MTN : FY 23 ESG Data Booklet

04

05

06

Doing it right

1. Disclosures

1. Data

Doing for growth

1. Disclosures
2. Data

Appendices

34 Glossary of terms

1. Standards and associations
2. GRI disclosure index

44 Administration

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

Information for shareholders

Regulatory and reporting frameworks used:

The Notice of AGM and form of proxy give information to shareholders who want to participate in the Group's Annual General Meeting (AGM).

This provides a summary of the application of the King IVTM principles by MTN Group Limited and Mobile Telephone Networks Holdings Limited.

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

• 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.

Build the largest and most valuable platforms

Drive industry- leading connectivity operations

Create shared value

Accelerate portfolio transformation

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

Strategic intent

Belief statement

Ambition 2025: Leading digital solutions for Africa's progress Everybody deserves the benefits of a modern connected life

• Project Zero: Reduce GHG emission.
• Efficiency: Improve energy efficiency.
• Water and waste management: Reducing our impact.

Metrics and actions

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

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.

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

https://www.mtn.com/wp-content/uploads/2024/04/MTN-Position-on-Environment.pdf

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

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.