Safaricom’s (NSE: SCOM) latest sustainable business report indicates that the company created a total value of Ksh664 billion for the Kenyan society in its last financial year, which is ten times greater than the profit made during the year.
According to the report’s ‘True Earnings’ highlights, the firm contributed Ksh557.1 billion to the economy in the 2020/2021 financial year, which is 5.2 percent of Kenya’s Gross Domestic Product (GDP).
The independent analysis of Safaricom’s true value to society identifies the socio-economic and environmental impacts of the company and quantifies them in financial terms.
“Our Sustainable Business report, which covers our last fiscal year from 1st April 2020 to 31st March 2021, discloses our efforts to achieve our purpose of transforming lives by transparently showing our successes, setbacks and future focus areas, all of which are important to our business and of interest to our stakeholders,” said Michael Joseph, Chairman, Safaricom.
The report also details how the telco sustained 190,273 direct and indirect jobs during the year and, if the wider effects on the economy are included, this number increases to over 1 million jobs.
Key among the environmental highlights of the report is the introduction of science-based carbon reduction targets which the company says will help them plan their progress towards becoming a net-zero carbon-emitting company by the year 2050.
According to the report, Safaricom has planted over 650,000 trees under its carbon offset tree growing initiative. This is part of the company’s commitment to grow five million trees in five years which it estimates will offset 26 percent of its emissions.
Safaricom has been documenting its sustainability journey since 2012 and in 2016 it integrated nine of the 17 Sustainable Development Goals (SDGs) into its business strategy.
Looking ahead Safaricom says it will continue to provide solutions to society’s most pressing challenges and support other businesses, especially small and medium enterprises to thrive through connectivity and financial services solutions.
“Going forward we will also endeavor to play a key role in driving healthcare and education inclusion as well as enabling smallholder farmers to become wealthier and commercially sustainable. We will also continue to integrate our nine material SDGs, directly linked to our business growth strategy and which have enabled us to become a more sustainable company and create meaningful impact on communities that we serve”, said Peter Ndegwa, CEO, Safaricom.
The 10th annual report, whose theme is “Standing Together; Going Beyond”, seeks to illustrate how Safaricom is using a sustainable business model to address society’s needs, and goes beyond the company’s financial performance to give a more intimate and accurate description of its business.