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Reducing Carbon Footprint
MTN Group
TowerXchange Meetup Africa 2018
MTN Group is listed in the FTSE/JSE Responsible Investment Index
Series Top 30. FTSE Russell (the trading name of FTSE International
Limited and Frank Russell Company) confirms that TEST has been
independently assessed according to the FTSE4Good criteria, and
has satisfied the requirements to become a constituent of the
FTSE4Good Index Series. Created by the global index provider FTSE
Russell, the FTSE4Good Index Series is designed to measure the
performance of companies demonstrating strong
Environmental, Social and Governance (ESG) practices. The
FTSE4Good indices are used by a wide variety of market participants
to create and assess responsible investment funds and other
products.”
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Agenda
• Context for MTN’s energy use and greenhouse gas (GHG)
reduction efforts, in order to reduce MTN’s contribution to climate
change
• MTN’s current energy use and GHG performance
• The role of infrastructure owners/ tower management companies
in GHG emission reductions
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Climate change context for energy management To mitigate global
temperature rises to less than 2°C (ideally 1,5 °C) before the end
of the century, the world must implement science-based targets to
limit greenhouse gas emissions and transition to low-carbon
economies
• GHGs need to decline below current levels before 2030, then
drop drastically to limit climate change to 2°C before 2100
Why How Status
• China & UK de-carbonised by 5,2% in 2017 (best global
progress) but…
• US dropped out of Paris Agreement (second largest GHG emitter
globally)
• Concerning: Current annual average emissions reduction rate
of 2.6% will result in depletion of carbon budgets within 20
years
• However, increasing investment in renewable energy continues
especially as clean power is increasing in price parity with grid /
fossil fuel power): likely renewable energy will nearly 50% of
global supply by 2050, reducing GHG emissions. Further reductions
expected from energy efficiency improvements
Who
• Carbon “budgets” adopted by countries: governments and
industry need to work together to reduce greenhouse gas emissions.
National climate plans/ nationally determined contributions by
countries to be reviewed every five years
• Catastrophic precipitation changes: droughts, flooding, storm
intensity
• Sea level rises threatening coastal cities
• Deforestation, fishing stock and biodiversity losses
accelerated (human reliance on environmental resources
impacted)
• Fresh water impact, agriculture, fishing, health, social
stability & GDP impacts of climate change
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GHG emissions per ICT category ICTs contribute up to 2,5% (2010)
of global GHG emissions (if unchecked, can grow to 14% by 2040):
networks contribute ¼ of ICT emissions globally
• Issue: – Communication networks (cellular base stations
& towers,
switches, etc.) contribute 24% of ICT emissions •
Challenges:
– How to increase use of environmentally-friendly sources of
energy (solar, wind, hydro, hydrogen, etc.) under conditions of
geographical dispersion, energy consumption profile due to local
environmental conditions, and technical considerations, etc.
– Risk of greater focus on alternative energy investments than
on increasing energy efficiency of existing infrastructure: role of
both aspects in reducing GHG emissions
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Stakeholder focus on MTN’s GHG emissions While regulators have
not yet specifically focused on ICT emissions, general regulatory
oversight is increasing; investors are already demanding
transparency into how MTN is reducing energy use and GHG
emissions
Investors
• CDP: >827 investor organisations; ≈ USD100 trillion assets
under management: MTN report submissions annually since 2009
• MTN listed in JSE-FTSE4Good Responsible Investment Index Top
30 index
Climate changes risks are material to investment
decision-making: to attract investments, companies have to
demonstrate their
environmental credentials
• Carbon taxes reported as a risk in three MTN countries,
increasing energy costs
• Mandatory emissions reporting has been imposed on all South
African organisations with total national installed capacity of
10MW: first report submitted for South African Department of
Environmental Affairs in 2018
Regulators Climate-change related regulatory risks are
increasing in the
countries in which MTN operates
Risks : changes in precipitation (extremes & droughts)/
water shortages & mean temperature rises lead to greater energy
use & cooling costs; flooding/ sea level rises/ increased
tropical cyclones & changes in mean temperature can damage
infrastructure
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MTN’s Energy Consumption & GHG Emissions MTN’s networks are
the largest consumers of energy in the Group, and contribute 84% to
the Group’s total GHG emissions
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How MTN reduces GHG emissions By focusing on a combination of
efficiencies & investments in lower-carbon technologies, we are
able to reduce GHG emissions at existing MTN-owned sites: similar
initiatives by our TowerCo partners further reduce emissions
Cogeneration 3.76%
Diesel hybrid BTS sites 27.40%
Energy efficiency: cooling (BTS)
17.55%
Energy efficiency: cooling (Data Centre) 0.00%
Energy efficiency: optimisation 1.04%
Energy efficiency: optimisation (BTS) 7.63%
Fuel optimisation 0.11%
Fuel switch 8.28%
Hybrid diesel BTS sites 9.46%
Hydromix diesel 0.42%
Solar CSP 0.10%
Solar hybrid BTS sites 19.69%
Vehicle fuel reduction 2.61%
Efficient Cooling (Data Centre) 0.73% Efficient Cooling (BTS
Site) 1.18%
(blank) 0.06%
GHG saving per initiative type (tCO2e / year)
Draft FY18 Data – to be updated
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Example of GHG reduction at network site Our investments can
make a difference: a 14,1 kW hybrid solar-wind system helps us
avoid approximately 15 tCO2e p.a.
Results
Background What We Did
• Opex savings: approximately R39, 530 annually (based on 2015
grid power rates). • Total kWh electricity from grid avoided p.a.:
approximately 16,000kWh
• Carbon emissions avoided p.a.: approximately 15 tonnes
• Lack of grid power in area • Significant cost of grid power
even if connection
to site could be extended
• Grid is powered by coal, which would result in
increased GHG outputs
Installed 6.6kW solar & 7.5kW wind hybrid system
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Scope 3 Emissions from Outsourced Sites However, despite MTN’s
efforts, our emissions from subscribers are growing annually:
emissions from outsourced network sites are now predominantly
driving the Group’s GHG outputs
• 2014: 0,0069 tCO2e • 2015: 0,0072 tCO2e
• 2016: 0,0071 tCO2e
• 2017: 0,0091 tCO2e
GHG Intensity/ Subscriber (tonnes CO2e) Annual Emissions (tonnes
CO2e): Scope 1, 2 and 3
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Opportunities for partnerships ICTs are essential to achieving
the UN’s Sustainable Development Goals: partnerships between
operators and infrastructure owners can make meaningful impacts
• We are seeking partners that are keen to pursue proofs of
concepts, pilots and investments in solutions that help us manage
our use of energy and drive down our greenhouse gas emissions
• Amongst other considerations, we would recommend that our
partners:
– Actively drive and energy and carbon reduction strategy
– Incorporate efficiency into design and retrofit plans
– Introduce energy efficiency and greenhouse gas reduction
targets are key performance indicators for business units
– Demonstrate evidence of climate change risk identification
and management in business processes
– Use global standards such as the CDP to transparently report
on material risks and opportunities posed to their business by
climate change, and actions taken to reduce GHG emissions. Work
with network operators to share
data in order to maximise transparency in disclosures
– Ideally incorporate carbon emission considerations and price
climate change impacts into business cases/ new investments
wherever possible
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https://www.mtn.com/en/mtn-group/sustainability/Pages/default.aspx
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