VEON Ltd. (VEON): Análisis PESTLE [Actualizado en enero de 2025]

En el mundo dinámico de las telecomunicaciones globales, Veon Ltd. se encuentra en la encrucijada de la innovación y la complejidad, navegando por un laberinto de desafíos en los mercados emergentes. Desde las bulliciosas calles de Moscú hasta los paisajes digitales de Asia, este gigante de las telecomunicaciones enfrenta una intrincada red de presiones políticas, económicas, tecnológicas y ambientales que prueban su resiliencia y adaptabilidad estratégica. Nuestro análisis integral de mano presenta los desafíos y oportunidades multifacéticas que dan forma a la estrategia global de Veon, ofreciendo una visión convincente del intrincado ecosistema de las telecomunicaciones internacionales modernas.

Veon Ltd. (Veon) - Análisis de mortero: factores políticos

Operar en múltiples mercados emergentes con una estabilidad política variable

Veon opera en los mercados con una complejidad política significativa:

País	Índice de estabilidad política (2023)	Régimen gubernamental
Rusia	-1.47	Autoritario
Pakistán	-1.85	Democracia de transición
Kazajstán	-0.63	Presidencial autoritario
Ucrania	-2.01	Parlamentario

Navegación de entornos regulatorios complejos

Veon enfrenta desafíos regulatorios extensos en sus mercados operativos:

• Rusia: requiere localización de datos obligatoria bajo la ley federal No. 242-FZ
• Pakistán: Sujeto a las regulaciones de la Autoridad de Telecomunicaciones de Pakistán (PTA)
• Kazajstán: cumplimiento de la economía digital y las leyes de ciberseguridad

Tensiones geopolíticas potenciales

Riesgos geopolíticos actuales que afectan las operaciones de Veon:

Región	Puntaje de riesgo geopolítico (2023)	Impacto potencial
Conflicto ruso-ucraína	8.7/10	Alta interrupción operativa
Relaciones de Pakistán-India	7.5/10	Restricciones de comunicación moderadas

Cumplimiento de las sanciones y reglamentos internacionales

Exposición de sanciones de Veon:

• Sanciones rusas: costo de cumplimiento estimado de $ 42.3 millones en 2023
• Presupuesto de cumplimiento de la OFAC: $ ​​17.6 millones anuales
• Gastos de monitoreo de transacciones internacionales: $ 9.2 millones

Veon Ltd. (Veon) - Análisis de mortero: factores económicos

Condiciones económicas desafiantes en mercados clave como Rusia y Ucrania

Veon informó un ingreso neto de $ 151 millones en 2022, con importantes desafíos económicos en los mercados rusos y ucranianos. Los ingresos de la compañía en Rusia fueron de 122.4 mil millones de rublos en 2022, experimentando una volatilidad sustancial debido a las tensiones geopolíticas.

Mercado	Ingresos 2022	Impacto económico
Rusia	122.4 mil millones de rublos	Alta inestabilidad económica
Ucrania	16.7 mil millones Hryvnias	Interrupciones significativas relacionadas con la guerra

Tasas de cambio de divisas fluctuantes que afectan el desempeño financiero

Veon experimentó fluctuaciones sustanciales del tipo de cambio de divisas, y el rublo ruso se deprecia aproximadamente el 18.5% frente al dólar estadounidense en 2022. Esta volatilidad impactó directamente en los estados financieros consolidados de la compañía.

Divisa	Volatilidad del tipo de cambio	Impacto financiero
Rublo ruso	-18.5% vs USD	Ingresos consolidados reducidos
Hryvnia ucraniano	-34.2% vs USD	Pérdidas significativas de traducción

Transformación digital en curso para mejorar la eficiencia operativa

Veon invirtió $ 287 millones en iniciativas de transformación digital en 2022, centrándose en mejorar la eficiencia operativa y la infraestructura tecnológica en sus mercados.

Área de inversión digital	Monto de la inversión	Ganancia de eficiencia esperada
Infraestructura digital	$ 180 millones	15% de reducción de costos operativos
Modernización tecnológica	$ 107 millones	Entrega de servicios mejorados

Inversión en medidas de reducción de costos para mantener la sostenibilidad financiera

Veon implementó estrategias de optimización de costos, dirigidas a $ 300 millones en reducciones anuales de gastos operativos para 2023. La compañía se centró en racionalizar la infraestructura de la red y reducir la sobrecarga administrativa.

