Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable economic value
• Eco-responsibility
• Advancing sustainable societies

Environmental Achievements

• Reduced carbon emissions by over 15% despite a 7% increase in network sites
• Achieved UN Certified Emission Reduction credits for some carbon emission savings
• Approximately 1% of the network is now fully powered by alternative energy sources

Social Achievements

• MTN Mobile Money with over six million registered users in 12 countries
• Opera Mini browser reducing data costs for customers
• Partnerships to roll out solar-powered rural telephony solutions and cellphone chargers
• R128 million spent on education, health, national development priorities, and arts and culture through MTN foundations
• 12,784 employee volunteers planted over 66,000 trees

Governance Achievements

• Improved governance and management of sustainability within the business
• Aligning reporting practices to the Global Reporting Initiative
• Implemented a Social and Ethics Committee

Climate Goals & Targets

Environmental Challenges

• Socio-political and human rights challenges in operating in some emerging countries
• Challenges and opportunities posed by social media and the convergence of voice and data technologies
• Behind schedule in finalising energy and climate strategy
• Improving internal sustainability management systems, processes and reporting resources

Mitigation Strategies

• Integrating social and environmental revenue-generating opportunities into innovation processes
• Ensuring business planning maintains awareness of key performance indicators
• Improving internal sustainability management systems, processes and reporting resources

Supply Chain Management

Responsible Procurement

• Sourcing Together to Achieve Results (STAR) 2012 programme

Climate-Related Risks & Opportunities

Physical Risks

• Increased temperature
• Flooding

Transition Risks

• Increasing energy costs and uncertainties
• Potential carbon taxes

Opportunities

• Reducing energy consumption through dematerialisation
• Saving on carbon tax penalties
• Accessing new sources of investment and innovative technology
• Saving operating costs and improving energy security

Reporting Standards

Frameworks Used: GRI G3 Guidelines, GRI G3 Telecommunications Sector Supplement

Certifications: ISO 14001 (some operations)

Sustainable Products & Innovation

• MTN Mobile Money
• Opera Mini browser
• Solar-powered handset recharging
• Air quality and water monitoring solutions
• Cloud computing services

Awards & Recognition

• Mobile World Ghana Telecoms Award (various)
• Ghana Investment Promotion Council Best ICT Company of the Year
• UN CDM Approved Methodology
• Newsweek Green Rankings (123)
• AfricaCom Best Network Improvement project

Environmental Metrics

ESG Focus Areas

• Governance
• Ethics
• Corporate Social Responsibility (CSR)
• Network Quality
• Sustainable Growth
• Talent Management
• Digital Transformation
• Risk Management
• Stakeholder Engagement

Environmental Achievements

• Reduced carbon emissions through energy-efficient infrastructure and infrastructure sharing (quantified data not explicitly provided)
• Recycled 326 tonnes of e-waste

Social Achievements

• Spent R282.5 million on Corporate Social Investment (CSI), focusing on education
• Improved employee culture through the implementation of 'vital behaviours'
• Achieved Investors in People accreditation in 12 operating companies
• Delivered over 345,000 learning hours with a focus on technical and digital capabilities

Governance Achievements

• Implemented a conflict of interest policy
• Rolled out an electronic system for declaring conflicts of interest
• Implemented an anti-bribery and corruption policy and training program
• Improved corporate reputation index by 8%
• Completed the first independent ethics risk assessment
• Introduced an ethics management strategy

Climate Goals & Targets

Environmental Challenges

• Aggressive price competition
• Increased regulatory requirements
• Pressure on consumer expenditure
• Decline in oil price impacting African and Middle Eastern economies
• Regulatory hurdles in Nigeria
• Difficult economic environment in Nigeria
• Operational challenges in Nigeria
• Ebola outbreak in West Africa
• Attracting and retaining talent
• Currency weakness in certain markets

