MTN Group Limited
Climate Report for the year ended 31 December 2023
Leading digital solutions for Africa's progress
Welcome to our 2023 Climate Report
Our purpose is to enable the benefits of a modern connected life for everyone
Inside this report
01 | Introduction | |
01 | Our reporting suite | |
02 | Navigating this report | |
03 | About this report | |
04 | Who we are | |
06 | A message from the Group President and CEO | |
07 | Sustainability strategy framework | |
08 | Key accomplishments: 2023 | |
09 | Our operating context through a green lens | |
10 | Our key metrics at a glance | |
11 | MTN's approach to climate change |
02 Governance
- Board oversight
- Executive Committee function
- Management roles
- Corporate policies
03 Strategy
- Our Group environmental strategy
- Risk and opportunities
- Management response to climate risks and opportunities
- MTN's Net Zero philosophy
- Towards zero emissions and cleaner energy
- Additional Project Zero updates
- Developing a circular economy
- Using natural resources responsibly
- Supporting climate entrepreneurship
- Developing sustainable products
- Early warning system for extreme weather
- Partnering to expand our impact
04 | Risk management | |
Identifying and assessing climate-related risks | ||
40 | ||
41 | Extreme weather events experienced across our footprint | |
42 | Physical Climate Change Risk Assessment pilot project |
05 | Metrics and targets |
44 | Our targets and performance |
06 | Going forward |
47 | Going forward |
48 | Notes on carbon footprint |
49 | Glossary of terms |
51 Administration
Introduction | + | Governance | Strategy | Risk management | Metrics and targets | Going forward |
Our reporting suite
Our Climate Report is supplemented by a number of reports that provide a comprehensive view of MTN's performance and prospects covering financial, risk management and environmental, social and governance (ESG) aspects. These reports go beyond traditional financial reporting by integrating sustainability and non-financial information.
Integrated Report | Financial reporting |
Our primary communication to stakeholders aims to help them make informed assessments of our performance and prospects, strategic direction and the value we create through our activities. It provides a forward looking perspective on MTN's financial and non-financial performance, encompassing strategy, risks and opportunities, targets and governance.
Sustainability reporting
The following suite of reports provides information on MTN's strategy and performance related to sustainability issues with potential impact on our organisation, society and the environment. The reports detail MTN's environmental and social policies, governance, strategies, risks and opportunities. The reports also provide detailed performance data on a wide range of ESG metrics and targets. MTN's sustainability disclosures are structured and informed by the voluntary Global Reporting Initiative (GRI) Standards (2021) and the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (IFRS S1 and IFRS S2), which have fully integrated the Task Force on Climate-Related Financial Disclosures (TCFD) guidance. The reports detail MTN's policies, governance strategies, risks and opportunities relating to sustainability considerations.
These reports include an analysis of the Group's financial results, a five-year review, and MTN's approach to handling uncertain tax positions. They provide insight for current and prospective investors, employees, creditors, analysts and other stakeholders. They disclose details of MTN's income statement, financial position, cash flows, performance per share, as well as key non-financial information.
AFR | TAX | ||
Annual Financial | Annual Financial | Tax Report | Five-Year Review |
Results | Statements |
Information for shareholders
CR | |||
Sustainability Report | ESG Data Booklet | Transparency Report | Climate Report |
Regulatory and reporting frameworks used:
Companies | B-BBEE | |
Act | Act | |
Amended | IR | |
Financial | ESG Matrix | |
Sector Code | INTEGRATED | for Mobile |
(FSC) | REPORTING |
The Notice of AGM and form of proxy give information to shareholders who want to participate in the Group's Annual General Meeting (AGM).
Notice of AGM | King IV Assessment Report |
This provides a summary of the application of the King IVTM principles by MTN Group Limited and Mobile Telephone Networks Holdings Limited.
Climate Report 2023 01
Introduction | + | Governance | Strategy | Risk management | Metrics and targets | Going forward |
Navigating this report
Throughout our Climate Report, we use the following icons to show the connectivity between our material matters, primary SDGs and creation of shared value.
