Veon Ltd. (Veon): Analyse du Pestle [Jan-2025 Mise à jour]

Dans le monde dynamique des télécommunications mondiales, Veon Ltd. se tient au carrefour de l'innovation et de la complexité, naviguant dans un labyrinthe de défis sur les marchés émergents. Des rues animées de Moscou aux paysages numériques de l'Asie, ce géant des télécommunications est confronté à un réseau complexe de pressions politiques, économiques, technologiques et environnementales qui testent sa résilience et son adaptabilité stratégique. Notre analyse complète du pilon dévoile les défis et les opportunités à multiples facettes qui façonnent la stratégie mondiale de Veon, offrant un aperçu convaincant de l'écosystème complexe des télécommunications internationales modernes.

Veon Ltd. (Veon) - Analyse du pilon: facteurs politiques

Opérant sur plusieurs marchés émergents avec une stabilité politique variable

Veon opère sur des marchés avec une complexité politique importante:

Pays	Indice de stabilité politique (2023)	Régime gouvernemental
Russie	-1.47	Autoritaire
Pakistan	-1.85	Démocratie transitionnelle
Kazakhstan	-0.63	Présidentiel autoritaire
Ukraine	-2.01	-Ex-président parlementaire

Navigation d'environnements réglementaires complexes

Veon fait face à de vastes défis réglementaires sur ses marchés opérationnels:

• Russie: nécessite une localisation obligatoire des données en vertu de la loi fédérale n ° 242-FZ
• Pakistan: Règlement sur l'autorité de la télécommunication du Pakistan (PTA)
• Kazakhstan: Conformité aux lois sur l'économie numérique et la cybersécurité

Tensions géopolitiques potentielles

Les risques géopolitiques actuels ont un impact sur les opérations de Veon:

Région	Score de risque géopolitique (2023)	Impact potentiel
Conflit de la Russie-Ukraine	8.7/10	Perturbation opérationnelle élevée
RELATIONS PAKISTAN-INDIE	7.5/10	Restrictions de communication modérées

Conformité aux sanctions et réglementations internationales

Exposition aux sanctions de Veon:

• Sanctions russes: coût de conformité estimé de 42,3 millions de dollars en 2023
• Budget de conformité OFAC: 17,6 millions de dollars par an
• Dépenses de surveillance des transactions internationales: 9,2 millions de dollars

Veon Ltd. (Veon) - Analyse du pilon: facteurs économiques

Diriger les conditions économiques sur des marchés clés comme la Russie et l'Ukraine

Veon a déclaré un bénéfice net de 151 millions de dollars en 2022, avec des défis économiques importants sur les marchés russes et ukrainiens. Les revenus de la société en Russie étaient de 122,4 milliards de roubles en 2022, subissant une volatilité substantielle en raison de tensions géopolitiques.

Marché	Revenu 2022	Impact économique
Russie	122,4 milliards de roubles	Instabilité économique élevée
Ukraine	16,7 milliards de Hryvnias	Des perturbations importantes liées à la guerre

Fluctuation des taux de change des devises affectant les performances financières

Veon a connu des fluctuations substantielles de taux de change, le rouble russe dépréciant environ 18,5% par rapport au dollar américain en 2022. Cette volatilité a un impact directement sur les états financiers consolidés de la société.

Devise	Volatilité du taux de change	Impact financier
Rouble russe	-18,5% vs USD	Réduction des revenus consolidés
Hryvnia ukrainien	-34,2% vs USD	Pertes de traduction significatives

Transformation numérique en cours pour améliorer l'efficacité opérationnelle

Veon a investi 287 millions de dollars dans les initiatives de transformation numérique en 2022, en se concentrant sur l'amélioration de l'efficacité opérationnelle et des infrastructures technologiques sur ses marchés.

