we function in. During these five years, we have gradually grown across various dimensions of sustainability, creating programmes and policies that build value for our stakeholders by addressing our social, environmental and economic impact. In 2010, we conducted a formal Corporate Responsibility dialogue with our key internal and external stakeholders including customers, government/regulators, employees, suppliers/contractors, local communities, media, investors and NGOs to establish the priorities and identify the domains that matter to our business and are of key concern to our stakeholders. What followed was the mapping of the stakeholders expectations with our business priorities to devise a sustainability strategy specific to our Indian operations. The key topics that emerged as a result of the dialogues were health and safety of our workforce, workforce diversity, our support to charitable initiatives and health issues related to the base stations. This years report, titled Footprints, presents our sustainability journey since 2011 by encapsulating the key programmes and policies under five categories:

PURSUITS PEOPLE PRODUCTS PROCESSES PARTNERSHIPS


Our vision is to be recognised as the leading Indian telecommunication company, for our responsible and ethical behaviour, contributing positively to the world around us. Last year, our goals centred on being a responsible and an eco-efficient company; engaging with and contributing to our local communities and delivering sustainable solutions that benefit Indian society

This year, our strategic sustainability focus areas may be grouped into 2 broad buckets: Delivering transformational solutions Operating responsibly and ethically

This report has been prepared in accordance with the Sustainability Reporting Guidelines G3.1 of the Global Reporting Initiative (GRI). It also meets the requirements of B Reporting Application Level. The scope of the report is limited to all operations under the entity Vodafone India Limited, unless otherwise mentioned. The report showcases our sustainability philosophy, which focuses on making a difference to our people, to our partnerships, our processes and pursuits, and to the products that make a difference to our stakeholders.

Outline of 5Ps:

Products that make a difference


From inclusion to education, from grass-root entrepreneurship to protecting the environment, and from promoting renewable energy to energizing local economies, our products have been developed to usher economic, environmental and societal well-being.

Processes that make a difference


From strengthening governance to periodic performance disclosures, from encouraging a green supply chain to empowering the talent pool, our processes are geared to institutionalise sustainable practices and make them second nature.

People that make a difference


From simple acts like donating blood to more difficult ones like donating time, and from volunteering to teach children to picking up the broom to clean cities, our people are the change we wish to see in the world around us.

Pursuits that make a difference


From in-depth research on EMF to network optimisation through timely interventions, from conserving energy through technology to managing waste through a strong resolve, our pursuits are the manifestation of our passion for sustainability.

Partnerships that make a difference


From joining hands with the government bodies and collaborating with NGOs, from empowering rural women to accelerating environment friendly transport, our partnerships demonstrate that what one can do well, two can do better.

How you can make a difference


Each one of us can play a part in making this earth a better place.

Vodafone Sustainability Report 2011-12

VODAFONE INDIA AT A GLANCE


Vodafone India Limited and its telecom subsidiaries (Vodafone India Group or VI Group), headquartered in Mumbai, is the second largest mobile network operator serving over 150 million customers in India with a presence in all 23 telecommunications circles. We are a subsidiary of the Vodafone Group Plc, world's leading international mobile communications group with over 404.6 million customers as of 31 March, 2012. We bring together voice and data, wireless and wireline services to help businesses harness the power of total communications solutions. We focus on providing value through our high-quality, innovative solutions, and let our customers do the talking. Our commitment to our customers has made us the Most Trusted Service Brand in India. During this year, we have seen an 11.8 % increase in subscriber base and 20% increase in voice usage volume. In line with the governments objective to improve rural penetration of telephony services, we have worked continuously in the last few years to establish a strong rural presence. We marked a growth of over 21% in our rural subscriber base in the FY 2011-12 to become the second largest rural wireless operator in the country. Owing to easier access and lower cost of mobile phones, it is expected that the next billion internet users in the world will access the internet via mobile phones. With this there is, undoubtedly, a huge opportunity for us to further serve the unconnected such as, the rural sector and bridge the digital divide. Also within the Vodafone Group, we have firmly established a strong position by securing the

highest subscriber base globally. This journey is a strong testimony of our success in a highly competitive and price sensitive market of India. In a nationwide survey, we were ranked Indias Best Marketing Company for the year 2011-12 where we beat competition from within the industry as well as other players, including multinational companies, in India. We have been awarded the Most Admired Telecom Operator and Best 3G Operator at the recent Telecom Operator Awards 2012. The work done by us in addressing social and environmental concerns while maintaining profitability and generating economic value has earned us the reputed Golden Peacock Award for Corporate Social Responsibility. We have also received the globally recognised Product of the Year 2012 consumer award for Vodafone Applications Store in the Mobile Services Category. In another survey conducted by Nielsen, we were the only telecom player to feature in the Top 10 Most Exciting Youth Brands in India.

We also feature in the Top 10 Most Trusted Brands in India for 2011, in a survey conducted by a leading financial daily. Serving the needs of an enterprise, Vodafone Business Solutions is a total communications offering that caters to all their voice and data, wireless and fixed-line requirements. With the advantage of global expertise and experience and the knowledge of local markets, this business is run through the following verticals Vodafone Global Enterprise, SME, National Corporate and Key Accounts. Since its inception, Vodafone Business Solutions has garnered over 3 million corporate customers in India and currently provides services to over 6000 global and national accounts, equipped with a robust and superior network infrastructure and a 24x7 Network Operations Centre (NOC). Vodafone India has been awarded the 'Enterprise Mobile Service Provider of the Year' at the 2012 Frost & Sullivan India ICT Awards. We continue to actively support Mobile Number Portability (MNP) and consider it beneficial for service providers as well as customers. It provides flexibility and choice to the customers to select their service provider, while retaining their mobile number. It is a good test for customer loyalty. From the time that MNP was introduced till the end of March 2012, we registered a net gain of around 1.7 million customers. We will continue to provide our stakeholders excellent services, innovative products and enriched experiences. We aim to make a difference with everything we do.

Key stats and figures


Vodafone India Revenue1 Total voice usage (Minutes) Total SMS messages handled Number of Subscribers Prepaid subscribers Postpaid subscribers Data users Total base station sites Prepaid percentage Number of stores

As of 31 March 2012
` 321,844 mn 680,661 mn 81,099 mn 150.46 mn 143.0mn 7.5mn 30.2mn 110,004 95% 463

Vodafone India+ 42% Indus

Vodafone Sustainability Report 2011-12

MISSION STATEMENT
We will enhance value for our stakeholders and contribute to society by providing customers with innovative, affordable and customer friendly communication services. Through excellence in our services we aspire to be the most respected and successful telecommunications company in India. We see our customers, employees, shareholders and the community we operate in as our most important stakeholders.

Customers
We enhance value through delivering affordable, reliable and customised communication services which are simple to use, enjoyable, seamless and secure. Our customers respect us because We understand their needs We create innovative services We consistently deliver on what we promise We are transparent and trustworthy in our interactions We provide a secure and reliable network We offer affordable products and services We define success as delighted customers who recommend us to others

Employees
We enhance value through providing enriching careers and long term growth opportunities in a fair and collaborative work environment. Our employees respect us because We provide a healthy and safe work place We encourage mutual respect, trust and appreciation We promote diversity and treat them inclusively We conduct ourselves with transparency and integrity We pursue speed and simplicity in all that we do We recognise and admire accomplishments We define success as happy employees with great careers

Shareholders
We enhance value through growing the companys revenue and profitability while creating sustainable free cash flow through efficient resource utilisation and effective risk management. Our shareholders respect us because We follow ethical business practices We communicate in a fair and transparent way We enhance companys reputation and brand value We do everything to protect our shareholders interest We define success as creating sustainable value by delivering great shareholder return

Our Community
(Business partners, Authorities, Influencers and Local Communities)

We contribute to the society by supporting authorities in mobilizing social change and achieving their economic goals, creating value for our business partners and contributing to the social & economic development of local Communities. Our community respects us because We act responsible towards our environment We create community connect We stimulate business and economic growth We have high standards of corporate governance We conduct our business with transparency integrity and fairness We define success as being the most respected telecom company in India

AWARDS
One of the Best Companies to Work for in India - Study by The Economic Times & Great Place to Work 2012 Corporate Social Responsibility award Golden Peacock Award 2012 Value Services in rural innovation category for Low Balance Services ET Telecom Awards 2012 Top Green IT Enterprise Award 2012 - CIO Leadership Summit supported by APC-Schneider Bronze in the Direct Lions category for best low budget campaign for the iFold initiative (Green initiative - to save paper) Lions (2012) CEO of the Year Marten Pieters - Telecom Operator Awards 2012 by tele.net Enterprise Mobile Service Provider of the Year - Frost & Sullivan India ICT award (2012) Most Admired Telecom Operator - Telecom Operator Awards 2012 by tele.net Vodafone App Store V Store recognised as the Product of the Year 2012 in the Mobile Services category - Nielsen survey Best 3G Service Operator - Telecom Operator Awards 2012 by tele.net 7th Most Exciting Youth brand - Survey by AC Neilson and Brand Equity (Feb 2012) Ranked No 1 in overall customer satisfaction - Hindustan Times customer satisfaction National Survey 2011 Top 10 Most Trusted Brands in India 2011 ET Brand Equity annual survey 2011 Best Marketing Company for 2011 Survey done by ET Brand Equity Excellence in marketing and Most innovative Retail - Global ET Telecom awards 2011 CIO100 award for Enterprise IT - CIO Magazine

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Vodafone Sustainability Report 2011-12

Pursuits that are making a difference


Our pursuits reflect the extent to which sustainable development practices have been embedded in the way we do things. From waste management, to green buildings, from efficient data centres to green networks, we are taking sustainability to the next level through our initiatives.

