CONNECTING YOU TO WHAT MATTERS MOST Sustainability Report 2017

Part Of telenor group Ceo’s message

CONTENT

4 CEO’S MESSAGE 18 WINNING TEAM

CLIMATE CHANGE 5 AT A GLANCE 22 AND ENVIRONMENT

SUSTAINABILITY EMPOWER 7 25 GOVERNANCE SOCIETIES

10 STAKEHOLDERS 29 DATA REPORT SCOPE 13 ETHICS AND COMPLIANCE GRI Ceo’s message

CEO’S MESSAGE

Our commitment to sustainability mirrors the responsible way we run our business, impact communies and consciousness towards the environment.

Everyday we connect our customers to what maers nurture a workplace and culture that give Digizens most. More than bringing people together, we help the space and freedom to learn, innovate, engage enrich lives and empower sociees. and grow within the company, and invest in new digital learning plaorms to empower our talents to Sustainability underscores the way we run our acquire skills for the digital future. We are pleased to business. We are commied to the United Naon’s be able to aract a diverse and balanced workforce Sustainable Development Goals with a focus on goal where 45% of our leaders are women. #10: Reduced Inequalies. We believe that freedom to internet and responsible digital cizenship is a We connue to raise the bar on governance and great equaliser and we look to demonstrate how this build capacity among our contractors and sub- can be achieved. contractors especially in the area of health and safety. We also iniated an industry collaboraon to Over the years, we have built our business on the enable joint inspecons, trainings and to li the foundaon of the highest standards of integrity, overall health and safety standards among our transparency and governance. Our commitment to contractors and sub-contractors. uphold these principles is crical to build resilience, and key to Digi’s connued growth and success. Our Our commitment to responsible business remains a employees are guided by our Code of Conduct, priority for the Management team. We are which underlines the manner in which we conduct determined to elevate standards across our business ourselves, and expect from our partners. operaons, push for improved service experience and maximise the opportunies for every Malaysian Privacy was also key on our agenda in 2017 where from being connected. we make significant efforts in shaping more robust processes and security measures to safeguard the privacy of our customers’ data. ALBERN MURTY Our people are the cornerstone of responsible and sustainable business. We have, and connue to CHIEF EXECUTIVE OFFICER 3 AT A GLANCE

AT A GLANCE

Establish leadership benchmark on being ethical and compliant in our business operaons.

OUR PURPOSE Connecng you to what maers most. OUR VISION To become the preferred digital provider for Malaysians. We have put in significant efforts and connue to refine our strategy to fuel sustainable long-term growth and value creaon, anchored by well-defined growth drivers and the responsible way we drive our business and engage our community.

EFFICIENCY & RESPONSIBLE WINNING GROWTH SIMPLIFICATION BUSINESS TEAM

Deliver profitable growth Focus on cash flow Posion Digi as an Build future-ready talents and ahead of industry improvement and drive lowest exemplary corporate cizen culture that inspires Everyday producon cost Innovaon

4 At a glance

INSPIRING 2017 Diversity INNOVATION 360 2 65 4 Plaorm for Employees In New Inhouse Generang Innovaon Built Digital 44% 56% New Ideas Programmes Soluons performance Women Men RM5.91B 46% RM1.48 RM1.46 Service Revenue EBITDA Margin Profit Aer Tax Dividend Payout Supply chain 45% Women Leaders 38.7% 2690Hrs Customer Increase In Numbers Of Suppliers Of Supply Chain Capacity Signing Agreement Of Business Building Conduct (ABC)

11.7 million 8.7 million 2.5 million 6.8 GB Safety Customers Internet Customer Acve MyDigi Users Average Monthly Data 43% Usage by Customers Women at Board

Inspiring brand Our people upskilling 6% Zero 7 Improvement In Minor Lost Time Injury Frequency Contractors And 8 Non-Compliance Subcontractors Terminated #1 Naonalies 2,008 Employees Our community Emissions Net Promoter Score 74% Employee Engagement Scores 4 140,887 16.4% 12.5% 54,796 New Digital Students Naonwide Growth In Growth Total of Learning #1 32.3% Community Engaged In Internet CO2 Emissions Per Kwh Hours Telco Brand Insisted by Covered by Plaorms To Safety Per Customer Per Customer Malaysian Collecve Bargain Empower Sociees

5 Sustainability governance

SUSTAINABILITY GOVERNANCE

Structured governance to idenfy and manage business risks and opportunies.

OUR APPROACH Our sustainability commitment towards a responsible business is rooted on building long-term trust and creang shared value. We connue to priorise and inculcate best pracce principles, transparency and accountability in our operaons and value chain. We support all UN Sustainable Development Goals (SDG) with a focused commitment on SDG goal #10 Reduced Inequalies, by extending the benefits of mobile and digital communicaons to enable digital inclusion and build digital resilience in communies.

FRAMEWORK GOVERNANCE MATERIALITY

6 Sustainability governance

SUSTAINABILITY FRAMEWORK GOVERNANCE Digi’s governance principles and pracces is a framework to govern our business. We proacvely manage our Sustainability governance is managed under the Chief Execuve Officer’s department. The Head of non-financial risks to unlock business opportunies and enable meaningful economic, social and Communicaons and Sustainability oversees the daily operaon of the team to meet the non-financial Key environmental impact. Performance Indicators (KPIs) established jointly with Telenor Group Sustainability.

Our sustainability framework leverages the materiality assessment as a strategic plaorm to integrate material Sustainability KPIs are reported quarterly to the Ethics & Sustainability Forum. Chaired by the Chief Execuve issues into business strategies, daily operaons and stakeholder relaons, leading to improved short and long- Officer, the forum includes the Chief Human Resource Officer, Chief Technology Officer, and Chief Corporate term value creaon. Affairs Officer. Ethics and Sustainability is a standing quarterly agenda for the Digi Board of Directors and Non- financial Reporng (NFR) data including people, social, and environmental data is collected quarterly and signed off by the Chief Financial Officer. RESPONSIBLE BUSINESS We conduct a human rights risk assessment to idenfy areas where there are risks of complicity to human • Ethics and Compliance rights abuse once every two years. The assessment idenfies areas where we promote and protect human rights in our processes, services and programmes. Findings of the assessment are addressed to the • Supply Chain Sustainability Management Team. • Winning Team Quarterly Reporng • Climate Change and Environment Management Team Board of Directors

• Responsible for sustainable business • Oversee Digi’s Sustainability Focus EMPOWER SOCIETIES policies and Performance • Oversee ethics and sustainability related • Digital Inclusion risks and progress of non-financial KPIs

• Digital Resilience Quarterly Reporng Quarterly Reporng Telenor Group Sustainability Ethics & Sustainability Forum • Set KPIs and alignment • Quarterly reporng of supply • Formulate sustainability strategy, policies chains KPI and goals • Annual non-financial reporng • Monitor and facilitate adherence to the sustainability policy Ongoing • Support departments to meet Sustainability Department sustainability goals • Day to day management of • Conduct sustainability awareness & sustainability principles, risks and engagement acvies issues • Sustainability performance reporng • Ensure compliance of relevant sustainability related policies

7 Sustainability governance

MATERIALITY Digi uses the GRI Sustainability Reporng Standards-based materiality assessment, involving external and internal stakeholders to idenfy key social, economic and environmental topics, and map it against our strategic priories. The materiality issues were built on Telenor Group’s materiality assessment and mapped against Digi’s operaonal priories, corporate strategy and stakeholder expectaons.

In 2017, we refreshed our Materiality Matrix based on an internal review with Digi Management. The procedure of compiling Digi’s sustainability disclosure is in accordance with Telenor Group’s Non-Financial Reporng Procedures, and Digi’s Standard Operang Policy and Procedures on Sustainability Reporng. HIGH Digital Data Security Service Reliability Supply Chain Digital Inclusion & Privacy & Quality Sustainability Resilience

MEDIUM Radiaon Waste Talent and Energy Concerns Management Culture Efficiency IMPORTANCE TO EXTERNAL STAKEHOLDERS IMPORTANCE LOW

Licenses and Tax

LOW MEDIUM HIGH

IMPORTANCE TO DIGI

8 Stakeholders

STAKEHOLDERS

Building trust of stakeholders through structured engagement and accountable acons.

OUR APPROACH We have established channels and plaorms to keep a constant pulse on key concerns and issues of stakeholders. By understanding expectaons and responding to concerns, we aim to deepen stakeholders’ trust in us.

