By BUUMBA CHIMBULU
MTN Group’s priority to improve its Environmental, Social and Governance (ESG) performance has led to significant upgrade in its overall rating to 4.3 as at end of December 2021.
The ESG rating was given by FTSE Russell, and this also saw an inclusion of MTN in the FTSE/JSE Responsible Investment Top 30 Index.
Noting an improvement across each of the ESG pillars, FTSE upgraded MTN’s overall rating to 4.3 at end-December 2021 from 2.9 previously.
The ratings are scored out of 5.0, according to a statement issued in Lusaka yesterday.
It stated that in the telecoms sector, MTN moved from the 34th percentile in December 2019, the last time such a ranking was performed to the 97th percentile in December 2021.
MTN Group received the maximum 5.0 points as a social score compared to 3.2 previously, 4.5 points from 4.0 as a governance score and 3.6 from 1.9 as an environment score.
“We are encouraged by this re-rating, and as part of our ambition 2025 strategy, we will continue with the work to create shared value, with ESG at the core,” MTN Group president and Chief Executive Officer, Ralph Mupita, said.
Mr Mupita indicated that this reflected the step change that MTN have taken in its approach to sustainability and improving the risk profile of the Group.
Compared to the mobile telecoms sub-sector, MTN scored the highest across all social categories – human rights and community; labour standards; social supply chain – as well as across both governance categories – corporate governance and anti-corruption.
With regards environmental themes, the Group scored substantially higher than the sub-sector average for climate change and environmental supply chain.
“As a provider of essential communications services, we take very seriously the social and governance aspects of our work,” MTN Group chief sustainability and corporate affairs officer Nompilo Morafo said.
MTN Group is now in FTSE/JSE Responsible Investment Top 30 Index, which identifies South African companies with leading ESG practices.