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OUR MATERIAL MATTERS

| GOVERNANCE, RISK & REGULATION | NETWORK QUALITY

| ENVIRONMENTAL RESPONSIBILITY |

INNOVATION |

38

Our water usage increased by 2% to 96,650 m3 and our electricity consumption

increased from 107,977 MWh in FY16 to 116,988 MWh in FY17. The increase in

electricity consumption is due to a change in the way we calculate our usage.

We used to base our calculations on the data provided in utility power bills for

individual sites, but data collection challenges and discrepancies in reconciling

this underlying data prompted us to change our methodology to improve the

accuracy and consistency of our reporting. We now calculate our consumption

based on the ‘cost of power’ using the exact amounts as paid by the Finance

Department to the Kenya Power and Light Company. It is worth noting that we

are comfortable with our electricity consumption rising (and rising in the mix) given

the fact that electricity produced in Kenya by the KPLC is mainly from renewable

sources, which is aligned with our SDG commitment to using environmentally

‘cleaner’ energy wherever possible. At this stage, we have only recalculated the

FY17 electricity consumption based on improved data, but we are working on

reviewing earlier data to established clearer trends.

As part of our commitment to SDG7, we also developed an Energy Policy during

the year. The policy will guide and focus our ongoing efforts in this regard and has

helped prioritise our research of, and investment in, clean energy technologies.

MANAGING OUR EMISSIONS

In response to the SDG strategy, we have committed to becoming a net zero

carbon-emitting company by 2050. As one of the few companies in Africa to

have made this commitment, we are rolling out renewable energy solutions

across our network and facilities, as well as considering carbon offset proposals for

sources where renewable energy may not be feasible with current technology; for

example, planting trees and providing subsidised domestic solar energy solutions.

As part of our commitment to meeting the net zero carbon target, we continue to

monitor and report our carbon footprint. We have calculated and published our

carbon footprint for the sixth time this year.

As the preceding table shows, our overall footprint has decreased to 78,927

tCO2e this year, down from a revised figure of 79,781 tCO2e in FY16. The slight

decrease in overall footprint is the result of a decrease in ‘Scope 1’ emissions,

which reflects the decrease in diesel consumed in our generators. The increase

in ‘Scope 2’ emissions is due to elevated electricity consumption as a result

of continued network expansion and an SDG-related strategic shift to using

electricity instead of diesel wherever possible because it is an environmentally

‘cleaner’ source of power.

SDG 13

Carbon Footprint

Scope 1 Emissions

Scope 2 Emissions

Scope 3 Emissions

Total Emissions

FY15

FY16

FINANCIAL YEAR

CARBON EMISSIONS (tCO2e)

FY17

78,927

79,781

61,452

80,000

90,000

70,000

60,000

50,000

40,000

20,000

30,000

0

10,000

For more detailed information regarding the methodology/guidelines

and processes we use to calculate our emissions, please see the

About our reporting

Appendix to this report, which has been published online

at

https://www.safaricom.co.ke/sustainabilityreport_2017/