Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Installed energy-saving ceiling lights to reduce overall electricity usage.

Social Achievements

• Zero breaches in customer privacy in FY2017.
• Set up a “Data Protection Committee” responsible for managing all matters related to Personal Data Protection.

Governance Achievements

• Established three committees: Audit Committee, Nominating Committee, and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Increased competition and high operating costs.
• Decrease in repair volume in After Market Solutions.

Mitigation Strategies

• Restructuring initiative.
• Continued efforts to maintain cost discipline and inventory management.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Awards & Recognition

• Singapore Retailers Association Excellent Service Award (3 Mobile)
• Singtel Top Achiever Award (SDS)
• M1 Exclusive Distributors Award (Handphoneshop)
• Samsung Best Concierge Attachment Rate Award (Samsung Store, Westgate)
• Samsung Best Wearables Attachment Rate Award (Samsung Store, VivoCity)
• Singtel Top Achiever Award (3 Mobile)
• Achievement as a Singapore 1000 Company

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption through renovation and internal policies (installing energy-saving lights, switching off appliances when not in use, encouraging 2-sided printing)
• Use of environmentally friendly shopping bags
• Reduced environmental waste

Social Achievements

• Zero breaches in customer privacy in FY2020
• Deployment of technological measures to safeguard customer and employee data
• Establishment of a Data Protection Committee since 2017

Governance Achievements

• Achieved 51st rank (out of 577 SGX listed companies) in the Singapore Governance and Transparency Index 2020
• Executive Directors and senior management voluntarily took a 10% salary cut from October 2020
• Independent directors took an approximately 25% cut in Directors’ fees from October 2020
• All Executive Directors and Department Heads forewent their bonuses for FY2020

Climate Goals & Targets

Environmental Challenges

• Decline in revenue due to temporary business closures during the Circuit Breaker period in Singapore and the Movement Control Order period in Malaysia, dampening of consumer sentiments, and limited visitor arrivals and tourism receipts due to COVID-19 related travel restrictions
• Termination of the M1 distribution business
• Tsinghua’s bond default
• Lower repair volumes in the After Market Solutions division
• Lower sales volume in the Distribution Management Solutions division due to temporary business closures and cessation of the M1 distribution business
• Lower sales in the Digital Inkjet Printing division due to temporary closure of Pixio’s operations during Malaysia’s MCO period
• Negative total return of 6.92% in 2020 on the Group’s investment portfolio in equities

Mitigation Strategies

• Government support measures, rental assistance and/or rental subsidies from the malls helped navigate the difficult year
• Cost discipline and strengthening revenue streams
• Restructuring of business operations in the 4th quarter of 2020 with the cessation of M1’s distribution business
• Capitalising on business relationships with partners and principals to grow the business
• Progressively reallocating investment mix towards equities in the investment portfolio

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Awards & Recognition

• Singtel Award Top Digital Ambassador (Collect @ Store)
• Excellent Service Award 2020 (3 Mobile Telecom)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption through renovation and internal policies (installing energy-saving lights, switching off appliances when not in use, encouraging double-sided printing).

Social Achievements

• Zero breaches in customer privacy in FY2021.
• Established a Data Protection Committee in 2017 to manage personal data protection.

Governance Achievements

• Established an Audit and Risk Committee, Nominating Committee, and Remuneration Committee to assist the Board.

Climate Goals & Targets

Environmental Challenges

• High energy consumption, particularly in overseas operations.

Mitigation Strategies

• Plans to reduce overall energy consumption, especially electricity consumption in overseas operations. Investing in innovative and practical solutions to improve energy efficiency.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption through energy-saving ceiling lights and internal policies to switch off appliances when not in use.
• Use of environmentally friendly shopping bags and reduced environmental waste.

Social Achievements

• Zero reported incidents concerning breaches in customer privacy in FY2022.
• Zero reported discrimination incidents across operating markets in FY2022.
• Zero incidents of non-compliance with regulations concerning product and service information and labelling in FY2022.
• Zero fatalities or reported incidents as a result of work in FY2022.

Governance Achievements

• Zero confirmed incidents of corruption reported in FY2022.
• Established a Data Protection Committee in 2017 responsible for managing personal data protection.
• Annual review of ERM framework and evaluation of sustainability-related risks.

Climate Goals & Targets

Environmental Challenges

• Slower demand for Distribution Management Solutions (DMS) division’s products and services due to strong competition from online platforms and rising costs.
• Inflationary pressure weighing on consumer spending.
• Margin pressure in AMS and DPAS divisions.

Mitigation Strategies

• DMS division pivoting its focus to the MVNO business – ZYM Mobile.
• Disciplined cost and inventory management in AMS and DPAS divisions.
• Exploring potential business opportunities to strengthen revenue streams.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Mandatory climate reporting based on TCFD

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD recommendations

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption through office renovations and energy-saving practices (specific figures provided in MJ, but not as a percentage reduction).

Social Achievements

• Zero reported discrimination incidents.
• Zero fatalities or reported work-related incidents.
• Employee training programs in various areas (product launches, repairs, data protection, climate reporting).

Governance Achievements

• Zero confirmed incidents of corruption.
• Established a Data Protection Committee in 2017.
• Implemented a whistle-blowing policy.

Climate Goals & Targets

Environmental Challenges

• Reduced domestic demand in Malaysia (Digital Inkjet Printing division).
• Non-cash impairment of financial assets (resulting in net loss).
• Margin pressure due to higher costs (AMS and DPAS divisions).

Mitigation Strategies

• Restructuring of debt securities (68% by value successfully restructured).
• Prioritizing operational efficiency and collaborating with brand principals and operators (DMS division).
• Pivot toward MVNO business (ZYM Mobile) for revenue growth.
• Prudent cost management and exploring business opportunities and investments.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Rising mean temperatures and increased extreme weather events.
• Increased frequency and severity of flash floods and soil erosion.

Transition Risks

• Expansion of carbon pricing mechanism.
• Enhanced climate reporting requirements.

Opportunities

• Increased supply chain resilience and adaptability.

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD Recommendations