MTN Group has linked the remuneration of senior executives with the Group’s environmental, social and governance (ESG) targets.
A statement from MTN said the move supports the delivery of the Group’s Ambition 2025 strategy, and in particular the strategic priority to ‘create 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.
“Effectively managing our environmental, social and governance impacts is critical to reaching Ambition 2025,” said MTN Group President and Chief Executive Officer Ralph Mupita in the Group’s 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,” he added.
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, we took a step change in our approach to ESG, placing it at the core of our strategy. This aligns with our work to advance the United Nations Sustainable Development Goals through our business activities and our support of governments, communities and customers. We are committed to bridging the digital divide and furthering financial inclusion to advance the attainment of the goals.