MTN ties bosses’ remuneration to rural broadband roll-out
MTN has linked the remuneration of its senior executives with the telecommunications group’s environmental, social and governance (ESG) targets.
These targets include extending broadband into rural areas in the markets in which MTN operates as well as achieving two other goals related to achieving “net zero” carbon emissions and enhancing diversity and inclusion.
The group said on Wednesday that the decision to link remuneration to ESG targets “supports the delivery of our Ambition 2025 strategy, and in particular the strategic priority to ‘create shared value’, with ‘ESG at the core’”.
The variable elements of executive compensation – both short-term and long-term incentives for the 2022 financial year – now depend on progress on the three ESG goals.
On carbon emissions, MTN said it reported a 16% reduction in “scope 1 and scope 2” greenhouse gas emissions in the 2021 financial year. It increased representation of female employees to 39% of the total and reached rural broadband coverage of 83%.
“MTN is committed to reducing scope 1, 2 and 3 emissions by 47% by 2030 and reaching net zero by 2040; achieving workforce gender equality by 2030; and extending rural broadband coverage to 95% by 2025,” it said in a statement.