MTN Group Limited | Doing for |
ESG Data Booklet for the year ended 31 December 2023 | tomorrow, |
today. |
Leading digital solutions for Africa's progress
Welcome to our 2023 ESG Data Booklet
Our purpose is to enable the benefits of a modern connected life for everyone
Inside this report
01 | About this report | |
01 | Our reporting suite | |
02 | Our ESG disclosure references | |
03 | Who we are | |
04 | Our sustainability strategy | |
05 | Reporting criteria methodology | |
02 | Doing for planet | ||
07 | Disclosures | ||
08 | Reporting methodology and assumptions | ||
10 | Data | ||
03 | Doing for people | ||
14 | Disclosures | ||
15 | Data |
04
05
06
Doing it right
- Disclosures
- Data
Doing for growth
- Disclosures
- Data
Appendices
34 Glossary of terms
- Standards and associations
- GRI disclosure index
44 Administration
About this report | + | Doing for planet | Doing for people | Doing it right | Doing for growth | Appendices |
Our reporting suite
Our ESG Data Booklet is supplemented by a number of reports that provide a comprehensive view of MTN's performance and prospects covering 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
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.
ESG Data Booklet 2023 | 01 |
About this report | + | Doing for planet | Doing for people | Doing it right | Doing for growth | Appendices |
Our ESG disclosure references
Welcome to the MTN Group's 2023 ESG Data Booklet
Our purpose is to enable the benefits of a modern connected life for everyone. We remain dedicated to ensuring MTN operates responsibly and ethically, and strive to provide information that is meaningful to all our diverse stakeholders. We therefore provide the disclosures needed to assess our sustainability progress through a suite of complementary reports, each tailored for specific audiences.
We report with reference to the following standards and frameworks
The Integrated Reporting Framework
Companies Act, No 71 of 2008 (as amended)
JSE Listings Requirements
FTSE/JSE Responsible Investment Index
King IV™* Principles
International Financial Reporting Standards (IFRS)
UN Global Reporting Initiative (GRI)
JSE's sustainability disclosure guidelines
GSMA ESG metrics
Sustainability Accounting Standards Board (SASB)
Telecommunication Services industry
UN Sustainable Development Goals (UNSDG)
UN Global Compact (UNGC)
UN Guiding Principles on Business and Human Rights
CDP
IFRS® Sustainability Disclosure Standard | CR | ISSB |
IFRS® Climate-related Disclosures | CR | ISSB |
- Copyright and trademarks are owned by the Institute of Directors South Africa NPC and all of its rights are reserved. ® Registered trademarks of the IFRS Foundation.
Developments in sustainability reporting
- In June 2023, the International Sustainability Standards Board (ISSB) 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 Task Force on Climate-related Financial Disclosures (TCFD).
- IFRS S1 and IFRS S2 fully incorporate the recommendations of the TCFD, marking the culmination of the work of the TCFD.
Our response
To support the widespread adoption of the new IFRS standards, MTN has pledged to begin the journey of adopting these standards across 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 instead of TCFD this year, as the requirements of IFRS S2 align with the core recommendations and recommended disclosures 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 framing required by IFRS standards.
ESG Data Booklet 2023 | 02 |
About this report | + | Doing for planet | Doing for people | Doing it right | Doing for growth | Appendices |
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
ESG Data Booklet 2023 | 03 |
About this report | + | Doing for planet | Doing for people | Doing it right | Doing for growth | Appendices |
Our sustainability strategy
MTN operates within a dynamic context shaped by various external factors, including shifting geopolitics, socioeconomic challenges, new emerging technologies and evolving compliance and sustainability framework requirements. These factors can impact our sustainability initiatives and performance. In the face of uncertainty, our sustainability strategy remains steadfast, providing a robust foundation to navigate the complexities of our operating environment. While rooted in four pillars, it possesses the adaptability required to respond effectively to emerging risks and capitalise on new opportunities as these arise.
Each sustainability pillar comprises clearly defined focus areas, which fit seamlessly with both local and global ambitions, including government development plans. This allows us to showcase tangible value to stakeholders, fulfil evolving ESG regulations and uphold standards in our business environment. Our sustainability focus areas are complemented by policies and procedures to facilitate implementation by our operating companies (Opcos).
We continuously benchmark our initiatives to make sure they meet evolving sustainability standards, geopolitical dynamics and stakeholder expectations. 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, emphasising our commitment to transparency and accountability.
Our robust yet flexible sustainability strategy ensures our actions are impactful, relevant and in line with our vision of creating shared value through responsible business practices. Through unwavering dedication and strategic adaptability, we continue to progress and contribute meaningfully to a more sustainable and inclusive world.
