Safaricom 2018 Sustainable Business Report

25 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT 2018 SUSTAINABLE BUSINESS REPORT How we arrive at these numbers The first time that the True Value methodology was used to identify the most material socio-economic and environmental impacts of Safaricom and to quantify them in financial terms was in the 2014/15 financial year. During that year, Step 1 of the True Value methodology was carried out to estimate the True Earnings of Safaricom for the year in question. 1 Primary research was conducted to complete this exercise and to ascertain the social value created by M-PESA, in particular. In order to quantify this social value, principles from the Social Return on Investment (SROI) methodology were used. SROI is an open-source, principles-based method used to account for social change. More detail regarding the 2014/15 True Earnings exercise can be accessed at: https:// Since 2014/15, True Earnings has been used by Safaricom as a way of understanding and expressing the value that the company creates for society. A decision has been made not to carry out the same level of primary research in the following years, but to extrapolate existing primary data and research points from 2014/15, or other years in which relevant data has been publicly available, to create a picture of the relevant period that is as accurate as possible. This has necessitated making certain informed assumptions, all of which have been interrogated internally and confirmed to be the most appropriate in the specific Kenyan context. For the 2015/16 and 2016/17 True Earnings updates, secondary data was updated with the latest available information, one more externality (the Social Value of Jobs) was added, and one discontinued product (Linda Jamii) was removed. The same has been done for the 2017/18 True Earnings Bridge. Therefore, the update for 2017/18 did not include new / additional M-PESA products, new primary data, nor a new ‘deep dive’ on any of the activities of the company. 1 2014, KPMG, A New Vision of Value. Available at: new-vision-of-value-v1.pdf