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Value created for society and the environment

Value created for society

ZAR446m spent on CSI initiatives
206students trained through MultiChoice Talent Factory over the past six years
30 young people trained as broadcasters through the DStv Diski Challenge
More than 1.5m learners reached through Let’s Play to date

Delivering value to society

Our heart and soul is Africa. We are proud of the positive contribution we make to the countries where we operate. Our operations create much needed employment, contribute to the fiscus and enable small businesses to grow. Our impact extends further than our core business – we drive a range of CSI initiatives aimed at making a lasting impact.

We play our part to address social challenges in partnership with civil society and organisations. For example, providing free access to advertise on our DStv platform, which raises awareness of their work and mobilises resources to address these challenges.

In the past year, we partnered with People Opposing Women Abuse, the Department of Social Development and the Uyinene Mrwetyana Foundation in South Africa to raise awareness about gender-based violence. This campaign highlights the impact on communities and was broadcast extensively on our DStv platform.

In partnership with the United Nations' #PledgetoPause campaign, we raised awareness about fake news on COVID-19. Young people from around Africa, who are part of our the MultiChoice Talent Factory, created seven public service announcements (PSAs) that were broadcast on our DStv, digital and social media platforms across the continent. We also worked with the World Health Organization to create an educational campaign on COVID-19 in vernacular languages with a further seven PSAs created and broadcast across Africa. The total value of promoting this campaign on air is approximately ZAR138m and we are proud to have contributed to this good cause. 

Corporate Social Investment

Our CSI initiatives focus on creating employment opportunities, developing up-and-coming filmmakers and nurturing future sport stars.

These initiatives are just a few of our CSI highlights. The MultiChoice Group supports several other initiatives in communities and details can be found in our social report and on our website: https://www.investors.multichoice. com/social-investment.

MultiChoice Enterprise Development Trust

In South Africa, we established the MultiChoice Enterprise Development Trust (the trust) in 2012 to support and grow start-ups and small enterprises. The trust relaunched its fund as the MultiChoice Innovation Fund.

The fund gives black majority-owned start-ups and small businesses with ground-breaking ideas in the technology, e-commerce, digital content, and the film and media space, a boost to create their future today. The support fast tracks these entrepreneurs to industry leaders and creates much needed employment opportunities. The fund has a strong focus on SMMEs owned by young and female entrepreneurs. Since inception, the fund has disbursed ZAR252m in loans, grants and business development expenses to assist beneficiaries in acquiring skills and assets.

This past year, the fund partnered with 10 businesses to enable them to accelerate their future plans, adding to the existing fund beneficiaries. These businesses operate in food delivery, online payments, digital marketing and innovative content creation in the publishing and film production industries. In total, 47 new jobs were created.

The fund focuses on more than just funding – the businesses receive support throughout their journey to hone their skills in management, legal and compliance, finance and business development. The aim is to create self-sustaining, successful businesses owned by empowered entrepreneurs. More than ZAR37m was distributed to small businesses in FY21.

Regional TV stations

We support six regional TV stations in South Africa through our enterprise development. We provide the latest broadcast equipment. We also offer training in production and business education and management. We provide funding to produce local stories. Further, we offer free broadcasting rights (valued at ZAR360m) to the DStv Rugby Challenge and DStv Diski Challenge.

Transformation

MCG and MCSA are level 1 BBBEE companies. We are committed to transforming our broader industry and contributing to an inclusive society. We believe that transformation is a business imperative and a catalyst for economic independence.

We recognise that owning economic assets plays a critical role in reducing inequality. That is why we are very proud of Phuthuma Nathi, our BBBEE share scheme. Phuthuma Nathi is one of the most successful and longest running BBBEE share schemes in South Africa. It boasts more than 80 000 black shareholders from all walks of life, from individuals to collectives and black-owned companies and has been in existence since 2006.

Phuthuma Nathi owns 25% of MultiChoice South Africa and through this scheme, we share the success of our business with thousands of South Africans. To date, Phuthuma Nathi shareholders have been paid ZAR13.4bn in dividends.

Important to note: various Phuthuma Nathi shareholders have not yet claimed their annual dividends, which were paid out since the share scheme started in 2006. Given tough economic times, we launched a media campaign to find these shareholders to give them the money that is rightfully theirs. To date, more than ZAR48m of previously unclaimed dividends have been paid.

The environment

We understand that the natural resources are finite, including in the countries where we have a licence to operate. We ensure our consumption of natural resources is minimal and that we comply with all existing environmental legislation.

Most of our office buildings are environmentally friendly or, where possible, retrofitted for energy and water efficiency. Our Randburg South Africa office has a five-star green rating from the Green Building Council, and our Hoofddorp Netherlands office that runs on renewable energy has an energy Label A+.

Our primary impact arises from using coal-fired electricity, which is the primary source of energy in many of the countries where we operate. During electricity outages, we use fuel such as diesel to power generators. We measure our carbon footprint from scope 1 and 2 emissions according to the Greenhouse Gas Protocol. Our carbon footprint in FY21 was 67 847 tonnes CO2e (FY20: 76 721 tonnes of CO2e), with the largest contributor being electricity, accounting for 100% of scope 2 emissions (76.66% of total emissions).

Critical issues

How we address them

How these were addressed

1

Contribution to unemployment The need for job creation is a serious concern and a potential opportunity in many of the communities where we operate.

How these were addressed

The Youth Employment Service (YES) is an initiative that calls on businesses to help government create critical work experience for young people in South Africa.

To encourage businesses to participate, Showmax showcased the experiences of five partner companies, who were the force behind thousands of youth work opportunities across South Africa. These documentaries delve into the impact this had on young lives and society. We teamed up with YES, Investec, Nedbank, Volkswagen and Telesure Investment Holdings to share these inspiring stories.

This Showmax series, The Great Reset, consisted of six 15-minute short documentary films. It premiered on Showmax on 28 January 2021.

Our partnership with the YES initiative resulted in 400 opportunities for unemployed learners. This partnership has enabled secure and sustained employment for a large number of our learners, despite the impact of COVID-19.

The Let's Play sport coaching learnership empowered 100 previously unemployed youth, who received an intensive 12-month sport coaching course to prepare them for various roles in the sport industry. These learners will be placed to gain valuable on-the-job experience.


Key focus areasgoing forward

Our CSI initiatives play an important role in strengthening our brand, developing talent pipelines in TV, film and sport, and sustaining relationships with our stakeholders, including regulators, partners and customers.

  • We plan to launch SuperSport Schools and the DStv Netball Schools Challenge in the next year.
  • We will continue to focus on our flagship programmes, the DStv Diski Challenge and the MultiChoice Talent Factory, which remain an important part of our initiatives.
  • We will establish news bureaus for regional community TV and include new elements in our accelerator programme for our SMMEs.
  • We will also continue partnering with the United Nations on COVID-19 awareness campaigns, as well as with civil society to highlight gender-based violence.