Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Connecting the nation
• Infrastructure, quality and reliability of networks
• Governance and transparency
• Compliance with laws and regulations
• Talent retention
• Diversity and equal opportunity
• Occupational health and safety
• Waste management
• Climate Change

Environmental Achievements

• Minimised fibre waste generated from operations and achieved a scrap rate of 1.35% on fibre cable issued during the year

Social Achievements

• Recorded employee turnover rate of 6.6%, much lower than the High-Tech Industry rate of 12.6%
• Recorded an average of 21.6 learning hours per employee, an increase of 6.2 hours per employee from the previous year
• Recorded zero incidents of discrimination during the year
• Supported SMEs in their digital transformation through promotional pricing
• Supported the setup of WORK FROM HOME with one-time WFH cash benefit to help employee purchase tables, chairs, monitors or any equipment that will help them work more comfortably at home
• Supporting employees’ LEARNING JOURNEY through adoption of LinkedIn Learning platform where staff can also take courses from home

Governance Achievements

• Maintained zero incidents of corruption and recorded no material breaches of laws and regulations

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and stakeholder needs
• Contractors’ manpower issues due to COVID-19 restrictions
• Climate change risks (physical risks assessed, transition risks to be assessed)

Mitigation Strategies

• Implemented business continuity plans (BCPs)
• Liaised with contractors to manage manpower shortages, decanting workers, and alternative arrangements
• Implemented additional safety measures (WFH, PPE, etc.)
• Assessed physical climate change risks and implemented mitigation measures (sump pumps, absorbent flood pads)
• Exploring measures to improve energy efficiencies and reduce electricity consumption
• Monitoring Singapore government plans to respond to climate change risks

Supply Chain Management

Responsible Procurement

• Comprehensive screening process incorporating occupational health and safety requirements
• Requirement for bizSAFE 3 certification for service contractors

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Increased electricity consumption due to rising temperatures

Reporting Standards

Frameworks Used: GRI Standards Core option, SGX-ST Listing Manual (Rules 711A and 711B)

UN Sustainable Development Goals

• Goal 3 Good Health and Well-being
• Goal 8 Decent Work and Economic Growth
• Goal 9 Industry, Innovation and Infrastructure
• Goal 10 Reduced Inequalities
• Goal 11 Sustainable Cities and Communities

NetLink's initiatives align with these SDGs through various aspects of its operations, including talent retention, waste management, connecting the nation, economic performance, and infrastructure development.

Environmental Metrics

ESG Focus Areas

• Economic performance
• Connecting the nation
• Infrastructure, quality and reliability of network
• Governance & transparency
• Data security and privacy
• Climate change
• Waste management
• Talent retention
• Diversity & equal opportunity
• Occupational health and safety

Environmental Achievements

• Maintained zero cases of non-compliance on waste disposal practices
• Minimised fibre waste generated from operations and achieved a scrap rate of 1% on fibre cable issued during the year
• Set targets to reduce our scope 1 and 2 carbon emissions by 50% by FY30 (using FY22 as a baseline) and achieve net zero by 2050

Social Achievements

• Launched “Listening Ear”, a programme to give a voice to our staff to share their views
• Recorded employee turnover rate of 15.4%, lower than the High-Tech industry turnover rate of 16.5%
• Provided an average of 21.3 learning hours per employee
• Maintained zero incidents of discrimination during the year
• Maintained zero work-related incidents resulting in fatalities or permanent disabilities
• Contributed approximately S$320,000 in cash donations and employees spent approximately 260 hours in volunteering activities

Governance Achievements

• Received 4 awards/recognitions in FY22
• Maintained zero cases of corruption and zero cases of significant breaches of laws and regulations
• Achieved zero incidents relating to data breaches of personal data or company-related confidential data

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic posed challenges to the business and social landscape
• Potential impacts of climate change on operations
• Accidental cutting of underground telecommunication cables by third-party contractors

Mitigation Strategies

• Invested approximately S$62 million to enhance and ensure the robustness of our fibre network
• Reviewed the potential impacts of climate change on our operations to ensure resiliency of our business and operations in the event of disruptions from climate change
• Implemented detailed guidelines and procedures for earthworks contractors, including joint site meetings and trial hole inspections
• Established a robust Business Continuity Management System (“BCMS”) programme, certified under ISO 22301:2019

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Extreme weather patterns
• Rising temperatures
• Rising sea levels

Reporting Standards

Frameworks Used: GRI Standards Core option, SGX-ST Listing Manual (Rules 711A and 711B)

Certifications: ISO 22301:2019, ISO 45001:2018, bizSAFE Star, bizSAFE Partner

Third-party Assurance: Deloitte & Touche LLP (limited assurance)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

NetLink's initiatives contribute to these goals through its business operations, employee well-being programs, economic contributions, infrastructure development, waste management practices, and climate action targets.