PURSUITS
At Vodafone India, sustainability is a journey, not an objective. We constantly strive to make sustainable practices an intrinsic part of our business strategy, touching every project, process and person. Advocating a comprehensive approach, most of our initiatives are designed to make our stakeholders an equal partner in the process; sensitising them to the socially responsible practices and encouraging them to make this world a better place. Our employees, across India, attempt to conduct business responsibly and to give back to those who have supported us in all our endeavors. We hope to have left our footprints in their life.

Fast Forward
Realising the need to employ greater energy efficient methods, our Corporate Property & Facilities Management team initiated the Fast Forward - Energy Optimisation project in February 2011. As a part of this project, we examined the areas in facilities management, within Vodafone India, to identify and implement energy optimisation initiatives across all circles. The team came up with 27 energy optimisation solutions. Implementation of these solutions was periodically monitored and reviewed by the Corporate Property & Facilities Management team. We have achieved more than 80% implementation (national average) of these solutions across circles, which would reduce energy consumption in offices by 5%.

The well-integrated facets of sustainability and corporate responsibility, in our approach and policies, are among our highest priorities. We strive to achieve sustainable growth that benefits our stakeholders, partners, customers and employees, along with the communities we operate in. We understand the need for a coherent CR policy, not because it is expected from us, but because we know it is the right thing to do. It is something we feel very passionately about. - Manu Kapoor, Director, External Affairs

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Vodafone Sustainability Report 2011-12

Case study
Taking a cue from Vodafone Indias strong commitment towards environmental protection and sustainability, the Punjab-HP (Himachal Pradesh) team set itself the goal of energy conservation and waste management. The Circle formed a core team that identified implementable projects, which were then included in the Fast Forward programme. Instead of settling for small measures, the circle team looked for radical solutions to reduce energy consumption. Their pioneering project was to replace conventional lights with LEDs across offices within the Circle. This project alone registered 30% savings in the power consumption costs. The core team was recognised with the Think-Tank award for its successful implementation. The Circle also installed mist spray for air conditioners resulting in 15% savings (approximately). The Punjab-HP Circle has initiated work on rainwater harvesting and is also taking key steps in the area of waste management.

The Circle implemented all the 27 energy optimisation solutions enlisted in the Fast Forward programme.
This positive outcome has encouraged the Circle team to undertake more ambitious projects.

Green building initiative


At Vodafone India, our sustainability strategy is to lead by example. We were the first telecommunications service provider to start operations in UP East (UPE) circle, which has a population of 130 million people. Our UPE operations directly employ about 470 people and over 4000 people are associated with us in various capacities. While the Circle head office is in Lucknow, we also have six zonal offices and four branch offices in the state. Given our size, we are conscious of our energy usage. We understand that the energy situation in UP (East) is poor power is a scarce resource. However, we are committed to improve energy efficiency in our operations and our offices, despite the costs. - Ravi Santhanam, Business Head, UP (East) Circle.

Case study
When we had to relocate our office to a new building, our Administration and Facilities Management team, headed by Major Sharad Saxena decided to seek out Leadership in Energy and Environmental Design (LEED) certification for the new premises based on the international United States Green Building Councils (USGBC) rating system. He was strongly supported by the Circle Business Head, Ravi Santhanam and General Manager of Human Resources, Syed Rizwan Ashraf. No building in UP, barring Noida, had sought/received LEED certification. As we were going to be tenants in the new building, with no example to draw on, we had to convince the builder on the benefits of adopting elements of LEED. With our strong determination and effective cross-functional collaboration between our administration, supply chain and human resources functions, we managed to get the buy-in of the builders.
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Our team has been successful in fostering the Green Building Movement in Uttar Pradesh (East). We received a Leadership in Energy and Environmental Design (LEED) platinum certification, the top-most certification in this category, for our Lucknow office. While this initiative is another manifestation of our commitment to the environment, as part of the Fast Forward philosophy, it also enabled us to improve our employees health and productivity.

What does this mean for us?


Our electricity cost remained same, despite moving from a 27,000 sq.ft. office to a 70,000 sq.ft. sprawl of office space. We managed around 52% reduction in baseline water consumption on account of installation of efficient water fixtures. During construction, we demonstrated exemplary performance in construction waste management by diverting 100 % of waste going to landfill. With optimal space utilisation and ergonomically compiled seating and workstations, we provided comfortable space to our employees.

Reducing office waste and promoting recycling


Putting forth a conscious effort to preserve our ecosystem, we focus on the three Rs reduce, reuse and recycle when we think about our waste.

The ReSolve campaign


As a responsible telecom company, we started the ReSolve campaign to manage non-hazardous solid waste, increase awareness amongst employees and communities and to enhance livelihoods. By means of this initiative, we identify and collaborate with diverse stakeholders to bring about a change and to make a lasting difference. We initially piloted the campaign in six Circle offices Mumbai, Kolkata, Delhi, Chennai, Mohali and Ranchi. To accomplish the project
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objective, we have partnered with credible not-for-profit organisations at each Circle cities. The campaign has witnessed tremendous growth and positive response in all these Circles over the year. For example, in Kochi, we partnered with the NGO - Plan @ Earth to segregate and recycle waste paper. This partnership driven by the Supply Chain Management function (SCM), resulted in the recycling of more than 4000 kilograms of waste paper.

Vodafone Sustainability Report 2011-12

Introduction of appropriate waste management practices in Vodafone offices Generation and enhancement of livelihood opportunities among associated workers Sensitisation of stakeholders on waste management practices, like recycling Employee engagement activities for community awareness and behavioral change Adoption of a pre-defined community-area near Vodafone offices for project intervention Going forward, we intend to make this exercise self-sustainable by creating wealth from waste, and generating revenue with the sale of recycled waste and compost to wholesale and retail buyers. On receiving an overwhelming response from employees and partners alike, this programme has expanded to six other circles and we look forward to its roll-out in all 23 circles by 2013-14. Total waste collected as on 31st March 2012: Overall waste recycled: Waste composted: 317 Tonnes (Includes paper, plastic, tetra pack, food waste) 84.21% (Reflects % reduction in landfill load by recycling waste) 3.5 tonne (Another 15 tonne is in process)

Chennai Circle
We strongly believe in self-sustainability and the role that Project ReSolve can play in contributing positively to our community. On identifying an opportunity to integrate the youth in the ReSolve campaign and to raise awareness amongst them, the Chennai circle demonstrated the waste management process at the Annual Science Expo of Chettinad Vidyashram School, Chennai. The event witnessed an overwhelming response from both students and teachers, who were curious to learn and adapt. The students eagerly participated in all the activities and inundated our Green Ambassadors with questions and concerns. In addition, the Circle also adopted MRC Nagar as the community to implement this project. Various initiatives were taken to engage the community in this project. Waste collected from the office premises and community was sent to a waste composting facility. We hired 900 sq.ft of suitable place in Chintadripet, Chennai for secondary segregation of waste. Kitchen waste was dried and used to produce manure, which was distributed free of cost towards plantation of trees in the community. Other wastes such as paper and plastic were sent to appropriate recyclers. This activity also provided livelihood to seven people. This project helped in the collection of nearly 41,410 kilograms of food waste and generation of about 350 kilograms of compost. We are committed to effectively contribute towards environmental sustainability. Besides serving this larger cause, we are glad that through our campaign ReSolve, in partnership with an NGO, we were able to provide job opportunities to seven people belonging to the economically weaker section. Such outcomes motivate us further to partner in similar initiatives. - Suresh Kumar, Business Head, TN and Chennai
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PURSUITS

The campaign is based on the simple ideology of reduce, reuse and recycle. It includes:

Fast Forward in the Networks Function:


The Fast Forward initiative with an objective to reduce wastage and enhance efficiency was started in the first quarter of 2011. In the networks domain, a 14 member dedicated team representing various Circles worked for 3 months to identify problem areas, workable and implementable projects. The team identified 20 projects and 50 solutions which included: Reduction in diesel consumption Prevention of diesel theft Surrendering lease lines The solutions identified are under various stages of implementation across Circles, with nearly 80% of recommendations already deployed.