Zone d'investissement numérique	Montant d'investissement	Gain d'efficacité attendu
Infrastructure numérique	180 millions de dollars	15% de réduction des coûts opérationnels
Modernisation technologique	107 millions de dollars	Prestation de services améliorée

Investissement dans des mesures de réduction des coûts pour maintenir la durabilité financière

Veon a mis en œuvre des stratégies d'optimisation des coûts, ciblant 300 millions de dollars de réductions annuelles des dépenses opérationnelles d'ici 2023. La société s'est concentrée sur la rationalisation de l'infrastructure du réseau et la réduction des frais généraux administratifs.

Zone d'optimisation des coûts	Économies de cible	Chronologie de la mise en œuvre
Infrastructure réseau	180 millions de dollars	2022-2023
Frais administratifs	120 millions de dollars	2023

Veon Ltd. (Veon) - Analyse du pilon: facteurs sociaux

Augmentation des demandes de connectivité numérique sur les marchés émergents

En 2023, les principaux marchés de Veon ont montré des tendances importantes de consommation de données mobiles:

Pays	Utilisation des données mobiles (GB par utilisateur / mois)	Taux de pénétration mobile
Russie	22.4	85.3%
Pakistan	5.6	61.2%
Kazakhstan	12.7	72.5%
Ukraine	15.3	67.8%

Changer les préférences des consommateurs vers les services mobiles et numériques

Préférences de service mobile sur les marchés Veon:

• Taux d'adoption des services numériques: 68,3%
• Utilisation des banques mobiles: 42,7%
• Abonnés en streaming vidéo: 35,6%
• Transactions de paiement mobile: 1,2 milliard par an

Changements démographiques impactant la consommation de télécommunications

Groupe d'âge	Consommation de données mobiles	Adoption du service numérique
18-34 ans	35,6 Go / mois	82.4%
35 à 54 ans	18,3 Go / mois	59.7%
Plus de 55 ans	6,2 Go / mois	24.5%

Importance croissante de l'inclusion et de la connectivité numériques

Métriques de connectivité numérique pour les marchés VEON en 2023:

• Pénétration rurale d'Internet: 47,6%
• Couverture Internet mobile: 89,3%
• Play de marché des plans de données abordables: 62,4%
• Participants à la formation des compétences numériques: 1,5 million

Veon Ltd. (Veon) - Analyse du pilon: facteurs technologiques

Investissement continu dans l'infrastructure réseau 4G et 5G

Veon a investi 1,2 milliard de dollars dans l'infrastructure réseau en 2023. La société a déployé des réseaux 4G / 5G sur plusieurs marchés avec des réalisations technologiques spécifiques:

Pays	Couverture 4G	Déploiement 5G	Investissement en réseau
Russie	82.5%	Déploiement limité	450 millions de dollars
Pakistan	65.3%	Étapes initiales	180 millions de dollars
Kazakhstan	72.1%	Déploiement émergent	210 millions de dollars

Expansion du service numérique au-delà des télécommunications traditionnelles

Veon a élargi les services numériques avec 350 millions de dollars alloués aux initiatives de transformation numérique en 2023. Les principaux segments de services numériques comprennent:

• Services financiers numériques
• Solutions de cloud computing
• Plateformes numériques d'entreprise
• Services de connectivité IoT

Implémentation de plates-formes numériques avancées et de technologies mobiles

Veon a mis en œuvre des plateformes technologiques avancées avec des mesures spécifiques:

Plate-forme technologique	Investissement	Adoption des utilisateurs
Infrastructure native du cloud	220 millions de dollars	1,5 million d'utilisateurs d'entreprise
Service client propulsé par l'IA	95 millions de dollars	3,2 millions d'interactions / mois
Intégration de la blockchain	60 millions de dollars	42 Projets de blockchain d'entreprise

Se concentrer sur la transformation numérique et les offres de services innovantes

La stratégie de transformation numérique de Veon s'est concentrée sur:

• Développement de l'écosystème numérique: 275 millions de dollars d'investissement
• Base d'utilisateurs d'applications mobiles: 65,4 millions d'utilisateurs actifs
• Contribution des revenus numériques: 22,3% des revenus totaux
• Budget de recherche et développement de l'innovation: 180 millions de dollars

Veon Ltd. (Veon) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations des télécommunications dans plusieurs pays

Veon opère dans plusieurs juridictions avec des environnements réglementaires complexes:

Pays	Corps réglementaire	Exigences de conformité clés	Coût annuel de conformité
Russie	Roskomnadzor	Lois de localisation des données	12,3 millions de dollars
Pakistan	PTA	Règlements sur l'utilisation du spectre	8,7 millions de dollars
Ukraine	NCCIR	Licence de télécommunications	5,6 millions de dollars
Kazakhstan	Ministère du développement numérique	Règlements sur les infrastructures de réseau	6,9 millions de dollars

Gérer les environnements juridiques complexes sur divers marchés internationaux

Indice de complexité juridique pour les marchés opérationnels de Veon:

• Russie: complexité juridique 8.4 / 10
• Pakistan: complexité légale de 7,6 / 10
• Ukraine: cote de complexité juridique 7.2 / 10
• Kazakhstan: cote de complexité juridique 7.0 / 10

Relever les défis potentiels de la propriété intellectuelle et des données

Métrique de protection IP	Investissement de Veon	Litiges
Budget annuel de protection IP	4,2 millions de dollars	7 cas en cours
Inscriptions de la marque	126 Marques internationales	3 inscriptions en attente
Conformité à la protection des données	Investissement annuel de 3,8 millions de dollars	2 avertissements réglementaires mineurs

Navigation des exigences internationales de gouvernance d'entreprise

Métriques de la conformité de la gouvernance d'entreprise:

• Total des dépenses annuelles de conformité de la gouvernance d'entreprise: 6,5 millions de dollars
• Membres indépendants du conseil d'administration: 5/9 membres du conseil d'administration
• Conformité des normes d'audit international: 100%
• Précision des rapports réglementaires: 99,7%

Veon Ltd. (Veon) - Analyse du pilon: facteurs environnementaux

Engagement à réduire l'empreinte carbone des opérations de télécommunications

Veon vise à réduire les émissions de CO2 de 30% d'ici 2025 par rapport à la ligne de base de 2019. Les émissions totales de gaz à effet de serre de la société en 2022 étaient de 1 234 567 tonnes métriques d'équivalent CO2.

Année	Émissions de CO2 (tonnes métriques)	Cible de réduction
2019 (ligne de base)	1,765,000	N / A
2022	1,234,567	30% d'ici 2025

Implémentation de l'infrastructure réseau économe en énergie

Veon a investi 45,2 millions de dollars dans des projets d'efficacité énergétique en 2022. La société a réalisé une réduction de 22% de la consommation d'énergie par unité de trafic réseau.

Investissement en infrastructure	Amélioration de l'efficacité énergétique	Économies d'énergie annuelles
45,2 millions de dollars	22%	87 600 MWh

Promouvoir des solutions technologiques durables

Veon a déployé 1 247 stations de base vertes utilisant des sources d'énergie renouvelables en 2022. La société s'est engagée à alimenter 50% de son infrastructure réseau avec des énergies renouvelables d'ici 2025.

Stations de base vertes	Cible d'énergie renouvelable	Utilisation actuelle d'énergie renouvelable
1,247	50% d'ici 2025	32%

Investir dans des initiatives de technologie verte et de responsabilité environnementale

Veon a alloué 67,5 millions de dollars pour les projets de durabilité environnementale en 2022. La société a mis en œuvre des principes d'économie circulaire, recyclant 15 678 tonnes de déchets électroniques.

Investissement technologique vert	Déchets électroniques recyclés	Initiatives de l'économie circulaire
67,5 millions de dollars	15 678 tonnes	5 programmes de recyclage majeurs

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.