Strategic intent
Belief statement
Ambition 2025: Leading digital solutions for Africa's progress Everybody deserves the benefits of a modern connected life
Do ngfor | Doingfor | Doing | Doingfor | |||
planet | people | itright | growth | |||
Commitments | ||||||
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 a diverse society | stakeholders to create and protect value | economic growth on the continent |
- Project Zero: Reduce GHG emission.
- Efficiency: Improve energy efficiency.
- Water and waste management: Reducing our impact.
Metrics and actions
• Increase access and reduce cost to | • Responsible policies and practices: Business | • Tax contribution across markets. |
communicate. | ethics and enterprise-wide risk management. | • Network infrastructure investment. |
• Increase financial inclusion. | • Enhance reputation and trust with | • Empowering local governments and |
• Generational equality: Increase women | stakeholders. | enterprises. |
representation. | • Digital human rights (DHR). | |
• Contribution through information and | • Responsible procurement and supply chain. | |
communication technology (ICT): Digital | ||
education, skills and jobs. |
UNSDGs
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About this report | + | Doing for planet | Doing for people | Doing it right | Doing for growth | Appendices |
Reporting criteria methodology
In preparing the ESG-related information contained in this document, MTN has provided several critical judgements, estimations and assumptions. The processes, methodologies and issues involved are intricate. The ESG data, models and methodologies used are relatively new, rapidly evolving and not of the same standard as those available in the context of financial and other information, nor are they subject to the same or equivalent disclosure standards, historical reference points, benchmarks or globally accepted accounting principles. It is not possible to rely on historical data as a strong indicator of future trajectories, especially in the case of climate change and its evolution. Outputs of models, processed data and methodologies are also likely to be affected by underlying data quality, which can be hard to assess, and industry guidance, standards, market practice and regulations in this field are expected to continue to evolve. There are also challenges faced in relation to the ability to access data on a timely basis and the lack of consistency and comparability between data that is available. This means the ESG-related forward looking statements, information and targets discussed in this document carry an additional degree of inherent risk and uncertainty.
Owing to the uncertainty concerning future policy and market responses to climate change and other ESG-related issues, including regional variations, and considering the evolving market practices and data quality, MTN may need to review its models and methodologies, or adjust its approach to ESG analysis. This could require amending, updating and recalculating its ESG disclosures, goals, commitments and targets, as well as evaluating its progress towards these objectives. Changes to ESG data might result in irreconcilability or incomparability year-on-year.
We have undertaken limited independent external assurance in respect of the selected sustainability performance information, as
described in the for the year ended 31 December 2023. This engagement was conducted by a multidisciplinary team specialising in non-financial assurance with relevant experience in sustainability reporting. The selected sustainability performance information is marked with the symbol LA (Limited Assurance) to indicate we have provided limited assurance over the selected sustainability performance information.
The information included in this book is the responsibility of the directors and with the exception of the metrics above, has not undergone independent verification or assurance. All data in this book is sourced from what we consider reliable sources. Additional information on methodologies can be found in the reporting methodology sections within this document.
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About this report | Doing for planet | + | Doing it right | Doing for growth | Appendices |
Doing for people |
Doing for planet
Environmental stewardship is an MTN imperative to ensure our business and the communities we service thrive. We believe the growth and success of any business needs to consider environmental aspects to guarantee a future for our planet that supports people and prosperity. As a result, we take responsibility for the activities, products and services we control and influence. We manage our environmental impacts throughout our geographic footprint and are continually improving our processes and systems to support our African environment.
In the rapidly urbanising sub-Saharan African region, we play a crucial role in making the benefits of modern connected life accessible. The fast-paced development, however, imposes stressors on the ecosystem, necessitating systematic environmental management. Despite Africa's vast natural resources supporting growing economies, the environment is deteriorating rapidly, leaving us vulnerable to climate change impacts such as poor management, pollution, land degradation, water scarcity and deforestation.
While our industry's environmental impacts are comparatively small, deliberate action is essential to protect the natural wealth sustaining our economic and social development. Operating across diverse borders, we encounter varied regional priorities and environmental challenges. Addressing these issues requires cross-sector and trans-boundary approaches, focusing on key factors like emission reductions, waste management and water usage in the atmosphere, land and water respectively.
Managing our environmental impacts involves a per-country approach, considering the unique nuances of each Opco, local legislations and policies while maintaining a strategic vision for sustainable development across the continent.
MTN's environmental management aligns with our Group environmental strategy, employing a systematic approach to address the varying needs of our Opcos while upholding our commitment to protecting the planet. Our approach considers a variety of elements, recognising their interactions within a complex and interconnected environment. Achieving zero emissions involves deploying energy efficient technology, integrating renewable energy within our footprint and working with suppliers to reduce emissions across the value chain. MTN is also building parallel circular economy programmes to reduce waste and water plays a critical role in sustainable development.