Kolkata Circle
Committed to integrating the basic guidelines of the ReSolve Campaign into its operations, several programmes were designed to educate the employees and empower the community. In partnership with the NGO - South Asian Federation for Environment (SAFE), we conducted a waste management awareness drive, in the eateries and other corporate offices, in the Kolkata Circle office premises. Thus, allowing the representatives of the establishments to study our plan. We also conducted capacity building workshops. On receiving an overwhelming response from over 39 offices and restaurants, we sponsored coloured bins in the premises to aid segregation of waste. Identifying an opportunity to leverage the campaign and to create employment opportunities, we then developed a detailed plan for effective segregation of waste and manufacturing of products made from the recycled materials. While wet food waste collected from this project was used to make good quality compost through the process of vermicomposting; paper waste collected was sent to the paper mache processing unit to make pulp that acts as the base for making various eco-friendly products like lampshades, trays, pen-stand, pen-case, shopping bags, etc. Participation of the community is integral to this initiative. With the objective of creating a sustainable income generating model, 12 youth members, under the supervision of SAFE, undertook the entire scope of activities that ranged from collection of waste to the manufacturing of products. Furthermore, to enable them to effectively execute their responsibilities and develop entrepreneurial skills, we conducted training sessions at regular intervals. Our employees organised and managed exhibitions, providing a platform to exhibit the talent and products of the youth members. To sustain this initiative further, we will dedicate an annual sum for the purchase of these products and give them as gifts on various occasions. Moreover, through street plays and web auctions, we will raise awareness amidst the community and other stakeholders.

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Vodafone Sustainability Report 2011-12

- John Durham, Chief Environment Officer, US Consulate New Delhi when he visited ReSOLVE site on 28th October, 2011 The total waste handled under this project was 51,492 kilograms, which resulted in the creation of eco-friendly products valued at INR 35,000 (approximately).

Green networks
As a leading operator in India, we have a network footprint of over 1,10,000 base stations, as of March 2012. More than 90% of our base stations are located in regions where electricity from the grid is unavailable, partially available or unreliable. These base stations are therefore heavily reliant on diesel generating sets to ensure round-the-clock availability of communication services. Majority of our base stations (~87%) are co-located along with other operators base stations, at third party tower company sites, resulting in reduction of electricity and diesel consumption. We are a major contributor in this industry initiative for reducing consumption and emission by sharing resources, especially when

spectrum shortage drives up the need for additional sites. Of the 13% sites where we have operational control, we continue to take definitive steps in managing energy (electricity and diesel) consumption.

Steps undertaken
We deployed hybrid solutions (i.e., diesel generators and batteries working in alternate modes, with intelligent controllers), taking the total site numbers to 2435 Our initiative to deploy variable speed diesel generators yielded fuel efficiency by optimising the generator operation, based on the actual load. 234 sites are now powered by variable speed diesel generators. This move has demonstrated the potential to decrease diesel usage by 35 % During the reporting period, we deployed 358 inverters at indoor sites. The inverters help in using back-up battery to run the air conditioner during power failure, which reduces the generator run time Deployed fuel catalysts at 1,182 sites. Installed in the fuel in-let pipe, these fuel catalysts are passive devices, which increase the combustion capability of fuel and thereby reduce 8-10% carbon emission

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PURSUITS

RESOLVE is a pioneering model of partnership between corporate, community and the civil society that can be an exemplary initiative in reducing landfill emission from solid waste dumping

We have also identified base stations that can work in a non-air conditioned environment and have started removing air conditioners from these sites. These sites are being equipped with fan filters for air circulation, thereby reducing energy consumption

We have successfully deployed solar solution at 70 off grid sites resulting in 75% reduction of diesel generator run time

Data centres
On an average a computer is said to be running at a third of its computing power, at any given time. If three computers are used for three separate applications at a third of their computing power each, there is a redundancy of two computers in terms of computing power. Virtualization is pooling together the computing power of the servers and assigning it as and when required, to reduce these redundancies. Last year, we focused on virtualization of servers and adopted blade servers wherever possible. This year, our key focus has been in the area of improving energy efficiency in our data centres. We continued to complete the virtualization of all servers (wherever possible). This exercise alone helped us bring down the number of servers by 430. In terms of reducing energy requirements for running and cooling the servers, this translates to achieving carbon emissions reduction by as much as 1700 tons of CO2e a year. As we progress from consolidation of data centre resources to virtualization and then onto optimisation, our ambition is to move towards cloud computing. Cloud computing offers scalable infrastructure and saves space, hardware and power.

In our journey towards cloud computing, we are moving from providing on-demand computers to on-demand computing. - Ranganathan Ramani, Vice President, IT Infrastructure

Benefits of Cloud computing:


Scalable infrastructure on demand Agility to business in launching new services on time Reduces physical space occupied by servers Save capital and operational expenses Reduces energy consumption

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Vodafone Sustainability Report 2011-12

We identified an improvement area in terms of consolidation and optimisation of application data for consumers. We realised that by optimising active data storage, which is hosted online, less storage equipment needs to be online which implies that lesser energy is required to power and cool the equipment.

End user computing resources


In the past, we achieved significant reduction in energy consumption by moving from CRT monitors to TFT (LCD) displays. During FY 2011-12, by moving to more energy efficient operating systems (Win 7) on desktops and laptops and by deploying power management policies on desktops and laptops we achieved potential reduction of 1300 tons of CO2e per annum. Now we intend to replace all desktops at the workplace with laptops, when they come to the end of their life.

We are targeting 3000 desktops to be replaced with laptops, leading to a potential reduction of 750 tons of CO2e per annum.

Switching centres
Switching centres host the exchanges that switch telecommunications traffic between different mobile phone and fixed line networks and between customers. These centres typically house a variety of equipments that require cooling and need to be powered at all times, thus consuming considerable amount of energy. Our switching centres account for as much as 30% of our energy consumption. We undertook energy efficiency audits to identify potential areas for improvement. As a result of the audit exercise, we implemented the following initiatives (amongst others) to reduce the energy consumption: Renovation of existing switching centres and infrastructure to enhance efficiency Consolidation of switching centres, where improvements and capacity enhancements were not feasible Optimisation and standardisation of network and utility room temperatures Introduction and leverage of fuel catalyst in diesel generators across all switching centres to increase the fuel combustibility Introduction of 140 units of next generation digital scroll precision air conditioner machines which are efficient at part loads Energy saving due to replacement of legacy network nodes with the latest energy efficient network nodes

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PURSUITS

Storage

- Vishant Vora, Director, Technology

As a result of these initiatives, we have managed to reduce our energy consumption at Switching Centres by nearly 14.76%, while enabling incremental capacities to the tune of 50% with reduced Switching Center resources.

Video conferencing
We continue to employ and encourage the use of video-conference facility for meetings as a substitute for travel. The networks are strengthened to ensure good quality, seamless video-conference across all our offices in India. In addition to saving considerable costs, use of these systems is a safer option as opposed to travel, which carries a significant amount of risk. During the year we saw increased adaption of VC services across our enterprise. Number of VC sessions increased by 2.5 times and led to reduction in the amount of travel the employees had to undertake. On a conservative estimate, we have saved 4500 tons of CO2e during the year on account of travel.

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Vodafone Sustainability Report 2011-12

PURSUITS

We are proud to be a significant contributor to Footprints in the areas of energy efficiency, carbon footprint reduction, optimal usage of infrastructure, selection of environmental friendly technology and safety of our employees, partners, vendors, etc. The benefits that we see today are a reflection of our continued focus on these areas for the past many years.

People that are making a difference


People are at the center of Vodafones sustainability strategy. We invest in their training and development and strive to build a safe and conducive work environment for them. We see our people as ambassadors of our values, and empower them to make a difference.

PEOPLE
Streamlining Human Resources function
While empowering our employees, we focus on optimising the roles of their key touch point the Human Resources function. We have implemented the HR Business Partner for each function at corporate, to focus on the business strategy and launch of the HR Shared Services for all employee queries and our Centre of Expertise (COEs) that brings in a specialist experience in the HR functional domain, in areas of Rewards, OE (organisation effectiveness) and Talent. We have an employee portal -AskHR as a one-stop-shop for all employee communication needs like HR Updates, Policies, Processes, Employee Self Service and Manager Self Service. On an average, we have 15,000 hits per month, thus bringing in complete transparency on all HR processes. Since the launch of the AskHR portal in April 2011 till March 2012, we have recorded 157,724 hits on the website and registered 45,320 queries (calls and emails) to the service centre. Also our HR Systems enable employee self service in travel, medical claims, performance dialogue, leaves etc. Our employee CSAT on HR services is at 85%+ on speed, quality and overall services that our team provides to all the stakeholders.

Employee Statistics
Headcount

8569 1485

269 Senior management

1469 8822 Middle management Others

Male Female

Ask

HR

We recorded the employee engagement index of 81 and aggregated manager engagement index of 78, which is above the Vodafone group score of 77 and 74 respectively.

