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Our ESG strategy

Telkom matured its approach to ESG and set about embedding a more data-driven approach to performance and decision‑making. This involves making a significant culture shift and extending the range of KPIs we track to align more closely with global and local framework requirements. It is supported in part by higher levels of accountability derived from embedding ESG into our short- and long-term remuneration incentives, which we began in FY2023.

Our operating model is designed such that each business unit takes accountability for driving a pillar of the strategy in collaboration with others, with a central team responsible for the overall strategy and execution. All stakeholders meet quarterly at an ESG Impact Council, through which we account to the Group Executive Committee and the Board Social and Ethics Committee, as well as the Remuneration and Risk Committees where relevant.

Most goal statements in our initial strategy are on track. Where these have been met and the goal remains relevant, we have stretched the level of ambition. Our decarbonisation goals are on track and we plan to deepen our approach in the year to come. Our Scope 3 baseline has been revised to align with the methodology employed by our carbon accounting platform.

Our approach is underpinned by a number of enablers, which we continually improve upon. Among these are the following:

  • Extending our commitment to our goals through strategic partnerships, innovation, and with suppliers through our value chain
  • Refining our approach to quantify the impact and benefits of our interventions
  • Seeking to integrate ESG more deeply into our business operations through improving our mechanisms for execution and accountability
  • Continually scanning the macro-environment to ensure our interventions remain relevant and impactful
  • Embedding data-driven decision-making

In FY2024, we invested in cloud-based reporting and carbon accounting platforms. These will help us align our financial and non-financial KPIs, better anticipate ESG risks, facilitate data-driven decision-making and tracking, and automate manual processes as we evolve.

Telkom conducted its first economic impact study (see Prosperity highlights in our ESG snapshot).

ESG strategy and performance

Digital
services

Deliver digital solutions which enable socio‑economic uplift

Empowered
communities

Broaden access to affordable and inclusive digital connectivity, enabling a better life for our customers

Digital
planet

Pioneer digital solutions that unlock sustainable energy, responsible water usage, and circular economy practice

Business
stewardship

Instil accountable and ethical operating practices and encourage responsible tech/AI usage, data privacy and security

Investing
with
purpose

Enable social impact through leading corporate social investment (CSI) programmes, localisation and growing SMMEs. Encourage diversity, inclusion and equal opportunity

Operational
efficiencies

Mitigate climate change impact, achieve cost optimisation and security of supply through responsible water/energy use and waste management

Environmental

 
OE

Operational efficiencies

  Goal
statements
FY2022
baseline
FY2023
performance
FY2024
performance
 % change
from FY2023
 Status
Carbon neutral by 2035 (tCO2e)  852 782  704 740  639 041  (9%)
50% Reduction in fossil fuel consumption by 2030 (tCO2e)  55 466  85 100  66 119  (23%)
  100% Renewable energy
sources by 2035 (GWh)
 <1%  0.528  3.7 600%
increase
in generation
  Net zero by 2040          
  Determine Scope 3 emissions and set a target*  1 764 216^  1 951 155  1 724 460  (12%)
  75% Reduction in waste to landfill by 2030 (tonnes) 743^ 686^ 644 (6%)
50% Reduction in potable water consumption by 2030 (kL)  997 617  930 900  777 722  (16%)
  25% Migration from R22 refrigerant gases in 2025 and 100% by 2035 (tonnes)  38  36  34  (7%)
Page reference Natural capital
 
DP

Digital planet

         
  70 000 IoT devices deployed by 2025  15 220  58 567  73 679  26%
 
External moderate assurance on selected sustainability indicators. Please refer to the FY2024 Independent Assurance Report available online. Page reference BCX

  Legend
Achieved
Making progress but long-term target not yet achieved
Not achieved, progress needs to be improved
No specific target set as part of the initial ESG strategy

Social

IWP

Investing with purpose

         
Goal statements FY2022
baseline
FY2023
performance
FY2024
performance
% change
from FY2023
Status
200 000 Lives positively impacted through SMME spend by 2025** 91 357 129 561 221 308 71%
70 000 Lives impacted through digital literacy by 2025*** 14 420 30 120 58 417 94%
2023 Become a leading employer in South Africa Achieved Achieved Achieved
35% Women in leadership positions by 2025 32% 33% 34% 1 ppt
Page reference Human capital
DS

Digital services

         
4.3 million Customers with access to Telkom’s diversified digital platforms by 2025  2 039 684  3 873 170  8 800 000  127%
500 000 Businesses with access to digital platform solutions by 2025 443 467 445 119 447 647 0.6%
Page reference Telkom Consumer
EC

Empowered communities

         
15 million Customers connected to broadband million  and fixed wireless broadband connectivity by 2025 11 700 000 14 451 014 15 957 972 10%
1.5 million SA homes and businesses passed with our FTTx footprint by 2025**** 839 691 1 040 565 1 217 110 17%
Under‑served areas Fibre rollout in townships (homes passed) 119 579 138 813 139 476 5%
Fibre rollout in townships (homes connected) 47 619 60 928 70 024 15%
Page reference Openserve

Governance

BS

Business stewardship

Goal statements FY2022
baseline
FY2023
performance
FY2024
performance
 % change
from FY2023
 Status
Culture of responsible technology and information use
Reduction in number of data breaches  0 0 0  0%
Promote fair and ethical practices towards our customers and within the organisation          
Reduction in escalated customer complaints***** 7 416 4 907 3 661 (25%)
Decrease in whistle-blowing incidents reported from FY2023 152 147 121 (18%)
Page reference Managing our business with integrity
* As per prior guidance, Scope 3 emissions have been refined for FY2024 and this will be a continual process given the complexity of these calculations and that they are out of our direct control. The methodology was refined with the use of our carbon accounting platform. This will be assured in FY2025.
** Lives impacted by job creation = number of people employed at an SMME which can either be actual or x 4.1 average if no. of employed unknown (Small Business Institute SA). To calculate lives impacted, x 3.3 economic multiplier is used in addition – i.e. the average number of people in a household (StatsSA).
*** Digital literacy is the ability to use technology to connect with the world around us, to access opportunities and to use digital content to learn new skills/knowledge to contribute in a digitally connected society (UNESCO, UNICEF, EU).
**** This target is capex dependent.
***** Excludes complaints managed at the call centre.
****** Percentages have been rounded off.
^ Scope 3 baseline restated due to refinements in the calculation methodology. Waste to landfill restated to include waste generated from our leased portfolio.

Future focus

We will review our strategy and enablers in FY2025 as we enter the third year of ESG implementation and deepen our commitment to prosperity, people, planet and practice. As we approach 2030, we will refresh and align our goals to this global milestone and refine our alignment to the SDGs. We will start defining our pathway to net zero more clearly, rooted in key climate change scenarios and considering the constraints on our business.

We will deepen our approach to materiality and enhance our performance and reporting over time as we prepare for greater alignment with the JSE’s voluntary Sustainability and Climate Disclosure Guidance and follow local market practice on the adoption of IFRS S1 and S2 standards.

FY2025 activities will include:

  • Conducting a climate risk scenario analysis
  • Defining net zero pathways and setting Scope 3 targets
  • Conducting a double materiality analysis
  • Reviewing the strategy and opportunity assessment
  • Building resilience in the enabling environment to match our strategic ambition
  Legend
Achieved
Making progress but long-term target not yet achieved
Not achieved, progress needs to be improved
No specific target set as part of the initial ESG strategy
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