Safaricom 2023 Sustainable Business Report

55 OUR BUSINESS OUR STAKEHOLDERS KPI SUMMARY PATHWAY TO A PURPOSE-LED TECHNOLOGY COMPANY OUR MATERIAL TOPICS Scope 1 emissions declined as we reduced the fuel consumption of both our generators and fleet vehicles. The reduction of fuel use in generators was due to our aggressive transition to solar power during the year, while reduced fuel usage by our fleet was due to enhanced levels of maintenance and efficiency in our fleet vehicles. Scope 2 (indirect) emissions are determined based on Safaricom’s electricity consumption in our offices, retail shops, MSRs and base stations drawn from invoices and meter readings. We updated our scope 2 emission factors to the most recent emission factors, which reflect the most recent state of our grid electricity in accordance with the GHG protocol. While this is generated by renewable energy sources, it was not enough to reduce y-o-y consumption as we continue to expand our network on grid energy. As indicated in the graphic alongside, our scope 3 emissions increased. This was mainly due to increase in air travel relative to reductions in the other scope 3 categories. It is important to note that we have revised our GHG emissions data for previous years in accordance with the GHG Protocol Corporate Standard. The retroactive application of updated emission factors has resulted in changes to reported emissions for impacted years. These changes are solely attributable to the revised emission factors and not to actual operational activities or intensity. They are in line with our ongoing aim to enhance the accuracy and reliability of our GHG inventory data which is important in enabling informed decisions, setting reduction targets, and monitoring progress towards a more sustainable future. We are committed to upholding integrity and transparency in reporting practices, adhering to the Greenhouse Gas Protocol Corporate Standard, and continually refining methodologies to ensure accurate and up-to-date measurement of emissions. DIESEL COMBUSTION We measure the amount of diesel (100% mineral diesel) used by active fleet and generators and for the use of diesel fuel. EMPLOYEE EMISSIONS INTENSITY (tCO 2 e/FTE) BUSINESS TRAVEL Calculated by our travel agencies and their travel booking systems which manage our air travel, while road travel is calculated internally. All emissions are calculated using DEFRA emission factors. PETROL COMBUSTION We track the amount of fuel consumed by vehicle used for business purposes, by issuing fuel cards to employees for fuel purchases. This enables easy measurement of petrol usage. UPSTREAM TRANSPORTATION AND DISTRIBUTION We measure the transportation and distribution of purchased products between our tier 1 suppliers and our operations in vehicles not owned or operated by us (including multi-modal shipping where multiple carriers are involved in the delivery of a product while excluding fuel and energy products). REFRIGERANTS Refrigerants are used by ventilation, and air conditioning in each of our facilities. We extract consumption data from the purchase orders when refrigerant cylinders are replaced. WASTEWATER Calculated from disposal of wastewater from our offices and retail shops which are managed by third parties Emission factors from reputable sources have been used to quantify the following: FY20 FY22 FY23 FY21 8.61 9.70 9.34 7.22