Safaricom 2023 Sustainable Business Report

52 OUR BUSINESS OUR STAKEHOLDERS KPI SUMMARY SAFARICOM SUSTAINABLE BUSINESS REPORT 2023 OUR MATERIAL TOPICS Renewable energy (wind, solar & hybrid) NETWORK ENERGY BY PRIMARY SOURCE 75.9% 23.4% Diesel generators National grid 0.7% Note: Deep cycle batteries are used but these store energy from the national grid, generators or renewable energy sources, meaning that this energy usage has already been accounted for. COST OF ENERGY CONSUMPTION FY20 FY22 FY21 FY23 Electricity, solar, diesel by site (KSh per month) 61 297 55 393 50 271 46 308 ENERGY EFFICIENCY FY20 FY21 FY22 FY23 Sites fitted with deep cycle batteries* 300 27 0 1 157 Sites with low-voltage auxiliary power supply 55 55 55 55 Sites fitted with free cooling units 88 88 88 198 Sites converted from outdoor to indoor** 7 41 0 0 * These are being phased out. The plan is to replace them with lithium-ion batteries. ** Sites are being converted only where it makes economic sense PATHWAY TO NET ZERO BY 2050 We recognise that climate change poses both physical risks (i.e. caused by the increased frequency and severity of extreme weather events like flooding, droughts, etc) and transitional risks (i.e. economic, technology or regulatory challenges related to moving to a greener economy) for our business. Accordingly, we are currently aligning our internal processes to the recommendations of the Taskforce on Climate-Related Financial Disclosures (TCFD). The process of assessing the materiality of climate-related risks and opportunities follows relevant industry and sectoral benchmark data and takes into consideration our principal risks and opportunities. For example, in terms of opportunities, energy is an important source of Scope 1 & 2 greenhouse gas (GHG) emissions and incurs significant costs. We have adopted a proactive approach to seize the opportunity of reducing both under a focused resource efficiency programme. This is underpinned by ambitious emission reduction targets, notably on scope 1 and 2 linked to energy consumption (74% absolute reduction of scope 1 and 2 emissions by 2050). These targets were approved by the Science Based Targets initiative (SBTi) in 2019. NETWORK ENERGY BY SOURCE KPLC & Genset KPLC (no generator) 24/7 Diesel generator Solarised sites FY20 FY22 FY21 FY23 FY20 FY21 FY22 FY23 KPLC and genset 4 775 4 560 4 999 4 428 KPLC (No generator) 948 1 299 1 517 839 24/7 diesel generator 173 192 111 47 Solarised sites 221 255 310 1 432