Safaricom 2023 Sustainable Business Report

1 OUR STAKEHOLDERS KPI SUMMARY OUR MATERIAL TOPICS OUR BUSINESS PATHWAY TO A PURPOSE-LED TECHNOLOGY COMPANY 03 Introduction 04 Safaricom at a glance 05 Our Ethiopian operations at a glance 06 ESG overview: Ethiopia 08 Message from our Chairman 11 Message from our CEO 15 Our accolades in FY23 16 Our corporate strategy 17 Our purpose strategy 18 Our ESG targets 20 Our sustainable business model 21 Our contribution to the UN SDGs 26 FY23 in review 29 True Value assessment 35 Governance, business ethics and risk 35 Maintaining a robust governance framework 35 Ensuring a positive risk culture 36 Reinforcing our ethical culture 37 Expanding our security services 39 Our regulatory environment 39 Ensuring transparency 40 Maintaining high levels of compliance 40 Monitoring ongoing developments 40 Working to implement the USF Project Phase 2 42 Our platforms 42 Delivering always-on digital-first technology 45 M-PESA: Innovating to enhance financial inclusio n 46 Growing revenue 46 Our DigiFarm platform: Promoting commercial sustainability 48 Environmental stewardship 48 Promoting circularity 50 Assessing our impact 50 Monitoring resource usage and air quality 50 Educating and training stakeholders 51 Enhancing energy security and aligning with climate action 52 Pathway to net zero by 2050 54 Increasing our CDP score 54 Collaborating with Kenya Forest Service 54 Quantifying our carbon impact 58 Innovation and partnerships 58 Delivering social impact 58 Digital solutions for healthcare 59 Enhancing access to quality education 59 Partnering to provide humanitarian aid 59 Helping to enhance food security 60 Enabling our vision 63 Customers 63 Consumer customers 65 Enterprise customers 68 Society 68 Partnering to enhance equity 70 Safaricom Foundation 71 M-PESA Foundation 72 Sustainable philanthropy 73 Safaricom PLC initiatives 76 Employees 76 Becoming a future-fit organisation 76 Building a diverse workforce 77 Engaging closely 79 Taking Safaricom’s pulse 79 Key findings of the 2022 SEMA survey 80 Promoting safety and wellbeing 81 Regulators 81 Providing input on evolving regulation 84 Business partners 84 Maintaining constructive relationships with our business partners 84 Suppliers 86 Dealers 86 Agents 89 Shareholders 89 Understanding our shareholder base 89 Interacting closely with our shareholders 91 Media 91 An expanding media landscape 91 Enhancing leadership profiles 91 Holding positive conversations 92 Increased media interest in sustainability 94 Key performance indicators summary 107 Assurance Letter CONTENTS