Mitigation Strategies

• Cost-saving initiatives and stricter controls on spending
• Selling non-core assets (towers)
• Local currency funding strategy
• Active management of foreign-denominated assets and liabilities
• Established a security forum to monitor information security controls
• Instilling good ethical behavior
• Digital strategy with broader service offerings
• Cost management to offset slowing revenue growth
• Continuous engagement with authorities
• Monitoring compliance with tax risk management framework
• Regular review of mitigation strategies
• Cost-saving initiatives
• Selling non-core assets
• Local currency funding strategy
• Active management of foreign-denominated assets and liabilities
• Project Next! back-office transformation initiative
• Streamlining distribution network
• Improving labour productivity
• Investment in network infrastructure
• Expanding 3G and LTE coverage
• Improving network quality and capacity
• Expanding MTN Mobile Money and wider financial services
• Developing digital offering
• Focusing on local content and working with other suppliers
• Becoming the ICT partner of choice for companies expanding into Africa

Supply Chain Management

Responsible Procurement

• Centralized procurement function
• Streamlining distribution network

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King III, GRI G4, IIRC guidelines, JSE Social Responsibility Index, Carbon Disclosure Project standard

Certifications: Investors in People (in 12 operating companies)

Third-party Assurance: PricewaterhouseCoopers Inc.

Environmental Metrics

ESG Focus Areas

• Creating sustainable economic value through digital inclusion and enterprise solutions
• Eco-responsibility
• Building sustainable societies through ethics, anti-corruption, human rights, and responsible labor practices

Environmental Achievements

• Increased the number of energy efficiency solutions by 4.6% (2016: 10,454; 2011-2015: 10,439)
• 340 MTN sites powered by alternative energy (2015: 329)
• Total direct Scope 1 and 2 GHG avoided/reduced in 2016: 833 tCO2e (2015: 7,943 tCO2e)
• Total diesel saved in 2016: 3,295 kilolitres (kℓ) (2015: 2,870 kℓ)
• 537.1 tonnes of e-waste handed over for extraction, recycling or safe disposal in South Africa and 0.063 tonnes in Cameroon

Social Achievements

• Launched MTN aYo in Uganda (life insurance, hospital cover, school fee payment)
• Over 25,000 customers accessed preventative care services through MTN and Momentum’s Hello Doctor service
• Implemented MTN EasyTeach in Ivory Coast (teacher and student applications)
• Invested over R127 million in education programs
• MTN Sudan implemented a daycare service for employees’ children

Governance Achievements

• Completed gap analysis of existing environmental policies to inform overarching Group policy
• Increased number of certified ethics officers to 19
• Reviewed Group Freedom of Expression, Privacy and Security (Human Rights) Policy and determined no changes were required

Climate Goals & Targets

Environmental Challenges

• Global economic conditions negatively impacted MTN
• Regulatory uncertainty and political turmoil
• Maintaining service quality amidst explosive data service growth
• Reducing the digital divide while ensuring service pricing meets infrastructure investment requirements
• Data collection challenges associated with network management in Yemen, South Sudan, and Syria

Mitigation Strategies

• Repositioned organizational structures
• Increased oversight and planning capabilities
• Invested over R35 billion in capital investments
• Focused on regulatory affairs and public policy management
• Implemented ethics management across the business

Supply Chain Management

Responsible Procurement

• New Supplier Code of Conduct defining minimum standards for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Impact of volatile weather events and temperature changes on infrastructure and operations
• Disruption to energy supplies due to severe storms

Transition Risks

• Potential financial impact of climate change-related laws and regulations (carbon taxes)

Opportunities

• Reduction of reliance on fossil fuel energy
• Increased use of cost-effective hybrid, off-grid, and environmentally-friendly solutions

Reporting Standards

Frameworks Used: King Report on Governance (King III), JSE Social Responsibility Index (JSE SRI), GRI 4, CDP, UN Global Compact

Certifications: ISO 14001 (MTN South Africa, MTN Cyprus), ISO 27001:2013 (MTN Mobile Money)

Sustainable Products & Innovation

• MTN Lumos Smart Solar solution
• Animal identification management system (AIMS)
• Smart water and energy metering solutions

Environmental Metrics

ESG Focus Areas

• Ethics and anti-corruption
• Service access and quality
• Customer experience
• Digital human rights
• EMF
• Internet of Things
• Energy and climate
• Labour rights
• Health and safety
• Digital inclusion
• Economic performance
• CSI
• Talent
• Supply chain
• Green Offices and e-waste
• Sustainable economies
• Eco-responsibility
• Sustainable societies

Environmental Achievements

• Implemented energy efficiency and alternative energy initiatives in more than 18,000 sites, resulting in cumulative diesel reduction of 17,816 kℓ and electricity savings of 38,250 MWh between 2011 and 2017. Avoided 69,584 tCO2e cumulatively.
• Reduced diesel consumption by 317 kℓ and electricity consumption by 1,026 MWh in 2017 alone, avoiding 1,529 tCO2e.