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Vodafone Sustainability Report 2011-12

Sustainability means different things to different people. Its all about developing a mindset that pushes us to meet the current needs of people without compromising the ability of future generations to meet theirs. People are the organisation's most valuable asset, their willingness to drive practices and to adapt to change, coupled with structured thinking and long-term vision helps us achieve our targets and make progress as a responsible business. - Ashok Ramchandran, Director, Human Resources

Focusing on diversity and inclusion


Diversity and inclusion continue to remain a top priority for us at Vodafone. While we recognise the value proposition of having a diverse workforce, we are also aware that it requires continued efforts and reinforcement over time. With 14.4% of our workforce being women, changing the existing mindset and forming a culture that drives inclusion of women in the organisation is an area of focus. We continue to provide the right eco-system in terms of structured interventions to reiterate the importance of a diverse workforce. This year, taking our efforts a notch higher, we worked towards breaking the unconscious biases against women in a workplace and support women in tackling the barriers to career progression at a cultural level. Some of the highlights from the year are: 95% of all our people managers have undergone the Inclusive Leadership workshops We have structured interventions to work with existing women employees to plan and advance their careers. The programmes include self-empowerment career series Pathways to Success; 1 year mentoring programme conducted by the Execo for high potential women employees; Leading Ladies for women employees interested in making career in general management We prepared the Maternity Transition Note outlining activities like planning, communicating maternity leave to the line manager, holding a discussion of promotion cycles, transferring the responsibility and other activities for a smooth transition before and after the leave. Of the 68 women who availed maternity leave in 2011-12, 93% of them returned to work following the leave We launched the Vodafone Inclusivity Network this year. All employees can join this forum that focuses on how to change the culture to drive inclusivity at our workplace We also conducted activities like health workshops and health checkups for our women employees We have strengthened the exit interview processes in order to understand the reason for people to leave the organisation, and the factors leading to it
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Talent management
We recognise that it is necessary to create a sustainable environment for our people so that they continue to be relevant to the business, as we grow. As a part of our talent management initiatives, we primarily work on building sustainable environment to manage succession plans for critical roles and groom our people for these roles. We provide customised training programmes and plan career paths for our employees, based on their potential, talent and performance. An employee with high potential is groomed via development journeys that enable us to fast-track his/her career within the function. Some of the flagship talent management programmes are: Senior Leadership Acceleration Series Building Leaders of Tomorrow Young Leaders Program We also host career conversations with our talent pool through the Know Your Talent forums at the corporate level. Owned by the functional heads, they enable them to know their talent across corporate functions and circle operations and plan succession for critical roles. Each circle hosts a circle development board, which catalyses talent management at circles and funnels up talent to higher/better opportunities. We also have early career programme Discover, under which we recruit graduates from management and technology campuses. Management trainees, technology trainees and finance trainees are given special trainings, in order to feed young talent into the commercial/human resources/finance leadership pipelines. Employees who have demonstrated high potential are also given an option to take up global roles. Last year, five of our employees transitioned to global roles. Further, we sponsor some of our employees for the two year
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INSPIRE
Columbus Graduate programme. Once they graduate, they may also be nominated to work in other local operating companies of the Vodafone Group. We also nominate our talent into the Global Talent development programme - INSPIRE. Through our learning and development initiatives for our employees, we seek to provide a standard learning experience to all employees across circles and provide a ready pool of interventions that would save cost, time and effort and ensure quality. In building capacity, we focus on business related knowledge building and functional training to instill the Vodafone Way in management and leadership styles and personal development. The various training programmes this year added average training hours per employee to 20.43 hours for internal trainings and 9.30 hours for external trainings.
Vodafone Sustainability Report 2011-12

22065.4 Circle programs National programs 7121

3000.8 814 709

3275.5

Band F1 & above

Band F2 & G

Band H & below

In acquiring, nurturing, integrating and retaining talent, our focus is not only around what of performance but also around how of performance, bringing a more mature performance management system with a visible linkage to the Vodafone Way of Speed, Simplicity and Trust. It is not just appraising our employees, but also about letting them set SMART goals, coaching them for superior performances and ensuring continuous development, through regular feedback and review empowering them at every step.

Towards a safer workplace


Safety of our employees is at the core for us. We believe that senior management commitment is essential to make our work environment injury free and safe for every individual associated with us. Senior Management Tours are conducted on a regular basis to encourage safe working conditions and practices. Moreover, we are in the process of establishing various standards and work practices for sustained safe working. Also we believe in an open culture in incident reporting across all levels.

Incident reporting/ learning:


We emphasise on incident reporting. All the major incidents are reported to the Global HSW team within 24 hours of their occurrence. Local business heads supervise every incident and ensure adequate investigation. It is ensured that the learning from the incidents is captured and actions are taken across the circles. Integral to the philosophy of our sustainability journey, is our commitment to guard the health, safety and wellbeing (HSW) of our employees and other partners and associates. We understand the importance of nurturing a safety-first environment and adopt a no-compromise attitude. We aspire to provide an incident-free work environment. - Sunil Sood, Chief Operating Officer

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PEOPLE

Health, Safety and Wellbeing


Expect the Unexpected
We conceptualised the Expect the Unexpected programme this year to translate our belief that injuries can be prevented into actions and to foster a safe work environment. Under this programme, the participants were given case studies on safety to promote a thought provoking approach in imbibing a culture of safety. Over 250 employees underwent this programme, which garnered a positive response. This programme would also be extended to all the people who work for Vodafone India, employees, contractors, etc.

1@ Risk initiative
The business we operate, involves thousands of people who work with us at cell sites, markets etc., and are exposed to various risks like road travel, working with electricity and working at heights. 1@Risk initiative focuses on identifying the person at risk, the nature of the risk associated and finally ensuring that all the precautionary measures that could prevent injuries are taken. All the circles took up various initiatives on this front throughout the year. To assess the effectiveness of these campaigns, a competition was conducted PAN India and three circles were awarded.

Road safety our major focus


Accidents occurring on the road, due to work-related travel are one of the key risk areas. To mitigate its impact, multiple initiatives have been taken during the year: Two-wheeler defensive driving sessions: the sessions were attended by over 22,000 employees and contractors Responsible mobility campaign: it intended to promote responsible use of mobiles, especially while driving Education and enforcement of the Absolute Safety Rules Prepared and cascaded the standard driving procedure Integrated safety requirement into business formats (specifically for Sales and Marketing front line Sales Executives)

Some safety initiatives by circles:


Mission Reach - Tamil Nadu
We launched Mission Reach to sensitise people on the 7 Absolute Safety Rules (ASRs) and safe driving standards. As a part of this programme, our on-roll employees are assigned partner employees (those not on our payroll) to cascade awareness on safety. Our employees then communicate the safe driving standards and principles to their assigned partner employees. Special emphasis is laid on those who frequently use two-wheelers to carry out the business, as we believe that they are most vulnerable to the safety risks. This programme has been piloted in TN and will now be extended to all circles.
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Vodafone Sustainability Report 2011-12

This programme is helpful in connecting with the last-mile, communicating to him/her our care and message for safety effectively. Along with our employees, the programme also helps these partner employees to become our safety ambassadors, who are now proud to talk about safety at work, at home, with friends and with the society! Through this programme we were able to reach out to over 500 partner employees in TN, and by taking this initiative PAN India we aim to reach to thousands of people who are a part of the Vodafone Indias eco-system.

Safety awareness drive - Haryana


We launched the Retail of Tomorrow initiative in Haryana circle last year. Under this innovative initiative, the mini-stores in Haryana were used as platforms to spread awareness on serious social issues through interactive and engaging methods like street plays, dhol performances, etc. One such programme was Nukkad Natak, a street-play-based programme designed to emphasise the importance of road safety to our customers and educate them on our 7 Absolute Safety Rules. In Haryana, where road rage is persistent, this programme was especially relevant and reiterated Vodafone as a brand, which cares for the community. We saw participation from the Deputy Superintendent of Police, Traffic, Panipat, educating the general public on various aspects of pedestrian safety, traffic rules and safe driving, during the programme.

Safety Mela - UPE


In the Uttar Pradesh East (UPE) circle, we decided to reinforce the Absolute Safety Rules (ASRs) by adopting the concept of melas to reach out to the larger public. We held the mela in 10 different towns and cities across UPE. We engaged with our employees, their families and other visitors through innovative and entertaining means like: - Free vehicle fitness checks - Free health check-up (both conducted at the entry to the venue itself) - Safety walk demonstrating safety equipment - Safety games like riding arena for two-wheelers, puzzles on traffic signs and quizzes on safety We believe that through melas, a popular concept with the people of UP, we imparted basic knowledge on vehicle fitness, importance of appropriate documentation such as insurance and consciousness on ones health across Indias most populous state. Similar initiatives were taken in other circles like Bihar, Kerala and Rajasthan. Safety is a business imperative for us. We believe management commitment and employee engagement are vital for sustained safety performance. - Uday Deshpande, Associate Vice President, Health, Safety and Wellbeing Supporting our plethora of safety programmes, campaigns and drives, is the Consequence Management Matrix (CMM) a graded disciplinary process for violations which was cascaded this year. This will serve as a deterrent and is a sign of our resolve in taking safety seriously.

