At Airtel Africa, we have structured ESG risk identification and management processes in place. ESG risks are integrated into our corporate decision-making.
Our ESG risk assessment process
Our process for ESG risk identification and assessment aligns with the Group’s enterprise risk management (ERM) framework, which is uniformly applied across all our operating subsidiaries. The Board holds overall responsibility for managing ESG risks and maintains oversight through two of its committees: the Audit and Risk Committee (ARC) and the Sustainability Committee. The ARC oversees our risk management processes, including the assessment and mitigation of ESG risks, while the Sustainability Committee is responsible for implementing our sustainability strategy and various programmes and initiatives aimed at mitigating identified ESG risks.
Environmental and climate-related risk identification and assessments are conducted using the Task Force on Climate-related Financial Disclosures (TCFD) framework. To ensure our ESG risk identification and assessments align with stakeholder expectations, we regularly conduct materiality assessments to evaluate ESG risks deemed material by our stakeholder groups.
The integration of risks identified through our internal risk assessment and those surfaced through external stakeholder engagement ensures our ESG risk management process is robust. This, in turn, provides valuable input that shapes our overall sustainability strategy and approach.
- See more about Task Force on Climate-Related Financial Disclosures (TCFD) in our Annual Report and Accounts 2025
ESG risks identification and assessment process
External / internal context
ESG risks identification
TCFD framework
- Climate risks
- Environmental risks
ERM framework
- Sustainability risks
Stakeholder engagement (including double materiality assessment)
- Other ESG risks
Risk assessment
ESG risks
Governance and oversight
Audit and Risk Committee
Sustainability Committee
Our transition and physical risks
Category | Risk type | Nature of impact |
|---|---|---|
Transition risks | Customer pressure | Change in customer expectations regarding the Group’s climate action leading to a decrease in sales negatively affecting revenues. |
New regulations | Introduction of carbon taxes in the Group’s operating markets adversely impacting profitability. | |
New regulations | Lack of a credible action on climate change could result in increased stakeholder advocacy negatively impacting our operations, and in turn revenues. | |
New regulations | Increase in energy prices for use in logistics, own sites and leased assets in the event carbon taxes are imposed leading to an increase in cost. | |
Shareholder/stakeholder advocacy | Increasing requirements for mandatory disclosures of climate performance and climate risks with possible inaction leading to negative sentiments from customers, suppliers and lenders leading to decreased revenues and/or increased cost. | |
Reputation | Damage to brand reputation arising from a perceived lack of action on climate initiatives. | |
Physical risks | Flooding | Increase in frequency and severity of flooding attributed to rising sea level and/or increases in rainfall could damage our infrastructure, such as data centres, office buildings and tower sites. |
Extreme weather events | Increase in frequency and severity of extreme weather events, such as tropical storms, cyclones and typhoons, could result in damage to our infrastructure. | |
Heat | Increase in in temperatures and the duration of high temperatures may result in increased cooling requirements for data centres and, consequently, increased operating costs in some of our markets. | |
Business disruptions | Loss of revenue and productivity due to business disruptions attributed to climate-related physical events, such as cyclones, coastal and river flooding. |
Category | Risk type | Nature of impact |
|---|---|---|
Opportunities | Enhanced market valuation | Improved ESG performance will have a positive effect on share price performance and investor perception. |
Access to capital | Increased access to, and lower cost of, sustainable financing options. | |
Cost efficiency | Adopting renewable energy sources, such as solar and other environmentally friendly solutions, will enhance business processes. | |
Reputation | Improved company reputation will help us to attract and retain customers and employees, reducing customer acquisition and HR-related costs. |
Other ESG risks
Risk name | Description | Key actions |
|---|---|---|
Data privacy and information security | Protecting the personal data of our customers, suppliers and employees is important in building and maintaining the trust of our stakeholders. This includes implementing robust information and cybersecurity controls to mitigate the risks of unauthorised or unlawful access to personal data. Cyber and information security threat is one of the Group’s principal risks and is closely monitored by our Board of directors and executive management. |
|
Responsible supply chain | We uphold integrity and transparency in all our business practices, guided by strong ethical values and a commitment to sustainability. Our partners and suppliers play a crucial role in supporting these principles. Our Code of Business Ethics for partners and suppliers outlines the standards to which we hold ourselves accountable, as well as our expectations for the partners who do business with us. We cannot do business with partners who do not share our values of responsible supply chain practices, which are essential not only for business growth but also for the wellbeing of our stakeholders and the environment. |
|