MTN : FY 23 Sustainability Report

MTN Group Limited

Sustainability Report for the year ended 31 December 2023

Leading digital solutions for Africa's progress

Doing for tomorrow,

today.

Welcome to our 2023 Sustainability Report

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

Inside this report

01	About this report	04
01	Our reporting suite
02	Navigating this report
03	About this report

02	Our sustainability context	05
06	Who we are
09	Message from our Group President and CEO
12	Our sustainability strategy
	13	Our ESG performance
	14	Driving positive UNSDG outcomes
	16	Responding to our stakeholders

Doing for people

1. Accelerating digital inclusion

1. Driving financial inclusion

1. Supporting a skilled, diverse and inclusive society

1. Uplifting our communities through digital inclusion

Doing it right

60 Safeguarding our people and customers

1. Embedding ethical and responsible business practices

1. Partnering for an ethical supply chain

03

Doing for planet

18	Taking action for the atmosphere	06
24	Protecting and restoring our land
29	Working towards water resource protection

Doing for growth

78 Enabling local economies

1. Empowering local enterprises

1. Enabling local capacity building

1. Administration

About this report

+

Our sustainability context

Doing for planet

Doing for people

Doing it right

Doing for growth

Our reporting suite

Our Sustainability Report is supplemented by a number of reports that provide a comprehensive view of MTN's performance and prospects covering 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.

Sustainability Report 2023 01

About this report

+

Our sustainability context

Doing for planet

Doing for people

Doing it right

Doing for growth

Navigating this report

Throughout our Sustainability Report, we use the following icons to show the connectivity between our material matters, primary SDGs and creation

of shared value.

Material matters

Other icons and acronyms

Ambition 2025 strategic priorities to create value

1

Geopolitical and

Other icons:

macroeconomic

conditions

LA

2

Complex regulatory

Limited assurance obtained

and tax environment

Build the largest

Drive industry-leading

Create shared

Accelerate portfolio

Network and platform

and most valuable

connectivity operations

value

transformation

3

platforms

performance

www.mtn.com

4

Financial resilience

Sustainability remains at the core of our strategy. This aligns with our work to advance the United Nations

International Sustainability Standards Board

Sustainable Development Goals (UNSDG) through our business activities and our support of governments,

De-layering of the

5

communities and customers. The SDGs target a sustainable society with a plan to end poverty, protect the planet

telecommunications

and ensure equality for all by 2030. We are committed to bridging the digital divide, furthering financial inclusion

business model

to advance the attainment of the goals.

6

Greater focus on ESG

Frequently used acronyms

Our primary UNSDG contribution areas for shared value creation

7

Future-fit skills

Opcos

Operating companies

and culture

KPIs

Key performance indicators

ESG

Environmental, social and

8

Cybersecurity and

governance

Key indirect opportunities exist in the following SDGs

digital safety

UNSDG

United Nations Sustainability

Development Goals

9

Governance, ethics

GSMA

Global System for Mobile

and risk management

Communications Association

ICT

Information and

10

Artificial intelligence

communication technology

We unpack our material

matters on page 05

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

Sustainability Report 2023 02

About this report

+

Our sustainability context

Doing for planet

Doing for people

Doing it right

Doing for growth

About this report

Welcome to the MTN Group's 2023 Sustainability Report

In this report, we proudly celebrate 20 consecutive years of sustainability reporting, as well as MTN's 30th year of doing business in Africa. Our sustainability reporting is a journey of ongoing maturity, which is founded on an integrated approach.

Stakeholder engagement

Materiality assessment

Integration with strategy

Risk assessment

Engaging with stakeholders - including customers, employees, investors and the community - ensures their perspectives, concerns and expectations are considered in the report. It fosters transparency, trust and accountability, enhancing the report's credibility and relevance.

Identifying and prioritising material issues helps MTN focus on what truly matters to our sustainability performance and stakeholders. This ensures the report addresses key ESG aspects, avoiding information overload and enabling more informed decision making.

