MTN Group’s commitment to improve our environmental, social and governance ESG performance has led to a significant upgrade in the Group’s ESG rating by FTSE Russell, and the 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. 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, 4.5 points as a governance score and 3.6 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,” said MTN Group President and Chief Executive Officer Ralph Mupita. “It reflects the step change we have taken in our 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 & 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,” said Nompilo Morafo, who assumes the role of MTN Group Chief Sustainability and Corporate Affairs Officer on 1 February 2022. “MTN’s approach to human rights & community, labor standards and social supply chain all showed improvements, and these remain critically important. Similarly, our work around anti-corruption and sound corporate governance was recognized, and we look forward to more progress in 2022.” MTN Group is now in FTSE/JSE responsible investment top 30 index, which identifies South African companies with leading ESG practices.