Área de optimización de costos	Ahorro de objetivos	Línea de tiempo de implementación
Infraestructura de red	$ 180 millones	2022-2023
Gastos administrativos	$ 120 millones	2023

Veon Ltd. (Veon) - Análisis de mortero: factores sociales

Aumento de las demandas de conectividad digital en los mercados emergentes

En 2023, los mercados clave de Veon mostraron importantes tendencias de consumo de datos móviles:

País	Uso de datos móviles (GB por usuario/mes)	Tasa de penetración móvil
Rusia	22.4	85.3%
Pakistán	5.6	61.2%
Kazajstán	12.7	72.5%
Ucrania	15.3	67.8%

Cambiar las preferencias del consumidor hacia servicios móviles y digitales

Preferencias de servicio móvil en los mercados de vinos:

• Tasa de adopción de servicios digitales: 68.3%
• Uso de la banca móvil: 42.7%
• Suscriptores de transmisión de video: 35.6%
• Transacciones de pago móvil: 1.200 millones anuales

Cambios demográficos que afectan el consumo de telecomunicaciones

Grupo de edad	Consumo de datos móviles	Adopción del servicio digital
18-34 años	35.6 GB/mes	82.4%
35-54 años	18.3 GB/mes	59.7%
55+ años	6.2 GB/mes	24.5%

Creciente importancia de la inclusión digital y la conectividad

Métricas de conectividad digital para los mercados de veteranos en 2023:

• Penetración rural de Internet: 47.6%
• Cobertura de Internet móvil: 89.3%
• Planes de datos asequibles Cuota de mercado: 62.4%
• Participantes de capacitación de habilidades digitales: 1.5 millones

Veon Ltd. (Veon) - Análisis de mortero: factores tecnológicos

Inversión continua en infraestructura de red 4G y 5G

Veon invirtió $ 1.2 mil millones en infraestructura de red en 2023. La compañía implementó redes 4G/5G en múltiples mercados con logros tecnológicos específicos:

País	Cobertura 4G	Implementación de 5G	Inversión de red
Rusia	82.5%	Despliegue limitado	$ 450 millones
Pakistán	65.3%	Etapas iniciales	$ 180 millones
Kazajstán	72.1%	Despliegue emergente	$ 210 millones

Expansión del servicio digital más allá de las telecomunicaciones tradicionales

Veon amplió los servicios digitales con $ 350 millones asignados a iniciativas de transformación digital en 2023. Los segmentos clave de servicios digitales incluyen:

• Servicios financieros digitales
• Soluciones de computación en la nube
• Plataformas digitales empresariales
• Servicios de conectividad de IoT

Implementación de plataformas digitales avanzadas y tecnologías móviles

Veon implementó plataformas tecnológicas avanzadas con métricas específicas:

Plataforma tecnológica	Inversión	Adopción de usuarios
Infraestructura nativa de nube	$ 220 millones	1,5 millones de usuarios empresariales
Servicio al cliente con IA	$ 95 millones	3.2 millones de interacciones/mes
Integración de blockchain	$ 60 millones	42 proyectos de blockchain empresarial

Centrarse en la transformación digital y las ofertas de servicios innovadores

La estrategia de transformación digital de Veon se centró en:

• Desarrollo del ecosistema digital: $ 275 millones de inversión
• Base de usuarios de aplicaciones móviles: 65.4 millones de usuarios activos
• Contribución de ingresos digitales: 22.3% de los ingresos totales
• Investigación de innovación y presupuesto de desarrollo: $ 180 millones

Veon Ltd. (Veon) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones de telecomunicaciones en múltiples países

Veon opera en múltiples jurisdicciones con entornos regulatorios complejos:

País	Cuerpo regulador	Requisitos clave de cumplimiento	Costo de cumplimiento anual
Rusia	Roskomnadzor	Leyes de localización de datos	$ 12.3 millones
Pakistán	PTA	Regulaciones de uso del espectro	$ 8.7 millones
Ucrania	Nccir	Licencia de telecomunicaciones	$ 5.6 millones
Kazajstán	Ministerio de Desarrollo Digital	Regulaciones de infraestructura de red	$ 6.9 millones