Aligning sustainability reporting with MTN Group's strategic priorities reinforces our commitment to sustainability. It demonstrates a coherent approach, showing how sustainability initiatives are integral to our long-term success and competitiveness.

Assessing sustainability risks and opportunities allows MTN to proactively manage and mitigate potential issues. Reporting on these aspects helps stakeholders understand how we are preparing to address emerging challenges and capitalise on opportunities, contributing to long-term resilience.

Integration with reporting frameworks and sustainability standards

We strive to provide information that is meaningful to all our diverse stakeholders. We therefore provide the disclosures needed to assess our sustainability progress through a suite of complementary reports, each tailored for specific audiences.

We report with reference to the following standards and frameworks

The Integrated Reporting Framework

Companies Act, No 71 of 2008 (as amended)

JSE Listings Requirements

FTSE/JSE Responsible Investment Index

King IV™* Principles

International Financial Reporting Standards (IFRS)

UN Global Reporting Initiative (GRI)

JSE's sustainability disclosure guidelines

GSMA ESG metrics

Sustainability Accounting Standards Board (SASB)

Telecommunication Services industry

UN Sustainable Development Goals (UNSDGs)

UN Global Compact (UNGC)

UN Guiding Principles on Business and Human Rights

CDP

IFRS® Sustainability Disclosure Standard

IFRS® Climate-related Disclosures

• Copyright and trademarks are owned by the Institute of Directors South Africa NPC and all of its rights are reserved. ® Registered trademarks of the IFRS Foundation.

Developments in sustainability reporting

• In June 2023, the International Sustainability Standards Board (ISSB) 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 Task Force on Climate-related Financial Disclosures (TCFD).
• IFRS S1 and IFRS S2 fully incorporate the recommendations of the TCFD, marking the culmination of the work of the TCFD.

Our response

To support the widespread adoption of the new investor-focused standards, IFRS S1 and IFRS S2, by the international sustainability standards board, MTN has pledged to begin the journey of adopting these standards. We will have built upon our work on TCFD and have reported against IFRS S2 rather than TCFD this year. This is because, IFRS S1 and S2 disclosures meet the TCFD disclosure requirements as these have been fully integrated.

While understanding sustainability-related risks and opportunities is a complex anditerative process, we have developed significant processes around TCFD. These processes are now applied with respect to IFRS S2. While we mature our alignment to IFRS S2, we are working proactively to prepare for IFRS S1.

We understand that IFRS S2 needs tobe applied in conjunction with IFRS S1. This is because an entity is required to apply IFRS S2 in accordance with the conceptual foundations, general requirements and the requirements related to judgements, uncertainties and errors in IFRS S1.

MTN embarked on this journey, following the publication of IFRS S1 and IFRS S2 in 2023, aiming to mature our understanding of sustainability-relatedrisksand opportunities and work towards compliance with the framing required by IFRS standards.

Sustainability Report 2023 03

About this report

+

Our sustainability context

Doing for planet

Doing for people

Doing it right

Doing for growth

About this report continued

Our sustainability governance

We are committed to creating and protecting value for our stakeholders; thus, maintaining superior corporate

• governance, transparency and accountability is essential for our business' long-term sustainable performance and growth.

Our governance framework is integral in supporting our business and helping us deliver on our sustainability strategy. It provides the structure through which we set our objectives, monitor our performance, and manage the risks we face. It includes a clear framework for decision making and accountability across our business and provides guidance on the standards of behaviour we

The Board and committees' responsibilities across sustainability are defined below.

		Board			Group Executive Committee
	 Social, Ethics and Sustainability Committee	 Sustainability Steering Committee
		• Approves sustainability strategy and associated policies.		• Drives execution of sustainability programmes and
		• Oversees overall sustainability performance and ensures		partnerships to ensure delivery of ESG metrics.
		implementation against key sustainability-related		• Resolves escalated issues and makes project decisions.
		frameworks.

• Sets the ESG metrics that are material value drivers for the business.

expect of each other.