Social Achievements

• MTN Mobile Money had 21.8 million active subscribers. Expanded mobile financial services offerings, including high-interest savings accounts, micro-loans, and micro-insurance.
• Launched initiatives to support women and youth in business, including incubation programs and the MTN App Challenge.
• Reduced data costs in several markets to improve internet accessibility.
• Partnered with organizations to address energy access challenges through prepaid solar mobile energy systems, benefiting over 1.3 million people.

Governance Achievements

• Updated group gift, hospitality, entertainment, whistleblowing, fraud management, and gender equality and diversity policies.
• Finalized due diligence approach regarding UN Guiding Principles on Business and Human Rights.
• Improved operational and group crisis management processes and oversight for critical events.

Climate Goals & Targets

Environmental Challenges

• Growth of energy-intensive networks challenging greenhouse gas emission reduction targets.
• Challenges in managing electronic and electrical waste.
• Increased barriers and digital ‘borders’ created around the internet.
• Growing cybersecurity and other risks.
• Uncertain regulatory, economic, and competitive environment.
• Need to ensure communication costs are more affordable.
• Lack of access to sufficient radio spectrum to enable service rollout.
• Energy shortages.
• High cost of capital needed for infrastructure rollout.

Mitigation Strategies

• Modernizing existing network and ensuring new infrastructure investments are energy-efficient and utilize alternative energy solutions.
• Developing an estimation methodology for Scope 3 GHG emissions from network sites managed by IHS Holdings.
• Implementing energy efficiency and alternative energy initiatives.
• Developing a digital human rights toolkit to assist operating countries in making decisions and taking appropriate actions.
• BRIGHT strategy focusing on customer experience, data and digital service offerings, and technical excellence.
• Collaborating with stakeholders to identify and deploy innovative solutions.

Supply Chain Management

Supplier Audits: Annual supplier ‘health check’ form.

Responsible Procurement

• New supplier code of conduct setting out minimum standards for environmental and social performance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy snow, rainfall, heatwaves, drought)
• Disruption to energy supplies

Transition Risks

• Potential financial impact of climate change-related laws and regulations (carbon tax).

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI 4, CDP, UN Global Compact

Certifications: ISO 14001 (Cyprus and South Africa)

Third-party Assurance: Limited assurance obtained

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 10 (Reduced inequalities)
• Goal 13 (Climate action)

MTN's initiatives in mobile financial services, renewable energy, and digital inclusion contribute to these goals.

Sustainable Products & Innovation

• Prepaid solar mobile energy systems
• Mobile financial services
• IoT solutions (e.g., fleet management, smart city initiatives)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Digital and financial inclusion
• Ethical business conduct
• Environmental responsibility

Environmental Achievements

• Avoided 1,855 tonnes of GHG emissions
• Reduced the effective price per MB of data by 34% in 2019

Social Achievements

• Provided 35m Africans access to financial services
• Launched employee volunteer programme
• Trained 3m people in digital literacy
• Improved staff morale
• MTN South Africa BEE contributor status improved to level 2

Governance Achievements

• Enhanced management structures and revised key ethics structures and policies to support regulatory compliance
• Implemented our compliance strategy and operationalised our compliance manual across the group

Climate Goals & Targets

Environmental Challenges

• Challenging economic and investment environment in Nigeria
• Political instability and sanctions in MENA region
• Increased regulatory requirements and tax pressures
• FX volatility and weakening currencies
• Operational and compliance challenges from internal control weakness
• Spectrum cost and availability
• Low economic growth and policy uncertainty in South Africa
• Pressure on holdco leverage from cash upstreaming challenges and mix of debt
• Cyber and information security exposure
• Supplier concentration and supply chain disruption