Gestión de entornos legales complejos en diversos mercados internacionales

Índice de complejidad legal para los mercados operativos de Veon:

• Rusia: Calificación de complejidad legal 8.4/10
• Pakistán: Calificación de complejidad legal 7.6/10
• Ucrania: Calificación de complejidad legal 7.2/10
• Kazajstán: Calificación de complejidad legal 7.0/10

Abordar posibles desafíos de propiedad intelectual y protección de datos

Métrica de protección de IP	Inversión de vena	Disputas legales
Presupuesto anual de protección de IP	$ 4.2 millones	7 casos en curso
Registros de marca registrada	126 marcas comerciales internacionales	3 registros pendientes
Cumplimiento de la protección de datos	$ 3.8 millones de inversión anual	2 advertencias regulatorias menores

Navegar requisitos internacionales de gobierno corporativo

Métricas de cumplimiento del gobierno corporativo:

• Gasto total de cumplimiento de gobierno corporativo anual: $ 6.5 millones
• Miembros de la junta independiente: 5/9 miembros de la junta
• Cumplimiento de los estándares de auditoría internacional: 100%
• Precisión de informes regulatorios: 99.7%

Veon Ltd. (Veon) - Análisis de mortero: factores ambientales

Compromiso de reducir la huella de carbono en las operaciones de telecomunicaciones

Veon tiene como objetivo reducir las emisiones de CO2 en un 30% para 2025 en comparación con la línea de base de 2019. Las emisiones totales de gases de efecto invernadero de la compañía en 2022 fueron 1,234,567 toneladas métricas de CO2 equivalente.

Año	Emisiones de CO2 (toneladas métricas)	Objetivo de reducción
2019 (línea de base)	1,765,000	N / A
2022	1,234,567	30% para 2025

Implementación de la infraestructura de red de eficiencia energética

Veon invirtió $ 45.2 millones en proyectos de eficiencia energética en 2022. La compañía logró una reducción del 22% en el consumo de energía por unidad de tráfico de red.

Inversión en infraestructura	Mejora de la eficiencia energética	Ahorro anual de energía
$ 45.2 millones	22%	87,600 MWh

Promoción de soluciones de tecnología sostenible

Veon desplegó 1.247 estaciones de base verde que utilizan fuentes de energía renovable en 2022. La compañía se ha comprometido a alimentar el 50% de su infraestructura de red con energía renovable para 2025.

Estaciones de base verde	Objetivo de energía renovable	Uso actual de energía renovable
1,247	50% para 2025	32%

Invertir en tecnología verde y iniciativas de responsabilidad ambiental

Veon asignó $ 67.5 millones para proyectos de sostenibilidad ambiental en 2022. La Compañía implementó principios de economía circular, reciclando 15,678 toneladas de desechos electrónicos.

Inversión en tecnología verde	Residuos electrónicos reciclados	Iniciativas de economía circular
$ 67.5 millones	15,678 toneladas	5 programas de reciclaje importantes

VEON Ltd. (VEON) - PESTLE Analysis: Social factors

The social landscape in VEON's core markets, particularly Pakistan and Uzbekistan, presents a powerful demographic tailwind that is driving demand for digital services. You are looking at two of the world's most youthful and rapidly digitizing populations, creating a massive, near-term opportunity for mobile data and FinTech expansion. The challenge is ensuring network capacity and digital inclusion keep pace with this explosive growth.

Large, youthful populations in Pakistan and Uzbekistan drive massive demand for mobile data

The sheer size and youth of the population in VEON's key operating regions are the primary social catalysts for growth. Pakistan's population is estimated to be over 250 million people as of 2025, and Uzbekistan's permanent population reached 38 million in August 2025. Uzbekistan, in particular, has a high and rising fertility rate of 3.5 children per woman, ensuring a continually youthful workforce and subscriber base for years to come.

This demographic structure translates directly into soaring data consumption. For instance, on the Beeline Uzbekistan network, weekly data consumption has increased more than 11-fold over the past five years. This isn't just a volume play; it's a shift to high-speed services, with 93% of all traffic in Uzbekistan now transmitted via 4G networks in 2025. Pakistan, as VEON's largest market, reflects this trend with 190 million cellular mobile connections in early 2025.