INVESTORS & BUSINESS COMMUNITY & REGULATORS EMPLOYEES CUSTOMERS STOCK MEDIA PARTNERS NGOS ANALYSTS

9 Stakeholders

DEEPENING TRUST OF STAKEHOLDERS We ulise different plaorms to engage our stakeholders on key concerns and issues, to understand expectaons and facilitate conversaons to strengthen our stakeholder’s trust. These are our key stakeholders, the engagement plaorms, and some of the key issues addressed. REGULATORS CUSTOMERS EMPLOYEES

ENGAGEMENT ❖ Regular reports and informaon sharing with Ministry and ENGAGEMENT ❖ Digi retail outlets ENGAGEMENT ❖ Best of People Council PLATFORMS regulators PLATFORMS ❖ Customer service channels (online customer service, call PLATFORMS ❖ Digi Telecommunicaons Sdn Bhd Employee Union ❖ Public-private partnership iniaves centre) ❖ Annual Employee Engagement Survey ❖ Social media e.g. Facebook and Twier ❖ Mulple internal engagement channels (CEO's emails, ISSUES ❖ Accessibility of Internet ❖ Consumer Forum Malaysia Digimail, Workplace, quarterly company and division town ❖ Quality of Connecvity ❖ MyDigi App hall) ❖ Naonal digital innovaon agenda ❖ Leadership forums with extended and middle management ❖ ISSUES ❖ Coverage and service quality Innovaon plaorms ❖ Waing me at store HOW WE ❖ Roll out widest 4G plus network footprint (4G LTE: 87%, LTE- ISSUES ❖ Career planning and development ❖ Bill shocks from third party content providers ADDRESSED A: 55%, Fibre Network- 8,000km) ❖ Fair and transparent rewards ❖ Acvated VoWiFi & VoLTE network technologies, and ❖ Barred accounts with Credit Reporng Agency CTOS ❖ Acve engagement process across the region by Digi exploring new innovave network technologies management team ❖ Partner with MCMC in ASEAN Child Online Protecon HOW WE ❖ Roll out widest 4G plus network footprint HOW WE ❖ Employee Engagement Scores averaged 75% over three Seminar ❖ Acvated VoWiFi & VoLTE and explore future network years, above the percentage of high performing companies, ❖ ADDRESSED ADDRESSED Nurture skills for the digital future (eg. robocs for schools technologies and Malaysian companies. and digital entrepreneurship at our Pusat Internet 1Malaysia ❖ Launched Freedom to Internet innovaons, flexible value ❖ Our employer promise ‘Freedom to Inspire the Next’ creates a (PI1M) data plan, borderless roaming and me-based data passes culture to Learn, Innovate, Engage and Grow. ❖ PI1Ms as the one-stop centre for internet access and digital ❖ Introduced Digi Live Chat ❖ Employees accessing e-learning and joining innovaon innovaon for surrounding communies. plaorms

10 Stakeholders

AS A RESPONSIBLE BUSINESS, WE INVEST OUR ENERGY IN UNDERSTANDING AND RESPONDING TO OUR STAKEHOLDERS INVESTORS & STOCK ANALYSTS INVESTORS & STOCK BUSINESS PARTNERS MEDIA & NGOS COMMUNITY

ENGAGEMENT ❖ Local and overseas non-deal ENGAGEMENT ❖ Annual Self-Assessment ENGAGEMENT ❖ Media interviews & events ENGAGEMENT ❖ Engage and partner with government PLATFORMS roadshows PLATFORMS Quesonnaires PLATFORMS ❖ Formal and informal briefings PLATFORMS agencies, corporates, and NGO forums ❖ Corporate presentaons ❖ Site inspecons and audits ❖ Media familiarisaon visits to address issues in the community ❖ Analyst briefings ❖ Supplier training ❖ On demand requests ❖ Product presentaons

ISSUES ❖ Corporate strategy and financial ISSUES ❖ Health & safety in supply chain ISSUES ❖ Corporate strategy ISSUES ❖ Leveraging mobile technology to performance ❖ Non-compliance in supply chain ❖ Financial performance empower local communies ❖ Corporate governance and compliance ❖ Integrity due diligence ❖ Products and services ❖ Safe internet use by young children ❖ Customer related issues

HOW WE ❖ Conduct quarterly briefings to analysts HOW WE ❖ Training for our contractors and sub- HOW WE ❖ Regular media engagements for HOW WE ❖ Digital resilience and digital inclusion ADDRESSED and investors ADDRESSED contractors ranges in Health and Safety ADDRESSED updates on business performance, ADDRESSED programmes partnering NGOs and ❖ On business performance and strategy and an-corrupon strategy, products and services, and communies. ❖ On demand response to enquiries and ❖ Industry collaboraon on joint customers’ concerns ❖ Digital resilience programme reached meeng requests enforcements for highest safety over 340,000 since 2011 standards in supply chain. ❖ Achieved zero Lost Time Injury Frequency (LTIF) in 2017

11 ETHICS & COMPLIANCE

ETHICS & COMPLIANCE

Establish leadership benchmark on being ethical and compliant in our business operaons.

OUR APPROACH We uphold the highest standard of ethical behaviour and integrity in everything we do. Our core principles and ethical standards set the foundaon that guides employee conduct and the way we engage with our customers, stakeholders and partners, who share similar beliefs and values of ethical business pracces.

AWARENESS ASSESSMENT TOOLS & TRAINING AUDIT

12 ETHICS & COMPLIANCE

ANTI CORRUPTION

We strongly oppose corrupon in all its forms and are commied to doing business in accordance with the STRENGTHEN highest ethical standards. HUMAN RIGHTS

An Ethics and Compliance officer oversees the governance of integrity. The officer reports to the Chief Digi is the first mobile operator in Asia to The areas assessed included; Execuve Officer, has direct quarterly reporng to Digi Management, and the Audit and Risk Commiee to complete the UNICEF Mobile Operator Child • Sustainability & Compliance; ensure full independence. Rights Self-Impact Assessment Tool (MO- CRIA) designed to strengthen corporate • Legal; • Conduct regular training with employees on Code of Conduct pracces, policies and processes in relaon to • Human Resources; children rights. The tool provides a • Procurement; • No gis policy and independent compliance hotline to report cases of misconduct framework to assess business impact, • Product, Sales & Markeng; • An annual integrity risk assessment conducted by Telenor associated risk, and idenfy gaps and opportunies to create beer business • Security and Emergencies. • An Integrity Due Diligence (IDD) conducted for all business partners. IDD findings are reviewed sustainability when it comes to child rights. by the Ethics and Compliance, and the Sourcing and Logiscs teams before awarding contracts.

CREATING ENCOURAGING 30% AWARENESS REPORTING The Code of Conduct is mandatory for INCREASE all employees to read, acknowledge An iniave to encourage employees to Carrying Out Assessments on Ethics and and sign annually. It guides all step forward and voice their concerns or Conducted company-wide ethics and Compliance related employees on; report possible acts of non-compliance via compliance risk assessment exercise to issues reported as • Expected behaviours on the Ethics and Compliance hotline. idenfy possible risks and proposed compared to 2016 responsibility and accountability migaon plans We adopted a new approach for incident • Importance of transparency and handling including responding to Managing Third Party Risks professionalism in work compliance incidence reports within 48 To ensure our business relaonship with all hours of receiving the report, compleng In 2017, monthly training for ‘Doing third pares do not pose unacceptable risks invesgaons within 30 days ensuring Business the RIGHT Way’ which uses to the company, due diligence assessment is implementaon of recommendaons are real scenario-based learning to guide carried out with all business partners prior to followed up within 30 days. employees in handling work related engagement. dilemmas. Internal awareness programme on ethics and compliance ‘Our Voice of Integrity’, was organised with a focus on the importance of consistent ethical We are a member of the Business Integrity Alliance (BIA), a private sector iniave comprising business standards. Employees companies commied to doing business with integrity. Through collecve acon, the BIA allows naonwide pledged to uphold the highest level of integrity. members to engage relevant government agencies and stakeholders to address corrupon affecng the business environment, and at the same me create value in the preservaon of business integrity.

13 ETHICS & COMPLIANCE

CONSUMER RESPONSIBILITY

Our purpose is to connect our customers to what maers most to them by becoming the preferred digital provider in Malaysia, and at the same me ensuring that we are compliant to the Communicaons and Mulmedia Consumer Forum Code of Conduct and the Internet Access Code.

SAFEGUARDING PRIVACY Privacy connues to be an integral part of our responsibility to stakeholders, and we are commied to ensuring that all data is collected and processed according to what they are meant for by placing stringent processes and security measures in all areas of our operaons.

