MTN : FY 23 Climate Report

MTN Group Limited

Climate Report for the year ended 31 December 2023

Leading digital solutions for Africa's progress

Welcome to our 2023 Climate Report

Our purpose is to enable the benefits of a modern connected life for everyone

Inside this report

01	Introduction
01	Our reporting suite
02	Navigating this report
03	About this report
	04	Who we are
	06	A message from the Group President and CEO
	07	Sustainability strategy framework
	08	Key accomplishments: 2023
	09	Our operating context through a green lens
	10	Our key metrics at a glance
	11	MTN's approach to climate change

02 Governance

1. Board oversight
2. Executive Committee function
3. Management roles
4. Corporate policies

03 Strategy

1. Our Group environmental strategy
2. Risk and opportunities

1. Management response to climate risks and opportunities

1. MTN's Net Zero philosophy
2. Towards zero emissions and cleaner energy

1. Additional Project Zero updates

1. Developing a circular economy

1. Using natural resources responsibly
2. Supporting climate entrepreneurship
3. Developing sustainable products
4. Early warning system for extreme weather
5. Partnering to expand our impact

04	Risk management
	Identifying and assessing climate-related risks
	40
41	Extreme weather events experienced across our footprint
	42	Physical Climate Change Risk Assessment pilot project

05	Metrics and targets
44	Our targets and performance
06	Going forward
47	Going forward
48	Notes on carbon footprint
49	Glossary of terms

51 Administration

Introduction

+

Governance

Strategy

Risk management

Metrics and targets

Going forward

Our reporting suite

Our Climate Report is supplemented by a number of reports that provide a comprehensive view of MTN's performance and prospects covering financial, risk management and environmental, social and governance (ESG) aspects. These reports go beyond traditional financial reporting by integrating sustainability and non-financial information.

Integrated Report

Financial reporting

Our primary communication to stakeholders aims to help them make informed assessments of our performance and prospects, strategic direction and the value we create through our activities. It provides a forward looking perspective on MTN's financial and non-financial performance, encompassing strategy, risks and opportunities, targets and governance.

Sustainability reporting

The following suite of reports provides information on MTN's strategy and performance related to sustainability issues with potential impact on our organisation, society and the environment. The reports detail MTN's environmental and social policies, governance, strategies, risks and opportunities. The reports also provide detailed performance data on a wide range of ESG metrics and targets. MTN's sustainability disclosures are structured and informed by the voluntary Global Reporting Initiative (GRI) Standards (2021) and the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards (IFRS S1 and IFRS S2), which have fully integrated the Task Force on Climate-Related Financial Disclosures (TCFD) guidance. The reports detail MTN's policies, governance strategies, risks and opportunities relating to sustainability considerations.

These reports include an analysis of the Group's financial results, a five-year review, and MTN's approach to handling uncertain tax positions. They provide insight for current and prospective investors, employees, creditors, analysts and other stakeholders. They disclose details of MTN's income statement, financial position, cash flows, performance per share, as well as key non-financial information.

AFR		TAX
Annual Financial	Annual Financial	Tax Report	Five-Year Review
Results	Statements

Information for shareholders

			CR
Sustainability Report	ESG Data Booklet	Transparency Report	Climate Report

Regulatory and reporting frameworks used:

Companies		B-BBEE
Act		Act
Amended	IR
Financial	ESG Matrix
Sector Code	INTEGRATED	for Mobile
(FSC)	REPORTING

The Notice of AGM and form of proxy give information to shareholders who want to participate in the Group's Annual General Meeting (AGM).

Notice of AGM

King IV Assessment Report

This provides a summary of the application of the King IVTM principles by MTN Group Limited and Mobile Telephone Networks Holdings Limited.

Climate Report 2023 01

Introduction

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Governance

Strategy

Risk management

Metrics and targets

Going forward

Navigating this report

Throughout our Climate Report, we use the following icons to show the connectivity between our material matters, primary SDGs and creation of shared value.

