Climate Change Data

MTN Group Limited

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:3,713,379 million tCO2e

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Digital and Financial Inclusion
  • Broadband Coverage
  • Human Rights
  • Governance
  • Ethics
  • Compliance
  • Stakeholder Engagement
  • Net Zero Emissions

Environmental Achievements

  • 13.1% absolute reduction in Scope 1 and 2 emissions (excluding MTN SA)
  • 89.2% broadband coverage (2022: 87.8%)

Social Achievements

  • Enabled internet access to 150 million customers (2022: 137 million)
  • Facilitated financial inclusion to 72 million active MoMo users (2022: 69 million)
  • Extended digital inclusion to 36 million ayoba users (2022: 22 million)
  • Maintained female representation at 40% in leadership
  • Empowered 17,569 MTNers
  • Connected 295 million subscribers (2022: 289 million)
  • Added economic value of ~R159 billion across our markets (2022: ~R149 billion)

Governance Achievements

  • Improved Sustainalytics score of 22.2 and Carbon Disclosure Project score of B (previously C)
  • Maintained Level 1 B-BBEE rating for MTN Group and MTN South Africa for the third year running
  • Achieved 79 on the Ethisphere Group Ethical Culture Quotient score
  • Refreshed MTN's values to include 'Act with Inclusion'

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions by 2040
Medium-term Goals:
  • 95% broadband coverage by 2025
  • 30% renewable energy by 2030
  • 50% absolute average reduction in emissions by 2030
  • Net Zero emissions by 2040
  • 50% female representation by 2030
  • Complete fintech separation and sign further agreements with strategic partners
  • Finalise separation of fibre assets by 2024
  • Leverage Bayobab pan-African connectivity partnership with Microsoft
  • Drive faster digital and financial inclusion
  • Accelerate the scaling of the fintech business
  • Accelerate commercial monetisation within platforms
  • Complete localisation targets in key markets
Short-term Goals:
  • Complete network resilience program in South Africa
  • Sustain improved network availability and quality in South Africa
  • Drive further resilience and power efficiencies in MTN SA network
  • Drive commercial initiatives in MTN SA to sustain prepaid momentum and accelerate device strategy
  • Strengthen MTN Nigeria margins and balance sheet resilience
  • Resolve negative equity position in MTN Nigeria
  • Engage with regulatory authorities on tariff increases in Nigeria
  • Reduce and mitigate forex exposures in Nigeria
  • Unlock efficiencies to drive operating leverage in Nigeria
  • Re-establish earnings growth in Nigeria
  • Sustain strong free cash flow generation in Nigeria
  • Restore reserves and balance sheet position in Nigeria

Environmental Challenges

  • Geopolitical and macroeconomic conditions (high inflation, currency fluctuations, political instability)
  • Complex regulatory and tax environment
  • Network and platform performance (loadshedding in South Africa, rising energy costs)
  • Financial resilience (forex volatility, inflation, interest rates)
  • Cybersecurity and digital safety threats
  • Supply chain disruptions
  • ESG issues (emissions reduction, digital inclusion, diversity)
Mitigation Strategies
  • Expense efficiency program (EEP)
  • Network resilience plan (South Africa)
  • Supply chain resilience plan
  • Regulatory and stakeholder engagement
  • Investment in cybersecurity
  • Asset realisation program (ARP)
  • Portfolio transformation
  • ESG initiatives

Supply Chain Management

Responsible Procurement
  • Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Loadshedding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: Integrated Reporting Framework, Companies Act, No 71 of 2008, JSE Listings Requirements, FTSE/JSE Responsible Investment Index, King IV™ Principles, International Financial Reporting Standards (IFRS), GRI Standards (2021), IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2), TCFD guidance, UN SDGs, UN Global Compact (UNGC), UN Guiding Principles on Business and Human Rights, CDP, SASB, GSMA ESG Metrics

Certifications: ISO 14001, ISO 22301

Third-party Assurance: Ernst & Young

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 contribute to these goals through various programs and investments

Awards & Recognition

  • Merit award in the Top 40 category at the 2023 CGISA/JSE Integrated Reporting Awards
  • 'Excellent' rating at the EY Excellence in Integrated Reporting 2023 awards
  • Recognition by the International Finance Corporation (IFC)
  • Ranked in the top five in the 2023 Intellidex Investor Relations Survey
  • MTN named on Forbes’ World's Best Employers list for 2023
  • MTN named on the Top 400 Global Companies for the third time in four years
  • Improved External Market ratings