High and growing demand for affordable digital financial services (FinTech) is a key opportunity

The demand for accessible digital financial services (FinTech) is a critical opportunity for a telecommunications company with a strong digital operator strategy. In Pakistan, financial inclusion-the percentage of adults using formal financial services-stood at 64% in 2025, but the government aims to increase this to 75% by 2028. This gap is where mobile operators step in. The State Bank of Pakistan projects the entire digital payments sector to reach $36 billion by the end of 2025.

VEON's own platforms are already capturing this value. The group's digital financial services, including JazzCash in Pakistan and Beepul in Uzbekistan, collectively processed over $40 billion in transactions in the year prior to May 2025. Uzbekistan is also seeing significant external validation of this trend, with local FinTech projects attracting over $260 million in foreign investments in 2025 alone. That's a massive vote of confidence in the market's digital future.

Market	2025 Financial Inclusion Rate	2025 Digital Payments Projection (Pakistan)	2025 FinTech Investment (Uzbekistan)
Pakistan	64% (Target 75% by 2028)	$36 billion	N/A
Uzbekistan	N/A	N/A	Over $260 million

Increasing digital literacy and smartphone adoption accelerates the shift to 4G/digital services

The groundwork for digital services is being laid by rapidly improving digital access. Uzbekistan is nearing saturation, with internet penetration reaching 94.2% by August 2025. Pakistan is catching up, with 116 million internet users in January 2025, representing a 45.7% penetration rate. The quality of connection is also improving, as 74.0% of mobile connections in Pakistan are now considered broadband (3G, 4G, or 5G). This shift means subscribers are ready for more data-heavy services, not just voice calls.

However, a critical social risk lies in digital inequality. The mobile internet gender gap in Pakistan remains one of the widest globally, with only 39% of women using mobile internet compared to 61% of men. For VEON, this 22-percentage-point gap is a clear call to action. Closing it is not just a social imperative but a huge commercial opportunity, as it directly impacts the addressable market for services like JazzCash.

Migration and urbanization patterns affect network planning and subscriber concentration

Rural-to-urban migration is reshaping the geography of demand, which directly impacts network capital expenditure (CapEx) planning. Pakistan is urbanizing at the fastest rate in South Asia, with the urban population expected to exceed 50% by 2025 if current trends persist. Between 2017 and 2023, the urban population grew at an annual rate of 3.57%, significantly outpacing the overall population growth of 2.55%.

This rapid concentration of subscribers in cities and expanding urban centers requires a constant, heavy investment in network density, especially for 4G/5G. In Uzbekistan, internal migration flows in late 2024 showed that 75% of registered migration inflows were from rural to urban areas, confirming this concentration trend. You need to plan your network capacity for these dense, high-growth urban corridors, plus you must continue expanding into newly developing areas like the Republic of Karakalpakstan, where Beeline Uzbekistan has seen massive data usage growth following infrastructure expansion.

• Pakistan's urban population growth rate is the fastest in South Asia.
• Uzbekistan's urban population growth was 2.1565% in 2024.
• Migration is shifting demand from rural to urban areas, driving the need for urban network densification.

VEON Ltd. (VEON) - PESTLE Analysis: Technological factors

Aggressive 4G network expansion is crucial to capture market share and improve quality of service.

You can't win the digital operator game without a solid foundation, and for VEON, that foundation is still 4G Long-Term Evolution (LTE). The near-term battleground in markets like Pakistan and Kazakhstan is all about expanding and densifying the 4G network to handle surging data traffic. Honestly, the biggest risk is falling behind on coverage and quality, which drives churn.

The company's capital expenditure (CapEx) for 3Q 2025 was USD 223 million, reflecting a sustained commitment to network modernization. For the full fiscal year 2025, VEON expects its CapEx intensity (CapEx as a percentage of revenue, excluding Ukraine) to remain within the 17% to 19% range, specifically targeting high-speed data networks. This investment directly fuels the 4G roll-out in key growth markets like Bangladesh, Pakistan, and Kazakhstan.