Material matters

Geopolitical and

Other icons and acronyms

• macroeconomic conditions

2	Complex regulatory
and tax environment

Network and platform

3 performance

4	Financial resilience
	De-layering of the

• telecommunications business model

6	Greater focus on ESG
7	Future-fit skills
and culture
8	Cybersecurity and
digital safety
9	Governance, ethics
and risk management
10	Artificial intelligence

ESG remains at the core of our strategy. This aligns with our work to advance the United Nations Sustainable Development Goals (UNSDG) through our business activities and our support of governments, communities and customers. The SDGs target a sustainable society with a plan to end poverty, protect the planet and ensure equality for all by 2030. We are committed to bridging the digital divide, furthering financial inclusion to advance the attainment of the goals.

Our primary UNSDG contribution areas for shared value creation

Key indirect opportunities exist in the following SDGs

Throughout this report we use the * symbol:

• Constant currency after taking into account pro forma adjustments. These are the responsibility of the directors and have been reviewed by our external joint auditors

Other icons:

LA Limited assurance obtained

www.mtn.com

International Sustainability Standards Board

Sustainability Report

ESG ESG Data Booklet

Frequently used acronyms

CCRA	Climate change risk assessment
ESG	Environmental, social and governance
GHG	Greenhouse gas
GSMA	Global System for Mobile Communications Association
ICT	Information and communication technology
IFRS	International Financial Reporting Standards
ISSB	International Sustainability Standards Board
KPI	Key performance indicators
Opcos	Operating companies
SBTi	Science-based Targets initiative
TCFD	Task Force on Climate-Related Financial Disclosures
UNSDG	United Nations Sustainability Development Goals

The forward looking financial information disclosed in this Climate Report has not been reviewed or audited or otherwise reported on by our external joint auditors.

Climate Report 2023 02

Introduction

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Governance

Strategy

Risk management

Metrics and targets

Going forward

About this report

Welcome to MTN's Climate Report 2023, reflecting on our 2023 climate actions and progress. Aligned with our Group environmental strategy, climate change is a key priority for MTN as we manage our operations. We are committed to sharing our approach to climate change as well as the successes and challenges in transitioning to Net Zero emissions.

Context and purpose of this report

In line with the Paris Agreement, MTN has set an ambitious goal to achieve Net Zero greenhouse gas (GHG) emissions by 2040, 10 years ahead of industry guidelines. With a base year of 2021, we aim to achieve a 50% reduction in operational emissions by 2030, with a long-term target of Net Zero emissions by 2040. In 2021, we signed a pledge with the Science-based Targets initiative (SBTi) which formally commits the MTN Group to achieve Net Zero emissions by 2040. In 2023, we had our interim targets formally validated by SBTi to ensure they are aligned with the latest climate science. In 2022, we issued our first Climate Report aligned with the recommendations of the TCFD. This report is MTN's third TCFD-aligned Climate Report, highlighting our comprehensive approach to climate change risks and opportunities. The purpose of this report is to provide our stakeholders with insight into our climate change efforts. We unpack the report in terms of governance, strategy, risk management and conclude with our metric and targets.

Reporting on other sustainability topics

In addition to our Climate Report, MTN publishes a corporate sustainability disclosure addressing other environmental,

social, and governance (ESG) topics: .

Developments in climate reporting

In June 2023, the International Sustainability Standards Board issued IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures, providing a consolidated standard for sustainability-related disclosures worldwide. In addition, the Financial Stability Board has asked the IFRS Foundation to take over the monitoring of the progress on companies' climate-related disclosures from the TCFD. IFRS S1 and IFRS S2 fully incorporate the recommendations of the TCFD, marking the culmination of the work of the TCFD. To support the widespread adoption of the new investor-focused standards, MTN has committed to begin the journey of adopting these standards throughout our organisation.

While recognising the complexity of understanding sustainability-related risks and opportunities as required by IFRS S1, we have already established robust processes around the TCFD in previous years. Leveraging these capabilities, we have opted to report against IFRS S2, to the extent possible, instead of TCFD, as the requirements of IFRS S2 align with the core elements of TCFD.

While we have initially prioritised the application of IFRS S2, we acknowledge the need to apply both standards in conjunction and will provide more clarity regarding the timing of our disclosures against IFRS S1 during the year ahead.

MTN is committed to this journey, with the aim of enhancing our understanding of sustainability-related risks and opportunities and achieving full compliance with the disclosures required by IFRS standards.