STRENGTHENING CREATING SETTING COMPETITION TRUSTED 01 PROCESSES 02 AWARENESS 03 STANDARDS 04 LAW 05 BRAND We ghtened our governance process, and improved monitoring compliance in Digi collaborated with Digi was recognised employees whose job our business processes and technical industry peers to as one of the top 20 systems. Adopng a risk based carried out for employees who deal with prepare the scope exposes them most trusted to potenal risks approach, we assessed our privacy personal data on a daily basis in the Personal Data Protecon Code of brands in Malaysia at PWC’s The noce, data handling procedures and Contact Centre and Retail Stores. completed a mandatory, ‘Say Yes to Pracce 2017 (Code of Pracce) for Building Trust Awards 2017 for our operang systems to be compliant to Informaon Handling e-learning licensees under the Communicaons and Compeon’ e-learning to maintain a long-term commitment and effort the Personal Data Protecon Act 2010 connues to be a mandatory training for business environment that promotes fair Mulmedia Act 1998. towards responsible and sustainable and our Privacy Policy. new employees. and healthy compeon. business, and transparency.

IMPROVING CUSTOMER FOCUS ON SERVICE DIGITISING EMBRACING CUSTOMER AUTHORITY EXPERIENCE RELIABILITY & QUALITY CUSTOMER CARE FIRST MINDSET REQUESTS

We connue to engage customers across 99.61% performance in network latency, a 40% reducon in total calls to our Celebrated the Customer First Day 2017 All requests that come from authories all touch-points to beer understand significant improvement from previous year in customer service for all services, with employees naonwide by going out are processed based on a coherent set accordance to MCMC’s Network Performance corresponding to the 28% increase in to the streets to engage with customers, of framework outlined in Digi’s their challenges and for ideas on how we Report 2017. This mirrors Digi’s focus on digital interacon via Digi Live Chat. A who were introduced to Digi’s digital Authority Requests Manual. All requests can improve user experience & offer providing a beer & more consistent network. The download and throughput speed was chatbot is used over our Live Chat entertainment services as well as some are accessed on an individual basis & them what maers most. Employees consistent with 2016 performance and Digi met channel which looks to address simple ps how to make internet safer for their processed by a commiee, according to also parcipate in iniaves to gain first the naonwide Mandatory Standards customer queries aer office hours. families. a set of criteria, including the legal basis hand feedback on our network requirement for Drop Call Rates and Call Setup & human rights impact of the requests. Successful Rate. performance & products offerings.

14 ETHICS & COMPLIANCE

SUPPLY CHAIN SUSTAINABILITY Subcontractors Terminated or Suspended Digi strives for high standards in sustainability and connuous improvement in our operaons throughout the 7 supply chain. Our Supplier Conduct Principles (SCP) are based on internaonally recognised standards, including requirements on human rights, health and safety, labour rights, the environment and an-corrupon. 898 Supply Chain Risk Indicators It is mandatory for all contracng pares to agree and adhere to these principles. unannounced 0 inspecons Cases 50% Fatality SUPPLIER CONDUCT PRINCIPLES Non-Compliance The SCP commits suppliers to act in accordance with relevant local laws in relaons to the environmental, social and economic impacts as well as supporng the pracce of good governance, 1% Major 6% compliance to the Agreement on Responsible Business Conduct (ABC) is reported quarterly to the Board of Directors and to Telenor Group Supply Chain. Minor IMPROVEMENT 3% IN MINOR NON-COMPLIANCE

Individuals in supply chain are Increase in supplier CAPACITY BUILDING AND part of our commitment for fair, signing ABC >75,000 responsible and safe workspace 38.7% ENGAGEMENT

AUDIT & INSPECTIONS ENHANCING STANDARD We have a zero tolerance towards unsafe work pracces. THROUGH INDUSTRY BUILDING CAPACITY COLLABORATION THROUGH TRAINING An ‘Immediate Stop Work Order’ is issued across all contractors’ Digi connues to lead the industry in Mulple workshops amounng to 2,690 sites if workers are found to breach the SCP guidelines. driving the highest standards in health man-hours were conducted for capacity Digi Permit to Work (D’PTW) app provided to all main and safety. In 2017, industry players building for contractors and sub- began unannounced joint inspecons contractors on safety awareness, proper contractors and their sub-contractors to strengthen the and implemenng joint enforcements on ways to use equipment, and HSSE and governance of monitoring the safety of workers at base staons non-compliant contractors and Road safety trainings including the ‘Say and technical sites. The app enables our inspecon team to subcontractors leading to the No to Corrupon’ learning module in our have a real-me overview of when, and where our contractors terminaon and suspension of those effort to reduce and minimise all forms of who failed to meet the agreed safety work related risk and sub-contractors are working, allowing efficient deployment standards. of inspectors to respecve sites.

15 ETHICS & COMPLIANCE

HEALTH & SAFETY SAFE USE

ADOPTING INTERNATIONAL BEST PRACTISES We are commied to providing mobile connecvity safely to our customers. We support proacve engagement with stakeholders concerned on the misunderstanding of the low risk associated with Protecng our employees’ health and safety is a key priority of the Digi management team. We strive to electromagnec frequency (EMF) maers and are open in how we ensure our emissions are within the provide employees with the best working environment, allow ing them to develop their professional and prescribed levels. personal skills. In many Malaysian states, state backed companies are responsible for idenfying sites and erecng The Occupaonal Health & Safety Management System Cerficate (OHSAS 18001:2007) aests to towers, working with local authories to obtain the required permits and engage local communies. Our Digi’s compliance to the standards’ requirements and relevant corporate policies, and procedures, as well transmission equipment adheres to stringent guidelines of the Internaonal Commission on Non Ionising as best pracces. Similar commitment are expected from our suppliers – high standards of business Radiaon Protecon (ICNIRP) standards and Technical Working Groups of the 3rd Generaon conduct and undertakes iniaves to implement safe workplace. Partnership Project, endorsed by the World Health Organisaon. An internal EMF Response Team Digi recorded zero lost me injury frequency (LTIF) in 2017. We also introduced a dedicated hotline invesgates and addresses any complaints. number, 29588, for emergency incidences such as fire or health related cases with immediate assistance We are a founding member and an acve parcipant of an industry-led EMF iniave that engages and by any of the 35 Digizens ,who are cerfied First Aider volunteers , before emergency medical responses to concerns raised by communies and local authority. Telenor Group connues to be personnels are available on site. supporve of serious research efforts to establish whether there may be any negave health effects of We will soon be migrang to the new ISO45001 which provides a framework to improve employee exposure to EMF from mobile phones and infrastructure., and has released an updated paper that safety, reduce workplace risks and create beer, safer working condions. briefly sets out Telenor Group’s posion on EMF and health. The report can be downloaded from here.

16 Winning team

WINNING TEAM

Building future ready talents and a culture that inspires everyday innovaon.

OUR APPROACH Our people are our most valuable asset. We connue building a work culture that is open, dynamic and nurtures a supporve environment, creang opportunity for each employee the freedom to grow, to freely voice their opinions and share fresh ideas that inspire everyday innovaon.

ALWAYS EXPLORE CREATE TOGETHER KEEP PROMISES BE RESPECTFUL

We believe growth comes We believe diverse teams find We believe that trust is key in We believe in the unique human from learning every day. beer soluons. We seek all our relaonships. We take ability to understand what We’re curious and we dare to different perspecves, share, ownership and pride in maers for people. We meet challenge, test, fail involve and help each other delivering with precision and everyone at eye level, listen and and pivot. succeed. integrity. show that we care.

17 Winning team

Everyone working with or for Telenor is required to commit to, abide by and annually renew their signature on our Code of Conduct. We strongly believe that by staying true to these fundamental values, we will innovate the next generaon of products and services, inspire new ways of improving customers’ digital lives, resulng FREEDOM TO LEARN in an empowered society. We are purposeful in transforming the way our Our employer promise of ‘Freedom to Inspire The Next’ is delivered through these four areas. employees learn and enhance their skills and competencies, with a focus on developing skills for the digital future, built on a culture of ‘permission-less’ learning.

