MTN Group Limited 2009 Sustainability MTN Group Report Sustainability Report ⁄ 31 December 2009 ⁄ Our Products and Services Building Resilience
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MTN Group Limited 2009 Sustainability MTN Group Report Sustainability Report ⁄ 31 December 2009 ⁄ Our products and services Building resilience. Agility. Growth. PROOF 9 – 08 JUNE 2010 Contents Introduction 1 The community 31 Group structure 1 MTN foundations 31 Group president and CEOs statement 2 Health 32 Sustainability strategy and governance 3 Education 33 Strategy 3 Culture 33 Governance 4 Volunteering: 21 Days of Y’ello Care 34 Legacy projects 37 2008 feedback 5 Our suppliers 38 2009 opportunities and risks 8 Reducing costs 38 Our customers 10 Standardisation 39 Quality of network 10 Improving processes 39 Bridging the communications divide 11 Enterprise development 39 Improving systems 12 Future sustainability commitments 41 Customer relations 12 About this report 47 Innovation 13 Scope 47 Governance and regulation 14 Materiality 47 King III code of corporate governance 14 Stakeholder engagement 48 Fraud management 14 What MTN off ers 52 Business continuity planning 15 Local participation 15 Glossary 54 Broad-based black economic empowerment 15 Contact details IBC About telecommunication regulation 17 Interconnection 17 SIM registration 17 Group profi le Licencing 18 MTN’s vision is to be the leading telecommunications Regulatory trends 18 provider in emerging markets. Our people 20 Valuing employees 20 MTN’s Can Do pledge has seen the company develop Training and development 21 from a start-up South African operation launched in Health and safety 21 1994, to a multinational telecommunications group, Recognition 21 operating in 21 countries in Africa, Asia and the Middle The environment 22 Electromagnetic frequency and safe communications 22 East. The MTN Group off ers cellular network access and Science and EMF 22 business solutions, and is listed on the JSE Limited in MTN and EMF 23 South Africa. As at 31 December 2009, MTN recorded Carbon footprint 24 116 million subscribers. The MTN Group is also a global About our carbon footprint 24 Reducing our carbon footprint 27 sponsor of the 2010 FIFA World Cup South Africa™ Infrastructure sharing 28 and has exclusive mobile content rights for Africa and Other environmental issues addressed over 2009 29 the Middle East. MTN values integrity, relationships, E-Waste 29 Community and the environment 29 innovation, a can-do attitude and leadership. sustainability report Building resilience. Agility. Growth. PROOF 9 – 08 JUNE 2010 Group structure MTN South Africa MTN Holdings 100% 100% MTN International 100% MTN Mauritius 100% MTN Dubai + 100% 100% 30% Service 70%* 75% 75% Providers MTN Swaziland MTN Cameroon MTN Guinea Conakry MTN Benin 100% 96% 100% 98% 100% Network MTN Uganda Operations MTN Congo-Brazzaville MTN Ghana MTN Guinea Bissau 100% 53% 76%* 60% 75% Business Mascom Botswana Solutions MTN Nigeria Lonestar Liberia MTN Syria 55% 65% 83% 51% MTN Rwanda MTN Côte d’Ivoire MTN Yemen MTN Cyprus 98% 49% 85% 100% MTN Zambia MTN Irancell MTN Sudan MTN Afghanistan 20% Belgacom International *Legal ownership Carrier Services 1/60 MTN Group Sustainability Report ⁄ 31 December 2009 PROOF 9 – 08 JUNE 2010 Group president and CEOs statement Sustainability vision MTN has a deliberate approach to conducting business, recognising the signifi cant impact that telecommunication services have on society. As the leading provider of telecommunications services in emerging markets, MTN has the opportunity to catalyse development that improves quality of life by enabling social and economic inclusion and growth, connecting people and providing better ways of doing business while respecting the natural environment. Phuthuma Nhleko Group president and CEO MTN’s sustainable business practices represent an incremental journey. In meeting our business objectives, we will The Group started this journey in 1994; in 2009 the implementation of enhance stakeholder value, and manage the Group sustainability function, board and executive support, Group- led strategic planning, and resource commitment has positioned the risks and opportunities posed by the Group to better realise its sustainability vision. fi nancial, manufactured, social, human and To remain resilient, sustainability is not secondary to the business: it is environmental capitals within our scope of about positioning social, environmental and ethical considerations at the core of MTN. infl uence. 