Material matters
Geopolitical and
Other icons and acronyms
- macroeconomic conditions
2 | Complex regulatory |
and tax environment |
Network and platform
3 performance
4 | Financial resilience |
De-layering of the |
- telecommunications business model
6 | Greater focus on ESG |
7 | Future-fit skills |
and culture | |
8 | Cybersecurity and |
digital safety | |
9 | Governance, ethics |
and risk management | |
10 | Artificial intelligence |
ESG remains at the core of our strategy. This aligns with our work to advance the United Nations Sustainable Development Goals (UNSDG) through our business activities and our support of governments, communities and customers. The SDGs target a sustainable society with a plan to end poverty, protect the planet and ensure equality for all by 2030. We are committed to bridging the digital divide, furthering financial inclusion to advance the attainment of the goals.
Our primary UNSDG contribution areas for shared value creation
Key indirect opportunities exist in the following SDGs
Throughout this report we use the * symbol:
- Constant currency after taking into account pro forma adjustments. These are the responsibility of the directors and have been reviewed by our external joint auditors
Other icons:
LA Limited assurance obtained
www.mtn.com
International Sustainability Standards Board
Sustainability Report
ESG ESG Data Booklet
Frequently used acronyms
CCRA | Climate change risk assessment |
ESG | Environmental, social and governance |
GHG | Greenhouse gas |
GSMA | Global System for Mobile Communications Association |
ICT | Information and communication technology |
IFRS | International Financial Reporting Standards |
ISSB | International Sustainability Standards Board |
KPI | Key performance indicators |
Opcos | Operating companies |
SBTi | Science-based Targets initiative |
TCFD | Task Force on Climate-Related Financial Disclosures |
UNSDG | United Nations Sustainability Development Goals |
The forward looking financial information disclosed in this Climate Report has not been reviewed or audited or otherwise reported on by our external joint auditors.
Climate Report 2023 02
Introduction | + | Governance | Strategy | Risk management | Metrics and targets | Going forward |
About this report
Welcome to MTN's Climate Report 2023, reflecting on our 2023 climate actions and progress. Aligned with our Group environmental strategy, climate change is a key priority for MTN as we manage our operations. We are committed to sharing our approach to climate change as well as the successes and challenges in transitioning to Net Zero emissions.
Context and purpose of this report
In line with the Paris Agreement, MTN has set an ambitious goal to achieve Net Zero greenhouse gas (GHG) emissions by 2040, 10 years ahead of industry guidelines. With a base year of 2021, we aim to achieve a 50% reduction in operational emissions by 2030, with a long-term target of Net Zero emissions by 2040. In 2021, we signed a pledge with the Science-based Targets initiative (SBTi) which formally commits the MTN Group to achieve Net Zero emissions by 2040. In 2023, we had our interim targets formally validated by SBTi to ensure they are aligned with the latest climate science. In 2022, we issued our first Climate Report aligned with the recommendations of the TCFD. This report is MTN's third TCFD-aligned Climate Report, highlighting our comprehensive approach to climate change risks and opportunities. The purpose of this report is to provide our stakeholders with insight into our climate change efforts. We unpack the report in terms of governance, strategy, risk management and conclude with our metric and targets.
Reporting on other sustainability topics
In addition to our Climate Report, MTN publishes a corporate sustainability disclosure addressing other environmental,
social, and governance (ESG) topics: .
Developments in climate reporting
In June 2023, the International Sustainability Standards Board issued IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, providing a consolidated standard for sustainability-related disclosures worldwide. In addition, the Financial Stability Board has asked the IFRS Foundation to take over the monitoring of the progress on companies' climate-related disclosures from the TCFD. IFRS S1 and IFRS S2 fully incorporate the recommendations of the TCFD, marking the culmination of the work of the TCFD. To support the widespread adoption of the new investor-focused standards, MTN has committed to begin the journey of adopting these standards throughout our organisation.
While recognising the complexity of understanding sustainability-related risks and opportunities as required by IFRS S1, we have already established robust processes around the TCFD in previous years. Leveraging these capabilities, we have opted to report against IFRS S2, to the extent possible, instead of TCFD, as the requirements of IFRS S2 align with the core elements of TCFD.
While we have initially prioritised the application of IFRS S2, we acknowledge the need to apply both standards in conjunction and will provide more clarity regarding the timing of our disclosures against IFRS S1 during the year ahead.
MTN is committed to this journey, with the aim of enhancing our understanding of sustainability-related risks and opportunities and achieving full compliance with the disclosures required by IFRS standards.
