Professional Documents
Culture Documents
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
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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.
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:
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.
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
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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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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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.
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.
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.
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:
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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- 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
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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.
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
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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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
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
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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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
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
3275.5
Band F2 & G
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.
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PEOPLE
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.
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.
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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 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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PEOPLE
As a result of our consistent efforts in safety, across the country, we have been able to save 17 lives!
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
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.
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.
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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
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.
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
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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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.
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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.
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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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PARTNERSHIPS
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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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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SK
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
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).
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PROCESSES
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.
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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PROCESSES
EMF safety
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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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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PROCESSES
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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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