FUNCTIONAL LEARNING Focused towards five competence areas namely new product development, digital markeng, service design, applied analycs, and digital channel and partnerships. These areas have been idenfied as crical capabilies FREEDOM TO LEARN for the future workforce and we are providing employees equal opportunity to upskill and grow in any of the idenfied competencies. FREEDOM FREEDOM TO INNOVATE PERMISSION-LESS LEARNING TO With open access to the world’s best content provided through three digital learning plaorms – Udacity, Coursera and Lynda, employees are empowered to INSPIRE manage their own career growth anyme, anywhere. FREEDOM TO ENGAGE THE NEXT 54,796 36 HRS OF COLLECTIVE LEARNING GRADUATES FREEDOM TO GROW (Including Classroom & Funconal Training)

93 7845 NANO DEGREES HOLDERS LEARNING HOURS

18 Winning team

FREEDOM TO INNOVATE MAKER LAB A dedicated space in Digi’s headquarters to nurture innovators We promote a culture of everyday innovaon where and embrace the 360° innovaon culture among Digizens. With Digizens are encouraged to experiment with their own a focus on S.T.E.A.M (Science, Technology, Engineering, Arts and ideas and challenge the status quo to create impact Math), the lab funcons as a hub to encourage crical thinking, across the organisaon. To drive this innovaon 360° problem solving & collaboraon through hands-on learning & mindset, various plaorms are created for employees experimentaon on various project-based & cross-disciplinary to explore new products, services and soluons. ideas.

DISRUPT@DIGI DIGITISING HR TOOLS Annual 30-hour hackathon challenge where employees parcipate to hack growth ideas for Digi. 47 Digizens from 19 alt.hr, a one-stop mobile app for all human resource needs departments formed 12 teams and parcipated last year where was introduced in line with efforts to digise our workplace they had to ideate and work on their premise based on three processes and engagement with employees. unique business challenges.

WINNER: D’Geek A recommendaon plaorm that uses predicve analycs to suggest DIGITAL DAY personalised lifestyle offerings to users was selected as the winner in A one-day event dedicated to inspire Digizens to learn and 2017. discover new technologies and digital services. Themed LIFExDIGITAL, the event in 2017 focused on how digital transformaon can be applied to be more purposeful in our daily lives. The event featured a mix of fast paced Ted-style sharing sessions, anchored by futurists and tech speakers and mulple exhibits for experienal engagements.

IGNITE

An intrapreneur programme for employees across Telenor’s 12 TADHACK business units aimed to idenfy great ideas for new end-user products and services. It provided an avenue for employees to In 2017, Digi released 3 APIs for TADHack on Identy, turn ideas into testable prototype, supported by regional & global Messaging & Payment, allowing us to explore the innovaon mentors. 6 ideas from Digi were submied & 1 team with an idea possibilies emerging from the larger tech community. to develop storage & analysis of drone flight data pitched to the TADHack is the world's largest global hackathon focusing on global plaorm to be turned into a testable prototype. programmable telecoms wherein teams sign up to develop soluons based on telco/connecvity APIs.

19 Winning team

FREEDOM TO ENGAGE FREEDOM TO GROW

At the core of our DNA is a culture of empowerment, It is our ambion to unlock the potenal of our trust and fairness that creates a sense of belonging for employees who are empowered to take charge of their each of our employees. We value the ideas and own career development. If Digizens are willing to give commitment that employees can bring to the table their 100% every day, dare to challenge the norm, be regardless of their posions in the company. The open willing to take on addional goals and responsibilies, office and hot-desking concept embodies our value of and deliver results, the company will support their openness, and is a key part of who we are. growth – from world-class leadership programmes to accelerang them into posions of responsibility.

EMPLOYEE ENGAGEMENT SURVEY (EES) INCLUSIVE TALENTS An annual survey that collects employees’ feedback to determine the areas that are crical in encouraging employee engagement. We achieved a 74% engagement score in 2017, surpassing the Telenor Group average and the benchmark of Approximately 86% of our top 49 leaders are from our internal succession programme, including four out of the seven high performing companies. The results point towards a strong culture of loyalty and innovaon amongst Digizens with a solid Management team members. We believe that gender balance and diversity are crical for compeve advantage and understanding of the company’s business strategy and governance framework. shareholder value. Through the Women Inspiraon Network (WIN), we connue to groom more women in the company for top management roles. 16 women were selected in 2017 and provided the opportunity to develop to their full potenal EMPLOYEE REPRESENTATION through exposure and engagement with external women leaders, direct mentorship with senior Management, and a plaorm to learn and share with other women leaders. Employees are represented by two plaorms, the Best on People Council (BOPC) and the Digi Telecommunicaons Sdn Bhd Employee Union (DGEU) where elected members will work together with the Management to deliberate and enable changes GLOBALISING LOCAL LEADERS that maer to employees. This year, BOPC resolved 38 issues concerning employee welfare, way of work, and work Employees are also provided the chance to work in other Telenor business units worldwide through the Mobility Programme. environment which were raised by the employees to the Management. This programme allows selected Digizens to not only share their experse and knowledge with other business units but more importantly, the chance to develop their professional and leadership skills, contribung to their career development. In 2017, MANAGEMENT ENGAGEMENT Digi mobilised 11 employees to business units in Bangladesh, Myanmar, Norway and Thailand. Digi Management Team makes regular visits to all regions to engage with employees and stakeholders, and also to deepen understanding of local operaons. TALENT PLATFORMS

The second edion of the Digi CXO Apprence Programme hit a record high of 1,100 applicaons, 25% more than the inaugural launch in 2016 .

Seven individuals were selected to apprence with our respecve Management team members, giving them a 12-month opportunity to experience first-hand high-level decision making, dealing with real business challenges and the empowerment to 74% innovate in a culture that provides the ENGAGEMENT SCORE freedom to inspire the next generaon IN 2017 of products and services for millions of customers in Malaysia.

20 Winning team

DIVERSE AND DYNAMIC WORKFORCE

Digi believes in a diverse and dynamic workforce at all levels of the organisaon regardless of naonality, In 2017, for a second year in a row, our CEO, Albern Murty, was awarded the CEO Champion category age, gender or competence. Our goal is to foster a workplace that embraces differences, and provides award by TalentCorp Life at Work Awards 2017 in recognion of our efforts in creang a workplace that equal opportunity to everyone. In 2017, women represented 45% of Digi’s leadership team. On 11 July is family and women friendly. This, of course, was made possible by our culture of inclusion. 2017, women representaon at the Board dropped from 43% to 29% with the resignaon of Ms. Krisn Muri Möller, as the Non-Independent and Non-Execuve Director of Digi.Com Bhd. With the appointment of Ms. Tone Ripel to the Board as Non-Independent and Non-Execuve Director on the 23 January 2018, the composion of women board members is reinstated to 43%..

CEO CHAMPION

21 Climate change & environment

CLIMATE & ENVIRONMENT

Minimising our environmental footprint while growing our reach, and leveraging digital services to address climate change.

OUR APPROACH Praccal environmental pracces and responsible climate reporng remains to be a main area of focus for us as we leverage on innovave soluons to meet the rising demand for energy.

ENERGY SUSTAINABLE INFRASTRUCTURE WASTE EFFICIENCY WORKPLACE SHARING MANAGEMENT

22 Climate change and environment

ENERGY INTENSITY 0.051 0.046 INCREASED unit : kWh per RM Revenue 0.038 Energy efficiency 9.8% In 2017, as our robust network supports a 16.2% growth in data traffic smulated by more than half a million addional internet users in our base, we connue to stabilise our energy consumpon through various iniaves resulng in an energy growth of 6.5% increase year- on-year. Our non financial reporng framework tracks energy usage and carbon emissions from the grid and generators for our network, buildings, flights, fleet and rental vehicles. Being aware of where our most significant 2015 2016 2017 emissions are produced, we connue to explore new avenues to reduce our emissions while delivering business goals. Our energy intensity per RM revenue rose to 0.051 kWh due to lower revenues, while our kWh per customer is at 26 kWh, above the Telenor Group average of 17.6 KWh.

