Safaricom - 2020 Sustainable Business Report

47 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS OUR STAKEHOLDERS CONCLUDING REMARKS The reduction under Scope 1 and 2 emissions have been driven by: Diesel • We improved our fueling process by ensuring collaboration with all the stakeholders and coming up with routine fuel schedules • Projects; installed deep cycle batteries, smart rectifiers with 96% efficiency, conversions of indoor sites to outdoor, connected some off-grid sites to grid power and trials on renewable powered energy sites • Good relationship with KPLC to ensure quick power resolution Refrigerants • Improved accuracy in the reporting of the refilled gas • Ensured timely repair of leaking pipes Electricity • There was an improvement in billing accuracy Managing emissions Our net zero aspiration During the year, we successfully registered our carbon reduction milestone targets with the Science-based Targets Initiative (SBTi). Our greenhouse gas emissions reduction targets were approved by the SBTi for being consistent with levels required to meet the goals of the Paris Agreement. Our Scope 1 and 2 targets are consistent with the reductions required to keep warming to below 2°C. Our Scope 3 target for the emissions from our value chain met the SBTi criteria for ambitious value chain goals, meaning that it is in line with current best practice. We have calculated our carbon reduction milestone targets using the Organisation for Economic Co-operation and Development (OECD) pathway and Compound Annual Growth Rate (CAGR) interpolation method. The above graph summarises the levels of reduction required to achieve our ‘net zero’ target by 2050. We have calculated that, based on existing technology, we can reduce emissions by 74 per cent of the baseline year. The balance will be compensated through our carbon offset programme. Carbon offset reforestation project Last year, we announced our ambition to grow indigenous trees as our primary carbon offset initiative. The initiative is a partnership between us, the Kenya Forest Service (KFS) and local community forest associations to grow 5 million trees over a period of 5 years in four different sites. Our original plan was to grow one million trees in South Marmanet over five years and plant 50 000 seedlings before the long rains this year. In response to our calculations of what we require to offset our carbon emissions, we have since expanded the target of the project to growing five million trees at four sites across the country over the period and to planting 500 000 trees during this year. We source our seedlings from the associations and they help us tend to the saplings and ensure the trees reach maturity. The initiative is expected to offset around 26 per cent of our carbon emissions once the trees have grown to maturity. In time, additional benefits from the forestation project will include providing jobs and stimulating economic growth in the local community, generating income from sales of tree seedlings, eco-tourism and beekeeping. Reducing emissions from our supply chain A key priority and focus area for our supply chain management team has been to reduce our emissions and drive cost savings by freighting goods via the sea instead of the air. The carbon footprint and greenhouse gas emissions of ocean or sea freight (goods transported using container ships) is a fraction of that OECD Pathway reduction targets 2030 2025 2020 2035 2050 48 843 39 974 32 715 26 774 14 676 Scope 1 & 2 emissions (tCO2e) -30% -15% -43% -53% -74%