Sustainability and MTN

MTN sustainability policy

MTN’s sustainability policy describes the Group’s commitment to the sustainable development of communities within which it operates. Moreover, it guides the responsible management of the social, economic and environmental aspects of operations.

The Group has also developed a sustainability framework aimed at assisting its operations to articulate and understand MTN’s contributions to sustainable development. The framework gives guidance on what operations should be reporting on and also on indicators that need to be managed. However, sustainability management goes beyond mere reporting. It requires the responsible monitoring and management of sustainability issues to ensure long-term sustainable development. Further details of the framework are available on the Group website, www.mtn.com.

Sustainability vision

MTN’s vision statement “to be the leading provider of telecommunications services in emerging markets” is underpinned by its commitment to sustainable development in the communities within which it operates. MTN is constantly evolving its governance structures, targets and reporting mechanisms to maintain a balance between economic, social and environmental performance.

As a telecommunications network operator in emerging markets, the Group acknowledges the key role mobile communications can play in socio-economic development. MTN’s goal is to be a valuable partner to individuals, communities and businesses in increasing access to quality communication services, enhancing universal access for remote customers and contributing to the general quality of life of the people and communities it serves.

MTN recognises that although standard business practices apply across the Group, each operational country holds unique challenges and opportunities. Hence, priorities are ultimately driven by each country’s own economic, business and social dynamics.

Risk management and accountability

The Group risk management and corporate governance committee, as appointed by the board, assumes overall responsibility for identifying, monitoring and evaluating sustainability management performance and associated risks and provides the control measures to be implemented by the Group executive committee.

Group risk management is responsible for the development of the sustainability management framework and the implementation of the framework within the Group and its operations.

Stakeholder engagement

The Group engages with a wide range of stakeholders with varying interests. The stakeholders identifi ed in this report are a combination of individuals or groups with common interests, who may be aff ected by or have an impact on MTN’s operational activities. Although the Group has no defined stakeholder engagement policy, each operation is required to develop its own policy, which defines its identification of, engagement with and communication with stakeholders.

Certain aspects of stakeholder engagement are largely standardised across the Group. For instance, given the complexities of engaging different government stakeholders across cultural borders, the Group has initiated a standard government relations framework across operations, which aims to establish a consistent approach to initiating and managing government relations.

MTN Group’s stakeholders across operations are identified as:

• Regulators
• Government ministries or officials
• Community groups
• Media
• Investors and shareholders
• Customers
• Suppliers
• Distributors
• Employees
• Unions
• Business partners.

MTN operations identify their stakeholders within these categories as those individuals or groups of people who may have a direct or indirect impact on the business in areas such as revenue, product use, brand reputation and perception. Operations use a combination of approaches to engage with their stakeholders:

• Print or electronic media such as email, SMS, newspapers, fliers, letters, television and radio campaigns, press releases, pamphlets and brochures
• Awareness programmes
• Seminars and presentations
• Contracts
• Invoices.

Sustainable business management

The Group recognises that responsible sustainable development ultimately translates into future growth for the business in terms of expanded market share and customer retention. The operations demonstrate their commitment by maintaining a positive and prominent corporate image, focusing on the creation of both short and long-term customer and business linkages as well as the creation of “authentic value” for the organisation rather than focusing simply on short-term profitability.

By ensuring the long-term sustainability of the business, the operations contribute to the sustainability of the country of operation. This is demonstrated predominantly through the local MTN foundations’ contributions through various initiatives relating to social, economic and environmental development. Other areas where the Group demonstrates its commitment are by:

• Investing in infrastructure to ensure the operations provide quality service to local customers and extend their reach, thereby also contributing to universal access
• Meeting licensing obligations such as providing access to telephony services which in turn facilitate trade and commerce
• Offering accessible and affordable products
• Taking responsibility for the lifecycle management of products through initiatives such as electronic voucher distribution (EVD), which was implemented to reduce the environmental impact caused by airtime cards.