2022 Sustainable Business Report

54 | SAFARICOM SUSTAINABLE BUSINESS REPORT 2022 KPI SUMMARY OUR STAKEHOLDERS OUR BUSINESS OUR MATERIAL TOPICS PRIORITISING CLIMATE ACTION Even though Kenya contributes less than 0.1 percent of global greenhouse gas (GHG) missions annually, the country is feeling the impacts of climate change in the form of drought and shifting rainfall. The graph below summarises the absolute reductions we need to implement to achieve this. These reductions were calculated using a compound average growth rate interpolation between our 2016/17 baseline year and 2050 according to the United Nations Intergovernmental Panel on Climate Change Fifth Assessment Report of the (IPCC AR5) for the Organisation for Economic Cooperation and Development (OECD) region. Currently, we are off target by 36%, as we stand at 64 757 tCO 2 e for Scope 1 and 2, against our target of 45 081 tCO 2 e. Based on the existing technology we estimate that we will be able to reduce our Scope 1 and 2 emissions by 74% by 2050. We increased our overall emissions by 0.80% from 66 032.7 tCO 2 e to 66 562 tCO 2 e. As indicated in the table alongside, we managed to reduce our Scope 1 emissions by 12% through efforts with KPLC to ensure stable grid power in our BTSs, MSCs and facilities. This has enabled us to use fewer gensets and associated fuel. Our Scope 2 emissions increased by 11% due to our shift from generator sets (Scope 1) to grid power (Scope 2). While grid power is largely based on renewable hydroelectricity, the increase was due to infrastructure expansion in the form of BTS sites. Our Scope 3 emissions increased by 2% as COVID-19 lockdown restrictions were lifted and business travel resumed To ensure we meet the targets going forward, we are: • Expanding our renewable energy solutions by implementing Energy as a Service (EaaS) and mini-grid programmes to stabilise the remote cluster, thereby improving service availability and NPS. In addition, we are currently assessing an energy services companies (ESCO) model with three partners. • Transitioning 310 (cumulative total) of our sites to renewable and hybrid energy sources. We aim to transition 4 200 sites by 2025. Our efforts were delayed by supply chain issues in FY22. Macroeconomic developments like COVID-19 and the war between Russia and Ukraine led to escalating fuel costs, fuel supply shortages and delays in supply chain, all of which impacted our planned energy efficiency projects. However, the supply chain situation has now been largely resolved and we expect to make significant strides in solar installations by September 2022. The project has already resulted in the reduction of 25% energy consumption per site and the reduction of 200 litres of fuel per site, leading to a reduction of six tons of annual carbon emissions per site per annum. Other benefits include a 20% improvement in network resilience, 67% reduction in maintenance costs and the switchover of 14 sites from fossil fuel generators to renewable sources of energy. • Modernising power systems by replacing lead acid batteries with lithium ones (see page 55). • Increasingly transporting freight via sea rather than air, thereby reducing supply chain emissions. OUR CARBON FOOTPRINT (tCO 2 e) FY19 FY20 FY21 FY22 Scope 1 emissions 33 057.3 28 311.3 31 125.9 27 617 Scope 2 emissions 26 833.3 28 881.1 33 141.8 37 140 Scope 3 emissions 5 818.0 2618.6 1 765 1 805 Total 65 708.5 59 811.0 66 032.7 66 562 OECD PATHWAY REDUCTION TARGETS SCOPE 1&2 EMISSIONS (tCO 2 e) 2020 2025 2030 2035 2050 48 843 39 974 32 715 26 774 14 676 ‚ 15% ‚ 30% ‚ 43% ‚ 53% ‚ 74%