Diesel / Fuel ENERGY INTENSITY PER ENERGY CONSUMPTION BY TYPE END USE CUSTOMER 26.0 Direct Energy 23.1 unit : KWh per Customer 21.8

Network Buildings Transportaon Total

CARBON EMISSION 2017 96 187 0.06 9 13 304 2014 2015 2016 2017 EMISSION BY SCOPE unit : tonnes CO2e

1,912 All indirect emissions not included in Scope 2 that 2016 101 160 0.04 8 15 284 1,703 1,782 1,628 occur in the value chain incl. upstream and downstream (eg. transportaon, flight)

131,926 2015 86 155 0.11 8 15 264 114,573 Indirect emissions from generaon of purchased 112,196 energy (eg. electricity) 111,586 2014 75 152 0.05 9 11 248 26,351

22,048 24,262 Direct emissions from owned or controlled 20,728 sources (eg. fuel)

In 2017, our total carbon emission equivalent is at 157,970 tonnes* (10.7% year on-year rise) from our network expansion. Our carbon intensity per RM value added incre emission per customer rose to 13.5 kg CO2e. CARBON EMISSION 2017 13.5 Our largest carbon emission is from Scope 2, purchased electricity from grid, which primary iniave is to reduce our dependency on diesel. We progressively transform a significant number of our transmission sites located off the naonal PER END USE CUSTOMER electricity grid (off-grid) to run on electricity rather than diesel-powered generator sets. We have also converted more than unit : Kg CO2e Per Customer 2016 11.6 600 cabin sites from air-condioning to fan more robust outdoor equipment to stabilise our electricity consumpon. *Our boundary for carbon reporng only covers emissions from Digi Telecommunicaons Sdn Bhd. Emissions from our network, which In the year, we have realised carbon savings in Scope 1 and Scope 3 as we reduced flights. We disclose our carbon emissions to accounts for our largest emissions, operate under this company. It does not include subsidiaries, outsourcing services or joint ventures. 2015 11.2 the Carbon Disclosure Project as part of The Telenor Group.

23 Climate change and environment

GENERAL WASTE SUSTAINABLE WORKPLACE

At Digi, we recognise the importance of protecng the environment and we seek to embed environmentally sustainable GENERAL WASTE AND RECYCLING RATES work pracces into our daily operaons to minimise our environmental impact and reduce wastage of resources. Some common work pracces in Digi include reuse and recycling facilies, carpooling and green vehicles iniaves, responsible consumpon of paper and a ban on usage of environmental hazards such as styrofoam, balloons and plasc cutleries. WASTE COLLECTED WASTE RECYCLED WASTE GENERATED PER EMPLOYEE (KG) We became the first operator in Malaysia to receive the Leadership in Energy and Environmental Design (LEED) Gold cerficaon from the US Green Building Council (USGBC) for Digi’s refurbished headquarters in Subang Jaya. In 2017, we upgraded our Environmental Management System (EMS) to the latest ISO 14001:2015 standard as part of our 2017 commitment to best internaonal pracce. 284 13

308 2016 14 160 150 141

334 2015 19 2015 2016 2017

unit : tonnes unit : tonnes INFRASTRUCTURE SHARING ELECTRICAL WASTE Sharing of network infrastructure is a growing industry iniave to bring the benefits of mobile communicaon to more The growing amount of e-waste not properly disposed of has health OBSOLETE ELECTRICAL & people. Through an industry agreed methodology, the common sharing unit was developed to monitor the extent of and environmental implicaons. E-waste directly produced from our ELECTRONIC WASTE sharing between companies. As we increase our iniaves to share sites, this enhances our ability to deliver affordable, operaons is managed under the Environmental Quality (Scheduled high-quality digital services, while decommissioning common sites to reduce our energy consumpon. Wastes) Regulaon 2005 and our E-Waste Guidelines. COLLECTED RECYCLED

NETWORK EQUIPMENT WASTE MANAGEMENT Decommissioned network equipment constutes the largest 343 WATER amount of e- waste generated by tonnes. We reuse equipment, and send those that are obsolete to recycle and be disposed of safely by 260 In 2017, in line with our Leadership in Energy and Environmental Design (LEED) Gold cerficaon, we recorded a 15% a licensed vendor. Our target is to achieve 100% recycling rate of reducon in water usage across all our operaons naonwide and a decrease in our waste generaon. decommissioned electrical and electronic equipments.

WATER PER MOBILE PHONES CONSUMPTION EMPLOYEE We connue with our collecon of old mobile phones for 69 unit : m3 unit : m3 responsible disposal through our e-recycling boxes in all Digi stores. 111,053 118,865 101,328 53 58 51 40 This is in collaboraon with the Mobile e-Waste: Old Phone New 18 3

Life iniave which is a joint recycling and awareness iniave by : tonnes unit : tonnes unit the Malaysian Communicaons and Mulmedia Commission, 2017 2016 2015 2017 2016 2015 2015 2016 2017 2015 2016 2017 Malaysian Technical and Standards Forum Berhad, and the industry.

24 Empower societies

EMPOWER SOCIETIES

As more services become available online, connecvity becomes a necessity to enrich lives and empower sociees.

OUR APPROACH Connecng you to what maers most - empower sociees. We believe that the internet is a great equaliser. Our outreach programmes are designed to enable Digital Inclusion and to build Digital Resilience in delivering on our commitment to help reduce inequalies among the underprivileged and underserved communies.

EMPOWER SOCIETIES

ENABLING BUILDING DIGITAL INCLUSION DIGITAL RESILIENCE

25 Empower societies

PARTNERING IN DIGITAL TO REDUCE INEQUALITIES We are commied to the United Naon’s (UN) Sustainable Development Goals (SDG), focusing on SDG 10 - Reduced Inequalies. In 2017, we hosted a roundtable session to express our commitment to reduce inequality through partnerships with like minded organisaons. ENABLING DIGITAL INCLUSION Connected sociees are empowered sociees. In enabling digital inclusion, we empower the underserved and Together with partners, we aim to collecvely deliver soluons that can address social, economic and underprivileged communies with digital soluon, paving the way for balanced opportunity and equitable sociees. environmental needs to close inequality gaps. LEARNING SIGN LANGUAGE FOR EVERYONE

EDDY is a sign language mobile app for the deaf community and anyone looking to learn the Malaysian Sign Language. EDDY is designed as an educaon aide, and also a communicaons tool that is able to translate sign language on-the-go.

The idea of digitalising the sign language was mooted by Zuhairy Zulkiflee when he parcipated and emerged as the winner of Digi Challenge for Change Season 7 Programme.

EDDY is downloadable from Google Play Store for free.

EASY ACCESS TO LOCAL INFORMATION Towards this end, we have FOR CANCER PATIENTS idenfied two focus areas - In collaboraon with the Naonal Cancer Society Malaysia Enabling Digital Inclusion and (NCSM), Digi built a virtual resource and support mobile app Building Digital Resilience. known as Stronger than Cancer, to empower paents, caregivers, family and friends affected by cancer. It is a one- It is our Digital Inclusion stop community mobile plaorm to facilitate quicker, reliable aspiraon to bring the benefits and trustworthy sharing of informaon related to cancer. of digital access and outreach to The idea was the brainchild of Chrisne Cheah (parcipant of all segments of society. the Telenor Youth Forum 2014) and she envisioned a strong support network for cancer paents, who could reach out In parallel, on Building Digital anyme and from anywhere. Resilience, is our commitment to nurture digital cizenship by helping build digital resilience Stronger Than Cancer is downloadable from Apple and among schoolchildren, with over Google Play Store for free. 340,000 trained since 2011.

26 Empower societies

PUSAT INTERNET 1MALAYSIA (PI1M) 1 MALAYSIA INTERNET CENTRES

Together with the Malaysian Communicaons and Mulmedia Commission (MCMC), we operate 132 ‘1Malaysia Internet Centres’ located in sub-urban and rural areas across Malaysia. Besides providing free high speed internet services, these centres also provide meaningful trainings and upskilling of locally employed managers and assistant managers who are tasked to run educaonal classes for children residing in those communies.

BUILDING DIGITAL RESILIENCE Building Digital Resilience is our commitment to nurture digital cizenship by helping build digital resilience among schoolchildren. With more children accessing the internet at an early age, we have the responsibility as an internet provider to educate them on safe and responsible use of the internet. We organise cybersafety workshops and local content, as well as spearheaded thought leadership around the growing concern for online risks. In 2017, we engaged more than 140, 887 students naonwide through different programmes which were carried out in collaboraon with the government and partners such as the Ministry of Educaon, DIGITAL LEARNING FOR Malaysian Communicaons and Mulmedia Commission (MCMC), CyberSecurity Malaysia, Royal Malaysian Police (PDRM), Federaon of Reproducve Health Associaon Malaysia (FRHAM), UNICEF, R.AGE (TheStar), HOSPITALISED CHILDREN WOMEN:girls (NGO), Petrosains and NagaDDB Tribal.

