Safaricom - 2021 Sustainable Business Report

53 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 / STANDING TOGETHER: GOING BEYOND //// OUR MATERIAL TOPICS / OUR STAKEHOLDERS / KPI SUMMARY REDUCING EMISSIONS FROM OUR SUPPLY CHAIN We are committed to lowering our Scope 3 emissions by reducing the carbon intensity of our supply chain. Our freight emissions intensity in 2021 was 85 gCO 2 e/tonne/km, a 68% reduction from the previous year. In 2021, a major factor contributing to the reduction of the carbon footprint was the mix of freight methods used. A greater proportion of freight was shipped via sea as compared to air freight. By increasing the proportion of lower-carbon intense sea freight in relation to air freight we also reduced our emissions from 8.8 million to 4.3 million kgs, a 52% reduction in absolute terms. REPORTING TO THE CDP CLIMATE CHANGE PROJECT For the first time this year, we joined over 9 600 companies and 810 cities in disclosing our environment and climate impact through the CDP platform, making our response publicly available. CDP runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. The disclosures made through CDP include the governance of climate issues, risks and opportunities, business strategy and performance based on greenhouse gas emissions and mitigation measures. We believe that by submitting to the CDP, we will continue to improve on our transparency in reporting, and hold ourselves accountable even as we implement climate actions and benchmark with the best in the industry. CDP also provides insights regarding the areas on which we need to focus in order to manage our carbon emissions effectively, mitigate our climate change related risk and maximise the opportunities. MONITORING AIR QUALITY Air pollution is a major challenge especially in Kenya’s urban centres. Countrywide air regulations are in place but are not always fully adhered to or enforced because of an information gap. To meet this need, we are currently working with the United Nations Environment Programme (UNEP) on an air quality monitoring pilot project. The main objective of this project is to establish robust monitoring by leveraging technology. The ultimate aim is to roll out the project to the whole country. In the year under review we expanded the project by installing additional air monitors at our main facilities in Nairobi and Machakos. This will provide greater accuracy in terms of measuring our air emissions. FREIGHT CARBON INTENSITY (gCO 2 e/TONNE/KM) OVERALL EMISSIONS (TONNE.KM) FY20 FY20 FY21 FY21 271 85 Safaricom’s freight carbon intensity dropped by 68% between 2020 and 2021. By shifting tonne.km of shipping from 77% sea and 23% air to 94% sea and 6% air, overall emissions reduced by 52% “We participate in the United Nations Global Compact (UNGC) Action Platform on Climate Ambition whose strategy is to halve emissions by 2030 and achieve net zero by 2050; establish climate related targets and develop mitigation actions linked to inequalities exacerbated by climate change in the areas of resilience, health and a just transition.” AIR SEA FY20 FY21 Air Tonne.km 7 441 005 3 067 357 Emissions 8 432 213 3 476 204 Sea Tonne.km 25 249 342 47 096 057 Emissions 454 526 833 310 TONNE.KM TONNE.KM EMISSIONS EMISSIONS