Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by approximately 4% compared to the previous year.

Social Achievements

• Launched Q & M College of Dentistry, Singapore's first private dentistry institution.
• Launched Q & M Dental Group Scholarship Scheme.

Governance Achievements

• Maintained a "zero tolerance" approach towards corruption and dishonest practices.
• No whistle-blowing reports regarding possible improprieties received.

Climate Goals & Targets

Environmental Challenges

• Increased water consumption due to the opening of new specialist clinics.
• Supply chain disruptions due to the COVID-19 pandemic (addressed in 2020).

Mitigation Strategies

• Implemented various initiatives to conserve water (e.g., installation of thimbles in taps, half-flush toilets).
• Entered into a joint venture to secure a steady supply of surgical masks.

Supply Chain Management

Responsible Procurement

• Suppliers are assessed by management in accordance with Group procurement policies.
• Suppliers are encouraged to adopt environmentally friendly practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Sustainability Reporting Guidelines 2016 - Core Option

Awards & Recognition

• Eco-Shop Certification 2017-2020
• Invisalign Diamond Provider Certification 2019

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Social Responsibility
• Environmental Protection

Environmental Achievements

• Installed 15 solar rooftops, reducing electricity consumption by 15-20%
• Implemented a campaign to refrain from using plastic bags
• Implemented a "Shared Bags" project to reduce plastic bag usage
• Improved waste management measures and control
• Used diesel B10 and E20 gasohol to reduce air pollution

Social Achievements

• Received a "very good" score (4 stars) in the Corporate Governance Survey of Thai Listed Companies in 2020
• Received a full score of 100 points from the evaluation of the quality of an Annual General Meeting of Shareholders for the year 2020 by the Thai Investors Association
• Received an award for an Outstanding Workplace in Labor Relations and Welfare 2020 for the Chiang Mai branch
• Organized activities to build relationships between employees and the community
• Organized annual health checks for all employees
• Cooperated with the Ministry of Labour to employ senior citizens
• Received an award "Organization that Supports People with Disabilities at a Good Level for 2020"
• Organized a "Save Cost and New Business Model" Project
• Participated in various community development activities (blood donations, educational support, religious support)

Governance Achievements

• Established a clear organizational structure, chain of command, and roles, duties and responsibilities
• Established an independent internal audit department
• Established a written delegation of authority
• Established a written risk management policy
• Established a written whistleblowing policy
• Established an anti-corruption policy
• Established a Code of Conduct
• Complied with good corporate governance principles for listed companies

Climate Goals & Targets

Environmental Challenges

• Economic slowdown due to the COVID-19 pandemic
• Increased competition in the furniture and home furnishing market
• Shift in consumer behavior towards online channels
• Liquidity risk due to branch closures
• Fluctuations in exchange rates
• Inventory management risk
• Exporting and international business expansion risk
• IT security risk and cyber security risk
• Disruption risk from various crises

Mitigation Strategies

• Expanded online sales channels
• Adjusted product development strategies and product assortments
• Managed expenses and improved internal work processes
• Implemented a natural hedge to prevent currency risk
• Adjusted policies and orders planning processes for inventory management
• Partnered with capable and experienced partners in foreign countries
• Developed a business continuity plan (BCP)
• Implemented preventative measures and managed cyber security risk
• Procured furniture and home furnishing products from other sources

Supply Chain Management

Responsible Procurement

• Comparison of two to three trade partners based on quality, punctuality, price, payment conditions
• Quality control of raw materials according to MIL STD-105E Standard

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Furinbox (ready-to-assemble furniture)
• Invisible Bed

Awards & Recognition

• GERMAN DESIGN AWARD 2020
• Asia Pacific Entrepreneurship Awards 2019
• No.1 Brand Thailand award (2015-2018)
• Thailand’s Most Admired Brand Award (2016-2017)
• Organization that Supports People with Disabilities at a Good Level for 2020

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Reduced energy consumption by 8% to 11,225,155 kWh compared to the previous year.
• Embarked on a renewable energy project at Oriental Metal Industries (OMI) with the implementation of solar panels.

Social Achievements

• Contributed RM300,000 to five non-profit organizations fighting hunger.
• Reduced accident rate by 58% compared to 2020, with a total of 5 reported accidents (no fatalities).

Governance Achievements

• Established the Risk Management and Sustainability Committee (RMSC) to oversee sustainability policies, programs, and practices.

Climate Goals & Targets

Environmental Challenges

• Temporary closure of manufacturing plants due to the pandemic affecting energy consumption.
• Unexpected flood disasters impacting the supply chain.
• Lockdown in the third quarter of 2021 affecting car showrooms and manufacturing production lines.

Mitigation Strategies

• Cost management and portfolio rationalisation measures.
• Implementation of programs and KPI measurements to enhance productivity and operational capacity.
• Strict Standard Operating Procedures (SOP) and health monitoring processes to ensure employee safety during the pandemic.

