In FY2025, the Committee prioritised oversight of Telkom’s ethical culture. We also considered how we can refine stakeholder engagement to create value for all our stakeholder groups.
Ethel Matenge-Sebesho
Chairperson, Social and Ethics Committee
What did the Committee focus on this year, and what were the related actions, decisions and impacts?
We remained committed to our oversight role in promoting fair and ethical practices within the Group and in how Telkom engages with customers.
The Committee oversaw the Ethics and Fraud Survey, which is conducted every three years. The survey measures the effectiveness of our ethics and fraud risk management programmes and helps to enhance the control environment and ethical culture within the Group. Participation increased to 44% (2021: 30%), and employees gave encouraging feedback.
We finalised the revised Group Code of Ethics and will take it through the governance structures for approval in FY2026. The Group introduced a procedure to enhance protection for whistle-blowers and parties who participate in investigations. The Committee also received training on PRECCA to refresh us on our duties to monitor ethical conduct and eradicate corruption. Read more about our ethical culture on Our governance report.
We monitored the Group’s progress in strengthening customer fairness and experience. We considered various reports related to customer treatment, particularly initiatives aimed at:
The impact of these efforts was reflected in various external benchmarks. Telkom placed second in the customer relationship management category and first in NPS in the Orange Index for the telecommunications industry. Telkom Mobile achieved second place for customer relationship management and first place for NPS.
The Group achieved 100% compliance with ICASA’s service level agreements. The top escalation categories were disputes, debit orders and suspensions. These are all being addressed through targeted service improvements.
In FY2026, we will implement the revised Group Code of Ethics and further enhance Telkom's ethical practices, with a focus on ethics in the digital era. This will include understanding ethical practices related to AI adoption, data privacy and cybersecurity.
Stakeholder engagement was a key focus for the Committee in FY2025. What stakeholder matters did the Committee oversee?
We monitored how stakeholder issues, particularly from customers, employees, regulators and communities, were identified, addressed and integrated into business decisions.
The Board approved the revised stakeholder engagement policy in March 2025 following extensive input from management. The policy outlines Telkom’s principles and long‑term approach to engagement. It reflects our evolving landscape and the need for consistent, structured and responsive engagement across the Group.
The Committee also guided the development of the stakeholder engagement framework. This is a dynamic and practical tool for tailored engagement. It will evolve alongside Telkom and its stakeholders, enabling more targeted and meaningful interaction.
We reviewed stakeholder-related reports to ensure that key concerns were adequately addressed, from customer service issues to employee wellbeing and regulatory compliance. We elaborate on stakeholder relationships from Engaging with our stakeholders.
Telkom’s values are crucial to how we engage with all stakeholders. Our new values promote a culture where teams truly collaborate across functions to get things done in the best interests of OneTelkom. The values will guide us on how to break silos, act with purpose, and focus on what matters most for our customers and stakeholders. Read more about Telkom’s values in A Telkom snapshot.
Employee wellness was a priority as BCX concluded the section 189 process with employees. We tracked culture health indicators and the ethical climate in the Group to ensure that leadership models the values introduced in the recent values shift.
In FY2026, the Committee will oversee the implementation of the stakeholder engagement framework across the Group. We will oversee how Telkom extends its reach in driving stakeholder inclusion in digital transformation. We will advocate for increased partnerships with public and private entities that have similar objectives for digital inclusion
This year, Telkom conducted a double materiality assessment. What was the Committee’s role in this process, and how will the outcomes impact the sustainability strategy?
The Committee played an oversight role in reviewing the outcomes of the double materiality assessment, which provided Telkom with a robust understanding of matters material to both our external stakeholders and our business. It highlighted a strong alignment between stakeholder concerns and Telkom’s focus on energy supply, digital inclusion and ethical leadership.
The outcomes will enable us to refine our sustainability strategy and reporting, ensuring they reflect the financial and nonfinancial risks that matter most to Telkom's long‑term success. They will also help enhance our sustainability governance framework.
Why is the Group revising its ESG strategy and what is the Committee’s role in this?
The Group will revise its ESG vision for 2030, given that we have met almost all the medium-term goals we set for 2025. We are taking a robust approach to sustainability, given its importance as a driver of resilience and impact amid local and global challenges.
The Committee will guide, advise and monitor execution of the strategy. We will also keep a close eye on the energy transition in the business, as this is key to our decarbonisation and cost management journey.
Telkom conducted its first climate risk scenario analysis. How will this impact its future sustainability strategy?
The climate risk scenario analysis provided granular insights into the physical and transition risks facing our infrastructure assets. It used RCP 4.5 and 8.5 climate scenarios to help us understand the climate‑related hazards that could affect our business continuity.
The findings will guide the development of strong mitigation strategies and business continuity plans, ensuring Telkom is prepared to navigate future climate challenges.
Investing with purpose and empowering communities are key ESG strategic pillars. Is the Committee comfortable with progress in these areas?
We monitored Telkom’s efforts to advance digital inclusion, particularly in underserved communities. Expanding fibre networks in townships, informal settlements and rural areas is a top priority. Telkom more than doubled the number of township homes connected via fibre, from 47 619 in FY2022 to 120 852 in FY2025.
In FY2025, we achieved our target of 35% women in leadership roles. We will continue to monitor diversity and inclusion overall, particularly the target of reaching 50% female leadership representation between 2027 and 2029.
We are pleased with the impactful work of the Telkom Foundation amid leadership changes. Beyond bridging the digital divide through infrastructure, the Foundation is committed to closing the usage gap, i.e. ensuring that access is matched with the skills and support needed for meaningful participation in the digital economy.
Read more about the Telkom Foundation under the Social and relationship capital and our commitment to diversity and inclusion on Human capital.
As you reflect on the year, do you have any acknowledgements to make?
I am thankful to my fellow Committee Members for their invaluable support and contribution during the year. I am also grateful to management and the Group’s employees for their commitment to Telkom’s success.
We are excited about the opportunities to do more and increase our impact as the backbone of South Africa’s digital future.
Ethel Matenge-Sebesho
Chairperson, Social and Ethics Committee
The Social and Ethics Committee is a statutory committee in terms of section 72(4) of the Companies Act, read together with Regulation 43 of the Companies Regulations, 2011.
The Committee has an annual work plan aligned with its terms of reference. The work plan sets out the activities to be executed each year. In FY2025, we completed all 40 planned activities and fulfilled our duties in line with our approved terms of reference.
The Committee’s collective expertise enables it to oversee a range of critical issues. In FY2025, the Committee’s composition was reviewed, with the addition of a Member with extensive experience in ESG projects. The Committee’s meeting attendance is on Our governance report.
