Climate Change Data

Axiata Group Berhad

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:1,230,000 tCO2e (2020)
Scope 1 Emissions:47,865 tCO2e (2020)
Scope 2 Emissions:1,183,658 tCO2e (2020)

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Reduced operational network emissions (Scope 1 and 2) by 45% from a 2020 baseline by 2030 (target)
  • edotco planted 38,500 trees since 2018 (including 500 in 2021)

Social Achievements

  • Robi incentivizes solar uptake among employees
  • Dialog provides farmers with smart farming kits
  • XL collaborated with the Ministry of Marine Affairs and Fisheries to increase usage of the Laut Nusantara mobile application

Governance Achievements

  • Established a Board Sustainability Committee (effective April 8, 2022)
  • Integrated climate-related matters within the sustainability governance structure

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero carbon emissions by 2050
Medium-term Goals:
  • Reduce value chain emissions (Scope 3) from indirectly controlled sources
Short-term Goals:
  • Reduce operational network emissions (Scope 1 and 2) by 45% from a 2020 baseline by 2030

Environmental Challenges

  • Connectivity challenges: Growth in data demand
  • Energy challenges: Fossil fuel power & transition to cleaner energy
  • Net-zero challenges: Varying commitments among countries & corporates
Mitigation Strategies
  • Improving network energy efficiency
  • Increasing usage of renewable energy
  • Engaging and collaborating with partners across the value chain
  • Delivering an inclusive climate agenda

Supply Chain Management

Responsible Procurement
  • Incorporating climate and carbon targets into ESG criteria

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SBTi Business Ambition Pledge for 1.5°C, CDP, Greenhouse Gas (GHG) Protocol, TCFD

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:1,391,684.68 tCO2e/year (Scope 1 & 2)
Total Energy Consumption:7.84 million GJ/year
Carbon Intensity:495.5 GJ per million GB in 2022

ESG Focus Areas

  • Digital Societies
  • Green Economy
  • People & Communities
  • Governance & Risk

Environmental Achievements

  • Improved energy intensity of 495.5 GJ per million GB from 674.6 GJ per million GB in baseline year (2020) (Scope 1 and Scope 2 emissions)
  • Rolled out the Axiata Net-Zero Carbon Roadmap with three strategic objectives
  • Commenced the adoption of TCFD recommendations supported by a three-year Roadmap
  • Increased solar sites by 15% to over 4,000

Social Achievements

  • Joined the EDISON Alliance and committed to impacting the lives of 23 million people by 2025
  • Launched Axiata Diversity, Equity and Inclusion (DEI) Framework
  • Axiata Foundation contributed RM16.7 million, benefiting over 22,000 lives
  • 293,943 training hours logged

Governance Achievements

  • Introduced Board Sustainability Committee for enhanced ESG oversight
  • Refreshed the Axiata Sustainability Framework
  • Joined the United Nations Global Compact
  • Launched Axiata’s Cyber Fusion Centre to advocate cyber resilience

Climate Goals & Targets

Long-term Goals:
  • Become net-zero no later than 2050
Medium-term Goals:
  • Reduce operational emissions (Scope 1 and 2) by 45% from a 2020 baseline by 2030
  • 30% women’s representation in Axiata Group Berhad Board of Directors by 2025
Short-term Goals:
  • 30% women’s representation in Axiata Group Berhad’s senior management team by 2025

Environmental Challenges

  • Unfavorable macroeconomic conditions and evolving regulatory priorities in a post-pandemic setting
  • Complex operating and macroeconomic conditions in Sri Lanka, Bangladesh, Nepal, Pakistan, and Myanmar
  • Sri Lanka faced a severe currency crisis
  • Access to renewable electricity (RE) through national grids to meet net-zero targets
Mitigation Strategies
  • Strengthened sustainability governance framework and expanded global partnerships
  • Reassessed and recalibrated strategy to boost business resilience and sustainability (Project Resilience)
  • Launched and rolled out Net-Zero Carbon Roadmap
  • Held a roundtable with Malaysian mobile operators, government agencies, and electricity providers to address challenges in accessing renewables

Supply Chain Management

Supplier Audits: 60% of total spend on local suppliers (Digital Telco, Infrastructure and Corporate Centre)

Responsible Procurement
  • Supplier Code of Conduct
  • ESG factors incorporated into supply chain management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Changes in precipitation patterns
  • Rising mean temperatures
  • Rising sea levels
Transition Risks
  • Policy & Legal risks
  • Technology risks
  • Market & Economic risks
  • Reputational risks
Opportunities
  • Resource Efficiency
  • Energy Source
  • Products & Services
  • Market
  • Resilience

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, UN Sustainable Development Goals (SDGs), TCFD recommendations, Greenhouse Gas (GHG) Protocol, UN Global Compact’s (UNGC) 10 Principles, GSMA ESG Metrics for Mobile, SASB – Telecommunications Services

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers PLT (limited assurance for six key ESG indicators)

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 13
  • Goal 17

Axiata's initiatives contribute to these goals through digital inclusion, climate action, community development, and responsible business practices.

