Safaricom 2018 Sustainable Business Report

43 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT 2018 SUSTAINABLE BUSINESS REPORT This year, we changed the electricity emissions factor we use to calculate our footprint, based on the latest world carbon dioxide emission factors for electricity generation and fuel combustion developed by the International Energy Agency (IEA Data) © OECD/IEA 2016. The IEA has revised this figure downwards for Kenya, based on the current energy generation mix (for Kenya) that is mainly renewable from geothermal and hydro sources. For the purposes of easy comparison, we have revised the figures for FY17 as well. We are pleased to note that our Scope 1 emissions (which include the diesel consumed in our generators, the fuel used in our fleet vehicles and the fugitive emissions associated with our air-conditioning systems) reduced by 4 per cent as a result of the decrease in diesel use and fugitive gases replaced across our network. We expect this trend to continue as we roll out renewable energy initiatives and improve our energy efficiency through upgrades like the fuel management system. Scope 2 emissions (which are the indirect emissions associated with our consumption of purchased electricity) increased by around 21 per cent, nonetheless, because of the continued expansion of our network and the accelerated connection of national grid electricity to new sites (instead of being powered by diesel generators). Our Scope 3 emissions (which include other indirect sources, such as air travel and taxi hire) also increased slightly from 2,863 tonnes in FY17 to 3,813 tonnes in FY18. Looking ahead, we intend to offset our carbon emissions through a comprehensive mitigation and management plan. Introducing science-based targets* We introduced science-based carbon reduction targets this year to help us plot our progress towards becoming ‘net zero’ by 2050. Using our FY17 carbon footprint as a baseline, we have adopted an ambitious decarbonisation scenario that will lead to the earliest reductions and the least cumulative emissions (using the Organisation for Economic Co-operation and Development (OECD) pathway and Compound Annual Growth Rate (CAGR) interpolation method). FY15 61,452 FY16 79,781 FY17 60,199 FY18 63,685 Carbon Footprint Total 0 70000 80000 60000 50000 40000 30000 20000 10000 YEAR CARBON EMISSIONS (tCO 2 e) Scope 3 Scope 2 Scope 1 Emissions: 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_2018/ * Carbon reduction targets are considered ‘science-based’ if they are in line with the level of decarbonisation required to keep the average global temperature increase below 2°C compared to pre-industrial temperatures. (IPCC)