Together with a technology social enterprise SOLS 24/7, we equipped 15 Sekolah Dalam Hospital (SDH, School in Hospitals) DIGI DIGITAL CITY SHOWCASE IN naonwide with 30 laptops, 15 tablets, and PETROSAINS internet connecvity to enable digital learning for children who are undergoing In March 2017, we launched Digi’s Digital City at long-term treatment at hospitals to ensure Petrosains. The experienal exhibit is aimed at they are not le behind in their studies. More educang and engaging children on posive digital than 700 children were engaged in the first behaviours and creang awareness towards various pilot school programme, held in the SDH at internet risks including cyberbullying and online Hospital University Kebangsaan Malaysia. predators (cybergrooming).

FIGHT AGAINST PREDATORS PSA

LEARNING ROBOTICS FOR RURAL STUDENTS VIDEO

The video sheds light on how easily one can track In partnership with Petrosains, we organised a roboc programme, ‘Young individuals especially children, through social media if PI1M Inventors Challenge’, to provide secondary school students in rural the safety and privacy features are not ulised. communies the opportunity to learn basic designing, coding and Through the video, we hope to bring aenon to proximity sensor skills. Hosted at 1Malaysia Internet Centres (PI1Ms), this both parents and youth alike on common ways used eight-month programme engaged about 144 students from surrounding by cyber-predators to prey on children. For more schools near our 48 PI1Ms. informaon, visit digi.my/predator.

27 Empower societies

DIGI CYBERSAFETM EXHIBIT AT BIG BAD WOLF

In conjuncon with the largest book fair in Malaysia, we hosted an experienal and educaonal exhibit to educate parents and children on cyber safety. During the 10-day 24- hour exhibit marathon, we managed to engage over 5,000 visitors. With acvies such as games to idenfy online predators, understanding online personalies, and advocang good while avoiding bad behaviours on the internet.

ASEAN CHILD ONLINE PROTECTION (COP) YOUTH CAMP

Digi partnered with UNICEF Malaysia and the Malaysian Communicaons and Mulmedia Commission (MCMC) to organise the ASEAN Child Online Protecon (COP) 2D1N youth camp. This was in support of the ASEAN Child Online Protecon Seminar 2017 themed ‘Nurturing Cyber Wellness For Connected Children’. We also facilitated a child panel discussion and parcipated as one of the expert panelists alongside regional experts from Facebook and Google. In the seminar, Digi was also recognised by the Ministry of Educaon as an industry leader in advocang safer internet in Malaysia.

#SAYASAYANGSAYA TOWNHALL SESSIONS

Together with UNICEF Malaysia, WOMEN:girls, R.AGE and with RESEARCH WORKSHOP: HOW DO LAUNCH OF 2017 experts from the Royal Malaysian Police and the Federaon of Reproducve Health Malaysia, we organised a series of YOUNG MALAYSIANS INTERACT CYBERBULLYING SURVEY naonwide youth-friendly townhall that featured interacve WITH TECHNOLOGY panel sessions acvely discussing issues like online sexual Digi launched its third instalment of cyberbullying survey in November 2017. The survey seeks to violence, teen relaonships, reproducve health and sexuality. Digi partnered with UNICEF Malaysia as part of understand the effecveness of digital resiliency These townhall sessions, conducted at 8 states - Kedah, Penang, UNICEF’s State of the World Children 2017 research strategies adopted by secondary school students, Terengganu, Kelantan, Pahang, Johor, Sabah and Sarawak saw workshop to understand children’s perspecves on life and correlaons between their online behavioural the parcipaon of over 1,500 students from 318 schools. in the digital age. In two separate full day sessions with paerns and cyberbullying. The collated responses children selected from the urban and semi-urban Coinciding with the townhall, we also produced a youth ancipated from thousands of students communies, the children share their views on how and guidebook with UNICEF Malaysia focused on the topic of naonwide will potenally be the largest why they use digital technologies in their everyday lives, cybergrooming. The guide is available for download here. behavioural repository of cyberbullying study in as well as their aspiraons for the future of our digitally Malaysia. mediated world. The report is available at here.

28 ABOUT OUR DISCLOSURE GRI DATA GRI

29 ABOUT OUR DISCLOSURE

ABOUT OUR DISCLOSURE

Our 2017 report is our eighth Sustainability Report and the seventh Communicaon on Progress (COP) to the UN Global Compact. Our last Sustainability Report was published on May 14th, 2017.

SCOPE COMPLETENESS: ASPECTS AND BOUNDARIES Our sustainability disclosure covers only our wholly owned The procedure of compiling sustainability disclosure is in subsidiary Digi Telecommunicaons Sdn Bhd, which is the accordance with the Telenor Group Non-Financial Material issue Material Aspect Boundary Key stakeholders core of our business operaons. Reporng Procedures, and Digi’s Standard Operang

Policy and Procedures on Sustainability Reporng. These • Employees CORPORATE STRUCTURE policies and procedures provide guidance on the scope • Customers and boundaries of reporng, roles and responsibilies, Service reliability and • Product and service labelling • Internal • Communicaons & Mulmedia quality • Compliance • External Consumer Forum of Malaysia internal control processes, and definions for all reported • Malaysia Communicaons & 100% Digi.com Berhad parameters. Since 2011, we have obtained an Mulmedia Commission (MCMC) Independent Limited Assurance statement. • • Digi Telecommunicaons Sdn Bhd Ethics and Internal and with our Employees • An-corrupon • Suppliers an-corrupon external suppliers Digi Services Sdn Bhd and pares • Partners Y3llownaon Sdn Bhd COMPLETENESS: • Supplier Assessment • Contractors (formerly known as Pay By Mobile Sdn Bhd) ASPECTS AND BOUNDARIES Supply chain (Environment, labour pracces, society, • External • Suppliers Y3llowlabs Sdn Bhd human rights) • Vendors (formerly known as DJuice Com Sdn Bhd) We have idenfied 15 aspects to be disclosed in this • Occupaonal Health and Safety report. These aspects were idenfied as issues linked to • Training and Educaon • Diversity and Equal Opportunity the materiality matrix and our commitment to the UNGC. Employees • Internal • Employees • Non-discriminaon REPORTING PERIOD Issues relang to these aspects are addressed through our • Freedom of Associaon and Collecve various engagement with our stakeholders. Bargaining Unless otherwise stated, all data covers the calendar year • Telenor Group • Energy • Internal • Carbon Disclosure Project 1 January to 31 December. We have included two years of Energy efficiency • Emissions • External • Project historically tracked data for key indicators. AUDIENCE AND ACCESSIBILITY • Environmental NGOs • Customer privacy • Employees • Internal Data security and Privacy • Human rights • Customers Informaon of our sustainability performance can also be • External REPORTING PRINCIPLES • Compliance • Privacy Commission found in the sustainability secon of the annual report. • Safe Use We are guided by the Global Reporng Iniave 4.0 Digital responsibility • Customer health and safety • External Our sustainability disclosure has been wrien in response • CyberSAFETM (Core) and focus on meeng the Principles of Defining to engagement and queries of investors and analyst, Report Content, Quality & Boundary. We also adhere to • Challenge For Change regulators, current and potenal employees. • Wanita Era Digital • Internal meet established reporng standards such as the Enabling services • Local communies • Telenor Youth Forum • External Greenhouse Gas Emissions Protocol, Carbon Disclosure • Strategic partners • Relevant government ministries Project, and the UN Global Compact

30 GRI DATA

RESPONSIBLE BUSINESS CLIMATE CHANGE & ENVIRONMENT

Unit 2015 2016 2017 Unit 2015 2016 2017

An-Corrupon Carbon Emissions Material cases of corrupon Number 0 1 0 Air travel Tonnes CO2e 1,394.21 1,344.11 948.77 Supply Chain Sustainability Leased vehicles Tonnes CO2e 233.70 567.44 833.43 Signed Agreement of Business Conduct* Number 120 119 165 2 Self Assessment Risk indicator % 55 55 50 Total carbon emissions* Tonnes CO e 135,262.55 142,835.52 157,970 Inspecons conducted Number 887 984 898 Carbon emission per customer Kg CO2e/customer 11.2 11.6 13.5

Incidents of major non-compliance1 Number 8 10 1 Other environment indicators

Incidents of minor non-compliance2 Number 154 92 3 E-waste collected Tonnes 343 18 69 Contractors suspended <6 months Number 1 3 2 Municipal waste Tonnes 333.65 308.17 284 Contractors terminated Number 7 8 5 Water consumpon m3 111,054 118,865.67 101,328 Fatalies3 Number 1 0 0 Supplier training Hours 2,500 2,050 2,690 WINNING TEAM 100 100 100 % of contracts

