MTN Group has linked the remuneration of senior executives with the Group’s environmental, social, and governance (ESG) targets.
The giant telecommunications company says 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 of three ESG goals.
The ESG goals include:
- Reaching Net Zero
- Enhancing diversity and inclusion
- Extending rural broadband
“Effectively managing our environmental, social and governance impacts is critical to reaching Ambition 2025,” said MTN Group President and CEO Ralph Mupita in the Group’s recently released Sustainability Report.
“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 renumeration for STIs and LTIs to ESG,” Mupita added.
In March, 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.
The company says 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.
“In 2021, we took a step change in our approach to ESG, placing it at the core of our strategy. This aligns with our work to advance the United Nations Sustainable Development Goals through our business activities and our support of governments, communities and customers,” the company said.
“We are committed to bridging the digital divide and furthering financial inclusion to advance the attainment of the goals,” it added.
Edited by Zintle Nkohla
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