Feedback

We welcome feedback on this report and are

committed to engaging with our stakeholders about our performance and sustainability efforts. Please address all feedback to Group Sustainability: [e-mail]

Core elements of recommended

climate-related financial disclosures

Governance The company's governance with regard to climate-related risks and opportunities

Strategy The actual and potential impacts of climate-related risks and opportunities on the company's businesses, strategy and financial planning

Risk management The process used by the company to identify, assess and manage climate-related risks

Metrics and targets The metrics and targets used to assess and manage relevant climate-related risks and opportunities

We aim to achieve

Net Zero emissions

by 2040

Climate Report 2023 03

Introduction

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Governance

Strategy

Risk management

Metrics and targets

Going forward

Who we are

Our purpose is to enable the benefits of a modern connected life for everyone

MTN is a pan-African digital operator providing a range of critical voice, data, fintech, digital, enterprise and wholesale services to around 295 million customers in 19 markets. Our purpose is embodied in our belief statement that everyone deserves the benefits of a modern connected life. Our strategic intent is leading digital solutions for Africa's progress.

MTN Group Limited is a publicly owned entity whose shares are traded on the JSE. At the end of 2023 our market capitalisation was approximately R209 billion (US$11.4 billion). Subsidiaries MTN Nigeria, MTN Ghana, MTN Uganda and MTN Rwanda are listed on the Nigerian Exchange Ltd, the Ghana Stock Exchange, the Uganda Securities Exchange and the Rwanda Stock Exchange, respectively.

Ambition 2025: Leading digital solutions for Africa's progress

Build the largest and most valuable platforms

Drive industry- leading connectivity operations

Create shared value

Accelerate portfolio transformation

Enabled by our values:

Lead with Care

Collaborate with Agility

Act with Inclusion

Can-dowith Integrity

Serve with Respect

Creating value for all

We create value for our stakeholders across our footprint by living our purpose and belief as well as progressing our strategic intent

MTN achieved an

10.9%^

reduction in Scope 1 and 2 emissions from base-year emissions (excluding MTN SA whose performance is impacted by the IHS transaction)

^Reflects quarter 4 adjustments.

28%

women in leadership

Enabled internet

access to

150m

(2022: 137m)

active data users

Maintained female

representation at

40%

Facilitated financial

inclusion to

72ms

(2022: 69m)

active MoMo users

Empowered

17 569

MTNers

Extended digital

inclusion to

36m

(2022: 22m)

ayoba users

Connected

295m

(2022: 289m)

subscribers

Provided broadband coverage to

89.2%

(2022: 88%)

of the population

Added economic value of

~R159bn

(2022: R149bn)

across our markets

Climate Report 2023 04

Introduction

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Governance

Strategy

Risk management

Metrics and targets

Going forward

Who we are continued

Our climate change
journey	change. We recognise we have a role to play in contributing
	One of the most significant ways business is shaping the world
	we live in is through energy use and its contribution to climate
	meaningfully to mitigate and adapt to the impact of climate
1998	change. The timeline below shows some of the major milestones
in our green journey, as we have integrated climate-related
	considerations into our business.

2020

MTN linked ESG key performance indicators (KPI) to executive

remuneration for climate change.

SBTI completes validation of MTN GHG emission

MTN became first cellular network in Africa to receive ISO 14001 rating for environmental management

2002

MTN solar- payphone Victoria local 

2004

MTN is listed in UNEP's Global Top 50 companies for sustainability reporting.

2003

MTN published its first Sustainability Report.

2010

MTN completed our initial

Carbon Disclosure Project Report and committed to the 2010 Cancun Communiqué on Climate Change declaration.

2011

MTN placed in Top 250 Companies in the World in 2011 Newsweek Green Rankings for Positive

Environmental Impact

Management (listed 123rd).

2012

MTN became a United

Nations Global Compact (UNGC) signatory.

MTN is listed among Newsweek's Green Rankings top 250 companies globally for positive environmental impact.

2016

MTN aligned with the

United Nations' Sustainable Development Goals (SDG), assessing where we can play a meaningful role.

2014

MTN completed our initial

Carbon Disclosure Project report and committed to the 2010 Cancun Communiqué on Climate

Change declaration.