2/60 MTN Group Sustainability Report ⁄ 31 December 2009 PROOF 9 – 08 JUNE 2010 Sustainability strategy and governance MTN bases sustainable business activities on the model below. NATURAL CAPITAL HUMAN CAPITAL (Health, Knowledge, Wealth, Hunger) Waste Food ECONOMIC CAPITAL Water Manufactured Financial Fisheries Digital Divide Market Access Innovation and Economic Growth Patents Ozone Democracy Socially Respon- Peace Oceans Transport sible Investment Literacy Communication Foreign Direct Corruption Investment Biodiversity Atmosphere Housing Equity & Justice Institutions to develop Education human capital Pollution Energy SOCIAL CAPITAL Climate Strategy To accelerate the implementation of MTN’s sustainability vision, we defi ned our sustainability strategy and key implementationprinciples. These are set out below. Strategy Implementation principles • Focus on environmental, social and governance issues of • Set foundations for sustainability: ensure internal awareness and importance to stakeholders, and that may have a material impact education, implement human and system resources, identify on MTN’s economic position opportunities and risks, and manage and report performance • Business decisions will be motivated by sustainability opportunities • Focus on no more than three project initiatives per annum. Projects and risks, rather than mere compliance are to be prioritised based on eff ort required and potential impact • Use pilots, trials, and a phased implementation approach where suitable • Share successes and use lessons learnt from previous experiences • Group sets direction and infl uences imperatives, in collaboration • Balance Group’s vision and requirements with local operating with operations, which maintain closest working relationships with conditions, challenges and opportunities stakeholders 3/60 MTN Group Sustainability Report ⁄ 31 December 2009 PROOF 9 – 08 JUNE 2010 Sustainability strategy and governance continued Governance of sustainability undertaken by the Group president and CEO, where commitments The Group board is accountable for sustainable business practice bind the entire Group. and as such, has delegated responsibility to the Group risk and compliance committee. The executive management of the The diagram below indicates the governance and management of the sustainability function is the responsibility of the Group executive, sustainability function in MTN. corporate aff airs, who reports progress and plans to the Group executive committee (Exco). Signoff of major deliverables is Group board Group risk and NRHR and CG compliance committee*** Group audit committee committee* Exco Tender committee Business Corporate aff airs Group fi nance Marketing Human resources Mergers and risk management Technology acquisitions Stakeholder Corporate relations communications Group sustainability OPCO** sustainability Sustainability working champions teams/forums**** * Nominations, remuneration, human resources and corporate governance committee ** Operating Company, used within MTN to denote all subsidiaries and associates *** Sustainability is a standing item on committee agenda **** Sustainability working teams and forums will be implemented in regions or operating companies commencing in the latter half of 2010 4/60 MTN Group Sustainability Report ⁄ 31 December 2009 PROOF 9 – 08 JUNE 2010 2008 Feedback We are pleased to have made progress on our previous sustainability commitments. Degree to which objective 2009 commitments made in 2008 Status was achieved Risk/Governance Roll out annual reputation review • Self-assessment of MTN’s reputation by Exco and Opco CEOs via questionnaire completed. Results presented to Exco • In 2011 MTN will undertake external assessment with media, analysts and regulators Complete whistleblower roll out; improve • Roll out completed. Operations also received basic fraud staff awareness awareness training Review/improve consistency of government • Stakeholder governance model incorporating identifi cation relations engagements and management processes defi ned. Implementation of model planned in 2010 • Appointment of an executive for regulatory aff airs at Group level Establish Group sustainability governance • Group Sustainability Manager appointed to drive strategy and structure (corporate affairs, SHE, risk, network implementation and technology, HR, investor relations, Opco • In 2010, implementation of local and regional sustainability representation) forums to commence Enhance CURA risk management system to • Reviewed decision to only track this indicator. Determined that track hours of disability due to injuries a more holistic incident management system was required to address stakeholder reputation management, insurance, safety and health, and sustainability-related incidents proposed ■ Degree of MTN’s achievements ■ Degree yet to be achieved 5/60 MTN Group Sustainability Report ⁄ 31 December 2009 PROOF 9 – 08 JUNE 2010 2008 Feedback continued Degree to which objective 2009 commitments made in 2008 Status was achieved Social contribution Monitor implementation of Group CSR • All 21 Opcos now undertake projects that deliver sustainable framework and align activities. Review impact framework