Mitigation Strategies

• Enhanced structures at, and support from, the group on regulatory and tax issues
• Further developed support frameworks, including stakeholder management
• Stress-testing of business plan against currency volatility
• Ensure alignment of hedging policy within risk appetite framework
• Ensure sufficient levels of committed funding facilities at group
• Ensure protection of staff and assets and continuity of operations
• Implement enhanced supplier risk management strategy
• Focus on attaining double-digit growth in constant currency service revenue
• Implement asset realisation programme (ARP)
• Ensure that group leverage remains within the target range
• Continue to strengthen our incident response capability
• Review and enhance security governance and operational structures
• Enhance investment in the upgrade of the security environment

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council’s (IIRC) guidance, King Report on Corporate Governance for South Africa 2016 (King IV), FTSE/JSE Responsible Investment Index, United Nations Global Reporting Initiative Standards, CDP standard

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 11: Sustainable Cities and Communities
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

MTN’s activities contribute to these goals through digital and financial inclusion, ethical business practices, and responsible use of resources.

Sustainable Products & Innovation

• Ayoba instant messaging platform
• MusicTime! music streaming service
• US$20 smartphone

Awards & Recognition

• MTN GlobalConnect won the ‘Best African Wholesale Operator’ award
• MTN Irancell received The Ethics Institute’s 2019 Ethics Initiative of the Year Award

Environmental Metrics

ESG Focus Areas

• Diversity
• Governance
• Sustainability
• Climate Change
• ESG

Social Achievements

• Improved diversity of Group Exco; now consists of three women, with a fourth set to join in 2021. It also has a mix of nationalities, ages and skills.
• Publishing of MTN Group’s first Transparency Report in October 2020.

Governance Achievements

• Established Directors Affairs and Governance Committee and the Risk Management and Compliance Committee, replacing the Nominations Committee and the Risk Management, Compliance and Corporate Governance Committee.
• Appointment of Sindi Mabaso-Koyana as a director and chair of the Audit Committee.
• Held first virtual AGM.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations and stakeholders.
• Need to strengthen expertise in fintech, digital, and regulatory areas on the Board.
• Need for greater understanding of governance challenges in top subsidiary boards.
• Need to enhance coordination between Group Board and operating company boards.

Mitigation Strategies

• Active Board engagement on COVID-19, providing stewardship to deal with uncertainties and risks.
• Adjustments to governance processes to enable agility and swift decision-making.
• Board evaluation to identify areas for improvement and skill development.
• Introduction of Chairmen’s Engagement Forum and strengthening of Committee workshops to improve communication and coordination between Group Board and subsidiary boards.
• Upskilling directors on ESG and climate change priorities.
• Consideration of a technological committee on the Board.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: King IV

Environmental Metrics

ESG Focus Areas

• Digital Human Rights
• Sustainability
• UN Sustainable Development Goals

Environmental Achievements

• Reduction of ~16% in GHG emissions (targeting 47% reduction by 2030 and Net Zero by 2040)

Social Achievements

• Women are 39% of our workforce (targeting 50% by 2030)
• ~83% of our workforce (targeting 95% by 2025)

Governance Achievements

• Improved ranking in the Ranking Digital Rights Index
• Evolved the operational governance framework and structure to better align it with Ambition 2025.

Climate Goals & Targets

Environmental Challenges

• Challenging economic environment
• Dynamic geopolitical environment
• Evolving regulatory and compliance requirements
• Disruptive technologies
• Balance sheet resilience
• Greater focus on ESG
• Internet shutdowns
• Data privacy concerns
• Increase in mis- and disinformation
• Conflict-affected areas
• Varying laws and regulations across different countries
• Balancing data access with data protection costs
• Balancing individual privacy with public safety
• Balancing freedom of expression with preventing online harm

Mitigation Strategies

• Continuous evolution and innovation of framework and business conduct
• Knowledge transfer between markets
• Proactive approach to addressing and responding to human rights incidents
• Formalising processes across the Group
• Preparing for future scenarios
• Consistent decision-making
• Transparent processes and credible communications
• Multi-stakeholder engagement and consultation
• Monitoring and public reporting of performance
• Using feedback to improve policies, procedures and practices
• Implementing MTN’s digital human rights policy and due diligence approach
• Engaging with regulatory authorities, industry players and other stakeholders
• Communicating with impacted parties
• Safeguarding employees, customers, and partners
• Maintaining infrastructure integrity
• Conducting risk and impact assessments
• Developing detailed Election Crisis Management Plan and Stakeholder Engagement Plan

