Sustainability

Sustainability

The contribution we make to the long-term sustainability of the communities in which we operate and the relationships we have which are central to our business contribute to our stock of social and relationship capital. Our social and relationship capital includes the intangibles associated with our brand and reputation and our social licence to operate. Our relationships with our stakeholders, which include communities, the investor community, government, regulators and joint venture partners, impact directly or indirectly on our business and its reputation. These relationships form part of each capital and are vital inputs to our business model that are constantly being increased, decreased and transformed through our activities.


Environmental, social and governance (ESG)

Telkom is committed to uniting our people and leveraging our capabilities to deliver on the Group's purpose. We aim to create shared value for all our stakeholders in a manner that is environmentally responsible, supports broader social imperatives, and respects the rights of all. In addition, we have selected SDGs where we can have a substantial impact and influence.

Our ESG Strategy has clear focus areas and goals that seek to unlock long term success for all our stakeholders. It formalises our approach to sustainable business practices, with outcomes tracked and measured to ensure we deliver against our ESG commitments. Telkom is intentional and unequivocal in its pursuit to deliver sustainable value to all our stakeholders, and our ESG Strategy provides a framework for deliberate action to achieve this. Our ESG operational model is a hybrid model led by a small Group central team, that is supported by ESG champions in each of the business units in the form of an established ESG Impact Council for oversight and accountability.

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Environment

Telkom is a business that advocates for environmental stewardship by utilising natural resources responsibly to mitigate the impact of climate change through our energy consumption, water and waste management practices. As part of our environmental pillar, we have developed two focus areas, namely, operational efficiencies and digital planet, which are defined by goal statements.

Operational Efficiencies

In February 2019, the GSMA (Groupe Speciale Mobile Association) set an ambition on behalf of the ICT industry to reach net zero carbon emissions by 2050. Telkom is a member of GSMA and has developed targets to align with the ambitions of the GSMA. As part of the operational efficiencies focus area, we have committed to the following:

  • Reach carbon neutrality by 2035
  • Achieve net-zero emissions by 2040

Digital Planet

Under the digital planet focus area, we have set a target to deploy 50 000 utilities monitoring IoT (Internet of Things) devices for our business and government customers by 2025. These IoT devices measure the electricity and water consumption at some of our sites, with the intention to go to market. By going to market, live readings will influence organisations to keep track of their consumption and ultimately reduce their overall emissions.

Our environmental performance

SDG
ESG Pillar
Focus Area
Goal statements
% change from FY 2022
Status
Comment
Impact Influence Environment  Operational Efficiencies  Carbon neutral by 2035 (tCO2e) -18% We have achieved an 18% reduction in scope 1 and 2 emissions, thereby exceeding the 4.2% linear annual reduction rate per the guidance of the Science-Based Targets initiative
50% Reduce fossil fuel consumption by 2030 (tCO2e) 46% Although, Telkom has reduced its overall scope 1 and 2 emissions, the increase in the frequency of loadshedding has resulted in a 46% increase in scope 1 emissions due to diesel consumption in back-up generators.
100% renewable energy sources by 2035 <1% In FY2022, we commenced with the installation of the solar plant at the Belville Office Park in Cape Town, which is now operational. In FY2023, the solar plant at the Telkom Office Park in Centurion was commissioned. We continue to make efforts to increase the use of renewable energy within our portfolio.
Net-zero by 2040 Scope 3 baseline has been calculated.
Determine scope 3 emissions and set a target (tCO2e) Scope 3 reduction target will be set in FY 2024.
75% reduction in waste to landfill by 2030 (tonnes) -9%
50% reduction in potable water consumption by 2030 (kL) -7% Telkom uses municipal water for cooking, drinking, hygiene, and landscaping purposes. We continue to make plans to minimise water consumption and resort to alternative water sources.
25% migration from R22 refrigerant gases in 2025 and 100% by 2035 (kg) -4% We have reduced our R22 gas consumption by decommissioning legacy sites and replacing HVAC units that have exceeded the commercial expected life cycle by 30%
Digital Planet 50 000 IoT devices deployed by 2025 285% We have increased the number of IoT devices installed to measure water and electricity consumption, including on our own properties.

Legend
Target achieved
Making good progress, but long-term target not yet achieved
Not achieved, Progress needs to be improved
No specific target set

Social

Telkom has worked on adapting our capabilities to find sustainable solutions to South Africa's challenges in education, skills development, technology innovation and entrepreneurship - these are key platforms for building an inclusive digital future for all. We strive to be an organisation that takes accountability for its actions and conduct our business activities in a manner that is socially responsible to support the development of societies within our sphere of influence. Our three focus areas will assist with realising the social pillar of our ESG strategy.