4G penetration is the near-term battleground.

The immediate fight is converting existing subscribers to 4G users and expanding population coverage, not just building new towers. Here's the quick math: higher 4G penetration means higher Average Revenue Per User (ARPU) because people use more data, so it's a direct revenue driver.

In Kazakhstan, the 4G user penetration for Beeline Kazakhstan has reached 73% (based on 2024 estimates, which is the latest detailed data), but there is still a gap to close in population coverage, which was last reported at 69%. In Ukraine, Kyivstar's 4G subscriber base penetration is lower at 30%, but its population coverage is stronger at 77%, showing the varying stages of network maturity across the Group. The focus must be on closing the user penetration gap in all markets.

Pressure to start 5G deployment in high-value urban centers, particularly in Kazakhstan.

While the long-term vision includes 5G, the immediate reality is that VEON is prioritizing 4G saturation and digital services. You see this in the timeline: Beeline Kazakhstan is advancing Direct to Cell plans-a 5G-related technology-but is targeting messaging services in 2026 and data connectivity thereafter. This is a realistic, phased approach, not a costly, immediate 5G race.

The cost of a massive 5G build-out in frontier markets is huge, so a cautious, city-by-city deployment, starting with high-value use cases, is the defintely smarter play. They already tested the waters, conducting a large-scale 5G trial in Shymkent, Kazakhstan, back in 2019, but the 2025 strategy is clear: maximize the return on 4G first.

Competition from Over-The-Top (OTT) services requires constant innovation in digital offerings.

The biggest technological threat isn't another telecom operator; it's the Over-The-Top (OTT) players like WhatsApp, Netflix, and local fintech apps. They use your network for free and compete for your customer's wallet share. VEON's counter-strategy, the 'digital operator' model, is working, but it needs constant innovation.

The growth in this segment is phenomenal, showing the strategy is sound:

Metric (3Q 2025)	Value	Significance
Direct Digital Revenue	USD 198 million	Represents a 63.1% YoY growth.
Digital Revenue Share of Total Revenue	17.8%	Up from 12% in 3Q 2024, showing rapid diversification.
Total Digital Monthly Active Users (2Q 2025)	119.7 million	A large, engaged user base for cross-selling.

The company is explicitly targeting to increase the share of direct digital revenue to 50% in the next three to five years, focusing on services like JazzCash in Pakistan and the healthcare app Helsi in Ukraine. Plus, they are using local Large Language Models (LLMs), like KazLLM in Kazakhstan, to power new educational and other digital services in local languages.

Need for massive investment in fiber backhaul to support data traffic growth.

The explosion in data consumption from 4G and digital services demands massive fiber backhaul (the high-capacity lines that connect cell towers to the core network). However, VEON is taking an 'asset-light' approach to this infrastructure layer.

This is a strategic choice: instead of owning and funding the entire fiber network, they are selling non-core infrastructure assets. For example, in May 2024, VEON agreed to sell its 49% stake in TNS Plus LLP (TNS+), a wholesale fiber provider in Kazakhstan, for USD 137.5 million. TNS+ operates a substantial fiber network of more than 14,000 km throughout Kazakhstan. This move frees up capital for the 4G and digital service layers, effectively outsourcing the massive backhaul investment to infrastructure partners.

The core technology focus is shifting from pure infrastructure ownership to:

• Software and AI: Building local-language digital platforms.
• Radio Access Network (RAN) Efficiency: Upgrading 4G sites with technologies like FDD Massive MIMO in cities like those in Kazakhstan to increase capacity without new spectrum.
• Innovative Backhaul: Using solar-powered radio relay nodes to connect off-the-grid 4G sites in remote areas of Kazakhstan.

VEON Ltd. (VEON) - PESTLE Analysis: Legal factors

Complex and varying data localization and privacy laws across the Commonwealth of Independent States (CIS) region.

The patchwork of data localization and privacy regulations across VEON's footprint, which includes CIS-adjacent markets like Pakistan, is a constant operational risk. You have to navigate a maze of conflicting requirements on where customer data must be stored, processed, and how it can be transferred cross-border. This isn't just a compliance headache; it's a direct cost to your IT architecture.