Through its committees, the Board gives effect to the Group's sustainability framework, which guides our approach to delivering on critical global issues, as framed by the SDGs, while being sensitive to the needs and imperatives in each host country. The Board is cognisant of imperatives of our stakeholders in each host country as well as the sustainability-related impacts that affect our operations. The Board supports our efforts to mitigate sustainability risks and exploit related opportunities.

Each committee operates under terms of reference, setting out roles and responsibilities, composition and scope of authority. The Social, Ethics and Sustainability Committee (SESCO) specifically oversees strategy, targets and progress with regard to sustainability matters. Our committees are structured to promote cross-market and functional collaboration, which is essential to ensure sustainability is embedded throughout the organisation.

The Board is kept abreast of management's efforts to mitigate risk and deliver against our sustainability framework on a quarterly basis.

Read more about MTN's corporate governance practices and our committee's responsibilities in our 2023

• Risk Management and Compliance Committee

• Oversees the sustainability risk register and ensures risk mitigation is adequate.
• Reviews compliance with sustainability-related policies.

• Human Capital and Remuneration Committee

• Approves sustainability policies related to labour and employment, sets employment targets and monitors employment equity.
• Reviews, approves and assigns executive key performance indicators (KPI) in respect of ESG targets.

• Directors' Affairs and Governance Committee

• Oversight on the 'governance' tenant on sustainability.
• Monitors effectiveness of the governance structures, processes and policies.

• Audit Committee

• Assesses the reliability of sustainability data and disclosures.
• Oversees fraud and corruption policies.
• Oversees the financial performance and financial reporting practices of the Group.

Read more about our materiality determination process detail regarding each material matter in our

Sustainability Report 2023 04

About this report

+

Our sustainability context

Doing for planet

Doing for people

Doing it right

Doing for growth

About this report continued

Material matters in 2023

MTN's operations impact the environment and society ('inside-out'). In turn, the environment and society affect the Group and our performance ('outside-in'). These effects may be positive or negative and vary with time.

Here we provide an overview of the material matters identified in 2023, as well as the underlying sustainability issues that are associated with each matter. These sub-topics, which were rated as having a significant external impact, have informed the contents of this Sustainability Report.

Our materiality determination process, which is subject to Board approval, identifies our key material matters and the underlying issues which inform each matter. Through this process we identify all those matters that have a significant bearing on enterprise value (financial materiality), as well as our most significant impacts on people, society and the environment (impact materiality).

Our approach to 'double materiality' is to disclose the material 'outside-in' impacts in the Integrated Report and the 'inside-out' impacts in this Sustainability Report.

Significant external	Most significant impacts
impacts	(double materiality
(inform sustainability	informs integrated
reporting)	reporting)
External impact
	Significant financial
Low impacts	impacts
(manage and monitor)	(inform financial
	reporting)

Financial impact

1

Geopolitical and macroeconomic conditions

2

Complex

regulatory and tax environment

3

Network and

platform

performance

4

Financial resilience

Associated

sustainability issues

• Economic and socio-political

challenges in our communities

• Maintaining positive and

collaborative stakeholder

relationships

• Compliance with country and

industry regulations

• Social and environmental

compliance

• Tax compliance

• Network availability and service

reliability

• Rising demand for digital and

fintech services

• Energy consumption, supply and

transition to renewable energies

• Reducing emissions

• Affordable data connectivity

• Creating shared value

• Supporting local economies

• Requires consideration of impact

of socioeconomic stresses and

responses on overall Group

financial sustainability

6

Greater focus

on ESG

7

Future-fit skills

and culture

8

Cybersecurity

and digital

safety

9

Governance,

ethics and risk management

Associated

sustainability issues

• Environmental stewardship
• Enabling financial and digital inclusion
• Ethical supply chain management
• Supporting local economies
• Creating shared value
• Employee engagement
• Developing future-ready skills
• Advancing diversity and inclusion
• Gender equality and pay parity
• Health, safety and wellbeing
• Protecting customer privacy and data security
• Cybersecurity
• Human rights and interference with freedom of association
• Child online safety
• Maintaining robust corporate governance
• Effective stakeholder engagement and collaboration
• Business conduct and ethics
• Managing sustainability-related risks and opportunities