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PEOPLE

We also work towards enhancing the physical security of our office premises, data centres and switch centres. We regularly conduct risk assessments of all our premises.

Employee recognition
We value our employees and we value their contributions. Our workforce is our strength and we want our employees to feel valued and realise that their work does make a difference. At Vodafone, one of the best companies to work for in India as per a study by The Economic Times, we acknowledge the priceless contributions made by our employees under the following categories: Target or performance driven recognition programme Culture driven recognition programme Some of the culture driven recognition programmes are:

Vodafone Global Heroes


The Vodafone Way is about a consistent way of working, with Speed, Simplicity and Trust. Vodafone Global Heroes is a quarterly initiative that identifies and recognises employees (in band G and below) who contribute to and embody The Vodafone Way.

Vodafone SStars
A SSTar is someone who operates with Speed, Simplicity and Trust. This programme recognises the employees contribution at three different levels:

Level 1: SSTars
An on-going exercise, it celebrates the demonstration of Speed, Simplicity and Trust at work with a special SSTars e-card. Any employee can recognise a colleague or team member across functions and circles through an instant SSTars e-card, any number of times.

Level 2: SuperSSTars
A monthly exercise which celebrates the exemplary demonstration of Speed, Simplicity and Trust at work. The chosen employee is awarded points from the functional kitty that can be redeemed against gifts. Any functional or cross-functional colleague or Line Manager across circles can nominate an employee with a proper justification, any number of times during the month.

Level 3: MegaSSTars
A quarterly exercise which celebrates the consistent and outstanding demonstration of Speed, Simplicity and Trust at work. The MegaSSTar finalist is shortlisted by the Recognition Board comprising Business Head, HR Head and Functional Heads, every quarter in every circle. The winner is awarded a lapel pin, a certificate and points that can be redeemed against a pre-decided gift voucher.
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Vodafone Sustainability Report 2011-12

PEOPLE

As a result of our consistent efforts in safety, across the country, we have been able to save 17 lives!

Products that are making a difference


We constantly endeavor to utilise our technology and expertise to develop products that can contribute to the businesses becoming more sustainable as well as to the development of the society. Whether it is smart metering or asset tracking for the enterprises or education, banking and rural entrepreneurship or digital inclusion of individuals, we strive to make our products a means of empowerment.

PRODUCTS
Enabling a smart future
We strive to innovate and utilise technology to develop products that better facilitate the functioning of an organisation and improve the lives of millions across the country. Through customised technological solutions, we strive to make our products as means of empowerment for the businesses and the community. We constantly work towards ensuring that our technology is a force for beneficial and lasting change. Sustainability for Vodafone is a long-standing commitment. However, achieving sustainability in emerging markets, like India, can be quite challenging. We aim to not only provide communication solutions, but to provide customised solutions that help our customers increase efficiency in their supply chains. - Naveen Chopra, Director, Vodafone Business Services

Machine to Machine (M2M) solutions


Using M2M technology to develop solutions that enable machines to connect with each other, and to integrate several functions and operations for one seamless system, we help organisations in dramatically improving efficiency, significantly reduce operation and maintenance cost, better asset management, increased service speed and create new revenue streams. Our location tracker solution, which uses M2M technology, is helping one of the beverage leaders to track assets online and to monitor the deliveries, resulting in enhanced business efficiency. Utilised by many Vodafone customers, Smart Metering, is another innovative solution that allows energy and utilities companies to efficiently collect meter data and provide two-way communication for their residential, commercial and industrial customers. Smart Metering also provides a way to offer increasingly personalised services and reduce pollution and carbon emissions. Using M2M communication, one of the state municipal corporations is monitoring and controlling water levels in reservoirs and tanks, which help in reducing water pilferage, wastage and leakages with timely preventive actions. Another Vodafone customer is using M2M technology for remotely controlling street lights which helps in energy consumption and reducing operation costs. At Vodafone, we are committed to identifying and developing solutions that enable the companies to deliver better to its customers needs.

Connecting an MNC giant with the farmers


Contributing towards a larger goal, we collaborated with one of the worlds largest confectionery companies to establish direct communication with the producers of cocoa. Our solution enables the farmers to indicate the quantity and date of the produce through a voice portal. While the farmers can indicate the quantity and date of the produce through the portal, the companys sourcing team is able to efficiently plan its collection routes using the information collated from the portal. This seamless communication system enabled by the voice portal has resulted in a win-win situation for both, the farmers and the company.
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Vodafone Sustainability Report 2011-12

At Vodafone, we are committed to reduce the environmental impacts of our products and services, and we undertake numerous initiatives towards the same. We constantly engage with our suppliers and customers to raise awareness and deliver change.

Reducing the impact from SIM cards


Effective July 2011, the surrounding plastic packaging of all the SIM cards that we sell, has been reduced by half. We worked with our suppliers to bring about this small yet fundamental change in the packaging process. With our average SIM card sales figure of nearly 18 million per month, this move is yielding a significant reduction in the amount of plastic consumed.

Saving trees, one fold at a time


From May 2011, we introduced the simple concept of delivering the bills to our customers in a smaller sized envelope, by folding the original bill. With nearly 6 million bills printed every month, this small step is helping us save millions of trees each year.

m-Education
Education is integral to the development of every country. It plays a critical role in catalysing positive change and in empowering the people to achieve their dreams and aspirations. Determined to spread literacy and give every individual an access to education, we at Vodafone India have developed solutions that enable m-Learning and support Adult Learning a state wide literacy programme, conducted by the Education Department of the government. Sharing of education content via mobile, m-Learning serves as a classroom, enabling people to study and accomplish their dreams. It works as an effective tool for children, women and elderly, providing them a convenient platform to study within the confines of their home. By delivering education at their doorsteps, we hope to enlighten millions across the country.

Case study: Adult Learning programme


According to the Census of India (2011), the literacy rate recorded for Andhra Pradesh was 67.7 % as opposed to 74.04 % for the country. Furthermore, the Andhra Pradesh State Literacy Mission Authority (APSLMA), which runs adult learning programmes in the State, notes that only 62% of those enrolled in adult education programmes across 40,000 villages complete literacy programme; the percentage of female enrollees completing the programmes is even bleaker at a 59%, the remaining being dropouts. When we got involved with APSLMA, we realised the high dropout rate could be contained with closer monitoring of attendance. We came up with a simple solution for directly recording information on attendance, including male-female attendance ratio from every village and collating the information across villages immediately for dissemination to the authorities.

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In every village, the coordinator daily sends an SMS, using a Vodafone SIM, recording the attendance information to a central system attached to our network. The system summarises the information and disseminates it to all concerned personnel within a couple of hours.

The satisfaction in being able to write our names, finally, makes up for the difficulty we have to go through, like the lack of electricity, etc... - Adult learner, Woman aged 48, village - Ghatkesar, district - Ranga Reddy

The system enables tracking of following parameters:


Status of learners (male, female, caste ratios) Attendance of coordinators (village, district, state) Progress of learner (course completion) Expenditure of the centre (monthly) Functioning of the centre (feedback) Overview of age of learners, sex ratio, caste breakup and dropout behavior Overall mission progress through dashboard Since the introduction of the system, there has been progress in reporting of attendance from all 40,000 villages daily in Andhra Pradesh. On an average, around 21,000 centres conduct classes every day, covering around 1.7 lakh adult students. We have noticed that after monitoring has started, even early morning classes are being scheduled. As the system requires only the use of mobile phones by village coordinators, it provides a simple yet effective medium for the Directorate and District Headquarters to track the progress on adult education on a daily basis. We are happy to work with the Department of Adult Education, in line with our objective of making a positive contribution to the society.

m-Health
Due to its sheer magnitude, India faces numerous challenges while trying to meet the basic healthcare needs of the people. However mobiles, with its wide reach, can and have been playing an important role in healthcare sector at the regional, community and individual levels. m Health or mobile health is an effective tool to make round-the-clock healthcare facility available for all. Taking cognizance of this very critical issue, Vodafone India took a step in the healthcare sector with its project e-Mamta.