MTN unveils Africa's first solar data centre cooling system at MTN SA.

2021

MTN signed a pledge with the SBTi, committing the Group to our Net Zero ambition.

MTN linked executive remuneration to ESG targets with a focus on Net Zero, diversity and inclusion, and the expansion of broadband coverage.

2022

MTN Group named Nkululeko Sowazi as the designated climate change Board member.

MTN becomes a TCFD supporter, endorsing its recommendations on climate-related risks and opportunities.

Joined Joint Audit Co-operation and Global Enabling Sustainability Initiative (GeSI) to promote technologies and practices that foster ESG within our supply chain.

targets for Scope 1, 2 and 3.

Climate Risk

Assessment MTN pilots approach for evaluating physical climate risks across a range of assets.

Project Zero

Construction underway of large solar park at MTN's headquarters in Johannesburg, South Africa.

CDP Reporting MTN scores a "B" for its climate disclosure.

2023

Climate Report 2023 05

Introduction

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Governance

Strategy

Risk management

Metrics and targets

Going forward

A message from the Group

President and CEO

Building a modern and connected future also means building a greener one. We continue to implement Project Zero with more energy efficiency and clean energy solutions. By harnessing digital and financial inclusion, we create solutions that empower Africa and protect our planet.

Ralph Mupita

Group President and CEO

help communities better respond to extreme storm events. We are also proud to report that MTN has been advancing its climate change strategy on multiple fronts. The SBTi approved MTN's GHG reduction targets in 2023 leveraging a 2021 baseline. Our ambitious long-term goal is to achieve Net Zero emissions by 2040. We continue to implement Project Zero with more energy efficiency and clean energy investments, reducing our reliance on fossil fuels. MTN set aside more than R700 million in 2023 for Project Zero investments. MTN attended COP28, highlighting the enabling role of technology in climate action solutions. We also advanced our efforts to evaluate and adapt to the physical impacts of climate change with our Climate Risk Assessment pilot project.

Mobile networks rely on a consistent, reliable supply of energy to keep our customers connected. In the face of ongoing loadshedding and grid instability, we were required to use our diesel backup generators to ensure delivery to customers, impacting our climate change targets and financial performance. South Africa experienced more than 300 days of loadshedding in 2023.

Our business model has also been shifting, impacting our Net Zero strategy. MTN has increased the number of leased tower sites within its portfolio; these are sites for which we do not have direct operational control e.g., MTN SA and IHS transaction. We have, however, been working with our partners and suppliers to reduce their carbon footprints (which are part of MTN's indirect emissions), and we continue these engagement efforts. We continue to focus on operational efficiency, greener energy solutions and circular economy strategies to decouple our subscriber growth from our carbon emissions.

Our Ambition 2025 strategy is built on the belief that everyone deserves the benefits of a modern, connected life. This belief fuels our commitment to a sustainable and inclusive world enabled by our 'Doing for planet' actions towards protecting our Earth.

Climate change continues to leave its mark on Africa with record-breaking climate events across the continent in 2023. Torrential rains and extreme flooding destroyed homes and businesses in several countries, resulting in loss of life and forcing people from their homes, damaging infrastructure and destroying crops and livestock. Tropical Cyclone Freddy, which left a path of destruction, persisted for a record 34 days. In the Horn of Africa, record drought has turned arable land to dust, resulting in crop failure and widespread water scarcity. Researchers believe climate change is increasing the

frequency and intensity of extreme weather events and Africa continues to carry the burden of climate change impacts. Africa contributes just 4% of global carbon emissions. Yet, the continent remains highly vulnerable to the impacts of climate change.

MTN is proud to be partnering with Tomorrow.io and Microsoft to provide critical early warning data to populations across Africa. This innovative programme, leveraging our unique strengths and capabilities, has the potential to save lives and

Our commitment to you, our valued stakeholders, is that we will not waver in our efforts to deliver on our climate promises. We will continually face setbacks and obstacles as we chart our path to Net Zero, and we invite you to join us through the highs and lows of this journey. Thank you for your ongoing support and belief in our vision. Together, we can create a sustainable and inclusive world.

