Highlights

• Group executive committee formed with responsibility for sustainable development
• First independent stakeholder survey conducted
• Vodacom SA’s BBBEE score for the DTI‘s Codes improves to a Level 4 contributor rating
• Vodacom SA concludes R7.5 billion BBBEE transaction
• More than two million affordable handsets (under R300 each) sold by the Group
• Vodacom SA launches handset recycling programme, with 12 400 handsets recycled

Vodacom’s development has been characterised by a strong pioneering approach. Looking back, there is no doubt in my mind that Vodacom has built a sustainable operation – all indications are that the company will continue to grow from strength to strength. By making sound business decisions, Vodacom has also largely answered the needs of its stakeholders: mobile telecommunications have revolutionalised life for the previously underserviced; some R19 billion a year is spent on local procurement; the Group now provides employment to some 7 255 employees; and through the Vodacom Foundation more than R67 million was contributed to local South African communities in the year under review and some R500 million over the ten years of its existence, as well as a growing fund to invest in communities across the continent.

In this new era, Vodacom is taking a new form – listing on the JSE Limited takes the company public and places more rigorous demands on the way we engage with our stakeholders. On review of feedback received so far, we recognise that we can best improve our engagement with stakeholders through a positive, consultative approach. Aside from stakeholder engagement, the material sustainability issues Vodacom is currently addressing are: earning the trust of the public and our customers in the way we do business; broad-based black economic empowerment; making Vodacom the best company to work for, for the best and most highly skilled employees; further increasing access to communication for marginalised communities across Africa; addressing issues relating to climate change; and investing in social causes that are aligned both to the business and the development agendas of the countries in which we operate. While these issues reflect a synthesis of the views of management, shareholders and stakeholders, we will be formalising our approach to substantiating the Group’s material sustainability issues in the year ahead.

Furthermore, we are determined that Vodacom achieves leadership across a number of key sustainability indicators over the next 18 to 24 months. This will require a strong emphasis on defining indicators and measuring progress more accurately. In this endeavour, we will be guided by the principles set out in King II with a view on King III and the guidelines of the Global Reporting Initiative (“GRI”).

We have already made a start in creating a robust governance structure for sustainable development, establishing a group executive committee, chaired by the Chief Executive Officer, and including the Chief Financial Officer, Chief Officer Human Resources, Chief Officer International Business, Managing Director Vodacom SA and myself, as Chief Officer Corporate Affairs.

Vodacom looks forward to a year of strong progress in establishing a more formal approach to sustainable development, and building on our track record of success and contribution to its stakeholders.

Summary table of material sustainability issues