Safaricom 2018 Sustainable Business Report

44 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT 2018 SUSTAINABLE BUSINESS REPORT As the following bar chart describes, we have calculated milestone targets of a reduction of absolute carbon emissions (scope 1 and 2) of 15 per cent by 2020, 30 per cent by 2025, 43 per cent by 2030, 53 per cent by 2035 and 74 per cent by 2050. We intend to compensate for the remaining 26 per cent through our programme of carbon offset projects*. Our next step is to submit these targets for official validation by the Science-based Targets Initiative (SBTi). ENERGY AND WATER MANAGEMENT One of the key ways in which we monitor and manage our environmental impact is through our energy (electricity and diesel) and resource (water) consumption targets. As the following graphic illustrates, our electricity consumption increased by 21 per cent during the year, as a result of the continued expansion of our network and the accelerated connection of national grid electricity to new sites. Conversely, our fuel consumption decreased by 18 per cent, from 11,483,978 litres in FY17 to 9,432,788 litres in FY18. Although electricity consumption has increased, it is part of our focus on becoming more energy-efficient and environmentally friendly because national grid electricity is a cheaper and cleaner source of power than the current alternative, namely, diesel generators. This shift in focus is also the main reason Energy and Resource Consumption * Reflects a change in calculation methodology to improve accuracy ** Diesel and petrol ELECTRICITY (MWh) FUEL ** (Litres) WATER (M 3 ) 116,988* 11,483,978 96,650 98,018 6,166,942 71,562 9,704,395 94,930 86,778 FY15 FY16 FY17 FY18 141,500 × 21% 9,432,788 Ø 18% 91,449 Ø 5% The balance of 26% will be offset through a programme of carbon offset projects. ! 2018 63,685 2020 85% Ø 15% 2025 70% Ø 30% 2030 57% Ø 43% 2035 47% Ø 53% 2050 26% Ø 74% OECD Pathway 0 50000 60000 70000 40000 30000 20000 10000 YEAR TARGET SCOPE 1 & 2 EMISSIONS (tCO 2 e) Summary of milestone science-based reductions required to achieve our ‘net zero’ target by 2050 ! S D G 1 2