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Digi Sustainability Report 2017

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Digi Sustainability Report 2017 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 communi5es and consciousness towards the environment. Everyday we connect our customers to what ma4ers 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 plaWorms 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 opera5ons. OUR PURPOSE Connecng you to what ma4ers 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 PlaWorm 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 A]er 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 PlaWorms To Safety Per Customer Per Customer Malaysian Collecve Bargain Empower Sociees !5 Sustainability governance SUSTAINABILITY GOVERNANCE Structured governance to iden5fy and manage business risks and opportuni5es. 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 plaWorm 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 plaWorms 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 plaWorms 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 plaWorms, and some of the key issues addressed. REGULATORS CUSTOMERS EMPLOYEES ENGAGEMENT ❖ Regular reports and informa2on sharing
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