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Safaricom Sustainability Report 2016
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Sustainability is embedded within the daily operations of
Safaricom using a ‘top-down, bottom-up’ co-creation
approach. This approach was adopted because it is a
flexible, inclusive one that draws on the strengths of both
the managerial and operational levels within the company.
EXCO and the team of Sustainability Champions work
simultaneously and in parallel to articulate sustainability
requirements in a way that makes sense and is relevant to
each Division.
This approach entails extensive, ongoing consultations
and conversations at all levels and functions across the
company, but ensures that colleagues at every level
embrace, understand and take ownership for sustainability
We create value for all of our stakeholders
through the products and services that we make
available. A portion of this is monetized through
income generated for the company. Although
appreciated and recognised by internal
and external stakeholders alike, the value
contribution we make to the economy, society
and environment in Kenya is significantly more
than this.
Using a pioneering assessment carried out in
partnership with KPMG, we have been able to
measure and report on this contribution that we
make which has, until now, not been valued. We
have used the KPMG “True Value” methodology
to identify the most material socio-economic
and environmental impacts of the company and
to quantify them in financial terms.
The net value of the monetised positive and
negative externalities gives an indication of
the total value that the company created for
the people of Kenya. We released our first True
Value report for FY15 and have now updated the
results for the year ending 31 March 2016, which
are included in the following ‘True Earnings’
bridge infographic.
Monetisation is fast gaining momentum as an
approach that helps companies to understand
and increase the value they create for society.
Safaricom is the first major company in Africa to
publicly communicate the value it creates for
society in this way.
EARNINGS
ECONOMIC
VALUE-ADD
Revenue
195,685
Cost
(157,580.7)
38,104
Profit
Economic
Value Added
Operations
232,567.4
15,933.4
Economic
Value Added
Capex
(23,728.4)
Corruption
SAFARICOM TRUE VALUE BRIDGE:
The Safaricom true value bridge shows that the total value we created for Kenyan
society in FY16 was KSh 414 billion, around 10.86 times greater than the financial profit
the company made.
Figures in KSh million
Co-creation
THE TRUE VALUE WE HAVE CREATED