For example, in Pakistan, where VEON operates the JazzCash FinTech platform, the regulatory environment is in flux as of 2025. The passage of the Prevention of Electronic Crimes (Amendment) Act, 2025, has increased government oversight on digital content and platforms, which raises concerns about greater access to user data. Plus, the long-awaited Personal Data Protection Bill (PDPB) remains unformalized, leaving a significant legal vacuum for core data privacy standards.

This legal uncertainty directly impacts a massive, sensitive data pool. As of September 30, 2025, VEON's Pakistan banking operations held $282 million in customer deposits, underscoring the scale of financial data that is subject to these evolving, and often ambiguous, local laws. You need to maintain a high level of technical compliance, which is why your operating companies in key markets like Pakistan and Ukraine have pursued re-certification under the ISO 27001 (Information Security Management System) standard.

Regulatory scrutiny on market consolidation and potential anti-monopoly actions.

In the telecom sector, any major corporate action draws immediate attention from competition authorities. VEON is defintely engaged with regulators on significant transactions in 2025, which requires substantial legal resources and carries execution risk.

Two major corporate actions in 2025 highlight this scrutiny:

• The planned listing of Kyivstar Group Ltd. on the Nasdaq Stock Market in Q3 2025 requires multiple regulatory and shareholder approvals, a process that is highly visible and subject to international legal oversight.
• The amalgamation of PAK Tower Company into Engro Connect, a subsidiary of Engro Corporation Limited, in Pakistan, is subject to sanctioning by the local court and customary regulatory approvals.

While no major anti-monopoly fine has been announced against VEON in 2025, the global trend is toward stricter enforcement. Regulators in your markets are increasingly sensitive to market dominance, especially as you expand your digital services. The risk is that a local competition authority could launch an investigation, potentially leading to fines or mandated structural changes, which would disrupt your strategy.

Licensing and spectrum auction costs are a significant, non-discretionary expense.

The cost of acquiring and renewing spectrum licenses is a non-negotiable part of being a mobile operator. These are massive, non-discretionary expenses that directly impact your capital allocation strategy and free cash flow. This is a capital-intensive business, period.

For the 2025 fiscal year, VEON has committed to significant network investment, reflecting the need to secure spectrum and upgrade infrastructure to support 4G and future 5G services. Your total Group Capex (capital expenditure) for the third quarter of 2025 (3Q25) was $223 million. The full-year 2025 capex intensity (Capex as a percentage of revenue) is expected to be in the 17% to 19% range (excluding Ukraine), a clear indicator of the scale of mandatory investment required for licenses and network modernization.

Here's the quick math on the investment scale:

Metric	Value (3Q 2025)	Full-Year 2025 Outlook (Excl. Ukraine)
Group Capex (3Q25)	$223 million	N/A
LTM Capex Intensity	21.6%	N/A
Expected Capex Intensity	N/A	17% to 19%

Legal frameworks for digital financial services (FinTech) are still maturing, creating uncertainty.

Your digital financial services, like JazzCash, are a major growth driver, with financial services revenues growing 32.6% to $107.5 million in 3Q25. But this growth is happening faster than the legal frameworks can keep up, especially in your frontier markets.

The core challenge is that the regulations are often reactive, not proactive, leading to a fragmented legal landscape. While the State Bank of Pakistan (SBP) has established a regulatory sandbox for FinTech innovation and the Regulations for Electronic Money Institutions (EMIs), the overall framework is still catching up to the speed of digital product development.

Key areas of legal uncertainty for FinTech in 2025 include:

• Data Privacy: The delay in the Personal Data Protection Bill in Pakistan means a lack of clear, comprehensive rules for handling sensitive customer data, increasing regulatory risk for a major player like JazzCash.
• Digital Oversight: The new Prevention of Electronic Crimes (Amendment) Act, 2025, introduces a new layer of state control over digital platforms, which could impact user trust and operational freedom for FinTech services.
• Anti-Money Laundering (AML)/Know Your Customer (KYC): Compliance with AML/CTF (Counter-Terrorism Financing) regulations remains a high-stakes, constantly evolving legal obligation, requiring significant investment in compliance technology and personnel to avoid hefty fines and reputational damage.

