This target will be achieved principally by improvements in energy efficiency and increased use of renewable energy. In addition, as part of its climate change strategy, Vodafone will be focusing on developing products and services which will help customers limit their own emissions.

Arun Sarin, the CEO of Vodafone Group Plc said, "This is the right decision for a responsible business to take. It is good for the environment but also makes sense for the business. It resonates from a financial perspective as improving energy efficiency helps us to control costs. It also resonates with customers as developing new products and services, such as our plans for solar-powered phone chargers, and universal phone chargers for Vodafone-branded handsets will help customers to limit their own emissions and this is something they value more and more.

We have reviewed the options, including carbon off-setting, and have concluded that the most effective strategy is to cut our CO2 emissions directly. There are no simple solutions to what is a complex challenge, but through operational changes and technological innovation we will focus on improving energy efficiency in our networks, which account for 80% of our emissions. We will use renewable energy when and where we can.

We hope that making this public commitment now will encourage others to take similar action."

Vodafone has been working hard to address climate change issues for a number of years. For example, in 2006/7 we reduced the amount of carbon dioxide emitted relative to network traffic by 29% and improved the energy efficiency of new network equipment by 25%.

Vodafone is currently gathering data about the carbon footprint of its newly acquired companies in India and Turkey and climate change targets for these businesses will be announced in due course.

Jonathon Porritt, Founder Director of Forum for the Future, which works with Vodafone on sustainability issues, said: "This is a significant commitment from one of the world's largest companies. It signals to its millions of customers around the globe that Vodafone is serious about tackling climate change.

With a simultaneous focus on the products and services that they offer - and thus on helping their customers to reduce their emissions - Vodafone has the opportunity to show real leadership. 2020 may sound a long way away, but it is what Vodafone does over the next two or three years which will determine whether or not they hit that 50% target."

Tom Delay, Chief Executive of The Carbon Trust, said "Taking early action on reducing carbon emissions offers major opportunities for business as it brings reduction in costs and boosts overall reputation. We also believe it is what consumers expect and want to see from leading businesses in the UK and abroad. More and more

companies are stepping up to the plate and making strong commitments to cut their carbon emissions and today's announcement by Vodafone is very welcome and is increasing evidence that business momentum is growing on this critical issue." 

. Energy use in 2006/07 resulted in a total of 1.23 million tonnes of carbon dioxide emissions, reflecting an overall 6% increase in total energy consumption over the previous financial year on a like for like basis. Vodafone has an existing target to reduce network carbon dioxide emissions relative to network traffic by 40% by 2011 (from a 2005/06 baseline). The Company is on track to achieve this target, achieving a reduction of 29% during 2006/07

. The energy used to run the networks accounts for more than 80% of this total, with offices, transport and retail accounting for the remaining 20%

. Renewable energy accounted for 17% of Vodafone's total network energy consumption, the majority of this through purchasing agreements with power companies, supplemented by on-site renewable generation through mini-turbines and solar panels. This proportion (17%) represents an increase of 28% over the previous year

Vodafone's focus has been on its networks, due to these being responsible for 80% of total emissions. Initiatives are primarily in the following areas:

. Operational initiatives - significant savings can be made by allowing a higher ambient temperature within base station cabinets, thus reducing cooling requirements. Average energy use in some base stations can be cut by more than 10% by increasing the ambient temperature by 4°C.

. Technological initiatives - working with suppliers to improve the efficiency of network equipment. For example, the average energy efficiency of power amplifiers has improved from around 9% in 2004 to 15% in 2006.

. Use of renewable energy on-site - a number of Vodafone's operating companies have been piloting renewable energy solutions to reduce climate change impact and improve the operational performance of remote base stations. This includes the use of solar power, wind power and fuel cells. Using these and other approaches, Vodafone businesses are already making good progress on addressing climate change issues. For example:

. In Spain, Vodafone focused on increasing energy efficiency in the access network and at switching centres and has since reduced CO2 emissions by more than 6,600 tons.

. Vodafone Greece installed photovoltaic systems at 123 base stations in remote areas. These systems have generated some 3,300,000 kWh of energy since 2001 (or 700,000 kWh of energy per year) replacing diesel consumption in the respective base stations.

. Vodafone Germany deactivated unused electricity circuit devices at all its base stations and reduced energy use by 1-5% per site. This is now being implemented in other operating companies.

. Vodafone Portugal installed free-cooling at all its 1,100 base station sites, and increased base station room temperature to 35°C tomaximise the benefits of free-cooling with no adverse effects on equipment. Vodafone is also addressing energy consumption in offices and other network buildings.

. In the UK a number of measures were identified to significantly improve energy efficiency. For example, switching off air conditioning systems and lighting when office and call centre buildings are not occupied can reduce energy consumption by as much as 10%.

. Vodafone Germany ran a solar power pilot project at its Mobile Switching Centre in Würzburg. A total of 62 rooftop photovoltaic modules were installed on the roof of the building, at a cost of ?70,000. The system will generate some 12,000 kWh of energy, which will be fed into the public grid. 

- Vodafone Group, Newbury, Berkshire -