Sustainability
The contribution we make to the long-term sustainability of the communities in which we operate and the relationships we have which are central to our business contribute to our stock of social and relationship capital. Our social and relationship capital includes the intangibles associated with our brand and reputation and our social licence to operate. Our relationships with our stakeholders, which include communities, the investor community, government, regulators and joint venture partners, impact directly or indirectly on our business and its reputation. These relationships form part of each capital and are vital inputs to our business model that are constantly being increased, decreased and transformed through our activities.
Environmental, social and governance (ESG)
Telkom is committed to uniting our people and leveraging our capabilities to deliver on the Group's purpose. We aim to create shared value for all our stakeholders in a manner that is environmentally responsible, supports broader social imperatives, and respects the rights of all. In addition, we have selected SDGs where we can have a substantial impact and influence.
Our ESG Strategy has clear focus areas and goals that seek to unlock long term success for all our stakeholders. It formalises our approach to sustainable business practices, with outcomes tracked and measured to ensure we deliver against our ESG commitments. Telkom is intentional and unequivocal in its pursuit to deliver sustainable value to all our stakeholders, and our ESG Strategy provides a framework for deliberate action to achieve this. Our ESG operational model is a hybrid model led by a small Group central team, that is supported by ESG champions in each of the business units in the form of an established ESG Impact Council for oversight and accountability.
Environment
Telkom is a business that advocates for environmental stewardship by utilising natural resources responsibly to mitigate the impact of climate change through our energy consumption, water and waste management practices. As part of our environmental pillar, we have developed two focus areas, namely, operational efficiencies and digital planet, which are defined by goal statements.
Operational Efficiencies
In February 2019, the GSMA (Groupe Speciale Mobile Association) set an ambition on behalf of the ICT industry to reach net zero carbon emissions by 2050. Telkom is a member of GSMA and has developed targets to align with the ambitions of the GSMA. As part of the operational efficiencies focus area, we have committed to the following:
- Reach carbon neutrality by 2035
- Achieve net-zero emissions by 2040
Our Net-Zero Emissions Journey
Telkom is firmly committed to achieving net-zero emissions by 2040, following a clear science-based pathway to reduce our carbon footprint across all emission scopes.
As of FY 2022, our total emissions stood at approximately 2.6 million tonnes of CO₂ equivalent. Since then, we have embarked on a progressive emissions reduction journey, guided by structured short, medium, and long-term targets.
In the years ahead, we will continue to reduce emissions year-on-year, with a key milestone set for FY2030, by which we aim to reduce emissions to below 1.9 million tCO₂e. Our long-term goal is a 90% reduction across all scopes by 2040, in alignment with the Science-Based Targets initiative (SBTi).
This journey reflects Telkom’s deep commitment to sustainable growth, responsible business practices, and a low-carbon future for South Africa. By embedding sustainability at the heart of our strategy, we are taking meaningful action today to shape a better tomorrow.
Our environmental performance
We have committed to reducing greenhouse gas (GHG) emissions year on year, with specific reduction targets. Using FY2022 as a base year, Scope 1 and 2 GHG emissions will be reduced by half by FY2033, and almost completely eliminated by FY2040.
The Science Based Targets initiative (SBTi) has acknowledged progress towards this commitment to keep global heating below catastrophic levels and reach net-zero by 2050 at the latest.
Read more about Telkom's Near-Term and Net-Zero targets, and the SBTI’s assessment thereof.
Goal statements |
FY2022 baseline |
FY2024 actual |
FY2025 actual |
% change from FY2022 (baseline) |
Status |
|
|---|---|---|---|---|---|---|
Carbon neutral by 2035 (tCO₂e)  |
852 782 | 639 041 | 576 395 | -32% |  |
|
| 50% | Reduction in fossil fuel
consumption by 2030 (tCO₂e) |
55 466 | 66 119 | 35 127 | -37% | |
| 100% | Renewable energy
sources by 2035 (GJ) |
<1% | 13 320 | 33 284 | 2.5x increase from FY2024 | |
| Net-zero by 2040 | ||||||
| - | Determine Scope 3 emissions |
1 764 216 | 1 724 460 | 1 713 336 | -2% | |
| 75% | Reduction in waste to landfill by 2030 (tonnes) |
743 | 644 | 610 | -18% | |
| 50% | Reduction in potable
water consumption by 2030 (kL) |
997 617 | 777 722 | 774 991 | -22% | |
| 25% | Migration from R22 refrigerant gases in 2025 and 100% by 2035 (tonnes) from a 2016 baseline |
38 | 34 | 31 | -18% | |
Digital Planet
| 70 000 | IoT devices deployed by 2025 | 15 220 | 73 679 | 95 170 | sixfold increase |  |
External moderate assurance on selected sustainability indicators.
Please refer to the FY2025 Independent Assurance Report, available online.
Refer to page 57
* Lives impacted by job creation = the number of people employed at an SMME, which can either be actual or x4.1 average if the number of employed is unknown (Small Business Institute SA). To calculate lives impacted, apply an economic multiplier of x 3.3, representing the average number of people per household (Statistics South Africa).
** Digital literacy is the ability to use technology to connect with the world around us, to access opportunities and to use digital content to learn new skills/knowledge to contribute in a digitally connected society (UNESCO, UNICEF, EU).
