IHS Towers to spend $214m to cut African carbon footprint
IHS Towers has announced plans to extend its Project Green in order to reduce its carbon footprint at a cost of US$214 million in capital expenditure between now and 2024.
The company says it has added a new fifth value into its corporate values – sustainability, focusing on health and safety, security and the environment.
The project covers operations in Cameroon, Côte d’Ivoire, Kuwait, Nigeria, Rwanda and Zambia, all countries where reliance on diesel generators has been greater than elsewhere.
Chairman and CEO Sam Darwish (pictured) said: “We believe that our business model is inherently sustainable in that we deliver shared infrastructure solutions in emerging markets that promote digital connectivity and inclusion and improve the lives of the communities we serve.”
But, he added: “However, I believe that the true benefits of mobile connectivity can only be realised if we and our sector continue to develop in a socially and environmentally responsible manner.”
IHS is calling its programme, which added to its Project Green, its Carbon Reduction Roadmap, which provides a comprehensive strategy for decreasing emissions, “including a goal to reduce the Scope 1 and Scope 2 kilowatt-hour emissions intensity of its tower portfolio by 50% by 2030, using 2021 emissions data as the baseline”.
The company expects to deliver annual recurring levered free cash flow (RLFCF) savings of $77 million in 2025. This, in turn, is expected to generate an implied return on investment of 30%, said IHS. (Levered free cash flow is the amount of cash a company has after paying debts.)
The new goal means IHS Towers is raising its 2022 capex guidance. The company now expects to spend $645-$685 million, $100 million more than previously. This includes $110 million of the $214 million spent for Project Green, as it is also taking this opportunity to narrow its former range based on actual spend so far.
The company said that savings will be achieved by connecting more sites to the electricity grid and via the deployment and integration of battery storage and solar panels.
Darwish said: “Our Carbon Reduction Roadmap is the next step in our journey to reduce our carbon footprint by setting tangible emissions targets.”