Sustainability review

As a multi-national group, we are committed to contributing to the sustainable development of the many communities in which we operate. Our sustainability policy guides the responsible management of social, economic and environmental aspects of each operation.

This brief review details our commitment to sustainability as well as performance highlights for 2008.

Further sustainability-related information can be accessed on the group’s website. The website also contains supplementary information such as certain group policies and procedures as well as individual operating country reports.

MTN sustainability policy

Our comprehensive sustainability framework assists operations in articulating and understanding MTN’s contributions to sustainable development. This is achieved by providing reporting guidelines and highlighting indicators that must be managed. We believe, however, that managing sustainability goes beyond reporting, requiring us to continually monitor and responsibly manage a range of issues to ensure long-term sustainable development. These issues include:

Complying with all the relevant laws on sustainability issues and, in the absence of legislation, seeking out and observing appropriate best international practice.
Regularly reviewing our business to identify sustainability issues, set performance goals and monitor and publish outcomes, in order to continually improve sustainability performance.
Conducting appropriate assessments and implementing recommendations, which includes environmental impact assessments and broad stakeholder engagement programmes.
Encouraging and providing training to our contractors and suppliers to support MTN’s sustainability objectives and targets by adopting sustainable practices in providing products and services.
Educating and training staff in sustainability matters and raising their awareness of sustainable development.
Increasing appreciation for the sustainable benefits of communication technologies among customers, legislators, opinion makers and the general public.
Devising, implementing and monitoring group-wide management systems for implementing our sustainability strategy.
Committing to achieving annual targets for sustainability improvement.

Sustainability vision

Our vision statement “to be the leading provider of telecommunications services in emerging markets” is underpinned by our commitment to sustainable development in the communities in which we operate. To reach this goal, MTN constantly reviews its governance structures, targets and reporting mechanisms to maintain a balance between economic, social and environmental performance.

As a telecommunications network operator in emerging markets, the Group acknowledges the key role mobile

communications can play in socio-economic development. The goal of MTN is to be a valuable partner to individuals, communities and businesses in increasing access to quality communication services, enhancing universal access for remote customers and contributing to the general quality of life of the people and communities we serve.

Although standard business practices apply across the group, we also understand that each of our 21 operations faces unique challenges and opportunities. Accordingly, sustainable development priorities are ultimately driven by each country’s own economic, business and social dynamics.

Risk management and accountability

Mandated by the board, the group risk and compliance committee has overall responsibility for identifying, monitoring and evaluating sustainability management performance and associated risks. The group risk and compliance committee also provides control measures to be implemented by the group’s executive committee.

Corporate affairs, in consultation with Group risk management, is responsible for developing the sustainability management framework and implementing this framework throughout the group.

Stakeholder engagement

MTN engages with a wide range of stakeholders with varying interests across the group. Our stakeholders are defined as individuals or groups with common interests, who may be affected by or have an impact on MTN’s business objectives. Given the geographic and demographic spread of our operations, the group does not yet have a standard stakeholder engagement policy. However, each operation is required to identify, engage and communicate with its local stakeholders. Group corporate affairs is in the process of developing a stakeholder engagement policy.

Certain aspects of stakeholder engagement are widely practised across the group. For example, given the complexities of engaging different government stakeholders across cultural borders, we have initiated a standard government relations framework applicable to all operations. This framework aims to establish a consistent and responsible approach to initiating and managing government relations.

Across all our operations, MTN Group stakeholders are identified as:

Regulators
Government ministries and officials
Community groups
Media
Investors, analysts and shareholders
Customers
Suppliers
Distributors
Employees
Unions
Business partners including contractors and various business associations.

Within these categories, each MTN operation identifies its stakeholders as individuals or groups who may have a direct or indirect impact on the business, in areas such as revenue, product use, brand reputation and perception.

Key sustainability issues

To date, key issues pertinent to the sustainability of our business, as identified through stakeholder engagement, can be summarised as:

Network quality and coverage
Tariffs
Financial performance and continued investments
Client relationship management
Corporate social responsibility, including MTN’s contribution to poverty alleviation and support for communities
Employee rights, development and retention
Health and environmental effects of mobile phones and base stations.

Review of 2008 stakeholder engagement

The main findings identified during the 2008 stakeholder engagement process can be summarised as follows:

The majority of stakeholders were not aware that MTN produces a sustainability report.
A common concern expressed by all stakeholders was the effect of electromagnetic fields (EMFs) from mobile phones, base stations and masts on human health. Almost all stakeholders agreed that MTN needs to be more pro-active in addressing the public’s concerns on these matters.
No stakeholders were aware that MTN offers recycling facilities for used or damaged mobile phones and batteries.
The majority of stakeholders across the group agreed that global climate change is a priority that MTN must focus on by participating in programmes that raise public awareness of the significance and effects of global climate change.
Education, healthcare and poverty alleviation were raised by the majority of stakeholders across the group as social issues that MTN should focus on.
Providing support to local suppliers was highlighted as a very important issue.

All issues raised to date have a common theme: that effective engagement and two-way dialogue between MTN and its stakeholders must be improved, to ensure that stakeholders are aware of MTN’s responses to and performance in the identified areas of concern. MTN will continue to identify ways to improve and promote effective stakeholder communication.

Sustainable business management

We recognise that responsible sustainable development ultimately translates into business growth in terms of expanded market share and customer retention. Our operations demonstrate their commitment by maintaining a positive and prominent corporate image, focusing on creating shortand long-term customer and business networks and creating “authentic value” for MTN over and above short-term profitability.

By ensuring the long-term sustainability of our business, our operations in turn contribute to the sustainability of their host countries.

This is achieved through:

Investing in infrastructure to ensure operations provide quality service to local customers and extend their reach, thus contributing to universal access goals.
Meeting licence obligations such as providing access to telephony services that facilitate trade and commerce.
Offering accessible and affordable products.
Taking responsibility for managing the product lifecycle through initiatives such as electronic voucher distribution (EVD), which reduces the environmental impact of discarded paper-based airtime vouchers.
Contributing to various initiatives for social and economic development through local MTN foundations.

Commitments and progress

Sustainable development at MTN depends on achieving a responsible balance between our economic, environmental and social impacts. It is imperative that we promote ethical business practices and robust corporate governance throughout our African and Middle Eastern footprint. We are equally committed to providing a healthy and safe working environment for some 26 000 employees including contractors, celebrating cultural diversity and enhancing opportunities for talented and loyal professionals to develop and excel. As far as possible, operations strive to minimise their environmental impact while maximising their contributions to regional social and economic development.

Informed by our sustainability best-practice research (conducted by KPMG) and results from the stakeholder engagement process (conducted by Ernst & Young), MTN initiated a process of refining formal reporting and management structures for sustainability during 2008. This group-level sustainability management structure, endorsed by the risk and compliance and the executive management committees, prescribes:

Establishing a sustainability project team with representation from risk, safety health and environment (SHE) and corporate affairs.
Appointing a group sustainability manager who reports to the risk and compliance committee. The manager will oversee the operational aspects of sustainability management throughout the group.
Replicating the structure of a sustainability committee in each operation; driven by country chief executive and supported by the risk department, with a combination of non-negotiable responsibility (embedded in monthly financial reporting) and local flexibility.
Investing in sustainability management training for executives and staff.