Legend |
|
|---|---|
|
Achieved |
|
Making progress but long-term target not yet achieved |
 |
Not achieved, progress needs to be improved |
 |
No specific target set as part of the initial ESG strategy |
Social
Telkom has worked on adapting our capabilities to find sustainable solutions to South Africa's challenges in education, skills development, technology innovation and entrepreneurship - these are key platforms for building an inclusive digital future for all. We strive to be an organisation that takes accountability for its actions and conduct our business activities in a manner that is socially responsible to support the development of societies within our sphere of influence. Our three focus areas will assist with realising the social pillar of our ESG strategy.
Investing with purpose
We intend to enable shared value through our social investment, enterprise and supplier development and workplace programmes. As part of our goal statement to invest with purpose, we have committed to:
- Impact 100 000 lives through SMME spend by 2025
- Impact 30 000 lives through digital literacy by 2023
- Grow our female talent pool for senior management positions and maintain a top employer status.
Digital services
As one of South Africa's leading telecommunications companies, we aim to deliver ICT solutions that enable socioeconomic uplift. Our goals within the digital services industry include:
- Providing 4.3 million customers access to Telkom's diversified digital platforms by 2025.
- Enabling the growth of SA's business segment by providing digital platform solutions to 500 000 businesses by 2025.
Empowered communities
Our vision is to broaden access to affordable and inclusive digital connectivity, thereby enabling a better life for our customers. We aim to:
- Connect 15 million customers to broadband & fixed wireless broadband connectivity by 2025.
- Provide access to over 1.5 million South African homes and businesses through our FTTX footprint by 2025.
Investing with purpose
Goal statements |
FY2022 baseline |
FY2024 actual |
FY2025 actual |
% change from FY2022 (baseline) |
Status |
|
|---|---|---|---|---|---|---|
| 200 000 | Lives positively impacted through SMME spend by 2025* | 91 357 | 221 308 | 251 203 | 2.8x increase | |
| 70 000 | Lives impacted through digital literacy by 2025*** | 14 420 | 58 417 | 72 278 | 5x increase | |
| 2023 | Become a leading employer in South Africa | Achieved | Achieved | Achieved | Achieved | |
| 35% |
Women in leadership positions by 2025 | 32% | 34% | 35% | 3 ppts | |
Refer to page 68
Digital services
Goal statements |
FY2022 baseline |
FY2024 actual |
FY2025 actual |
% change from FY2022 (baseline) |
Status |
|
|---|---|---|---|---|---|---|
| 4.3 million | Customers with access to Telkom’s diversified digital platforms by 2025 | 2 039 684 | 8 800 000 | 11 277 361 | 5.5x increase | |
| 500 000 | Businesses with access to digital platform solutions by 2025 | 443 467 | 447 647 | 451 346 | 2% | |
Refer to page 55
Empowered communities
Goal statements |
FY2022 baseline |
FY2024 actual |
FY2025 actual |
% change from FY2022 (baseline) |
Status |
|
|---|---|---|---|---|---|---|
| 15 million | Customers connected to broadband and fixed wireless broadband connectivity by 2025 | 11 700 000 | 15 957 972 | 19 590 697 | 67% | |
| 1.5 million | SA homes and businesses passed with our FTTx footprint by 2025 | 839 691 | 1 217 110 | 1 378 930 | 64% | |
| Underserved areas | Fibre rollout in townships (homes passed) | 119 579 | 139 476 | 231 330 | 94% | |
| Fibre rollout in townships (homes connected) | 47 619 | 70 024 | 120 852 | 2.5x increase | |
|
Refer to page 53
External moderate assurance on selected sustainability indicators.
Please refer to the FY2025 Independent Assurance Report, available online.
Refer to page 57
* Lives impacted by job creation = the number of people employed at an SMME, which can either be actual or x4.1 average if the number of employed is unknown (Small Business Institute SA). To calculate lives impacted, apply an economic multiplier of x 3.3, representing the average number of people per household (Statistics South Africa).
** Digital literacy is the ability to use technology to connect with the world around us, to access opportunities and to use digital content to learn new skills/knowledge to contribute in a digitally connected society (UNESCO, UNICEF, EU).
Legend |
|
|---|---|
|
Achieved |
|
Making progress but long-term target not yet achieved |
|
Not achieved, progress needs to be improved |
|
No specific target set as part of the initial ESG strategy |
Governance
Business stewardship
We envision a culture of accountable and ethical operating practices, and encourage the responsible use of data and technology. We aspire to lead ethically and effectively, as well as ensuring that the organisation is a responsible corporate citizen according to the principles set out in the King IV Report on Corporate Governance for South Africa. The company's Board of Directors has established several committees to assist with executing its governance duties. We have set ourselves the following goal statements:
- Creating a culture of responsible technology & information use within the organisation and broader industry.
- Fair and ethical practices towards our customers and within the organisation.
Governance performance
Goal statements |
FY2022 baseline |
FY2024 actual |
FY2025 actual |
% change from FY2022 (baseline) |
Status |
|---|---|---|---|---|---|
| Culture of responsible technology and information use | |||||
| Reduction in number of data breaches | 0 | 0 | 0 | 0 | |
| Promote fair and ethical practices towards our customers and within the Group | |||||
| Reduction in escalated customer complaints*** | 7 416 | 3 661 | 4 953 | -33% | |
| Decrease in whistle-blowing incidents reported from FY2023 | 152 | 121 | 71 | -41% | |
Refer to page 89
*** Excludes complaints managed at the call centre, as these are too complex for reporting purposes.
Legend |
|
|---|---|
|
Achieved |
|
Making progress but long-term target not yet achieved |
|
Not achieved, progress needs to be improved |
|
No specific target set as part of the initial ESG strategy |