Safaricom : Sustainability Report 2021

STANDING TOGETHER: GOING BEYOND

TENTH SUSTAINABLE BUSINESS REPORT

2 0 2 1 S U S TA I N A B L E B U S I N E S S R E P O R T

WELCOME TO OUR SUSTAINABLE BUSINESS REPORT

04	STANDING TOGETHER:
	GOING BEYOND
Standing Together: Going Beyond	04
Safaricom at a glance		07
Our response to COVID-19		08
Message from our Chairman		11
Message from our CEO		13
Our corporate strategy		16
Our business model			17
Our contribution to the UN SDGs	18
FY21 in review			23
True Value assessment		26

32 OUR MATERIAL TOPICS

Governance, Business Ethics and Risk	34
> Reinforcing our responsibility to Kenyan	34
society
> Our governance structure	34
> Embedding a positive risk culture	35
> Promoting a strong internal ethical culture	35
> Combatting fraud	36
> Training our business partners on ethics	37
> Integrating data privacy and protection	37
> Meeting the challenge of cyber security	38

TABLE OF CONTENTS

Our Regulatory Environment	39
> Prioritising regulatory compliance	39
> Surpassing the regulatory Quality of Service	39
(QoS) score
> Environmental impact monitoring and	40
evaluation
> Keeping the country connected	40
> Piloting 5G	40
Our Platforms	42
> Connecting all Kenyans	42
> Our network	42
> Our M-PESA platform	46
> Integrating easily with M-PESA through the	47
Daraja API Developer Portal
> Enhancing the M-PESA Platform	47
> Towards increased digitsation	47
> Our DigiFarm Platform	48
Environmental Stewardship	50
> Managing and mitigating our environmental	50
impact
> Managing emissions	50
> Energy efficiency in our network	51
> Initiatives to drive energy efficiency	51
> Network energy mix	51
> Growing renewable energy in our network	52
> Carbon offset re-afforestation project	52
> Business advocacy on the environment	52
> Reducing emissions from our supply chain	53
> Reporting to the CDP climate change project	53
> Monitoring air quality	53
> Resource consumption	54
> Managing waste responsibly	54
> Managing electronic waste	55

Innovation and Partnerships	56
> Innovation underpins our growth ambitions	56
> Accelerating growth	56
> Supporting SMEs and MSMEs through	58
financial services
> Delivering step changes in growth and value	58
performance for ventures
> M-Gas: Promoting the use of affordable,	58
clean energy
> Internet of Things (IoT) solutions for our	59
enterprise customers

60 STAKEHOLDER ENGAGEMENT

Customers	62
> Becoming notoriously Customer Obsessed	62
> Consumer customers	63
> Going beyond in FY21	63
> Enterprise customers	64
> Measuring customer satisfaction	64
> Customer engagement	64
Society	67
> Towards a more inclusive society	67
> Education	68
> Economic empowerment	69
> Health	69
> Helping women succeed in the technology	71
space
Employees	73
> Driving participation in our transition to	73
a technology company
> Employee diversity	73

> Women in Leadership programmes	74
> Supporting persons with disabilities	74
> Internal labour market map	75
> Employee engagement	75
> 2021 SEMA survey	76
> Training and career development	78
> Safaricom Digital Academy	78
> #1MoreSkill campaign	78
> Our culture: The Spirit of Safaricom	79
> Health, Safety and Wellbeing (HSW)	79
Regulators	81
> Engaging in dialogue	81
Business partners	83
> Meeting the needs of our growing client base	83
> Suppliers	83
> Evaluating supplier performance	84
> Measuring supplier satisfaction	84
> Supporting women owned business growth	85
> Dealers	85
> Agents	86
Shareholders	87
> Keeping our shareholders informed	87
> Our shareholders	87
Media	88
> Maintaining open dialogue	88

90	APPENDIX
Key performance indicators summary	91

STANDING TOGETHER: GOING BEYOND

SAFARICOM SUSTAINABLE BUSINESS REPORT 2021

5

IN THIS SECTION

Safaricom at a glance	07/
Our response to COVID-19	08/
Message from our Chairman	11/
Message from our CEO	13/
Our corporate strategy	16/
Our business model	17/

Our contribution to the UN SDGs 18/

FY21 in review	23/
True Value assessment	26/

The theme for our 2021 Sustainable Business Report is 'Standing Together: Going Beyond'. It is based on our 20th anniversary brand campaign dubbed 'Twende Tukiuke', which is loosely translated as 'Go beyond'. This in turn is based

on our commitment to help individuals, communities and businesses realise their dreams by providing transformational products and services. It is also based on our understanding that together, we are stronger. Together, we can achieve more.

On 23 October 2020 we celebrated our 20th anniversary. Our success, throughout the past two decades, has been premised on going beyond the provision of expected products and services. We have done so by standing together with our customers to identify their most pressing needs, adding value with innovative solutions and transforming every aspect of their daily lives - from home to work and beyond. In doing so, we have focused on changing society for the better, for the greater good of all Kenyans.

In October 2020, we embarked on our new business strategy that will transform Safaricom into a purpose-led, technology organisation by 2025.

The new strategy is based on the following: Looking back over our past successes, we recognise that we need to be future ready and continue to grow and evolve, while meeting digital trends and opportunities. We can achieve this if we combine technology and innovative thinking across every aspect of our business and use technology to transform the lives of our customers and communities, as we have done with M-PESA. Through innovation we continue to expand our impact in areas such as agriculture, education, wealth creation and health. We will leverage our long track record of technological innovation to promote financial inclusion and drive enhanced access to opportunities for our customers.

Opening up access to opportunities for our customers aligns with our customer-first approach and Customer Obsession journey, launched in the period under review. Through this journey, we aim to go beyond customer excellence to becoming notoriously customer obsessed, to value and delight our customers with superior experiences by the end of FY22.

Our theme 'Standing Together: Going Beyond', represents our solidarity with the people of Kenya and articulates our strategic intent. We aspire to be a digital first, insights-ledorganisation that enables platforms and ecosystem partnerships. We always look beyond the expected to deliver the most favourable outcomes for all our stakeholders, particularly for our customers. In doing so, we connect people to people, people to knowledge and people to opportunities.

As we do so, we leverage our connectivity, platforms and technology to explore new areas of growth guided by the United Nations Sustainable Development Goals (UN SDGs) and through partnerships.

The COVID-19 pandemic reinforced our belief that we cannot succeed in isolation. Feedback from our stakeholders indicates that the connections we enabled and intensified throughout the pandemic helped them in innumerable ways. The theme of this report reflects both this and our alignment with and commitment to, the United Nations Sustainable Development Goals (UN SDGs). Underpinning the goals is the belief that our future is interconnected - with each other and with the planet. Our approach in integrating the SDGs into our present and future activities is detailed throughout this report.

ABOUT THIS REPORT

This 10th Sustainable Business Report, sets out to disclose our efforts to achieve our goal of transforming lives. We report transparently on our successes and our setbacks, with narrative supplemented by four-year graphs and tables to provide relevant, material and comparable information. Our reports since 2013 can be accessed at: https://www.safaricom.co.ke/about/ transforming-lives/sustainability/sustainability-reports

We cover highlights, stakeholder issues, the manner in which we went beyond the expected in FY21 and our future focus areas, all of which are important to our business and of interest to our various stakeholders. This report covers our fiscal year from 01 April 2020 to 31 March 2021. For a more detailed overview of the value we bring to our stakeholders and our

//// STANDING TOGETHER: GOING BEYOND / OUR MATERIAL TOPICS / OUR STAKEHOLDERS / KPI SUMMARY