Case study e-Mamta


The high infant mortality rate recorded in many Indian states has been a cause of concern for the government and the community. To address this issue Gujarats Rural Health Mission introduced e-Mamta Mother and Child Tracking System programme. Under this programme, the ASHAs (Accredited Social Health Activist) collect health related data of all the community members and feed it into a centralised system. The system is programmed to send timely updates to all the ASHAs and the mothers on their mobule, thus,
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enabling the ASHAs to monitor the health of the mothers and their children on a regular basis. Since e-Mamta is executed through alerts sent on the mobile, Vodafone developed a voice CUG solution and provided 40,000 SIM cards to the ASHAs, doctors and health-workers. As a result, the mothers can now establish contact with the ASHAs and health-workers any time to avail the services and avoid any adversity. During the year, in which the e-Mamta programme was introduced, a four point drop in the infant mortality rate was witnessed. We plan to partner with the government for many such initiatives, in future as well.
Vodafone Sustainability Report 2011-12

PRODUCTS

Our solution

Partnerships that are making a difference


Collaborating with our vendors and suppliers to design feasible, cost effective solutions, to associating with the non-governmental associations, we always believe in fostering sustainable partnerships. This stems from our belief that what one can do well, two can do better.

PARTNERSHIPS
Partnering with the suppliers
Our partnerships with the suppliers are intended to create complete value-management and generate new opportunities, leading to enhanced cost efficiencies for the business. We proactively conduct supplier management, relationship management and sustainability programmes with our suppliers. Our selection of suppliers is based on stringent processes. We require the suppliers to sign the Code of Ethical Purchasing (CEP2 ) and include clauses on anti-bribery in their contracts. In addition to the capability and reliability criteria, we also consider safety and sustainability performance of the vendors, before on-boarding them. We encourage the vendors and contractors to adopt effective health and safety management systems, which have been incorporated as a critical evaluation parameter in the selection of vendors. Towards the beginning of 2011, our supplier base had a count of over 52,000 suppliers. As a part of the supplier segmentation exercise, we undertake periodic consolidation of this supplier base. We focus on high-risk suppliers and periodically evaluate and score them on health, safety and wellbeing parameters. We also conduct audits on the implementation of CEP for the high-risk suppliers. As of March 2012, we reduced our supplier base by 56% in order to control work activities better from safety standpoint as well as quality and other parameters. We assess and evaluate the performance of our suppliers through the Suppliers Performance Evaluation process. This
2 Code of Ethical Purchasing (http://www.vodafone.com/content/dam/vodafone/about/sustainability/ vodafone_code_of_ethical_purchasing_with_guidance.pdf

is conducted bi-annually and captures feedback across the performance pillars. All the high-risk suppliers are evaluated and are required to attain minimum acceptable scores in the evaluation. HSW forms an integral part of the vendor evaluation, with 20 of our top vendors being assessed in HSW under Supplier Performance Management (SPM) this year. Our engagement with the suppliers is through multiple channels, one of them being our Annual Supplier Conclave. This year, the two-day conclave was themed Sustaining Partnerships. Through presentations, interactions and stalls at the conclave, we communicated our interest in cultivating long-term partnerships with the suppliers and reinforced our stance on health, safety and wellbeing practices, environment and waste-management. Internally, we have trained all the employees of the supply chain function on health, safety and wellbeing aspects as well as CEP, in continuation to the initiative started last year. The supply chain function is now 100% compliant to the requirements of CEP. We train our vendors on the use of personal protective equipments and fire prevention services at sites and warehouses. We also recognise the commitment shown by our vendors on HSW and reward outstanding performance by them at the annual vendors meet, hosted by respective circles.

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Vodafone Sustainability Report 2011-12

Partnering with the community


Railway Helpline: Empowering railway passengers in Tamil Nadu
Harnessing the power of technology for the greater benefit of the society, we collaborated with the Government Railway Police (GRP) in Chennai to promote an emergency customer support helpline (9962 500 500) for railway passengers. Enabling the commuters to seek assistance from police in emergency situations, the central helpline desk routes the case to the nearest railway police official for taking necessary action. In 2011, the helpline received 3,747 calls reporting complaints about nuisance, missing passengers or baggage and use of prohibited substances. Through this initiative, we hope to provide commuters access to a platform that will provide immediate redressal of grievances. To raise greater awareness about the availability of this service, we have partnered with the GRP to promote this service across railway stations in Tamil Nadu. We have done promotional drives across railway stations and on-board trains. Moreover, dedicated helpline booths have been created at the Chennai Central Railway Station and Chennai Egmore Railway Station. Through this service, we hope to give the caller the power to act and deal with a potentially harmful situation and harness the true power of communication.

World of Difference
At the heart of our foundation is the belief that our mobile communications technologies can address some of the world's most pressing humanitarian challenges and our responsibility is to utilise our innovative mobile technology to improve people's lives. The Vodafone Foundation recognises that education and women empowerment are critical catalysts for positive change. As part of our social investment programme, the Vodafone Foundation funds projects in India which focus on both support and disaster relief. The Vodafone Foundation also supports the unique World of Difference programme. The Vodafone World of Difference programme is a flagship initiative run by the Vodafone Foundation. This programme operates in 22 operating countries worldwide and enables people to take time out from their regular jobs and work for a charity of their choice. This is a unique way of taking corporate giving that goes beyond the traditional cheque book approach tapping into skills, expertise and passion of individuals so that they can make a difference to their community.
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The World of Difference programme was launched in India in November 2011 and offered 20 Vodafone India employees with a once-in-a-life time opportunity to work on an exciting project placement for six weeks with an NGO of their choice. Whilst embarking on this unique learning and development opportunity, Vodafone employees underwent focused training in the social sector and continued to receive their salary. The programme in partnership with DASRA, India's leading strategic philanthropy foundation, proved to be a

life-changing experience for the 20 employees and for the NGO they worked with. Many employees travelled to diverse locations in India, leaving their family and friends behind, to work on their assigned project with the NGO. The 19 NGOs benefited from the additional resource, energy, enthusiasm and fresh perspective that the Vodafone employees brought to them, providing more than what money alone can give, to make a lasting difference in a short time period.

Case studies
Sonal Gordon and Krishna Chaitanya Vakati, were among the 20 passionate employees, selected for the World of Difference programme from over 150 eager applicants from all across India. Sonal was selected to work with Aangan Trust in Mumbai, on their Shakti project which helps safeguard the vulnerable girl childs right to safety, protection and development. Chaitanya dedicated his time to Rashtriya Life Saving Society (RLSS), an organisation dedicated to reducing accident-related deaths through first-aid, aquatic and life-saving courses. Both of them used their skills and expertise to make a world-of-difference to their NGO partners.

Aangan Trust: Sonal Gordon


Sonal is extremely passionate about empowering the girl child. Working with the Aangan Trust enabled her to fulfill her long-cherished dream of working for this cause. During her time, Sonal developed a set of innovative materials and activities to increase the participation of young girls in Aangans educational initiatives. From teaching basic life skills to young girls living in the slum communities of Dharavi and Govandi, to creating a library of materials for Aangans use on child rights issues, Sonal made an invaluable contribution to the organisation. The popular introduction of Sorry and Thank you cards to young girls living in care to help them express their emotions among peers easily, is a highlight from Sonals placement.

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Vodafone Sustainability Report 2011-12

Sonal looks forward to continuing to touch the lives of as many girls as possible and make them aware of what power they have within themselves and what difference they can make to their world.

Rashtriya Life Saving Society (RLSS): Krishna Chaitanya Vakati


Chaitanya helped Rashtriya Life Saving Society (RLSS) develop a sustainable communication strategy to showcase their 15-year-old expertise in the life-saving space. Chaitanya leveraged his experiences and expertise to develop lasting partnerships for RLSS with various corporates. After careful study of their working model, Chaitanya developed a detailed marketing plan to help increase the visibility of RLSS with focus on utilising technology. Moreover, he also assisted RLSS in its fund raising efforts. Chaitanyas role in re-developing RLSS communications plan including audio-visuals, communication templates, pitches and souvenirs was crucial in RLSS plans to scale new heights. He believes that with RLSS, his aim is to make a small but significant difference in the world. Im confident that one person can make a difference and Ill do just that. Launching World of Difference in India for the first time has been such an exciting development for everyone involved. The results of the endeavors of the 20 brave employees, who left their family and friends to work with an assigned NGO, have been truly overwhelming for all to see. From juvenile detention centres to rural villages, the journeys made have been phenomenal. Feedback from our NGO partners show that these 20 people have created real impact on the ground within a short space of time. Furthermore, it has been wonderful to see that the experience has brought great satisfaction, a different perspective and many new friendships to all the participants, - Laura Turkington, Country Director, Vodafone Foundation

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PARTNERSHIPS

She also developed a complete training module on beginners English for teachers, besides bringing creativity through painting and singing during the language lessons. This enhanced learning, and made the lessons more fun for everyone.

We partnered with a leading beverage company to provide inventory, supply chain management and sales force automation solutions. The objective of the partnership was to enable the companys sales force to take online orders for multiple Stock Keeping Units (SKUs) from more than 147000 points of sale throughout the country. We also collaborated with a renowned smart-phone manufacturer, and developed a mobile application. The phones used by the sales representatives enabled them to connect with the company network, and remotely access the online ordering system and check stock availability.