Feedback
We welcome feedback on this report and are
committed to engaging with our stakeholders about our performance and sustainability efforts. Please address all feedback to Group Sustainability: sustainability@mtn.com
Core elements of recommended
climate-related financial disclosures
Governance The company's governance with regard to climate-related risks and opportunities
Strategy The actual and potential impacts of climate-related risks and opportunities on the company's businesses, strategy and financial planning
Risk management The process used by the company to identify, assess and manage climate-related risks
Metrics and targets The metrics and targets used to assess and manage relevant climate-related risks and opportunities
We aim to achieve
Net Zero emissions
by 2040
Climate Report 2023 03
Introduction | + | Governance | Strategy | Risk management | Metrics and targets | Going forward |
Who we are
Our purpose is to enable the benefits of a modern connected life for everyone
MTN is a pan-African digital operator providing a range of critical voice, data, fintech, digital, enterprise and wholesale services to around 295 million customers in 19 markets. Our purpose is embodied in our belief statement that everyone deserves the benefits of a modern connected life. Our strategic intent is leading digital solutions for Africa's progress.
MTN Group Limited is a publicly owned entity whose shares are traded on the JSE. At the end of 2023 our market capitalisation was approximately R209 billion (US$11.4 billion). Subsidiaries MTN Nigeria, MTN Ghana, MTN Uganda and MTN Rwanda are listed on the Nigerian Exchange Ltd, the Ghana Stock Exchange, the Uganda Securities Exchange and the Rwanda Stock Exchange, respectively.
Ambition 2025: Leading digital solutions for Africa's progress
Build the largest and most valuable platforms
Drive industry- leading connectivity operations
Create shared value
Accelerate portfolio transformation
Enabled by our values:
Lead with Care | Collaborate with Agility | Act with Inclusion | Can-dowith Integrity | Serve with Respect |
Creating value for all
We create value for our stakeholders across our footprint by living our purpose and belief as well as progressing our strategic intent
MTN achieved an
10.9%^
reduction in Scope 1 and 2 emissions from base-year emissions (excluding MTN SA whose performance is impacted by the IHS transaction)
^Reflects quarter 4 adjustments.
28%
women in leadership
Enabled internet
access to
150m
(2022: 137m)
active data users
Maintained female
representation at
40%
Facilitated financial
inclusion to
72ms
(2022: 69m)
active MoMo users
Empowered
17 569
MTNers
Extended digital
inclusion to
36m
(2022: 22m)
ayoba users
Connected
295m
(2022: 289m)
subscribers
Provided broadband coverage to
89.2%
(2022: 88%)
of the population
Added economic value of
~R159bn
(2022: R149bn)
across our markets
Climate Report 2023 04
Introduction | + | Governance | Strategy | Risk management | Metrics and targets | Going forward |
Who we are continued
Our climate change | |
journey | change. We recognise we have a role to play in contributing |
One of the most significant ways business is shaping the world | |
we live in is through energy use and its contribution to climate | |
meaningfully to mitigate and adapt to the impact of climate | |
1998 | change. The timeline below shows some of the major milestones |
in our green journey, as we have integrated climate-related | |
considerations into our business. | |
2020
MTN linked ESG key performance indicators (KPI) to executive
remuneration for climate change.
SBTI completes validation of MTN GHG emission
MTN became first cellular network in Africa to receive ISO 14001 rating for environmental management
2002
MTN solar- payphone Victoria local
2004
MTN is listed in UNEP's Global Top 50 companies for sustainability reporting.
2003
MTN published its first Sustainability Report.
2010
MTN completed our initial
Carbon Disclosure Project Report and committed to the 2010 Cancun Communiqué on Climate Change declaration.
2011
MTN placed in Top 250 Companies in the World in 2011 Newsweek Green Rankings for Positive
Environmental Impact
Management (listed 123rd).
2012
MTN became a United
Nations Global Compact (UNGC) signatory.
MTN is listed among Newsweek's Green Rankings top 250 companies globally for positive environmental impact.
2016
MTN aligned with the
United Nations' Sustainable Development Goals (SDG), assessing where we can play a meaningful role.
2014
MTN completed our initial
Carbon Disclosure Project report and committed to the 2010 Cancun Communiqué on Climate
Change declaration.
MTN unveils Africa's first solar data centre cooling system at MTN SA.
