MTN Group has linked the remuneration of senior executives with the Group’s environmental, social and governance (ESG) targets. With this, the company looks to support the delivery of its Ambition 2025 strategy, particularly the strategic priority to çreate 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.
MTN Group President and Chief Executive Officer Ralph Mupita said that the ESG is a very important part of the Group’s Ambition 2025.
“Effectively managing our environmental, social and governance impacts is critical to reaching Ambition 2025,”he said in the 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.”
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.
MTN 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.
MTN’s strategic intent is ‘Ambition 2025: Leading digital solutions for Africa’s progress’. In 2021, the Group took a step change in its approach to ESG, placing it at the core of its strategy.
This aligns with MTN Group’s work to advance the United Nations Sustainable Development Goals through its business activities and its support of governments, communities and customers.