Sincerely,

Ralph Mupita

Group President and CEO

Climate Report 2023 06

Climate change fits within our broader sustainability strategy

Introduction

+

Governance

Strategy

Risk management

Metrics and targets

Going forward

Sustainability strategy framework

MTN is committed to harnessing Africa's potential and advancing progress by unlocking the full potential of the digital world. Creating shared value is a crucial pillar of our Ambition 2025 strategy, and we have an authentic belief in our responsibility to create a more sustainable and inclusive world. Our sustainability strategy is supported by a four-pillar framework that aims to create shared value through responsible ESG practices while creating economic value across our footprint. By centring our sustainability strategy on ESG principles, we ensure it is flexible enough to withstand macroeconomic headwinds and prioritise material issues as these emerge.

Strategic intent	Ambition 2025: Leading digital solutions for Africa's progress
Belief statement	Everybody deserves the benefits of a modern, connected life

Do ngfor		Doingfor		Doing		Doingfor
planet		people		itright		growth
		Commitments
Eco-responsibility		Sustainable societies		Sound governance		Economic value added
We are committed to protecting our planet and		We are committed to driving digital financial		We are committed to partners and		We are committed to boosting inclusive
achieving Net Zero emissions by 2040		inclusion and diverse society		stakeholders to create and protect value		economic growth on the continent
		Metrics and actions
• Project Zero: Reduce GHG emission		• Increase access and reduce cost to		• Responsible policies and practices: Business		• Tax contribution across markets
• Efficiency: Improve energy efficiency		communicate		ethics and enterprise-wide risk management		• Network infrastructure investment
• Water and waste management: Reduce		• Increase financial inclusion		• Enhance reputation and trust with		• Empower local governments and enterprises
our impact		• Generational equality: Increase women		stakeholders
		representation		• Digital human rights (DHR)
		• Contribute through information and		• Responsible procurement and supply chain
		communication technology (ICT): Digital
		education, skills and jobs

UNSDGs

*2023 performance metrics are available in ESG data booklet

We believe true progress can be achieved only through action, and we centre our sustainability strategy on the question: What are we doing today?

• Each sustainability pillar is complemented by policies and procedures to reinforce our commitment and facilitate implementation by our operating companies (Opcos).
• Our most material focus areas are linked to clear targets and measurable performance indicators while we continue to manage and measure our remaining ESG matters.
• Our sustainability performance is monitored by the Board's Social, Ethics and Sustainability Committee, and our sustainability mandate and integration is reflected across all Board committees. We monitor our ESG performance and continuously work to contribute to solutions that will build an inclusive, connected and sustainable future.

Climate Report 2023 07

Introduction

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Governance

Strategy

Risk management

Metrics and targets

Key accomplishments: 2023

Going forward

Governance

• MTN published its second TCFD-aligned Climate Report in 2023.
• MTN achieved a B rating for its 2023 CDP Climate Change Report, with an A rating for its climate change governance.
• MTN's Sustainalytics ESG rating decreased by two points to a score of 45 in 2023, compared to

47 in 2022.

Strategy

• The Board of Directors approved the MTN Group environmental strategy.
• In May 2023, MTN Group was named by Brand Africa as the number one African brand that is doing good for people, society and the environment in a new category of its annual awards.
• MTN has developed customised strategies to achieve Net Zero emissions by 2040 for our top eight markets with best practices shared across the footprint.

Risk management

• MTN continued to advance its risk assessment pilot project across key geographies to better understand the physical risks of climate change.
• The risk assessment pilot project has progressed to consider potential risk mitigation strategies across a range of asset types.
• MTN enhanced proactive management of ESG-specific risks using the Group's risk managementframework.

Metrics and targets

• MTN achieved an 10.9%*

reduction in Scope 1 and 2 emissions from base-year emissions (excluding MTN SA whose performance is impacted by the IHS transaction).

• MTN achieved a 42.1% reduction in Scope 1 and Scope 2 emissions from base-year emissions, including MTN SA. This is, in part, owing to the sale of base transceiver station (BTS) sites.

• MTN has expanded its ESG reporting suite with a new

approach to its data disclosure.

• MTN has begun to evaluate the

IFRS S2 disclosure standards to understand how it can further align its climate disclosures.

* Reflects quarter 4 adjustments.

Climate Report 2023 08