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This section provides an overview of our approach to preparing the 2015 report.

Reporting standards and guidance

Preparation of this report is guided by the Global Reporting Initiative (GRI) guidelines and the principles set out in the AA1000 series of standards (including AA1000 APS, AA1000 AS and AA1000 SES). 

We have prepared this report to be in accordance with the core requirements of the GRI version 4 guidelines (G4). We have provided a GRI Table online, while pages 1 to 11 of the Corporate Responsibility Report set out how we have approached the key Principles of Inclusivity, Materiality and Responsiveness set out in the AA1000 APS standard. We have also started to provide elements of the International Integrated Reporting Council (IIRC) guidance, with the introduction of the graphic in Creating Value.

VimpelCom has previously signed up to the 10 Principles of the United Nations Global Compact. This Report includes our Communication on Progress (COP). The table online provides a cross-reference between the COP and various sections of the report. 

A number of our BUs and OpCos prepare their own CR reports, some of which also follow the GRI guidelines (see Our Strategy).

Scope of reporting, and completeness

As indicated in About our reporting, we have focused our reporting on our largest markets. We have not included our operation in Laos in the scope of our data collection process for this year. We are reporting information by brand or country, rather than legal entity. A list of the subsidiaries that comprise VimpelCom is provided in our Form 20-F.

Material aspects

In Materiality, we set out the approach we have taken in identifying our material aspects, based on industry research and engagement, local and global sustainability context, the views of HQ and local teams, and our own direct engagement with experts and stakeholders.

Expert input

Each year we consult a wide range of experts to prepare the CR Report – in particular to identify our priority (material) issues. This year we managed this process through our engagement in the GeSI materiality and human rights studies.

These studies identify which sustainability issues are most likely to be material for companies in the ICT industry. GeSI defines material issues as those that substantively influence the assessments and decisions of stakeholders, and that have significant influence over the commercial success of ICT companies. 

Definitions

We have defined the KPIs we have adopted using the information provided in the GRI v4 guidance material. Where we have developed KPIs specific to our sector, these are based on accepted industry practice – for example the level of network traffic and numbers of base stations. This year we have also provided a Glossary of Terms. 

Boundaries

For this report we have focused on our own operations. However, this focus includes several impacts that arise through the use of our products and services (e.g. privacy and online safety, applications in health, education, agriculture etc.) as well as on our approach to ethical procurement. 

We are focused on improving the measurement of our Scope 1 and 2 carbon emissions and so have not started to quantify our Scope 3 emissions.

In several businesses, we have outsourcing agreements relating to the building, management and maintenance of our network assets. Where this is the case, we have attempted to record the key impacts such as energy consumption, and relevant health and safety performance of contractors (when on VimpelCom premises). We do not intend to report on the broader impacts of outsourcing partners as these issues should be included in their own CR reporting. Similarly we do not report on the impacts of our suppliers.

We have described the reporting boundaries for material issues in the GRI reference table. 

Data quality and assurance

During 2013 and 2014, we implemented a reporting system to gather performance information from across our markets. The system, developed by Oracle, mirrors the Hyperion Financial Management system currently used for financial reporting. During 2014, the CR reporting system became more deeply integrated into the broader financial reporting system and controls. 

During 2014 we rationalized our CR KPIs to ensure they aligned more with GRI G4, and with our existing financial reporting. We have designed our KPIs to focus on our most material issues and, wherever appropriate, represent data already used for management purposes. In 2015 we increased the number of KPIs to include information on diversity within our leadership team, and our performance on ethical procurement. We continue to develop and improve our reporting processes across the Group. 

We have again commissioned external independent assurance of the report from DNV GL Business Assurance Services UK Limited (‘DNV GL’) and we see this as an important step in improving quality and insight. The scope of the assurance includes this PDF document, but not the additional information on our website, although there is clearly a strong correlation and crossover between the two. You can see the scope of their work, their conclusions and observations on pages 44 and 45 of the Corporate Responsibility Report. 

Data assumptions and estimations

The key area where we have made assumptions, and have to make estimations, is in relation to our energy use and carbon footprint. The bulk of our energy consumption comes from our network, which is made up of approximately 170,000 base stations, some of which are not connected to national power grids. This means we have to estimate consumption based on a mixture of invoice information and knowledge of technical capabilities of different types of equipment. 

For several of our businesses, we estimate energy consumption for the final period of the year as invoices are not yet available. We have done this through reference to other invoices received during the year and for the same period in the previous year. We have calculated carbon dioxide equivalent emissions arising from energy purchased from national electricity grids with reference to conversion factors provided by the International Energy Agency. 

Internal data control measures

We have defined a series of control measures to help improve the quality of our data gathering.

These include: 

  • controls within the reporting software which ‘lock’ data once approved at different levels to prevent unauthorized changes
  • division of responsibilities between dataowners (responsible for providing initial data), finance officers (responsible for the reporting and data entry process) and local CR officers (responsible for checking data quality and content) 
  • sign-off of locally generated data by the local Chief Executive Officer and Chief Financial Officer 
  • review of consolidated data by Group CR and Group-level data owners. 

In 2015, we again commissioned DNV GL to provide an independent assurance review of our data reporting processes, the report content and certain specific KPIs.

Acquisitions and disposals

Any businesses acquired by VimpelCom will not need to submit CR performance data until the end of the financial year following the year of acquisition. The CR performance data for any businesses that we sell will be excluded from the CR Report for that year. Adjustments to prior year figures to reflect this will be made where appropriate.

 In August 2015, VimpelCom announced that it had signed an agreement to enter into a 50-50 joint venture in Italy with CK Hutchison. Under the agreement, VimpelCom will merge WIND with 3 Italia to create a leading convergent operator in Europe’s fourth largest market. The formal regulatory review process has commenced with the submission of the merger control notification to the European Commission on 5 February 2016. VimpelCom expects that the transaction will complete around the end of 2016, subject to regulatory approvals. WIND Italy and 3 Italia will continue to operate separately pending completion. For this report, the performance of WIND has been included fully, in line with the position in previous years.

Feedback and contact

We are keen to improve the value of our reporting and therefore welcome comments on this document, and our CR information on the website. Please contact cr@vimpelcom.com.

Reporting principles

CR Reporting

  • CR reports
    Approach to CR
    CR strategy
  • CR videos
    Make Your Mark
    Introduction
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