Safaricom - 2021 Sustainable Business Report

3 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 / STANDING TOGETHER: GOING BEYOND / OUR MATERIAL TOPICS / OUR STAKEHOLDERS / KPI SUMMARY STANDING TOGETHER: GOING BEYOND4 Safaricom at a glance 7 Our response to COVID-19 8 Message from our Chairman 11 Messa ge from our CEO 13 Our corporate strategy 16 Our business model 17 Our c ontribution to the UN SDGs 18 FY21 in review 23 True V alue assessment 26 MATER IAL TOPICS 32 GOVE RNANCE, BUSINESS ETHICS AND RISK 34 Reinfor cing our responsibility to Kenyan society 34 Our governance structure 34 Embed ding a positive risk culture 35 Promoting a strong internal ethical culture 35 Combatting fraud 36 Trainin g our business partners on ethics37 Integrating data privacy and protection 37 Meetin g the challenge of cyber security 38 OUR REGULATORY ENVIRONMENT 39 Prioritising regulatory compliance 39 Surpassing the regulatory Quality of Service (QoS) score 39 Environmental impact monitoring and evaluation 40 Keeping the country connect ed 40 Piloting 5G 40 OUR PLATFORMS 42 Connecting all Kenyans 4 2 Our network 42 Our M-PESA platform 46 Integrating easily with M-PES A through the Daraja API Developer Portal 4 7 Enhancing the M-PESA platfo rm 47 Towards increased digitisation 47 Our DigiFarm platform 48 ENVIRONMENTAL STEWARD SHIP 50 Managing and mitigating ou r environmental impact 5 0 Managing emissions 50 Energy efficiency in our network 51 Initiatives to drive energy effi cien cy 51 Network energy mix 5 1 Growing renewable energy in our network 52 Carbon offset re-afforestation project 52 Business advocacy on the environment 52 Reducing emissions from our supply chain 53 Reporting to the CDP climate change project 53 Monitoring air quality 53 Resource consumption 54 Managing waste responsibly 54 Managing electronic waste 55 INNOVATION AND PARTNERSHIPS 56 Innovation underpins our growth ambitions56 Accelerating growth 56 Supporting SMEs and MSMEs through financial services 58 Delivering step changes in growth and value performance for ventures 58 M-GAS: Promoting the use of affordable, clean energy 58 Internet of Things (IoT) solutions for our enterprise customers 59 STAKEHOLDER ENGAGEMENT 60 Customers Becoming notoriously Customer Obsessed 62 Consumer customers 63 Going beyond in FY21 63 Enterpris e cus tomers 64 Measuring cu stomer satisfaction 64 Custome r engagement 64 SOCIETY 67 Towards a m ore inclusive society 67 Educatio n 68 Econom ic Em powerment 69 Health 69 Helping women succeed in the technology space 71 EMPLOY EES 73 Driving partic ipation in our transition to a technology c ompany 73 Employe e diversity 73 Women in Le adership programmes 74 Supporti ng P ersons with Disabilities 74 Internal Labo ur Market Map 75 Employe e En gagement 75 2021 SEMA survey 76 Training and career development 78 Safaricom Di gital Academy 78 #1MoreSkill campaign 78 Our culture: The Spirit of Safaricom 79 Health, Safety and Wellbeing (HSW) 79 REGULATORS 81 Engaging in dialogue 81 BUSINESS PARTNERS 83 Meeting the needs of our growing c lient base 83 Suppliers 83 Evaluating supplier performance 84 Measuring supplier satisfaction 84 Supporting women owned business growth 85 Dealers 85 Agents 86 SHAREHOLDERS 87 Keeping our shareholders informed 87 Our shareholders 87 MEDIA 88 Maintaining open dialogue 88 APPENDIX 90 TABLE OF CONTENTS Our Regulatory Environment 39 > Prioritising regulatory compliance 39 > Surpassing the re gulatory Quality of Service (QoS) score 39 > Environmental impact monitoring and evaluation 40 > Keeping the country connected 40 > Piloting 5 G 40 Our Platforms 42 > Connecting all Kenyans 42 > Our network 42 > Our M-PESA platform 46 > Integrating easily with M-PESA through the Daraja API Developer Portal 47 > E nhancing the M-PESA Platform 47 > Towards increased digitsation 47 > Our DigiFarm Platform 48 Environmental Stewardship 50 > Managing and m itigating o ur environmental impact 50 > Managing emissions 50 > Ener y efficiency in our ne twork 51 > Initiatives to drive energy efficiency 51 > Network energy mix 51 > Growing renewable energy in our network 52 > Carbon offset re-afforestation project 52 > Business advocacy on the environment 52 > Reducing emissions from o ur supply chain 53 > Reporting to the CDP climate change project 53 > Monitoring air quality 53 > Resource consumption 54 > Managing waste responsibly 54 > Managing electronic waste 55 Innovation and Partnerships 56 > Innovation underpins our growth ambitions 56 > Accelerating growth 56 > Supporting SMEs and MSMEs through financial services 58 > Delivering step changes in growth and value performance for ventures 58 > M-Gas: Promoting he use of affordable, clean energy 58 > Intern et of Things (IoT) solutions fo r our enterprise customers 59 60 OUR STAKEHOLDERS Custom ers 62 > Beco ming notoriously Customer O bsessed 62 > Consumer customers 63 > Going beyond in FY21 63 > Enterprise customers 64 > Meas uring customer satisfaction 64 > Cus to mer engagement 64 Society 67 > Towards a more inclusive society 67 > Education 68 > Economic empowerment 69 > Health 69 > Helping women succeed in the technology space 71 Employees 73 > Driving participation in our transition to a technology company 73 > Employee diversity 73 > Women in Leadership programmes 74 > Supporting persons with disabilities 74 > Intern l labour market map 75 > Employee engagement 75 > 2021 SEMA survey 76 > Training and career development 78 > Safaricom Digital Academy 78 > #1MoreSkill campaign 78 > Ou r culture: The Spirit of Safaricom 79 > H alth, Safety and Wellbeing (HSW) 79 Regulators 81 > Engaging in dialogue 81 Business partners 83 > Meeting the needs of our growing client base 83 > Suppliers 83 > Evaluating supplier performance 84 > Measuring supplier satisfaction 84 > Supporting women owned business growth 85 > De alers 85 > Agents 86 Shareholders 87 > Keeping our shareh olders informed 87 > Our shareholders 87 Media 88 > Maintaining open dialogue 88 90 APPENDIX Key performance indicators summary 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