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct outlining minimum standards, including human rights

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), Integrated Reporting Framework, Ranking Digital Rights Index, Global Network Initiative (GNI), GSMA Human Rights Guidance for the Mobile Industry, United Nations Global Compact (UNGC), United Nations Guiding Principles on Business and Human Rights

Third-party Assurance: Limited assurance obtained

UN Sustainable Development Goals

• SDG 9

Bridging the digital divide, furthering financial inclusion

Environmental Metrics

ESG Focus Areas

• Women representation in workforce
• Net Zero carbon emissions
• Broadband coverage

Environmental Achievements

• Reduced emissions by 13.9% (excluding South Africa, impacted by loadshedding) in 2022

Social Achievements

• Women made up 40% of staff (significant progress towards 50%)
• Employee engagement rating increased from 80% in 2021 to 83% in 2022
• Reduced labour turnover from 6.5% in 2021 to 6.4% in 2022

Governance Achievements

• Enhanced remuneration reporting
• Addressed shareholder concerns regarding remuneration

Climate Goals & Targets

Environmental Challenges

• After-effects of COVID-19, accelerating inflation, Russia-Ukraine war impact, power crisis in South Africa

Mitigation Strategies

• Employees showed resilience, delivered on strategic priorities, implemented interventions beyond traditional performance management

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Loadshedding in South Africa

Reporting Standards

Frameworks Used: King IV

Environmental Metrics

ESG Focus Areas

• Climate Change
• Digital Financial Inclusion
• Diverse Society
• Economic Growth

Environmental Achievements

• 10.9% reduction in Scope 1 and 2 emissions from base-year emissions (excluding MTN SA)
• 42.1% reduction in Scope 1 and 2 GHG emissions from base-year emissions, including MTN SA
• Construction underway of large solar park at MTN’s headquarters in Johannesburg, South Africa.
• Avoided more than 6,800 tCO2e in 2023 through Project Infinity (circular economy program).

Social Achievements

• Maintained female representation at 40%
• Facilitated financial inclusion to 72 million active MoMo users
• Extended digital inclusion to 36 million ayoba users
• Provided broadband coverage to 89.2% of the population

Governance Achievements

• Published second TCFD-aligned Climate Report
• Achieved a B rating for its 2023 CDP Climate Change Report
• Board of Directors approved the MTN Group environmental strategy
• Modified governance structure to promote cross-functional collaboration and ensure sustainability is embedded throughout the organisation.

Climate Goals & Targets

Environmental Challenges

• Loadshedding and grid instability in South Africa requiring use of diesel backup generators, impacting climate targets and financial performance.
• Shifting business model impacting Net Zero strategy due to increased leased tower sites.
• Damage to equipment during transportation (in Uganda and Côte d’Ivoire)
• Battery inefficiencies (in Uganda and Côte d’Ivoire)

Mitigation Strategies

• Investing over R700 million in Project Zero initiatives
• Working with partners and suppliers to reduce their carbon footprints
• Focusing on operational efficiency, greener energy solutions and circular economy strategies
• Implementing hybrid energy solutions combining different energy sources (Côte d’Ivoire)

Supply Chain Management

Responsible Procurement

• Integrating climate performance clauses in contracts
• Supplier engagement to adopt MTN's Net Zero pledge

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (flooding, wildfires, drought, heatwaves)
• Damage to infrastructure

Transition Risks

• Climate-related regulations and legislation
• Changing customer behaviour and market conditions
• Risks in transitioning to new technologies

Opportunities

• Improving energy efficiency
• Clean energy technologies
• Development of low-carbon products and services

Reporting Standards

Frameworks Used: GRI Standards (2021), IFRS S1 and IFRS S2, TCFD

Certifications: ISO 14001

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 13 (Climate Action)

MTN's initiatives contribute to these goals through renewable energy investments, digital infrastructure development, and climate change mitigation efforts.

Sustainable Products & Innovation

• Eco SIMs (planned)
• Energy-efficient network technologies

Awards & Recognition

• Brand Africa's number one African brand doing good for people, society and the environment (2023)