Safaricom - 2021 Sustainable Business Report

51 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 / STANDING TOGETHER: GOING BEYOND //// OUR MATERIAL TOPICS / OUR STAKEHOLDERS / KPI SUMMARY Scope 3 travel-related emissions reduced significantly by 33%, due to reduced travel by staff during the year as a result of the COVID-19 restrictions. To ensure we meet the targets going forward, we continue to transition our network sites to renewable sources of energy with the priority being the national grid and energy efficiency measures. ENERGY EFFICIENCY IN OUR NETWORK Optimising energy efficiency is a key strategy for achieving our emission reduction targets. One of the main ways we measure energy efficiency in our network is the cost of energy consumption per site. We have a target in place to reduce energy costs by 10% per annum. As the table below indicates, our energy consumption costs rose significantly in FY21. This was as a result of the power outages previously described, which necessitated the use of alternate power sources. In FY21 we were certified to the ISO 50001:2018 energy standard. Certification will help us plot a practical way to improve energy efficiency through the development of an energy management system (EnMS). The report by the independent auditors noted the following strengths: • Decision on conducting further training related to the ISO 50 000 family • Project on energy meter installation • Competence register for energy management system • Design principles for carbon emission neutral. INITIATIVES TO DRIVE ENERGY EFFICIENCY Given the rapid growth of our network, it is imperative to implement energy efficiency measures if we are to achieve our emissions reduction target. As part of our energy strategy we continue to modernise and optimise our energy infrastructure by upgrading capacity and retrofitting the following; rectifiers, lithium-ion batteries, super-capacitor storage, efficient air conditioners and hybrid power solutions. In the period under review there was a decrease in the number of sites fitted with deep cycle batteries, attributable to the accelerated uptake of a hybrid solution using lithium batteries. FY18 FY19 FY20 FY21 Sites fitted with deep cycle batteries 240 193 300 27 Sites with low-voltage auxiliary power supply units 115 55 55 55 Sites fitted with free cooling units 92 88 88 88 Sites converted from outdoor to indoor 25 18 7 41 NETWORK ENERGY MIX The energy mix for our network is comprised of the national grid, diesel generators and renewable solutions such as wind and solar. Our strategy for carbon reduction is anchored on transitioning as many sites as possible to renewable sources of energy. This means SCOPE 1, 2 AND 3 EMISSIONS (tCO2e) FY18 FY19 FY20 FY21 SCOPE 1 SCOPE 2 SCOPE 3 FY18 FY19 FY20 FY21 Scope 1 36 035.3 33 057.3 28 311.3 31 125.9 Scope 2 23 835.6 26 833.3 28 881.1 33 141.8 Scope 3 3 813.6 5 818.0 2 618.6 1765 Total 63 684.5 65 708.5 59 811.0 66 032.7 Scope 1: Direct emissions from fuels, gases, company-owned vehicles, fuels used at BTS stations, refrigerants and fugitive gases Scope 2: Indirect emissions from electricity generation and use Scope 3: Indirect emissions within the value chain, mostly travel- related COST OF ENERGY (ELECTRICITY, SOLAR, DIESEL) CONSUMPTION BY SITE (KSh PER MONTH) FY18 FY19 FY20 FY21 47 511 46 649 46 308 50 271 “We plan to optimise energy efficiency as a strategy for achieving our emission reduction targets.”