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:
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).
Deliver digital solutions which enable socio‑economic uplift
Broaden access to affordable and inclusive digital connectivity, enabling a better life for our customers
Pioneer digital solutions that unlock sustainable energy, responsible water usage, and circular economy practice
Instil accountable and ethical operating practices and encourage responsible tech/AI usage, data privacy and security
Enable social impact through leading corporate social investment (CSI) programmes, localisation and growing SMMEs. Encourage diversity, inclusion and equal opportunity
Mitigate climate change impact, achieve cost optimisation and security of supply through responsible water/energy use and waste management
Environmental |
OE
Operational efficiencies |
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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 |
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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 |
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70 000 | IoT devices deployed by 2025 | 15 220 | 58 567 | 73 679 | 26% | |||||
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Social |
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IWP
Investing with purpose |
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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 |
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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 |
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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 |
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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. |
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.
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 |