The solution offered seamless order fulfillment and reduced response time and order related errors. It also increased the convenience of retailers and promoted better utilisation of sales opportunities. Customers are our most important stakeholders. We always look forward to understand their needs better and deliver innovative services, consistently.

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Vodafone Sustainability Report 2011-12

PARTNERSHIPS

Partnering with the customers

Processes that are making a difference


Whether it is empowering our talent pool, collaborating to enhance our supply chain, or protecting customers from breach of security, we firmly believe that institutionalising effective processes and implementing them is essential to sustain any positive measure. In this section, we talk about processes that ensure smooth running of our operations, thereby making a difference to the value generated for our internal and external stakeholders.

RI

SK

PROCESSES
The telecommunications industry in India has experienced rapid growth in the recent years. With this rapid expansion, the industry is constantly facing newer risks and challenges. The increase in fraudulent activities such as use of our network by unauthorised subscribers, subscriber identity thefts, use of telecommunications services in organised crime/terrorist activity pose a serious threat to our subscribers, our reputation and the society. The external climate notwithstanding, at Vodafone, we are committed to provide our employees, stakeholders and customers an environment where security risks are minimal and pose little threat to the business. We work towards mitigating these risks by addressing telecommunications fraud management issues and strengthening internal controls for fraud detection and investigation. We have invested in the safety of our customers. We have dedicated teams that work towards identifying and investigating call record patterns that are unlikely or unnatural. We believe that proactive vigilance is vital in limiting fraud risks and exposure. In a situation where we suspect a security threat, we bring it to the attention of law enforcement agencies or other concerned authorities. We are also aware of an organisations susceptibility to internally perpetuated fraud. Our Fraud, Risk and Security function works together, with other teams, to investigate incidents, make recommendations and implement initiatives such as the whistleblower hotline, duty to report mandate for employees, referral verifications and candidate verifications.

In this dynamic industry, beside other risks, new fraud threats and business continuity are fast emerging as key focus areas. We, at Vodafone India, are committed to protect customers interest and ensure continuity in service. - Pramod Rao, Senior Vice President, Fraud, Risk & Security

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Vodafone Sustainability Report 2011-12

Zero tolerance towards fraud


Recognising the fact that the industry faces similar instances of fraud and must come together to combat fraud, in 2011, we worked with GSMA to revive the Asia Pacific Fraud Forum to encourage interaction and knowledge sharing between various players in the industry. The Forum, GSM operators from India, UAE, Malaysia and Singapore came together to share best practice in managing telecommunications fraud, techniques to identify and analyse fraud against member networks, and effective solutions in managing instances of fraud. As a key member influencing the revival of the Forum, we have been widely acknowledged for our efforts by GSMA and other members of the industry.

Making information secure


Believing that proactive vigilance is vital in limiting fraud, risks and exposure, call record patterns identified as unlikely or unnatural are immediately reported to the law enforcement agencies or other concerned authorities. Moreover, to ensure customer information privacy and to maintain the highest level of customer service, our systems are secure, preventing leak of valuable information to other authorities or organisations. We have adopted the most stringent information security standards across the organisation the Payment Card Industry Data Security Standards. We take great pride in being the first telecommunication services provider in India to get this coveted certification for business functions in all telecom circles. Furthermore, our Networks Operation Centre (NOC), created to ensure fixed-line service to all our enterprise and wholesale customers has also received an ISO 27001 certification testifying to our commitment towards making information secure.

The GSMA Asia-Pacific Fraud Forum (APFF) brings mobile operators and supporting suppliers together to share intelligence on the latest fraud risks to mobile operators businesses, and associated best practice countermeasures. Vodafone India demonstrated its commitment to reducing the fraud risk exposure for operators in the Asia-Pacific region by hosting an APFF meeting in November 2011, and we recognise and commend Vodafone Indias dedication to industry-wide fraud management. - David Maxwell, Fraud Forum Director, GSMA

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At Vodafone, we take sustainability and security very seriously. We follow a multi-domain security Defense in Depth and Privacy by Design approach. These get regularly reviewed by several internal and external audit agencies. We are proud to be certified for the prestigious PCI DSS, ISO 27001, ISO 20000 International Security Standards. - Burgess Cooper, Chief Technology Security Officer

As a part of Vodafone Indias corporate social responsibility initiative to reach out to society, we conducted a course on Cyber Crime and Information Security at the Lilavatibai Podar Senior Secondary School for 650 students in March 2011 and at the Institute of Advance Security Management and Fire Protection for

over 30 serving and retired Army Officers in September 2011. Our Chief Technology Security Officer won the Top 100 CISO Awards 2011 and was further named the Biztech2.com CIO Master 2012 Security.

Vodafone India Compliance Mission: To provide positive assurance to stakeholders by ensuring adherence with applicable laws, regulations, policies and codes and facilitate open and frank disclosure to enable the management to devise mitigation strategy based on the organisations risk appetite and avoid surprises. I am proud to announce VI Mission of Compliance given above. - Kumar Das, General Counsel

Risk management
As a part of our risk management, our internal audit team customises the 74 risk components defined by the Vodafone Group to identify areas of risks in our operations in India. Every year, this list is revisited and updated suitably and risks are rated and prioritised, based on several key factors including top management perception of risk level. Following this, the top 20 risks are shortlisted for the year. This in turn feeds into our internal audit plan where we chart out the risk components to be audited, sample size of audits, circles self-assessment analysis and others. At Vodafone, we are committed to legal and regulatory compliance. We invest in development of practices that simplify the process of being compliant. Our corporate regulatory function plays a critical role in the development of best practices and forward looking policies, as per the requirements of the regulatory framework in India, so that the company is well placed to deliver on the national telecom objectives of the Government.

RI
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Vodafone Sustainability Report 2011-12

At Vodafone, we have several functions that are a part of the control environment including Internal Audit, Revenue Assessment, Information Security, Privacy, Sarbanes-Oxley (SOX - also known as Corporate and Auditing Accountability and Responsibility Act), Enterprise Risk Management (ERM), Fraud Risk and Security (FRS) and Compliance. However, recognising the need for developing a simplified system for remaining compliant to the large number of laws and regulations affecting us, we are in the process of creating a framework encapsulating all the key laws and regulations that each circle is required to adhere to in all situations. We strive to continually better our performance on the compliance front, through investing in creation of robust processes and self-regulating all crucial activities. We have set the highest benchmarks internally to monitor and evaluate our performance. At the same time, we are open and transparent in our interactions with the Regulator to co-create a sustainable regulatory environment. - T V Ramachandran, Resident Director, Regulatory Affairs & Government Relations

Towards an efficient supply chain


Vodafone India has always taken adequate measures to ensure that the supply chain is efficient, and has developed systems to optimize every step of the supply chain including procurement, inventory management and effective waste disposal. Moreover, we have also established processes that enable us to observe safety rules and conduct business responsibly.

e-Sourcing initiative:
We continue to make remarkable progress in increasing the number of procurements done electronically. We reported a growth of 515% over last year in the utilisation of e-Sourcing tool and conducted more than 270 events, covering multiple areas of procurement such as Request for Interest (RFI), Request for Proposal (RFP), Request for Quotation (RFQ) and Reverse Auctions (RA).

Embedding technology in procurement


For the very first time in the history of telecom industry, we conducted the VAS Related RFP & Reverse Auction for a net worth of 480 million INR and achieved savings percentage of around 60%. These many online procurement events using the eSourcing tool makes us the leader within the Vodafone Group.

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PROCESSES

Legal and Regulatory Compliance

Managing inventory
We have a large number of warehouses that are spread geographically across the country. To effectively track the inventoried stock stock cannibalized from the parent to child stocks. For e.g. TRX cards from the base station, inventory ageing, we embarked upon the development and implementation of an innovative and robust inventory management system, Parent Child Asset Tracker (P-CAT). Integrated with the Enterprise Resource Planning (ERP) system, P- CAT tracks all the warehouse stock including network and non-network inventory. This initiative has also resulted in process optimisations like standardisation of material masters used for procurement across India, inclusion of child items in the bill of materials, barcode enabled capture of serial numbers for high value materials etc. Some of the select network materials are also tracked throughout their lifecycle based on their serial numbers. This is helpful in addressing the maintenance needs of the stock while in use, and disposal needs towards the end of life of the material. With this inventory management system, we have a greater visibility of our inventory and enhanced traceability of our active assets. It has also empowered us to utilise the unused assets, lying at the sites. Going forward, we aim to reduce our total inventory base by as much as 20% with this tool.