Investing with Purpose

We intend to enable shared value through our social investment, enterprise and supplier development and workplace programmes. As part of our goal statement to invest with purpose, we have committed to:

  • Impact 100 000 lives through SMME spend by 2025
  • Impact 30 000 lives through digital literacy by 2023
  • Grow our female talent pool for senior management positions and maintain a top employer status.

Digital Services

As one of South Africa's leading telecommunications companies, we aim to deliver ICT solutions that enable socioeconomic uplift. Our goals within the digital services industry include:

  • Providing 4.3 million customers access to Telkom's diversified digital platforms by 2025.
  • Enabling the growth of SA's business segment by providing digital platform solutions to 500 000 businesses by 2025.

Empowered Communities

Our vision is to broaden access to affordable and inclusive digital connectivity, thereby enabling a better life for our customers. We aim to:

  • Connect 15 million customers to broadband & fixed wireless broadband connectivity by 2025.
  • Provide access to over 1.5 million South African homes and businesses through our FTTX footprint by 2025.

Social performance

SDG
ESG Pillar
Focus Area
Goal statements
% change from FY 2022
Status
Comment
Impact Influence Social  Investing with Purpose  100 000 lives positively impacted through SMME spend by 2025* 69% FY2022 number is cumulative since 2015
30 000 lives impacted through digital literacy by 2023** 109%
2023 Become employer of choice Certified as a Top Employer in South Africa for 2023 by the Top Employers Institute.
35% women in management positions (M5 and above) by 2025 1%
Digital Services  4.3 million customers with access to Telkom's diversified digital platforms by 2025 90%
500 000 businesses with access to digital platform solutions by 2025 0.4%
Empowered Communities  15 million customers connected to broadband & fixed wireless broadband connectivity by 2025 24%
1.5 million SA homes and businesses connected through our FTTX footprint by 2025 24%
Underserved areas Fibre rollout in townships (homes passed) 16% Underserved areas were initially not part of the ESG strategy. Goal statement recently introduced. Target will be defined in Q1 of FY24.
Fibre rollout in townships (homes passed) 28%

* Lives impacted by job creation = number of people employed at an SMME which can either be actual or x 4.1 average if no. of employed unknown (Small Business Institute SA). To calculate lives impacted, X 3.3 economic multiplier is used in addition – ie the average number of people in a household (StatsSA)

** Digital literacy is the ability to use technology to connect with the world around us, to access opportunities and to use digital content to learn new skills/knowledge to contribute in a digitally connected society (UNESCO, UNICEF, EU)

Governance

Business Stewardship

We envision a culture of accountable and ethical operating practices, and encourage the responsible use of data and technology. We aspire to lead ethically and effectively, as well as ensuring that the organisation is a responsible corporate citizen according to the principles set out in the King IV Report on Corporate Governance for South Africa. The company's Board of Directors has established several committees to assist with executing its governance duties. We have set ourselves the following goal statements:

  • Creating a culture of responsible technology & information use within the organisation and broader industry.
  • Fair and ethical practices towards our customers and within the organisation.

Governance performance

SDG
ESG Pillar
Focus Area
Goal statements
% change from FY 2022
Status
Comment
Impact Influence Governance  Business Stewardship  Culture of responsible technology & information use
% Reduction in number of data breaches 0%
Fair and ethical practices towards our customers and within the Group
% Reduction in escalated complaints* 34% ESG KPIs are continuously expanded to align to global frameworks. Targets will be set by the business as we evolve.
% Decrease in whistle blowing incidents reported from FY2022 3%

* Excludes call centre escalations managed at the call centre



ESG Disclosure references

Environment, Health and Safety

Telkom html document Climate Change Policy Statement

Telkom html document Environmental Policy Statement

Telkom html document Occupational Health and Safety Policy

Telkom html document Emergency Preparedness and Response Procedure

Telkom html document CDP report climate change 2022


Group IT

Telkom html document Information and Data Management Policy

Telkom html document Information Security Policy

Telkom html document Privacy Framework

Telkom html document Digital Ethics Framework


Procurement Services

Supplier Code of Conduct

Group Procurement Policy


Governance and Risk

Telkom html document Corporate Citizenship Policy Statement

Telkom html document Human Rights Policy Statement

Telkom html document Protection of Personal Information Policy (POPI) and Framework

Telkom html document Enterprise Risk Management Policy (ERM) and Framework

Telkom html document Telkom Group Ethics Handbook

Telkom html document BCM Policy and Framework


Employee Relations

Telkom html document Prohibition of Unfair Discrimination and Harassment Policy

Telkom html document Employee Relations Policy