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Our approach to materiality

At MTN, we recognise the interconnectedness of our operations, the environment and society, as each of these factors impacts the others in various ways – both positively and negatively – which often change over time.

The concept of ‘double materiality’ proposed by the European Commission in 2019 encourages companies to consider financial materiality and impact materiality. Financial materiality follows various codes, standards and frameworks, while impact materiality follows the GRI standards. MTN considers a range of matters that can affect our ability to create value for our stakeholders; for the Integrated Report, this focus is primarily for short, medium and long term consideration. We acknowledge that materiality is a dynamic area, with the potential for sustainability measures to shift between financial and impact materiality, which drives our annual process to identify key material matters for the Group. Our reporting suite, examines the 'financial' (financial reporting) and 'impact' (sustainability reporting) materiality of the matters affecting our business.

Our materiality determination process is led by Investor Relations and is subject to review by the Exco and Board:

Identification

Identify potentially relevant material topics for consideration including:

Global and industry sustainability matters.
Matters identified in our 2023 reports.
Matters raised by stakeholders in our Reputation Index Survey.
Internal documents, including Board packs and risk registers.
Matters disclosed in peers’ reports.
Emerging matters in the media.

Evaluation

Through an independently facilitated survey and scoring mechanism, evaluate the extent to which good or bad management affects outcomes. Factors considered include:

Financial performance.
Regulatory compliance.
Stakeholder expectations.
Innovation, growth and competitiveness.
Scale, scope and character of external impacts.

Strategic integration

Ensure alignment and integration with our strategic priorities by:

Establishing appropriate management actions to capitalise on factors that offer opportunities for greater value creation.
Implementing interventions to mitigate those matters that could potentially disrupt value creation.

Prioritisation

Prioritise matters based on the likelihood of occurrence and the magnitude of impact by:

Hosting a special workshop for senior representatives of all key departments.
Discussing and agreeing the final rankings of material matters.
Submitting final scores to the Exco and Board for review.
Using the outcomes to guide the content of our IR, SR and all Financial Reporting.

Given the dynamic nature of our material matters, our annual materiality determination process also assesses any shifts between impact and financial materiality.

Impact materiality