What this estimate hides is the cost of compliance staff and legal counsel dedicated to monitoring and adapting to these daily changes across multiple jurisdictions. It's a non-stop, high-priority function.

VEON Ltd. (VEON) - PESTLE Analysis: Environmental factors

Increased regulatory pressure for energy efficiency in network infrastructure to meet climate goals.

The push for network energy efficiency is no longer a soft goal; it's a hard cost-driver and a regulatory necessity, especially in high-growth markets where network expansion is rapid. VEON is responding by integrating energy management into its core strategy, with a plan to establish Board-level oversight of energy efficiency targets in 2025. This includes annual reviews of energy intensity metrics, like kilowatt-hours per terabyte of data processed. The quick math shows an early win: in 2024, total data consumption on VEON's networks increased by 14% year-on-year, but total energy consumption was up only by 13% year-on-year. That small gap is where the savings and compliance live.

Operational efficiency is key to managing the Group's substantial energy footprint, which totaled 2.1 million MWh in 2024. They are actively deploying power-saving technology and renewable energy sources across their infrastructure.

• 70,093 BTS (Base Transceiver Stations) used power-saving technology in 2024.
• 1,085 BTS were powered by solar and/or wind energy in 2024.
• Banglalink, VEON's operator in Bangladesh, achieved a 2.3% year-on-year energy reduction per tower in 2024.

Need for better e-waste management and recycling programs in high-growth markets.

The rapid pace of network upgrades and the sheer volume of mobile devices in VEON's markets create an enormous electronic waste (e-waste) problem. Ineffective waste management drives up costs and creates significant environmental pollution risks. Honestly, a telecom operator has a responsibility to manage the entire lifecycle of its equipment.

VEON recognizes this, and their 2025 vision includes a target for the extended lifespan of equipment and reduced waste throughout the product lifecycle. While specific tonnage recycled is not publicly available, the strategy focuses on circular economy principles.

Key e-waste and circular economy initiatives include:

• Refurbishment and resale of IT hardware, extending equipment life.
• Collaboration with e-waste recycling partners to recover valuable materials.
• Employee engagement programs on office waste reduction.

Growing investor and public focus on Environmental, Social, and Governance (ESG) reporting transparency.

Investor scrutiny on ESG factors is defintely intensifying, moving from a niche concern to a core valuation metric. This focus is directly impacting VEON's cost of capital and its reputation. The good news is that the company's performance in this area is improving, which is a clear signal to the market.

The improvements in third-party ESG ratings over the 2024-2025 period demonstrate a tangible reduction in perceived risk.

ESG Rating Agency	Rating (February 2024)	Rating (March 2025)	Change/Note
Morningstar Sustainalytics (Risk Rating)	39.7 (High Risk)	30.1 (Medium Risk)	9.6 point decrease (Improvement)
ISS (ESG Quality Score)	D+	C-	Upgrade in performance rating

Climate change risks (e.g., flooding in Pakistan) threaten physical network resilience.

Operating in frontier markets means dealing with heightened climate volatility. Pakistan, where VEON has a major presence through Jazz, is a prime example, ranking among the top ten countries most vulnerable to climate risk. The 2022 floods there, which affected 33 million people, caused an estimated USD 14.9 billion in damages. This isn't just a social issue; it's a direct threat to network uptime and infrastructure investment.

To mitigate this, VEON's Pakistan operations have set a clear 2025 target for sustainable energy generation. Plus, they are integrating climate-related risks, like energy price volatility and grid reliability, into their Enterprise Risk Management (ERM) framework. This is a smart move, because a resilient network is a profitable network.

ESG reporting is no longer optional.

The days of boilerplate sustainability reports are over. Investors and regulators demand transparency on how environmental risks translate into financial risks and opportunities. VEON is aligning its reporting with the Global Reporting Initiative (GRI) Standards and the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

The Group's total 2024 carbon emissions (Scope 1 and 2) stood at 0.8 Megatons. Specifically, Scope 1 (direct emissions) was 0.160 Megatons and Scope 2 (indirect from purchased energy) was 0.654 Megatons. What this estimate hides is the need for a clear decarbonization roadmap, which they are working toward by planning a TCFD-aligned climate-related scenario analysis in 2025. This analysis will directly assess the financial implications of climate change on the business model.