Read more about our materiality determination process detail regarding each material matter in our

5

De-layering of the telecoms business model

• Digital and financial inclusion

• Navigating new technologies

10	responsibly, while leveraging
	transformative opportunities
AI

Sustainability Report 2023 05

About this report

Our sustainability context +

Doing for planet

Doing for people

Doing it right

Doing for growth

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

Sustainability Report 2023 06

About this report

Our sustainability context +

Doing for planet

Doing for people

Who we are continued

Celebrating 20 years of sustainability reporting

Doing it right

Doing for growth

2012

Became a United

Nations Global Compact (UNGC) signatory.

2003

We published our first Sustainability Report.

MTN South Africa secured ISO 14001 environmental management certification, marking a first for an African

2009

Introduced our whistle-blower line

Tip-offs Anonymous.

In 2024, MTN celebrates 30 years of doing business in Africa. Since the first call was made on our network in 1994, we have played an instrumental role in transforming Africa's connectivity landscape, bridging the digital divide and empowering millions of lives.

This year also marks the publication of our 20th consecutive annual Sustainability Report. We are honoured to look back on our journey of growth, innovation and commitment to creating a more sustainable future.

Listed among Newsweek's Green Rankings top 250 companies globally for positive environmental impact.

2014

Won the Nedbank

Sustainable Business Award for ReadySet and ReadyPay

telecommunications network.

2004

Recognised in UNEP's

Global Top 50 companies for sustainability reporting.

2007	2010	2011
Launched the 21 Days of		Established the Social
	and Ethics Committee.

Y'ello Care programme.

Ranked in the Top 250 companies in Newsweek's Green Rankings for Positive

Environmental Impact

Management.

2005	Completed our initial
Carbon Disclosure
	Project report.
MTN fully endorsed the	Committed to the 2010
Cancun Communiqué
King Code on Corporate
on Climate Change
Governance (King II).
declaration.

2013

Obtained limited sustainability report assurance for the first time.

solar-powered charging solutions in Rwanda and Uganda.

Launched the MTN

Green Office programme.

Sustainability Report 2023 07

About this report

Our sustainability context +

Doing for planet

Who we are continued

Doing for people

Doing it right

Doing for growth

2018

20152017

2021

Signed a pledge with the SBTi, committing

2023

Named as the number one African brand that is doing good for people,

Introduced IoT platform

solutions, including asset tracking, fuel and utilities management, and security solutions.

Rolled out a cashless payment solution, bridging the gap between large enterprises and cash-based informal merchants.

Rolled out our CHASE

framework to overcome the five key barriers to mobile internet adoption: coverage, handsets, affordability, service bundling, education and ease of access.

Rapid rural rollout programme (R3) began.

2020

Voluntarily received

GSMA mobile money certification.

the Group to our Net Zero ambition.

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

society and the environment by Brand Africa.

MTN ranked as highest sustainability perceptions value of any brand by Brand Finance.

SBTI completes validation of MTN's GHG emission targets for Scope 1,

2016

Aligned with the United

Nations' Sustainable Development Goals assessing where we can play a meaningful role.

Introduced a new Supplier Code of Conduct emphasising environmentally sustainable business activities.

Entered into child online partnership with Internet Watch Foundation (IWF).

Launched the

Data-Smart programme, a digital literacy initiative based on GSMA's Mobile Internet

Skills Training Toolkit.

2022

Became a Task Force on Climate-Related Financial Disclosures (TCFD) supporter and published the first Climate Report.

Launched the MTN Skills Academy to foster digital technology innovators.

Partnered with the IWF to develop the Online Child Safety Africa Portal.

2 and 3.

Became an early adopter of IFRS Sustainability Disclosure Standards.

MTN receives Africa-America Institute's 2023 Corporate Responsibility Award.

Sustainability Report 2023 08