MTN Group has announced that it has reached a major milestone in its work to create shared value by achieving, for the first time, Level 1 Broad-Based Black Economic Empowerment (B-BBEE) Contributor Status in South Africa.
The rating is for the financial year ended December 31, 2021 and is an improvement on the Level 2 Contributor Status for 2020. This is contained in the Group’s annual B-BBEE compliance report, released today, May 13, 2022, in which major subsidiary, MTN South Africa (MTN SA), retained its Level 1 B-BBEE Contributor Status for the third year running.
The B-BBEE Contributor Status for MTN Group considers both the South African operating entities as well as the South African Group function.
“We are very pleased by the progress we are making as the MTN Group in driving broad-based transformation. The achievement of the Level 1 Contributor Status for both our Group and our South African operation is a truly major milestone.
“As MTN Group, we see broad-based transformation and making socio-economic contributions to the markets we operate in as key to our sustainability and creating shared value”.
MTN Group President and CEO, Ralph Mupita
Notable improvements for the Group were 4.5-point increase in the Group’s Management Control score. This resulted from “our consistent alignment to the targets based on the Economically Active Population as well as from changes in the composition of the Board of Directors, with the appointment of more women”, the Group stated.
MTN Group stated in a press release that “Our Equity Ownership score improved by 0.94 points as we maximized the Designated Group sub-indicator”.
Mupita said MTN would continue to work to contribute meaningfully to South Africa’s socio-economic transformation, prioritizing Enterprise and Supplier Development and Skills Development in 2022. This includes supporting several learnership programmes, which he said, was particularly critical at a time of rising unemployment.
On his part, MTN SA CEO, Charles Molapisi said “In an environment of mounting economic challenges, we are pleased to be able to help create meaningful opportunities for South Africans”.
“In 2022, we will work harder to provide a world-class Enterprise and Supplier Development Programme to deliver more sustainable solutions that are aligned to government’s efforts to speed up the inclusion of Black-Owned Business in the mainstream economy”.
Charles Molapisi, MTN SA CEO
MTN Group links remuneration of senior executives to ESG goals
MTN Group is committed to achieving its Ambition 2025 strategy. The Group has linked the remuneration of senior executives with its Group’s environmental, social and governance (ESG) targets. This supports the delivery of its Ambition 2025 strategy, and in particular, the strategic priority to ‘create shared value’, with ‘ESG at the core’.
The variable elements of executive compensation – both short-term incentives (STIs) and long-term incentives (LTIs) – now depend on progress on three ESG goals: reaching Net Zero; enhancing diversity and inclusion; and extending rural broadband.
“Effectively managing our environmental, social and governance impacts is critical to reaching Ambition 2025. We have made great progress overall and continually strive to meet the increasingly high standards our stakeholders demand regarding our ESG impact. To this end, we have linked 2022 executive remuneration for STIs and LTIs to ESG”.
Ralph Mupita
MTN Group’s 2021 results showed a 16% reduction in scope 1 and 2 greenhouse gas emissions; an increase in the representation of women across the Group to 39%; and an increase to 83% in rural broadband coverage.
MTN stated that it is committed to reducing scope 1, 2 and 3 emissions by 47% by 2030 and reaching Net Zero by 2040; achieving workforce gender equality by 2030; and extending rural broadband coverage to 95% by 2025.
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