Liberty Global : VodafoneZiggo Sustainable Finance Framework

VodafoneZiggo
Sustainable Finance	JANUARY
2022
Framework

2	VodafoneZiggo Sustainable Finance Framework January 2022 | Introduction | Green Finance Framework | Sustainability-Linked Finance Framework | Disclaimer

Table of Contents

1.	Introduction	3
	a. Sustainability Strategy	4
	b. Rationale for Green and Sustainability-Linked Financing	9
2.	Green Finance Framework	10
	a. Use of Proceeds	12
	b. Process for Project Evaluation and Selection	14
	c. Management of Proceeds	16
	d. Reporting	17
	e. External Review	18
3.	Sustainability-Linked Finance Framework	19
	a. Selection of Key Performance Indicators (KPIs)	20
	b. Calibration of Sustainability Performance Targets (SPTs)	22
	c. Characteristics of the Sustainability-Linked Financing	23
	d. Reporting	24
	e. Verification	25
4.	Disclaimer	26

3	VodafoneZiggo Sustainable Finance Framework January 2022 | Introduction | Green Finance Framework | Sustainability-Linked Finance Framework | Disclaimer

Introduction

VodafoneZiggo is a leading Dutch technology company that provides essential high- speed fixed and mobile connectivity, and the best entertainment services to our residential and business customers. The Netherlands has one of the best mobile and fixed network infrastructure in Europe. As a large player in both markets, we strongly contribute to this competitive position of our country and its investment climate.

VodafoneZiggo was established during 2016 as a joint venture between Vodafone Group and Liberty Global. Supported by our GigaNet, the powerful Vodafone and Ziggo networks, we operate as one company with two premium brands:

Vodafone: one of the most innovative brands in the market for mobile telecommunications services. Vodafone has the largest 4G network, was the first to introduce 5G in the Netherlands and is viewed worldwide as the leader in the field of the Internet of Things ("IoT").

Ziggo: offers a range of fixed services and products such as Gigabit internet, SmartWiFi pods and digital television with attractive entertainment content such as Ziggo Sport provided over next-generation video platforms including our awarded Ziggo Go app.

Additionally, we serve the mobile no-frill segment with our second brand hollandsnieuwe. The formation of VodafoneZiggo created a national fully converged operator in the Netherlands and, as such, we can better serve our customers. As a converged company, we are also able to create growth opportunities, including quad-play offering, cross-selling and upselling. Furthermore, we are leveraging the knowledge and expertise of our parent companies.

We are adding value to our customers through each and every connection through our video, broadband internet, fixed-line telephony and mobile services. We enable our customers to connect with their loved ones and build new meaningful relationships and enjoy fantastic content and entertainment in familiar and refreshing ways, thereby creating more satisfying experiences for our customers. Our networks play a vital role in this regard. This has become more evident throughout the COVID-19 pandemic.

In this new reality connection is paramount and that is why we continue to invest in our customers and networks through our 1 Gigabit national roll-out program, nationwide 5G coverage, new SmartWiFi pods to maximize the in-home customer experience, a dedicated WiFi Crew, and ever faster internet speeds.

4	VodafoneZiggo Sustainable Finance Framework January 2022 | Introduction | Green Finance Framework | Sustainability-Linked Finance Framework | Disclaimer

Observed in the changing consumer behaviour, where the home is now central to our work and personal life, but also connectivity being essential for economic prosperity and physical wellbeing. We are also looking at what more we can do. For example, connecting pupils with no internet at home with Ziggo WiFi-spots at no additional charge, teaching the elderly necessary digital skills, and providing our business customers with working from home solutions.

As of September 30, 2021, we have over 5 million mobile, nearly 4 million video, over 3 million fixed broadband internet and over 2 million fixed telephony subscribers.

a. Sustainability Strategy

Our networks are essential to the daily lives of millions of people as we support and connect the Dutch Gigabit society. Therefore, we will continue to invest in the coming years to ensure that our networks are faster, more reliable and future-proof. However, as the climate crisis needs to be addressed sooner rather than later, we recognise that we must invest in a more sustainable future. This is why we launched our new Corporate Social Responsibility ("CSR") strategy in 2020, under the title People, Planet, Progress. We have set two goals for 2025: to halve our impact on the environment and to help 2 million people move forward in society. The strategy is characterised by the integrated approach in which the entire organisation will contribute to achieving the goals, under the governance and oversight of our CSR committee.

Building on these two goals for 2025 and our commitment to the Science Based Target initiative ("SBTi"), we plan to further eliminate our own carbon emissions and set a net zero commitment across our entire value chain. We expect to announce this ambition in mid-2022.

Ritchy Drost, VodafoneZiggo CFO, commented:

"With the launch of our Sustainable Finance Framework,

we further strengthen our commitment to realise our People, Planet, Progress ambition. Through the issuance of funding instruments under the framework, we continue to build a sustainable capital structure whilst investing in the future and promoting the transition towards a low-carbon climate resilient growth."

5	VodafoneZiggo Sustainable Finance Framework January 2022 | Introduction | Green Finance Framework | Sustainability-Linked Finance Framework | Disclaimer

We view CSR as an integral part of our entire strategy and business operations, as something that is high on the agenda with all our people. As CSR is integral to our business operations, our departments will contribute to the realisation of the goals on a day-to-day basis. All of our 8,000 employees will contribute to the ambitions of People, Planet, Progress. For many years and through various initiatives, we have promoted both environmental and social objectives to address urgent issues, such as climate change, waste, and diversity & inclusion. We do this based on five strategic pillars:

1. EVERYTHING FOR A HEALTHY ENVIRONMENT

We are aware that our products and services have an environmental impact. Natural raw materials are needed for every product that is manufactured, packed and transported and our services cannot function without good data centres. As a result, we emit CO2, use natural resources and produce waste. We are aware of the detrimental impact this has on the environment and recognise the risks inherent in using natural capital. We do all we can to reduce this impact every year, our aim is to halve our environmental impact (measured in CO2) by 2025, compared to our 2018 baseline. Just like its parent companies Vodafone Group and Liberty Global, VodafoneZiggo has also committed itself to the SBTi.

In this way, our goals and ambitions actually contribute to achieving the climate targets set in Paris in 2015 of keeping global temperature rise under 2°C (our aim is 1.5°C, the most ambitious goal of the Paris Agreement). Our environment policy ensures that we achieve the goals through three key objectives:

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Continuous improvement of our operational activities: ways we do this include implementing energy-savingmeasures such as installing energy-efficientequipment and smarter cooling systems, doing business in a more circular way and reducing waste flows

Enabling customers to make more environmentally friendly choices: ways we do this include buying back used phones and giving them a second life, and refurbishing and recycling setup boxes