Telecommunications giant MTN Group has linked the remuneration of senior executives with the group’s environmental, social and governance (ESG) targets, supporting the delivery of its 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 the progress of the three ESG goals of reaching net zero, enhancing diversity and inclusion and extending rural broadband.
“Effectively managing our ESG impacts is critical to reaching Ambition 2025,” said MTN Group president and CEO Ralph Mupita, highlighting the great progress made overall.
As the company continually strives to meet the increasingly high standards its stakeholders demand regarding the group’s ESG impact, MTN has now linked the 2022 executive renumeration for STIs and LTIs to ESG, he explained.
“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.”
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.
In line with this, 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.