We are doing for the planet by
Taking action for the atmosphere
- Reducing Scope 1 and Scope 2 emissions and greening our energy supply through Project Zero
- Working with our suppliers to reduce Scope 3 emissions
Protecting and restoring our land
- Developing a circular economy
- Managing our waste
Working towards water resource protection
• Optimising water consumption
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About this report | Doing for planet | + | Doing it right | Doing for growth | Appendices |
Doing for people |
Disclosures
MTN Group operates in diverse geographies that influence how we manage our use of environmental resources and our impact on the environment in each country. Many operating companies face challenges of land degradation, deforestation, biodiversity loss and extreme vulnerability to climate change, yet enormous potential exists to contribute to sustainable development within these countries.
At a Group level, we provide guidance informed by international best practice standards and Group-wide commitments.
Throughout our footprint, we also ensure Opcos remain compliant with applicable national laws and environmental regulations.
Focus area | Description |
Network and environment MTN prioritises environmental sustainability in its network operations by incorporating environmental, health and safety considerations throughout the planning, installation, deployment and maintenance phases. This commitment encompasses various measures, including environmental impact assessments, implementation of policies and management plans, and mitigation strategies when necessary. The focus areas encompassed by MTN's environmental management systems include managing site construction, minimising waste, preventing pollution and conserving natural resources such as land, flora, forests, water and wildlife. Moreover, infrastructure development undergoes rigorous approval processes involving local government and regulatory stakeholders. MTN also adheres to environmental impact assessment requirements for operating licences and financial investment applications, with some countries voluntarily adopting additional environmental certification standards.
Read more at the following links
https://www.mtn.com/wp-content/uploads/2023/09/MTN-Position-on-Networks-Environment.pdf
Environmental | MTN is dedicated to environmental management, seeking to mitigate negative impacts while promoting positive ones |
management | across its operations. The Group adheres to internationally recognised standards and principles, including the Global |
Reporting Initiative (GRI) sustainability reporting standards, UN Global Compact (UNGC) principles, TCFD, Carbon | |
Disclosure Project (CDP), and United Nations Sustainable Development Goals (UNSDG). Compliance with | |
environmental legislation, regulations and standards such as ISO 14001:2015 is mandatory. MTN's approach to | |
environmental stewardship encompasses various focus areas, including: | |
• Mitigation of climate change: Reducing greenhouse gas emissions by adopting energy-efficient technologies, | |
renewable energy sources and sustainable practices across its value chain. | |
• Waste management: Waste reduction and resource efficiency through prevention, reuse, recycling and | |
environmentally sound waste management practices. | |
• Water management: Reducing water use, managing scarcity risks and support in water management programmes in | |
communities. | |
• Protection of biodiversity and ecosystems: Integrating environmental considerations into network planning and | |
infrastructure development to safeguard biodiversity and natural habitats. | |
• Supply chain sustainability: Collaborating with suppliers to uphold strict environmental standards, promote ethical | |
procurement and develop sustainable practices throughout the supply chain. |
https://www.mtn.com/wp-content/uploads/2024/04/MTN-Position-on-Environment.pdf
Electromagnetic fields | MTN ensures network equipment (especially masts) and mobile phone handsets operate within safe electromagnetic field | https://www.mtn.com/wp-content/uploads/2024/04/ |
(EMF) levels. The Group adheres to electromagnetic field exposure limits set by the International Commission on Non-Ionising | MTN_Position-Statements-on-Electromagnetic-Fields- | |
Radiation Protection and relevant national regulators, where applicable, in the countries in which we operate. We measure | EMF.pdf | |
our exposure limit and undertake measures to ensure we remain within globally defined standards. | ||
Net Zero philosophy | MTN is committed to achieving Net Zero emissions across our footprint by 2040, starting from a 2021 baseline. Through | https://www.mtn.com/wp-content/uploads/2023/05/ |
Project Zero, we are driving this vision by optimising energy consumption and transitioning to renewable energy sources. | MTN-Net-Zero-Philosophy-2022_WEB.pdf | |
Our strategy focuses on reducing Scope 1 and 2 emissions through the pillars of Reduce, Substitute and Compensate. | ||
We are implementing targeted actions across our markets to achieve absolute emission reductions. Additionally, MTN is | ||
addressing Scope 3 emissions with a comprehensive plan that includes engaging suppliers to commit to Net Zero by | ||
2026, and thereafter considering internal carbon pricing in procurement decisions, and offsetting hard-to-abate | ||
emissions. |
Supplier Code of Conduct MTN's Supplier Code of Conduct sets out our approach to ethical and sustainable business practices. It includes our expectations with regard to environmentally sustainable business activities.
We expect our suppliers to:
- Obtain of all applicable environmental permits, approvals and registrations.
- Apply the precautionary principle in its use of natural resources, including energy and water.
