Engaging with our suppliers
How we evaluate suppliers
We evaluate suppliers on their commitments to diversity, inclusion and the environment when they tender for new work, ensuring that the supply chain contributes towards Vodafone’s purpose to connect for a better future by enabling inclusive and sustainable digital societies.
We will also work with our suppliers and partners to make improvements through events and programs to drive a more responsible supply chain aligned with our purpose and supply chain related UN Sustainable Development Goals.
Procurement with purpose
Since October 2020, Vodafone Group evaluates its suppliers on their commitments to diversity, inclusion and the environment when they tender for new work. A supplier’s ‘Purpose’ accounts for 20% of the evaluation criteria, and suppliers are asked to demonstrate policies and procedures that keep those working on high risk activity safe (10%), support diversity in the workplace (including gender, ethnicity, LGBT+, age and disability criteria) (5%), and to address carbon reduction, renewable energy, plastic reduction, circular economy and product lifecycle (5%).
Suppliers are asked to make commitments on the following areas:
Health & Safety
- Provide a safety plan
- Ensure competent resources are put in place to manage safety
- Safe management of sub-contractors
- Assurance of activities through oversight audits to be performed of supplier’s employees or sub-contractors working on high-risk activities
Diversity
- Have policies relating to supporting and not discriminating against diverse groups
- Target 40% gender equality at leadership and company level
- Ensure pay equality
- Support for LGBT+, disability, age, race and ethnic minorities
- Having a supplier diversity program
Planet
- Set a science based target (SBTi) on Green House Gas (GHG) emissions reduction
- Set a net zero GHG emissions target by 2040
- Report publicly on GHG reduction progress and to CDP supply chain
- Cascade requirements to their supply chain suppliers
- Undertake a Life Cycle assessment of products
- Set a target to use 100% renewable energy in their operations
- Reduce plastics and packing and increase recycling
- Ensure circularity and repairability of products
Supplier diversity
Vodafone aims to increase diversity and inclusion within its supply chain through partnering with other organisations and increasing the opportunities available to diverse suppliers. Micro, small and medium sized enterprises receive positive scoring in our Purpose RFQ to provide them with an opportunity to compete against the large suppliers.
Planet
In 2024, Vodafone achieved an A rating in the CDP Supplier Engagement Programme. This recognisies that we demonstrate best practice to deliver a robust engagment strategy that aligns suppliers to our ambitious climate targets and partners effectively with them to drive scope 3 reductions.
Supply chain finance initiatives
We continue to offer Supply Chain Financing, which is entirely optional for our suppliers to use, which allows them to leverage Vodafone’s credit position to access cheaper funding and liquidity that they would not be able to obtain themselves. There is no impact on commercially negotiated payments terms.
Vodacom Financial Services also expanded its services to include a supplier portal called VodaTrade, where small suppliers can go digital and connect with bigger business partners.