2021
MTN signed a pledge with the SBTi, committing the Group to our Net Zero ambition.
MTN linked executive remuneration to ESG targets with a focus on Net Zero, diversity and inclusion, and the expansion of broadband coverage.
2022
MTN Group named Nkululeko Sowazi as the designated climate change Board member.
MTN becomes a TCFD supporter, endorsing its recommendations on climate-related risks and opportunities.
Joined Joint Audit Co-operation and Global Enabling Sustainability Initiative (GeSI) to promote technologies and practices that foster ESG within our supply chain.
targets for Scope 1, 2 and 3.
Climate Risk
Assessment MTN pilots approach for evaluating physical climate risks across a range of assets.
Project Zero
Construction underway of large solar park at MTN's headquarters in Johannesburg, South Africa.
CDP Reporting MTN scores a "B" for its climate disclosure.
2023
Climate Report 2023 05
Introduction | + | Governance | Strategy | Risk management | Metrics and targets | Going forward |
A message from the Group
President and CEO
Building a modern and connected future also means building a greener one. We continue to implement Project Zero with more energy efficiency and clean energy solutions. By harnessing digital and financial inclusion, we create solutions that empower Africa and protect our planet.
Ralph Mupita
Group President and CEO
help communities better respond to extreme storm events. We are also proud to report that MTN has been advancing its climate change strategy on multiple fronts. The SBTi approved MTN's GHG reduction targets in 2023 leveraging a 2021 baseline. Our ambitious long-term goal is to achieve Net Zero emissions by 2040. We continue to implement Project Zero with more energy efficiency and clean energy investments, reducing our reliance on fossil fuels. MTN set aside more than R700 million in 2023 for Project Zero investments. MTN attended COP28, highlighting the enabling role of technology in climate action solutions. We also advanced our efforts to evaluate and adapt to the physical impacts of climate change with our Climate Risk Assessment pilot project.
Mobile networks rely on a consistent, reliable supply of energy to keep our customers connected. In the face of ongoing loadshedding and grid instability, we were required to use our diesel backup generators to ensure delivery to customers, impacting our climate change targets and financial performance. South Africa experienced more than 300 days of loadshedding in 2023.
Our business model has also been shifting, impacting our Net Zero strategy. MTN has increased the number of leased tower sites within its portfolio; these are sites for which we do not have direct operational control e.g., MTN SA and IHS transaction. We have, however, been working with our partners and suppliers to reduce their carbon footprints (which are part of MTN's indirect emissions), and we continue these engagement efforts. We continue to focus on operational efficiency, greener energy solutions and circular economy strategies to decouple our subscriber growth from our carbon emissions.
Our Ambition 2025 strategy is built on the belief that everyone deserves the benefits of a modern, connected life. This belief fuels our commitment to a sustainable and inclusive world enabled by our 'Doing for planet' actions towards protecting our Earth.
Climate change continues to leave its mark on Africa with record-breaking climate events across the continent in 2023. Torrential rains and extreme flooding destroyed homes and businesses in several countries, resulting in loss of life and forcing people from their homes, damaging infrastructure and destroying crops and livestock. Tropical Cyclone Freddy, which left a path of destruction, persisted for a record 34 days. In the Horn of Africa, record drought has turned arable land to dust, resulting in crop failure and widespread water scarcity. Researchers believe climate change is increasing the
frequency and intensity of extreme weather events and Africa continues to carry the burden of climate change impacts. Africa contributes just 4% of global carbon emissions. Yet, the continent remains highly vulnerable to the impacts of climate change.
MTN is proud to be partnering with Tomorrow.io and Microsoft to provide critical early warning data to populations across Africa. This innovative programme, leveraging our unique strengths and capabilities, has the potential to save lives and
Our commitment to you, our valued stakeholders, is that we will not waver in our efforts to deliver on our climate promises. We will continually face setbacks and obstacles as we chart our path to Net Zero, and we invite you to join us through the highs and lows of this journey. Thank you for your ongoing support and belief in our vision. Together, we can create a sustainable and inclusive world.
