We aim to provide our stakeholders with transparent, relevant and integrated information to enable them to make better and more informed decisions about Telkom. We report our performance according to six capitals to provide a balanced view of our value creation.
This integrated report (the report) covers the financial year 1 April 2021 to 31 March 2022 (FY2022 or the year) and includes significant subsequent events up to the date of approval of the report.
The reporting boundary covers Telkom SA SOC Ltd, which represents the Telkom Group (Telkom or the Group), which comprises Telkom Company (the Company) and its subsidiaries. The Company consists of the Corporate Centre and two divisions, namely Telkom Consumer and Openserve. The Group's subsidiaries are BCX, Gyro, Trudon and Swiftnet. These divisions and subsidiaries are Telkom's business units. Refer to Overview of our business for Telkom's operating structure.
Board approval (L1)
The Board of Directors (the Board) acknowledges its responsibility for the integrity of Telkom's integrated report. The Board confirms that it collectively reviewed the report's contents and leveraged the assurance obtained from its internal and external assurance providers, including assessments on risk and internal controls.
The Board is confident that the report addresses all material matters and concluded that the information herein is materially presented according to the IIRC <IR>
| Chairperson | Sello Moloko | |
| Group Chief Executive Officer | Serame Taukobong | |
| Group Chief Financial Officer | Dirk Reyneke |
| Board Members | ||
| Olufunke Ighodaro | Keith Rayner | |
| Navin Kapila | Sibusiso Sibisi | |
| Sibusiso Luthuli | Herman Singh | |
| Ethel Matenge-Sebesho | Rex Tomlinson | |
| Kholeka Mzondeki | Louis Von Zeuner | |
| Fagmeedah Petersen-Cook | Sung Yoon |
| 1 | Value Reporting Foundation’s International Integrated Reporting |
In October 2021, Telkom embarked on a process to formalise its environmental, social and governance (ESG) Strategy. The ESG vision is to create sustainable economic, environmental and social value for all. The Board approved the ESG Strategy in FY2022. Refer to our strategy review for the strategy.
The Group has set out a purpose-led ESG Strategy with six clear focus areas and goals that seek to enable the long-term success of the organisation, our country and its people. In addition, Telkom created a strong foundation to deliver on its ESG ambition by leveraging the capabilities of its business units.
Telkom's ESG Strategy is aligned to creating shared value for all, underpinned by responsible and sustainable practices. One of the six focus areas in the ESG Strategy, is Investing with Purpose, and it is centred on the way Telkom delivers and enables meaningful social impact. The Group acknowledges that socio-economic value is created, protected and enabled throughout the business. Refer to the social and relationship capital section on Social and ethics committee report for more information.
The Group adopted the various sustainability frameworks and participates in indices as set out below.
Telkom identified four Sustainable Development Goals (SDGs), with selected SDG targets, which present the most material opportunities for Telkom to enhance its positive impact and minimise its negative impact. These SDGs align with Telkom's business approach to sustainability issues and opportunity realisation. The four SDGs that we can materially impact are:
The relevant SDG icon indicates where related information is discussed throughout this report. Refer to the SDG appendix in Telkom's contribution to the United Nations SDGs for more information.
Telkom indirectly support and influence the following SDGs:
| 1 | The Science Based Targets initiative (SBTi), the global body enabling businesses to set emissions reduction targets in line with climate science |
| 2 | The SBTi is unveiling a new strategy to increase minimum ambition in corporate target setting from ‘well below 2°C' to ‘1.5°C' above pre-industrial levels. The new strategy is being rolled out in response to increasing urgency for climate action and the success of science-based targets to date. For further information refer to: https://sciencebasedtargets.org/news/sbti-raises-the-bar-to-1-5-c |
The Task Force on Climate-related Financial Disclosures (TCFD) is important to Telkom to improve our understanding of the long- term climate-related risks and opportunities. There is growing pressure on companies from the government, consumers and investors to respond to climate change. We incorporated disclosure recommendations regarding risk, strategy and governance in FY2021. In FY2022, we adopted the metrics and targets in the disclosures.
By signing the Science Based Targets initiative (SBTi)2 commitment, Telkom joined visionary corporate leaders in taking ambitious climate action by setting a net zero target in line with a 1.5oC future3. Telkom committed to setting a science-based emission reduction target aligned with SBTi's target-setting criteria. Refer to the natural capital section on Natural capital.
A TCFD summary is included on Natural capital.
Telkom aligned its definitions of sustainable key performance indicators (KPIs) to the Global Reporting Initiative Standards’ relevant definitions. This facilitates comparability.
Telkom continues to participate in CDP (formerly the Carbon Disclosure Project). This participation provides feedback on how well the Group manages its energy and carbon emissions inventory to reduce Telkom’s environmental impact within its operational boundary.
Telkom’s response remained unchanged in the B category in FY2021. We improved in the governance and Scope 1 and 2 emissions sections. The B score is higher than the African regional average and the media, telecommunications and data centre services sector average, which scored a C. We are working on the FY2022 submission and will report on these in FY2023.
Telkom set science-based emissions targets for the first time in FY2022. For more information on emissions, refer to the natural capital section on Natural capital.
Telkom remains a constituent of the FTSE4Good Index series following its June 2021 review. The 67 constituents are companies that reflect strong ESG risk management practices as measured by an overall ESG rating.
In 2021, Telkom's FY2020 integrated report ranked excellent in the annual awards for the fifth consecutive year. This ranking is awarded to entities that progressively achieve a higher level of adherence to the spirit of integrated reporting. The awards consider the top 100 JSE-listed companies (based on market capitalisation).