Sustainable Products & Innovation

  • Smart IoT Pack
  • Axonect Hybrid Cloud Orchestrator
  • Laut Nusantara app
  • Govi Mithuru
  • Saru
  • Sayuru

Awards & Recognition

  • FTSE4Good Bursa Malaysia Index
  • S&P Global Corporate Sustainability Assessment
  • World Benchmarking Alliance’s Digital Inclusion Benchmark
  • CDP Score
  • ARC Awards International Honors
  • Frost & Sullivan 2022 Asia-Pacific Telecommunications Group Company of the Year Award
  • MSWG-ASEAN Corporate Governance Award
  • Sustainability Performance Awards 2022 by UN Global Compact Network Malaysia & Brunei
  • Australasian Reporting Awards 2022
  • National Annual Corporate Report Awards (NACRA) 2022
  • MSCI ESG Ratings
  • LinkedIn Talent Awards

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,123,380.36 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:28,767.76 tCO2e/year
Scope 2 Emissions:1,094,612.60 tCO2e/year
Renewable Energy Share:11.7% (Robi)
Total Energy Consumption:6.19 million GJ/year
Waste Generated:1,997.242 tonnes of e-waste (Dialog), 718,143kg of e-waste (Robi)

ESG Focus Areas

  • Climate Change
  • Digital Inclusion
  • Governance
  • Diversity, Equity and Inclusion (DEI)
  • Cyber Resilience
  • Data Privacy

Environmental Achievements

  • Reduced Scope 1 emissions by more than 6% in 2023 vs 2022
  • Submitted near-term and net-zero climate action targets and baseline (FY2022) to SBTi for validation
  • Implemented 776 solar sites totalling 4719.095 kW capacity (Dialog)
  • Generated 14,214 MWh electricity from solar energy (Robi)
  • Reduced carbon emissions by 2,286 tonnes (Robi)

Social Achievements

  • Launched Boost Bank to advance digital inclusion
  • Supported around 0.61 million job opportunities and contributed USD8.71 billion to the GDP across its markets
  • Axiata Foundation impacted more than 13,400 people in 2023
  • Expanded Sisternet women’s empowerment programme (XL)
  • Empowered > 344,000 women entrepreneurs (XL)

Governance Achievements

  • Implemented an ESG model across all OpCos in 2023
  • Completed the integration of climate risk assessment based on the Task Force on Climate-related Disclosures (TCFD) requirements into its Enterprise Risk Management (ERM) policy
  • Improved FTSE Russell ESG rating to 3.6, up from 3.4
  • Maintained AA (Leader) rating by MSCI ESG Ratings
  • Established a Board Investment Committee to provide oversight into strategic investments

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Achieve 30% renewable energy by 2030
Short-term Goals:
  • Reduce water consumption by 10% by 2025

Environmental Challenges

  • Challenging macroeconomic conditions (currency devaluation, inflation, interest rates)
  • Geopolitical risks and political instability in some operating markets
  • Intense competition in the telecommunications sector
  • Rapid technological advancements and the need for continuous investment
  • Talent acquisition and retention challenges
Mitigation Strategies
  • Strategic capital allocation and cost optimization
  • Portfolio realignment and divestment from less promising markets
  • Structural transformation of OpCos (e.g., ServeCo and FibreCo in Indonesia)
  • Debt reduction and improved balance sheet
  • Investment in digital transformation and AI
  • Talent development programs and initiatives to attract and retain talent

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • ESG integration within the supply chain

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters (floods, cyclones)
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services
  • Renewable energy adoption

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, UN SDGs, TCFD recommendations, GHG Protocol, UN Global Compact’s (UNGC) Ten Principles, FTSE4Good Bursa Malaysia requirements, IIRC’s International Framework

Certifications: ISO 27001, ISO 27701, ISO 37001

Third-party Assurance: Independent limited assurance for certain key ESG indicators

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 10 (Reduced Inequalities)
  • Goal 13 (Climate Action)

Axiata's initiatives contribute to these goals through renewable energy adoption, digital infrastructure development, promoting digital inclusion, and climate action targets.

Sustainable Products & Innovation

  • Axonect platform
  • AI-driven solutions

Awards & Recognition

  • FTSE4Good Bursa Malaysia Index
  • FTSE4Good Bursa Malaysia Shariah Index
  • MSCI ESG Ratings (AA)
  • S&P Global Corporate Sustainability Assessment