Gender CLIMATE CHANGE & ENVIRONMENT Male Numbers 1,174 1,140 1,117

Unit 2015 2016 2017 Female Numbers 907 902 891

Energy Consumpon Total Numbers 2,081 2,042 2008 100.98 116.75 109.71 Total direct energy used* GWh Race Network GWh 86.30 101.22 96.32 Bumi % - 3 3 Fleet GWh 14.57 15.49 13.33 Malay % 36 33 33 Buildings GWh 0.11 0.04 0.06 Chinese % 45 46 45 Total indirect energy used* GWh 163.26 167.08 193.94 Indian % 15 15 16 Network GWh 155.01 159.58 187.12 Others % 4 3 3 Buildings GWh 8.25 7.50 6.82 Age Total energy consumpon* GWh 264.24 283.83 303.64 < 35 % Energy intensity* KWh/RM revenue 0.038 0.046 0.051 17 22 44 Energy use per end use customer KWh/customer 21.8 23.1 26.0 36-55 % 82 73 53 Solar power generated (Network)* GWh 0.60 0.52 0.50 >55 % 1 5 2 Carbon Emissions Other indicators

Total Scope 1 emissions* Tonnes CO2e 22,048.25 26,351.00 24,261.59 % of women in leadership 4* % 34 40 45

Network Tonnes CO2e 21,036.45 25,430.15 23,478.29 Employee Engagement Index (EEI) Score % 76 76 74

2 Fleet vehicles Tonnes CO e 995.78 918.70 770.38 Lost Time Injury Frequency 5* No/Million hrs 0 0.23 0 Building Tonnes CO2e 16.02 2.15 12.92 % of employees under bargaining agreement % 31 33 32.3 Total Scope 2 emissions* Tonnes CO2e 111,586.39 114,572.97 131,926.08 Average total training hours 6* Hours N/A 14.2 27.29 Network Tonnes CO2e 105,925.71 109,475.06 127,274.84 Employees that completed the “TDP Dialogue” and follow up % of Employees 93 50 40 6* Buildings Tonnes CO2e 5,660.68 5,097.91 4,651.24 Turnover (Male) 7* Numbers 168 192 160

Total Scope 3 emissions* Tonnes CO2e 1,627.91 1,911.55 1,782.19 Turnover (Female) 7* Numbers 117 147 108

1 Major non-compliance includes climbing base station without a Work At Height Permit, safety harness, and safety shoes on site 4 Based on CXO minus 2 level managers only. Does not include specialist. 2 Minor non-compliance includes illegal labour, no first aid kits, no fire extinguisher. 5 LTIF is based on 9 working hours x actual working days in a year (minus leave and public holidays) x number of employees 3 Fatalities of any worker of contractors or sub contractor 6 Based on total training hours / no. of employees. Physical training hours is based on 8 hours (does not include lunch). Training hours for D’Academy (mandatory, programme, soft skills complete and completed) are based on system. Online training on Lynda.com is based on system. Udacity is based on numbers of graduated x hours of videos for the course. Training hours do not include hours from D’Academy (Processes). * KPMG has provided a limited external assurance of select indicators presented in this secon of the Annual Report. The limited external assurance report can be found on 7 This number includes Digi employees, voluntary and involuntary resignation. page 171 to 173 of the Digi.Com Berhad Annual Report 2017. 8 In previous year, all employees had to complete their review and dialogue by 31 Dec. 31 GRI TABLE

GRI TABLE

DMA and Indicators Compliance Cross reference or direct answer GENERAL STANDARD DISCLOSURES

Identified material aspects and boundaries DMA and Indicators Compliance Cross reference or direct answer Entities included in the organisation’s consolidated G4-17 Full Annual Report 2017 financial statements or equivalent documents Strategy and Analysis Process for defining report content and the Aspect G4-18 Full Materiality CEO's Statement Boundaries G4-1 Statement from the most senior decision-maker of the Full CEO’s Message Material Aspects identified in the process for defining G4-19 Full Materiality organisation Chairman's Statement report content

Organisational Profile G4-20 Aspect Boundary within the organisation Full About Our Disclosure

G4-3 Name of the organisation Full About Our Disclosure G4-21 Aspect Boundary outside the organisation Full About Our Disclosure

G4-4 Primary brands, products and services Full Management Discussion and Analysis

G4-5 Headquarters location Full Notes to Financial Statement G4-22 Restatements of information provided in previous Full There is no change from pervious report reports G4-6 Countries of operation Full Digi only operates in Malaysia.

G4-7 Nature of ownership and legal form Full Notes to Financial Statement Significant changes from previous reporting in the G4-23 Full There is no change from previous report G4-8 Markets served Full Management Discussion and Analysis Scope and Aspect Boundaries

G4-9 Scale of the organisation Full Management Discussion and Analysis Stakeholder Engagement

G4-10 Organisation’s workforce Full Winning Team G4-24 List of stakeholder groups engaged by the organisation Full Stakeholders Basis for identification and selection of stakeholders G4-25 Full Stakeholders G4-11 Total employees covered by collective bargaining Full 32.3% of employees are covered by collective bargaining with whom to engage agreements agreement as at 31 Dec 2017. Approach to stakeholder engagement, including G4-26 frequency of engagement by type and by stakeholder Full Stakeholders Supply Chain Sustainability group G4-12 Organisation’s supply chain Full Telenor Sustainability Report Key topics and concerns that have been raised G4-27 through stakeholder engagement, and how the Full Stakeholders organisation has responded to those key topics and Significant changes during the reporting period G4-13 Full There was no significant change concerns, including through it reporting regarding size, structure, ownership or its supply chain

Report Profile

G4-28 Reporting period Full About Our Disclosure Explanation of whether and how the precautionary Code of Conduct G4-14 approach or principles is addressed by the Full Climate Change and Environment organisation G4-29 Date of most recent previous report Full About Our Disclosure

G4-30 Reporting cycle Full About Our Disclosure Externally developed economic, environmental and About Our Disclosure G4-15 social charters, principles or other initiatives Full Sustainability Governance G4-31 Contact point Full About Our Disclosure

G4-32 GRI content index Full This page

As part of Telenor Group, we are members of the GSMA, G4-33 External assurance Full Assurance Statement The Telecommunications Industry Dialogue, which has observer status in the GNI, and the Global e- Sustainability Initiative. Governance Memberships of associations and national/ G4-16 Full Digi is a signatory to the UN Global Compact and a international advocacy organisations G4-34 Organisation’s governance structure Full Statement on Corporate Governance member of the Malaysia Compact.

Digi is a member of Business Integrity Alliance (BIA), a Ethics & Integrity private sector initiative comprising of companies Organisation’s values, principles, standards and norms Statement on Corporate Governance committed to doing business with integrity G4-56 Full of behaviours Ethics and Compliance

32 GRI TABLE

Material Aspects DMA and Indicators Compliance Comments SPECIFIC STANDARD DISCLOSURES

