Sustainability Performance: At a glance (31 March 2012) - Safaricom

Our sustainability strategy
4.1. Our strategic vision
Sustainability is fundamental to our strategic
thinking. As this report reflects, we understand
that we have a significant role to play as a
responsible corporate citizen, and take the
cumulative effect of our activities on long-term
sustainability very seriously.
As a growing organisation, we appreciate the
importance of managing our carbon footprint.
The first step is to measure our emissions and
these are reported on in this document.
We maintain three to five year strategic
planning cycles and review the social,
environmental and economic contexts of our
operations during each cycle.
Transforming lives
4.2. How we manage risk
Risk Management at Safaricom is promoted and
promulgated by the Risk Management Division.
The division works with management to address
key risks in the telecommunications environment
— including revenue assurance and fraud,
information systems auditing, security, and
business improvements and controls — using a
credible Enterprise Risk Management
(ERM) process.
Most environmentally compliant
In December 2010, we were distinguished
as the most environmentally compliant
firm in telecommunications by the National
Environment Management Authority.
Growth towards Total
Communications
Sustain Voice
Revenue
Performance
Maintain market
leadership in subscriber
& revenue market
share
Grow all revenue
streams through
value addition
Capitalise on the
data opportunity
Increase penetration
under financial
services
Drive organisational
performance &
generate returns
Continued cost
reduction programs
Rare Unlikely Possible Likely Certain
46 Safaricom Sustainability Report 2012 Safaricom Sustainability Report 2012 47
5
4
3
2
1
IMPACT
Our ERM process is based on the COSO framework. It uses a defined risk universe and definitive
scales of 1 to 5 for ‘likelihood’ and ‘impact’. Established risk registers are reviewed by division
managers, with risks re-assessed quarterly. The divisional assessments are compiled by the enterprise
risk team and the critical and high risks are presented to, reviewed, discussed and moderated as
necessary by the Executive Committee (Ex-Co).
4.3. Our sustainability risks
In determining our sustainability risks, Safaricom engaged KPMG to undertake a sustainability risk
materiality assessment for the business. KPMG interviewed eight Ex-Co members to identify the crossfunctional
risks to the business.
The identified risks were then grouped together into eight risk categories, with associated sub-risks.
Once categorised, Ex-Co members were asked to rank each risk category using Safaricom’s existing
ERM criteria at a materiality assessment workshop.
The outcome of the materiality assessment is presented in the sustainability risk heat map below.
LIKELIHOOD
1 2 3 4 5
R4
R6
R8
R7
R3
R1
R2
R5
Our sustainability strategy
The heat map plots each of the eight identified risks (R1 to R8) in terms of the possibility
or ‘likelihood’ of the risk happening and the potential damage or ‘impact’ it will have on the
business should it occur.
R1 Dynamic Regulatory Environment
R2 Energy Security
R3 Network Stability
R4 Innovation
R5 Supplier Ethics & Performance
R6 Ethics and Values
R7 Employee Environment
R8 Environmental Performance