Reducing e-Waste footprint


We have always taken adequate measures to ensure that generation wastes such as batteries and e-Waste is disposed effectively. We also ensure our compliance with the laws of the land regarding waste management and handling, including the Hazardous Wastes Rules of 2008, The Batteries Rules of 2002 and the latest e-Waste Rules of 2011. In order to manage our wastes better and manage our compliance risks, our supply chain and sustainability teams together took up an ambitious exercise of waste inventorisation across the firm, including IT waste, network waste and others this year. This exhaustive and insightful exercise resulted in the development of a Waste Management Manual. It was also ratified by senior member of our organisation. Developed to ensure adequate and appropriate disposal of all waste by type such as for hazardous waste, e-waste, food waste, plastic waste and used lead acid batteries across all our operations, this enables us to establish a uniform approach towards waste management and achieve compliance with laws and regulations. We are constantly reinventing the supply chain function at Vodafone by institutionalising efficient processes to enable a seamless business environment for our suppliers, customers and employees. - Venkat Reddy, Executive Vice President, Supply Chain Management
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Our supply chain team has also introduced the system of Forward E auction. Partnering with authorised recyclers, we have disposed more than 1315 tonnes of e-Waste, which included scraps, batteries, equipments etc.
Vodafone Sustainability Report 2011-12

Mobile communication networks are divided into geographic areas called cells, each served by a base station. To communicate with each other, mobile phones and base stations exchange signals at radio frequency (RF). As the number of base stations and local wireless networks increase, so does the concern of the population to possible health risks arising from electromagnetic fields (EMF) emissions. Taking cognizance of our stakeholders concern, we have always advocated adoption of best practices, while contributing towards green telecom. Health, safety and wellbeing of our customers, employees, contractors and the public is of paramount importance to us as part of the Vodafone Group, Vodafone India is committed to comply with all national and international regulations regarding RF emissions. Vodafone India has access to leverage the global experience available from the Vodafone Group EMF team, the GSM Association and other global bodies in the safe management of RF emissions. Believing in leading by example, we reported our carbon footprints, before it was mandated by the Government of India. In coherence with our commitment, we have taken precautionary measures by introducing safety processes and have pro-actively participated in conferences/talks aimed at educating people about EMF. In 2012, we supported the International Health Conference on Ensuring Public Health and Safety in the Mobile Industry organised by ASSOCHAM in collaboration with the Ministry of Science and Technology and the Ministry of Environment and Forests. The conference brought together eminent international experts from reputed

international agencies such as the World Health Organisation, international standards bodies such as ICNIRP and IEE, senior officers from DoT, TERM, TEC and other representatives of the industry including, consumers and activists at one forum to discuss the issue of public health and safety in the mobile industry. Moreover, we have created the Mobiles, Masts and Health section, on our website, to address public concerns about the base stations and its effects. We also introduced the Train the Trainer Programme under which one employee from each of the 23 circles is provided training on the safety aspects of radio frequency. We aim to train all our RF technicians/partners by 2013. All our base stations are compliant with the ICNIRP3 (International Commission for Non Ionizing Radiation Protection) limits for RF emissions from base station antennae and mobile handsets. Also, all our existing sites were self-certified in March 2011 as per the regulations, and every new site that has become operative since has also been self-certified. At the Group level, we continue to engage with our key stakeholders from academia, Government, industry associations, handset/technology suppliers, local authorities, politicians, media and NGOs on electromagnetic fields (EMF), mobiles and health. It was gathered from the stakeholder feedback that we are considered as an organisation that acts responsibly on EMF, mobiles and health. We have also been attributed leadership position for our expenditure on scientific research and the initiative of stakeholder engagement on EMF, mobiles and health.

3 ICNIRP is a non-governmental Organisation that is affiliated with the World Health organisation (WHO) and the limits recommended by ICNIRP are endorsed by WHO. ICNIRP is also supported by the International Telecommunication Union (ITU). The ICNIRP guidelines form the basis for EMF limits in 90% of the countries that have adopted /introduced standards for EMF exposure.

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EMF safety

Shared services centre


We believe in institutionalising efficient processes that enhance performance. The Shared Services Centre facility in Ahmedabad provides centralised solutions for activities such as supplier payments, order collection, maintenance of customer and vendor data, and addressal of queries from suppliers and circle, etc. It helps keep a check on fraudulent transactions and is supported by a robust IT platform. This channel of collaboration between Vodafone and suppliers, results in a faster, efficient and effective supply chain.

International Safety Rating System (ISRS)


This system allows us to drive the safety agenda consistently and build systemic impact. To ensure the implementation of ISRS in all circles, we conducted the internal audits carried out by internal auditors; 16 circles qualified for Level 5, two circles for Level 6 and two other circles for Level 7, whereas the Shared Services Centre attained Level 2. At corporate and circle level we have taken up a lot of initiatives to create awareness towards safety. We are determined to achieve the International Safety Rating System (ISRS) certification (Level 5) for each of our circles. For this purpose, we have trained 20 employees to conduct internal audit. Moreover, by identifying the low-scoring circles from previous year, we introduced measures that would ensure safety and significantly improve their score.

Network safety
To improve the safety standards of our networking sites, we have inspected its structural design and rated them as Gold, Silver and Bronze. At sites that were given a rating below bronze, we commenced rectification and ensured that it had achieved at least the minimum level of safety. We have implemented fall rest systems at our towers in a move towards better safety standards. In another aspect of taking care of our employees safety, we conducted trainings on managing hostile situations and avoiding confrontations for our people stationed at sites. We constantly engage with stakeholders and industry partners to enhance the impact of technology in our endeavour to sustainability. The key initiatives include development and deployment of viable energy efficiency solutions, collaboration with other operators for sharing infrastructure, working with vendors to develop spectral efficiency features, selection of suitable equipment and inculcating a safety culture for ourselves and our vendors. - Unnikrishnan R Nair, Vice President, Business & Strategic Partner Management

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Vodafone Sustainability Report 2011-12

The business environment we operate in is constantly changing. This affects a change in the nature of opportunities and challenges we are presented with. To adapt to these changing conditions and in order to be future-fit as an organisation, we are constantly looking at ways and means to improve our operating models and optimise our organisation structures and processes to continue to remain effective. Affecting a change in culture is another important aspect of bringing about effectiveness in the organisation. Consider, for example, the talent management aspect our strategy is to leverage people where we need them from a futuristic perspective and provide them with training they require, in order to fit into their new roles. We do so by mapping people to their best-suited roles, by assessing their strengths, weaknesses and gaps in knowledge. The trust of our stakeholders is critical to our success. To achieve this, we are committed to ethical behaviour, strong corporate governance and transparency in our dealings with stakeholders - Colman Deegan, Chief Financial Officer

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Building a future-fit organisation

Sustainability matrix
1. Our network a. Number of base station sites 2. Energy consumption at sites and facilities operationally controlled by Vodafone: a. Electricity Consumption (GWh) b. Diesel Consumption (kilolitres) c. Resultant CO2 emissions (tonnes) 3. Energy consumption for base stations at third party tower company sites: a. Electricity Consumption (GWh) b. Diesel Consumption (kilolitres) c. Resultant CO2 emissions (tonnes) 4. Our people a. Total number of employees b. Average employee turnover rate (%) c. Women employees (%) d. Women in senior management (Band F and above) (%) e. Employee engagement index (%) 5. Safety a. Number of trainers trained in RF Safety b. Lost day rate (employees) c. Injury rate (employees) 26 61 1.3 10,307 15 15 9 81 1,557 226,785 1,871,656** 395 46,233 444,846* As on 31 March 2012 110,004

*Corresponding figure for FY 10-11 is 439,187 tonnes, after correcting scope 1 & 2 sites. **Corresponding figure for FY 10-11 is 1,902,072 tonnes, after correcting scope 3 sites.

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Glossary
ACDG Alternative Current Diesel Generator ASHAs Accredited Social Health Activist ASRS Absolute Safety Rules ASSOCHAM The Associated Chambers of Commerce and Industry in India CEP Code of Ethical Purchasing CIO Chief Information Officer CISO Chief Information Security Officer CRT Cathode Ray Tubes DCDG Direct Current Diesel Generator DoT Department of Telecom EMF Electromagnetic Fields ERM Enterprise Risk Management ERP Enterprise Resource Planning GRP Government Railway Police GSMA GSM Association HSW Health Safety and Wellbeing ICNIRP International Commission for Non Ionizing Radiation Protection IEE Intelligent Energy Europe ISRS International Safety Rating System LED Light-Emitting Diode M2M Mobile 2 Mobile Technology MNC Multinational Company NGO Non Governmental Organisations NOC Network Operations Centre RA Reverse Auction RF Radio Frequency RFI Request for Information RFP Request for Proposal RFQ Request for Quotation ROTO Retail of Tomorrow SAFE South Asian Federation for Environment SME Small and Medium Enterprises SOX Sarbanes-Oxley SPM Supplier Performance Management TERM Telecom Enforcement, Resource and Monitoring TEC Telecommunication Engineering Centres TFT LCD Thin film transistor liquid crystal display TRX Transceiver UPE Uttar Pradesh East VAS Value Added Services VC Video Conferences WHO World Health Organisation
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Vodafone Sustainability Report 2011-12

We would like to hear your feedback on our sustainability report email us on footprints@vodafone.com This is the second annual Sustainability Report by Vodafone India. To access all editions, log on to www.vodafone.in