Assurance statement

ERM Independent Assurance Report to
Vodafone New Zealand Limited

ERM New Zealand Limited (ERM) was engaged by Vodafone New Zealand Limited (Vodafone NZ) to provide independent assurance of its 2011 Corporate Responsibility Report (2011 CR Report), to the scope of work outlined below.

Scope of Work

This assurance statement is intended for Vodafone NZ's stakeholders. The 2011 CR Report covers Vodafone's operations for the 12 months to 31 March 2011, unless stated otherwise in the text. This work was performed in accordance with ERM's assurance methodology, which is based on the international standards ISAE 3000, AA1000 Assurance Standard (2008) and ISO 19011. ERM reviewed Vodafone NZ's performance reporting for the subject matter specified below. To achieve this, we interviewed a number of personnel and reviewed relevant documentation at Vodafone NZ's operations in Auckland.

The subject matter for this assurance process consisted of a representative sample of data and statements for the following material data streams and therefore the related pages of the Online Vodafone NZ 2011 CR Report: CR management; supply chain; social; stakeholder engagement; environment; targets; network deployment; Vodafone NZ profile; health and our technology; economics; network deployment; employee and Foundation. The scope excluded data and statements relating to financial information as well as data that had been assured in 2010 and not changed for the 2011 CR Report. In addition, Vodafone NZ's 2011 CR Report has been published online, and includes non-assured data which falls outside the above scope of work.

ERM's Independence

Vodafone NZ was responsible for preparing the 2011 CR Report. The ERM team, led by Tracey Ryan, Partner, Australia & New Zealand, was responsible for expressing assurance conclusions in line with the scope of work agreed with Vodafone NZ. During 2010/11, ERM did not work with Vodafone NZ on other consulting engagements.

Key Findings

Based on the scope of work, and without affecting our assurance conclusion, ERM identified the following key findings:

Good Practice

• Vodafone NZ demonstrated responsiveness and adaptability in their management of the major incidents that have affected their operations in the past year: the Christchurch earthquake and the unrest in Egypt. Vodafone NZ's response to both incidents was also heavily focused on sound CR principles including the health and wellbeing of staff, as well as supporting the local community.
• Whilst the need to respond to the major incidents of the past year has clearly been a priority, Vodafone NZ has continued to support its ongoing CR programs, including aspects such as the health and wellbeing of young New Zealanders, increasing mobile and broadband coverage through New Zealand, and supporting market diversification.
• Vodafone NZ continue to invest in its own staff through recognition and reward programs as well as opportunities to participate in wider CR initiatives which have allowed Vodafone NZ to maintain high levels of staff engagement.

Areas for Improvement

• Although Vodafone NZ is recognised in the marketplace as a leading practitioner of CR principles, there is a need to ensure that the continuity and effectiveness of the telecommunications service it provides do not over-shadow these efforts.
• Vodafone NZ's direct carbon dioxide (CO2) emissions have continued to increase over the past three years. Whilst this has been attributed to an increase in network capacity, efforts to identify and implement energy efficiency initiatives require more focused attention, particularly as initiatives such as the Rural Broadband Initiative will increase in Vodafone NZ's network footprint.
• As new technology and network infrastructure are commissioned, a greater focus will need to be placed on network waste generation and the validity of waste data, which is currently sourced from external suppliers and is not independently verified.

ERM congratulates Vodafone NZ on its 2011 CR Report.

ERM New Zealand Ltd, 10 August 2011, Auckland, New Zealand
ERM New Zealand Limited (ERM) is an independent global provider of environmental, social and corporate responsibility consulting and assurance services. ERM has prepared this statement for Vodafone New Zealand in accordance with ERM's standard terms and the standard practised by members of the environmental consulting profession performing this type of service at the same time. No other warranty, express or implied, is given by ERM as a result of the provision of this statement. To the extent permitted by law, this statement is provided for informational purposes only, without the right to rely, and ERM will not be liable for any reliance which may be placed on this statement by a third party. This statement may not be used by any third party without ERM's express written permission.