- Implement environmental responsibility statements, endorsed by executive management.
https://group.mtn.com/wp-content/uploads/2020/07/Final-Supplier-Code-of-Conduct-March-2020_v2.pdf
ESG Data Booklet 2023 | 07 |
About this report | Doing for planet | + | Doing it right | Doing for growth | Appendices |
Doing for people |
Reporting methodology and assumptions
Reporting methodology
MTN relies on various metrics to measure its environmental performance, grouped according to the following categories: energy use, emissions, renewable
energy, water and waste, material use, vehicle fleet and CDP score. MTN also reports on its breakdown of assets in key markets: BTS sites, data centres, buildings and stores to provide additional insights on our operations and performance. Our energy and climate disclosures are guided by the IFRS S2 reporting standard and the GSMA ESG Metrics for Mobile (June 2022).
Standards and guidance
MTN relies on the guidance provided by the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard, the Greenhouse Gas Protocol Scope 2 Guidance and the Greenhouse Gas Protocol Scope 3 Corporate Value Chain Standard in reporting its Scope 1, 2 and 3 emissions.
As detailed in the Corporate Accounting and Reporting Standard, MTN relies on the operational control approach in compiling its carbon footprint. Under the operational control approach, a company accounts for 100% of emissions from operations over which it or one of its subsidiaries has operational control i.e., has full authority to introduce and implement its operating policies at the operations.
MTN's organisational boundary includes all of its operating companies as well as all joint ventures and investments. MTN's operational boundary includes both direct GHG emissions (emissions from sources that are owned or controlled by MTN) and indirect GHG emissions (emissions that are a consequence of the activities of the company but occur at sources owned or controlled by another company). MTN reports Scope 3 emissions categories 1, 2, 3, 4, 6, 7, 14 and 15.
Scope 1 data
Scope 1 emissions are direct GHG emissions from sources that companies own or control directly. For MTN, these emissions are principally the result of the following types of activities undertaken by the company:
- Generation of electricity - Emissions resulting from combustion of fossil fuels in stationary sources, e.g., backup generators and boilers.
- Motor vehicle use - Emissions resulting from the combustion of petrol and diesel fuel in company owned/controlled mobile vehicles (e.g., cars and trucks).
- Fugitive emissions - hydrofluorocarbon (HFC) emissions during the use of refrigeration and air conditioning equipment.
MTN collects energy consumption data from financial invoices and smart metering where applicable, on a monthly basis from each of the Opcos for calculating Scope 1 emissions. The Scope 1 data undergo thorough quality control processes on a monthly basis to identify any potential outliers, as well as a rigorous internal audit process, annually.
Scope 2 data
Scope 2 emissions are defined as GHG emissions from the generation of purchased electricity, steam, heating and cooling that is consumed in a companies owned or controlled equipment or operations. Purchased electricity refers to electricity that is purchased or otherwise brought into the organisational boundary of the company.
Scope 2 emissions are a special category of indirect emissions. For many companies, including MTN, purchased electricity represents one of the largest sources of GHG emissions and a significant opportunity to reduce emissions.
Companies can reduce their use of electricity by investing in energy-efficient technologies and energy conservation. Green power markets, renewable energy credits and power purchase agreements provide opportunities for some companies to switch to less GHG intensive sources of electricity. Companies can also install an efficient on-siteco-generation plant, particularly if it replaces the purchase of more GHG intensive electricity from the grid or electricity supplier.
MTN relies on grid emission factors and supplier-specific emission factors (for independent power producers) for the calculation of Scope 2 emissions. MTN relies on the market-based method for Scope 2 emissions reporting. The market-based method reflects the indirect emissions associated grid electricity purchases, the indirect emissions associated with purchase of electricity from specific suppliers (power purchase agreements), and unbundled attribute claims (i.e., renewable energy credits).
Like Scope 1 data, MTN collects energy consumption data from financial invoices and smart metering where applicable, on a monthly basis from each of the Opcos for calculating Scope 2 emissions. The Scope 2 data undergo thorough quality control processes on a monthly basis, as well as a rigorous internal audit process, annually.
Scope 3 data
Scope 3 emissions are the most challenging to compile and estimate because they occur outside of MTN's direct control. Scope 3 emissions include a wide range of indirect emissions sources that occur throughout a company's value chain, including purchased goods and services (upstream manufacturing and transport), business travel, employee commuting, waste disposal, use of sold products, transportation and distribution (upstream and downstream), investments, leased assets and franchises.
Since companies have discretion over which categories they choose to report, Scope 3 may not lend itself well to comparisons across companies.
Scope 3 emissions are calculated annually for each Opco, leveraging central databases and systems. MTN continues to refine its approach to Scope 3 emissions accounting. An improvement plan is underway in 2024 to increase reliance on supplier-specific data.
ESG Data Booklet 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 21:48:05 UTC.