Sincerely,
Ralph Mupita
Group President and CEO
Climate Report 2023 06
Climate change fits within our broader sustainability strategy
Introduction | + | Governance | Strategy | Risk management | Metrics and targets | Going forward |
Sustainability strategy framework
MTN is committed to harnessing Africa's potential and advancing progress by unlocking the full potential of the digital world. Creating shared value is a crucial pillar of our Ambition 2025 strategy, and we have an authentic belief in our responsibility to create a more sustainable and inclusive world. Our sustainability strategy is supported by a four-pillar framework that aims to create shared value through responsible ESG practices while creating economic value across our footprint. By centring our sustainability strategy on ESG principles, we ensure it is flexible enough to withstand macroeconomic headwinds and prioritise material issues as these emerge.
Strategic intent | Ambition 2025: Leading digital solutions for Africa's progress |
Belief statement | Everybody deserves the benefits of a modern, connected life |
Do ngfor | Doingfor | Doing | Doingfor | |||
planet | people | itright | growth | |||
Commitments | ||||||
Eco-responsibility | Sustainable societies | Sound governance | Economic value added | |||
We are committed to protecting our planet and | We are committed to driving digital financial | We are committed to partners and | We are committed to boosting inclusive | |||
achieving Net Zero emissions by 2040 | inclusion and diverse society | stakeholders to create and protect value | economic growth on the continent | |||
Metrics and actions | ||||||
• Project Zero: Reduce GHG emission | • Increase access and reduce cost to | • Responsible policies and practices: Business | • Tax contribution across markets | |||
• Efficiency: Improve energy efficiency | communicate | ethics and enterprise-wide risk management | • Network infrastructure investment | |||
• Water and waste management: Reduce | • Increase financial inclusion | • Enhance reputation and trust with | • Empower local governments and enterprises | |||
our impact | • Generational equality: Increase women | stakeholders | ||||
representation | • Digital human rights (DHR) | |||||
• Contribute through information and | • Responsible procurement and supply chain | |||||
communication technology (ICT): Digital | ||||||
education, skills and jobs |
UNSDGs
*2023 performance metrics are available in ESG data booklet
We believe true progress can be achieved only through action, and we centre our sustainability strategy on the question: What are we doing today?
- Each sustainability pillar is complemented by policies and procedures to reinforce our commitment and facilitate implementation by our operating companies (Opcos).
- Our most material focus areas are linked to clear targets and measurable performance indicators while we continue to manage and measure our remaining ESG matters.
- Our sustainability performance is monitored by the Board's Social, Ethics and Sustainability Committee, and our sustainability mandate and integration is reflected across all Board committees. We monitor our ESG performance and continuously work to contribute to solutions that will build an inclusive, connected and sustainable future.
Climate Report 2023 07
Introduction | + | Governance | Strategy | Risk management | Metrics and targets |
Key accomplishments: 2023
Going forward
Governance
- MTN published its second TCFD-aligned Climate Report in 2023.
- MTN achieved a B rating for its 2023 CDP Climate Change Report, with an A rating for its climate change governance.
- MTN's Sustainalytics ESG rating decreased by two points to a score of 45 in 2023, compared to
47 in 2022.
Strategy
- The Board of Directors approved the MTN Group environmental strategy.
- In May 2023, MTN Group was named by Brand Africa as the number one African brand that is doing good for people, society and the environment in a new category of its annual awards.
- MTN has developed customised strategies to achieve Net Zero emissions by 2040 for our top eight markets with best practices shared across the footprint.
Risk management
- MTN continued to advance its risk assessment pilot project across key geographies to better understand the physical risks of climate change.
- The risk assessment pilot project has progressed to consider potential risk mitigation strategies across a range of asset types.
- MTN enhanced proactive management of ESG-specific risks using the Group's risk managementframework.
Metrics and targets
- MTN achieved an 10.9%*
reduction in Scope 1 and 2 emissions from base-year emissions (excluding MTN SA whose performance is impacted by the IHS transaction).
• MTN achieved a 42.1% reduction in Scope 1 and Scope 2 emissions from base-year emissions, including MTN SA. This is, in part, owing to the sale of base transceiver station (BTS) sites.
- MTN has expanded its ESG reporting suite with a new
approach to its data disclosure.
- MTN has begun to evaluate the
IFRS S2 disclosure standards to understand how it can further align its climate disclosures.
* Reflects quarter 4 adjustments.
Climate Report 2023 08
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Disclaimer
MTN Group Ltd. published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 21:48:04 UTC.