Effluents and waste G4-EN23 Total weight of waste by type and disposal Full Data: Climate and Environment Material Aspects DMA and Indicators Compliance Comments method Products and Services G4-EN27 Initiatives to mitigate environmental impacts of Full Climate and Environment products and services, and extent of impact Economic Monetary value of significant fines and total Compliance - number of non-monetary sanctions for non- There was no case of non-compliance Digi contributes directly through license, fees, taxes, G4-EN29 Full contribution to the Universal Service Provision, job Environmental compliance with environmental laws and in 2017 creation, and support to local business partners. regulations Economic performance Management Approach Indirectly, our core offering of mobile internet is an Significant environmental impacts of Climate and Environment enabler of socio economic development of the transporting products and other goods and Transportation accounts for less than Transport G4-EN30 Full country. materials for the organisations’ operations, and 3% of Digi’s total CO2 emissions, and Financial Summary: Statement of transporting members of the workforce does not have significant impact. Direct economic value generated and G4-EC1 Full Comprehensive Income distributed Supply Chain Sustainability Telenor Sustainability Report Digi evaluates current and Financial implications and other risks and CEO's Statement Suppliers environmental Percentage of new suppliers that were screened prospective suppliers to identify risks G4-EN32 Full G4-EC2 opportunities for the organisation’s activities Full Climate Change and Environment assessment using environmental criteria of violation of Supplier Conduct due to climate change Telenor Group’s Carbon Reporting Principles. Contracts above Notes to Financial Statement: USD250,000 have an environmental G4-EC3 Coverage of the organisation’s defined Full Employee Benefits, Profit Before Tax, component as part of sourcing benefits plan obligations Defined Benefit Plans. Significant actual and potential negative G4-EN33 environmental impacts in the supply chain and Full None reported in 2017 G4-EC4 Financial assistance received from Full Statement of Cash Flow government actions taken Ratios of standard entry level wage by Digi’s standard entry level wage is Environmental Grievance Number of grievances about environmental Full None reported in 2017 Market presence G4-EC5 gender compared to local minimum wage at Full more than the gazetted minimum Mechanisms impacts filed, addressed, and resolved through significant locations of operations wage. formal grievance Management Profile Social Winning Team Proportion of senior management hired from We are an equal opportunity Labour practices and decent work G4-EC6 the local community at significant locations Full employer and all positions are open of operation to local candidates. Selection is based Our Purpose on best fit to meet specific needs of Management Approach Ethics and Compliance the role. Winning Team Our Present Total number and rates of new employee hires Indirect economic Development and impact of infrastructure G4-EC7 Full Telenor Sustainability Report Employment G4-LA1 and employee turnover by age group, gender Partial Data: Winning Team impacts investments and services supported Empower Societies and region Significant indirect economic impacts, Ethics & Compliance Digi hires temporary employees from G4-EC8 Full Benefits provided to full-time employees that including the extent of impacts Telenor Sustainability Report third party agencies and they are not G4-LA2 are not provided to temporary or part-time Partial entitled to any benefits given to Procurement practices G4-EC9 Proportion of spending on local suppliers at Full Telenor Sustainability Report employees, by significant locations of operations significant locations of operation Digi’s full time employees. Minimum notice period regarding significant Digi gives one month notice to inform Environmental G4-LA4 operational changes, including whether it is Full all employees of operational changes specified in collective agreements. that result in loss of employment. Management approach Climate Change and Environment Percentage of total workforce represented in We comply with the regulation which Energy G4-EN3 Energy consumption within the organisation Full Climate Change and Environment Occupational health and G4-LA5 formal joint management-worker health and Partial stipulates that there shall not be less safety safety committees that help monitor and advise than four representatives each from on occupational health and safety programmes the employees and the management. G4-EN4 Energy consumption outside the Full Climate Change and Environment organisation Type of injury and rates of injury, occupational G4-EN5 Energy intensity Full Climate Change and Environment diseases, lost days, and absenteeism, and total G4-LA6 Full Supply Chain Sustainability number of work-related fatalities, by region and G4-EN6 Reduction of energy consumption Full Climate Change and Environment gender Data: Digi organises education, training, Workers with high incidence or high risk of counselling, prevention and risk Water G4-EN8 Total water withdrawal by source Full Climate Change and Environment G4-LA7 Full Our water is from the local municipal. diseases related to their occupation control programmes related to outbreaks. Emissions G4-EN15 Direct GHG emissions (Scope 1) Full Climate Change and Environment Health and safety topics covered in formal Health and safety covers all G4-LA8 Full agreements with trade unions employees regardless of union G4-EN16 Indirect GHG emissions (Scope 2) Full Climate Change and Environment membership. Training and education G4-LA9 Average hours of training per year per employee Partial GRI DATA G4-EN17 Other indirect GHG emissions (Scope 3) Full Climate Change and Environment per gender, and by employee category Programmes for skills management and lifelong G4-EN18 GHG emissions intensity Full Climate Change and Environment learning that support the continued G4-LA10 Full Winning Team employability of employees and assist them in G4-EN19 Reduction of GHG emissions Full Climate Change and Environment managing career endings

33 GRI TABLE

Material Aspects DMA and Indicators Compliance Comments Material Aspects DMA and Indicators Compliance Comments

Percentage of employees receiving regular GRI Data G4-LA11 Partial Digi evaluate its operations for risks performance and career development review 40% as at 31 Dec 2017 of violations to our code of conduct, Composition of governance bodies and Supplier Human Rights G4-HR10 Percentage of new suppliers that were screened Full Supplier Conduct Principles, Diversity and equal breakdown of employees per employee category Directors Profiles Assessment using human rights criteria Agreement of Business Conduct, and G4-LA12 Partial opportunity according to gender, age group, minority group Winning Team UN Guiding Principles of Business membership, and other indicators of diversity and Human Rights. Significant suppliers and contractors that have Equal remuneration for Ratio of basic salary and remuneration of Digi practices equal opportunity for G4-HR11 Full Ethics and Compliance G4-LA13 Full undergone screening on human actions taken women and men women to men by employee category, by salaries and remuneration for equal significant locations of operation skills Human Rights Grievance Number of grievances related to human rights There has been no grievance filed in G4-HR12 Full Significant actual and potential negative impacts Mechanism filed, addressed and resolved through formal 2017 G4-LA15 for labour practices in the supply chain and Full Supply Chain Sustainability grievance mechanisms actions taken Society Labour practices Number of grievances about labour practices G4-LA16 Full There were none filed in 2017 grievance mechanisms filed, addressed, and resolved through formal grievance mechanisms Safe Use Management approach Empower Societies Human rights

Management Approach Sustainability Governance Ethics and Compliance All significant investment agreements Empower Societies Percentage and total number of significant Percentage of operations with implemented Digi assesses its operational impact Investment & investment agreements that include human are subject to the terms of our G4-HR1 Full Supplier Conduct Principles which Local communities G4-SO1 local community engagement, impact Partial on communities, and carries out Procurement Practices rights clauses or that have undergone human assessments, and development programmes relevant engagement to address rights screening has adopted UN Guiding Principles on Business and Human Rights. concerns of local authorities and communities. Total hours of employees trained on policies and procedures concerning aspects of human rights Ethics and Compliance Percentage and total number of business units G4-HR2 Partial Anti-corruption G4-SO3 Full Anti-Corruption that are relevant to operations, including analysed for risks related to corruption percentage of employees trained There were no incidents of Total number of incidents of discrimination and discrimination in 2017. We are Non-discrimination G4-HR3 Full G4-SO4 Communication and training on anti-corruption Full Anti-Corruption corrective actions taken committed to promoting equal policies and procedures opportunity

Operations and suppliers identified in which the Digi evaluates current and Digi was fined RM650,000 by the Freedom of association right to exercise freedom of association and prospective suppliers to identify risks Malaysian Communications and G4-HR4 Full and collective bargaining collective bargaining may be violated or at of violations of Supplier Conduct Monetary value of significant fines and total Multimedia Commission for significant risk, and measures taken to support Principles, which includes freedom of Compliance G4-SO8 number of non-monetary sanctions for non- Full breaching the Mandatory Standards these rights association. compliance with laws and regulations for Quality of Service and Guidelines on Regulations of End Users of Prepaid Public Cellular Services.

Digi evaluates current and Supplier assessment for Significant actual and potential negative impacts G4-SO10 Full Supply Chain Sustainability prospective suppliers to identify risks impacts on society on society in the supply chain and actions taken Operations and suppliers identified as having of violations of Supplier Conduct significant risk for incidents of child labour, and Principles, which include clause on Grievance mechanisms Number of grievances about impact on society Child labour G4-HR5 Full G4-SO11 Full There were no cases filed in 2017. measures taken to contribute to the effective child labour. for impacts on society filed, address, and resolve through formal abolition of child labour grievance mechanisms. There were no incidents of child labour in 2017. Product responsibility

Management approach Consumer Responsibility

Operations and suppliers identified as having Digi evaluates current and Percentage of significant product and service Safe Use Forced or compulsory significant risk for incidents of forced or prospective suppliers to identify risks G4-PR1 categories for which health and safety impacts Partial G4-HR6 Full Empower Societies labour compulsory labour, and measures to contribute of violations of Supplier Conduct are assessed for improvements. to the elimination of all forms of forced or Principles, which includes forced compulsory labour labour Total number of incidents of non-compliance Percentage of security personnel trained in the All security personnel have been with regulations and voluntary codes concerning organisation’s policies or procedures concerning trained in basic health, safety, and G4-PR2 the health and safety impacts of products and Full There were no cases filed in 2017. Security Practices G4-HR7 Full aspects of human rights that are relevant to security as part of the requirements services during their life cycle, by type of operations of the Supply Chain Sustainability outcomes

Percentage and total number of operations that Product and service Practices related to customer satisfaction, Sustainability Governance G4-PR5 Full Consumer Responsibility Assessment G4-HR9 have been subject to human rights reviews and/ Full labelling including results of surveys measuring customer or impact assessments satisfaction

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Please direct your enquiries or feedback to

Ms Quah Yean Nie Head of Communicaons & Sustainability [email protected] 03 5721 1800

Visit www.digi.com.my/sustainability to view the online version of this report.

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