Awards & Recognition

• Corporate Excellence and Resilience Award (Large-Cap)
• 1st on the Governance Index for Trusts
• Shareholder Communication Excellence Award
• 4th on the Singapore Governance and Transparency Index

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 31% Scope 1 and 2 emissions reduction from FY22
• Maintained zero incidents of non-compliance on waste disposal practices
• 2.2% scrap rate on fibre cable issued

Social Achievements

• Maintained zero work-related incidents resulting in permanent disability or fatality
• Zero incidents of discrimination reported
• 5,864 total training hours at an average of 17.3 hours per employee
• Maintained 100% islandwide fibre coverage and achieved 99.99% network reliability

Governance Achievements

• Maintained zero incidents of corruption and significant non-compliance with laws or regulations
• Received five awards and recognitions for corporate governance and communications
• Sustained zero incidents of data breaches affecting personal data or company-related confidential data

Climate Goals & Targets

Environmental Challenges

• Geopolitical conflict, global energy crisis, and severe climate-related events affected supply chains, increasing the cost and challenges of procuring key resources.
• Increased flash flood from extreme precipitation, rising sea levels, water scarcity, increase in carbon pricing, increase in heatwaves and extreme temperatures, and rising mean temperatures.
• More stringent regulations and standards for green buildings, products, and services.

Mitigation Strategies

• Series of measures to improve the energy efficiency of Central Offices (COs)
• New CO designed according to BCA-IMDA Green Mark for New Data Centres 2019 Standards
• Progressive electrification of company vehicle fleet
• Engagement with CO customers to explore opportunities to reduce energy use
• Flood adaptation measures in place to ensure service resiliency (elevating equipment rooms, sump pumps, clearing drains, mobile flood barriers)
• Incorporating flood risk consideration during planning for cable routes
• Partnerships with key suppliers and contractors to reduce carbon footprint of fibre network construction

Supply Chain Management

Supplier Audits: 714 inspections

Responsible Procurement

• Supplier Code of Conduct (minimising environmental and social impacts, compliance with laws, upholding human rights, zero-tolerance on corruption)

Climate-Related Risks & Opportunities

Physical Risks

• Increased flash flood
• Rising sea levels
• Water scarcity
• Increased heatwaves and extreme temperatures

Transition Risks

• Increase in carbon pricing
• More stringent regulations for green buildings
• Increased emissions from network expansion

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI 2021, TCFD

Certifications: ISO 45001

Third-party Assurance: Deloitte & Touche LLP (limited assurance)

UN Sustainable Development Goals

• Goal 3
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16

Initiatives aligned with SDGs through health and safety, economic growth, infrastructure development, reduced inequalities, responsible consumption and production, climate action, and peace, justice and strong institutions.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Five awards and recognitions for corporate governance and communications

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Water Consumption
• Sustainable Supply Chain
• Health and Safety
• Talent Retention, Training, and Development
• Connecting the Nation
• Governance and Transparency
• Data Security and Privacy
• Economic Performance

Environmental Achievements

• 61.8% Scopes 1 and 2 emissions reduction from FY22 base year.
• Achieved a scrap rate of 1.2% on fibre cable issued.
• Maintained zero incidents of non-compliance on waste disposal practices.

Social Achievements

• Maintained zero work-related incidents that resulted in permanent disability or fatality.
• Recorded employee turnover rate of 14%, lower than the High-Tech industry average turnover rate of 16.7%.
• Conferred the Plaque of Commendation by the Singapore’s National Trades Union Congress (NTUC) for outstanding role in promoting workers’ interests.

Governance Achievements

• Maintained zero incidents of corruption and zero incidents of significant non-compliance with laws or regulations.

Climate Goals & Targets

Environmental Challenges

• Cybersecurity incident affecting internal operations (no impact on fibre broadband connectivity).
• Potential asset value loss due to coastal flooding.
• Increased cooling demand from rising mean temperatures.
• Increased manpower cost from productivity loss due to heat stress.
• Increased insurance costs due to more frequent and intense flooding and rising sea levels.
• Revenue loss due to business disruption from flash floods and coastal flooding.
• Increase in operating costs from rise in carbon pricing.
• Increasingly stringent green building, products, and service requirements.

Mitigation Strategies

• Implemented flood mitigation and adaptation strategy for Central Offices and fibre cable network.
• Engaging with CO customers to explore opportunities for energy reduction.
• Progressively converting fleet to electric vehicles.
• Collaborating with key suppliers and contractors to identify emission hotspots and opportunities to reduce embodied carbon.
• Leveraging influence as a landlord to encourage CO tenants to improve energy and water efficiency.
• Strengthening cybersecurity defence framework.
• Implementing stringent operating procedures for employees and contractors to enforce appropriate control measures, mitigate hazards and report and investigate incidents.

Supply Chain Management

Supplier Audits: 202 inspections

Responsible Procurement

• Supplier Code of Conduct (covering compliance, ethics, human rights, environmental protection)

Climate-Related Risks & Opportunities

Physical Risks

• Coastal flooding
• Flash floods
• Rising mean temperatures

Transition Risks

• Increase in carbon-related costs
• Stringent green building requirements

Opportunities

• Development and/or expansion of low emission goods and services

Reporting Standards

Frameworks Used: GRI 2021, TCFD

Certifications: ISO 45001:2018, ISO 22301:2019

Third-party Assurance: Deloitte & Touche LLP (limited assurance)

UN Sustainable Development Goals

• Goal 3
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 16

NetLink aligns its sustainability commitments with 7 SDGs through its material topics.

Awards & Recognition

• Gold Award for Best Investor Relations
• Highest Growth in PAT Over Three Years Award
• Shareholder Communication Excellence Award
• NTUC-U Care Bronze award
• Charity Platinum award