Supply Chain Management

Responsible Procurement

• Supporting local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Bursa Malaysia guidelines

Environmental Metrics

ESG Focus Areas

• Digital Inclusion
• Climate Change
• Environmental Management
• Fair, Diverse & Inclusive Employment
• Community Development
• Business Ethics & Governance
• Digital Integrity
• Sustainable Supply Chain
• Network Quality & Connectivity
• Customer Experience
• Talent Development & Attraction
• Employee Health, Safety & Wellbeing
• Emergency & Disaster Response
• Sustainable Business Growth
• Digitization & Innovation
• Regulatory & Political Risk

Environmental Achievements

• Improved energy intensity of 495.5 GJ per million GB from 674.6 GJ per million GB in baseline year (2020)
• Increased solar sites to over 4,000 (15% higher than previous year)
• Rolled out Axiata Net-Zero Carbon Roadmap

Social Achievements

• Impacted the lives of around 18.5 million people through various digital inclusion initiatives
• Launched Axiata Diversity, Equity and Inclusion (DEI) Framework
• Launched Axiata Cyber Fusion Centre
• Axiata Young Talent Programme benefited 2,301 Malaysian youths

Governance Achievements

• Established Board Sustainability Committee
• Commenced adoption of TCFD recommendations
• Three-year Privacy Programme improved average Privacy Maturity Level to 3.1 from 1.4 in 2020
• Nearly 100% of employees underwent mandatory training in Anti-Bribery and Anti-Corruption, Cyber Security and Data Privacy

Climate Goals & Targets

Environmental Challenges

• Macroeconomic headwinds in Sri Lanka, Bangladesh, Nepal, Pakistan, and Myanmar
• Sri Lanka faced one of the worst currency crises in history
• Rising costs of food and energy, prolonged power outages, and shortages of essential commodities

Mitigation Strategies

• Project Resilience (Dialog) successfully mitigated escalating operating costs due to inflation and currency depreciation
• Continuous learning and agile operations to respond to external challenges

Supply Chain Management

Supplier Audits: 60% of total spend on local suppliers

Responsible Procurement

• Supplier Code of Conduct
• Embedding ESG within supply chain
• Sourcing local vendors
• Supporting the Bumiputera Empowerment Agenda

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in precipitation patterns
• Rising mean temperatures
• Rising sea levels

Transition Risks

• Increased pricing of GHG emissions
• Mandates and regulations of existing products and services
• Transition to lower emissions technology
• Changing customer behavior and/or investor expectations

Opportunities

• Use of more resource-efficient processes and equipment
• Use of lower-emission sources of energy
• Transition to low emission products and services
• Access to new markets across more climate-conscious consumers
• Increased adaptive capacity to respond to climate change

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, UN Sustainable Development Goals (SDGs), Task Force on Climate-related Financial Disclosures (TCFD) recommendations, Greenhouse Gas (GHG) Protocol, UN Global Compact’s (UNGC) 10 Principles, GSMA ESG Metrics for Mobile, Sustainability Accounting Standards Board (SASB) – Telecommunications Services

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers PLT

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 5
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 13
• Goal 17

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

Sustainable Products & Innovation

• Smart IoT Pack
• ADL Axonect Hybrid Cloud Orchestrator

Awards & Recognition

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

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Management
• Governance
• Occupational Health and Safety
• Diversity and Inclusion
• Human Rights
• Data Privacy

Environmental Achievements

• Reduced Scope 1 and Scope 2 market-based GHG emissions by 17% from 94,432 tCO2e in 2022 to 78,462 tCO2e in 2023.
• Reduced total electricity consumption by 8.3% to 128,751 MWh in 2023 from 140,377 MWh in 2022.
• Ang Mo Kio site uses renewable energy from Senoko Power; Jurong, Marsiling and Woodlands sites switched to renewable energy progressively in the second half of 2023.
• Penang site installed solar panels.
• Implemented energy efficiency improvements across multiple sites (e.g., energy-efficient air conditioning, LED lights, optimized equipment usage).

Social Achievements

• Zero incidents of discrimination reported in 2023.
• Average of 35.8 hours of training per employee in 2023 (5.3% improvement from 2022).
• Launched various community activities (e.g., clean-up drives, charity donations, food distribution).

Governance Achievements

• Zero confirmed incidents of corruption in 2023.
• All executives and above completed annual self-declaration on conflicts of interest.
• Implemented Group-wide XDR system and SIEM for five key sites to enhance cybersecurity.
• Ang Mo Kio site recertified to ISO 27001:2022 ISMS.
• Joined the Responsible Business Alliance (RBA) as an affiliate member.

Climate Goals & Targets

Environmental Challenges

• High Scope 2 GHG emissions due to reliance on grid electricity.
• Managing water usage intensity across sites, particularly in areas with water stress.
• Improving data accuracy for waste management practices.
• Maintaining a low rate of recordable work-related injuries (1.12 in 2023).

Mitigation Strategies

• Procuring green electricity through renewable energy certificates.
• Implementing energy efficiency improvements.
• Regular water consumption reviews and leak detection.
• Working with third-party contractors to improve waste data accuracy.
• OHS training, regular safety assessments, and prompt maintenance to prevent work-related injuries.

Supply Chain Management

Supplier Audits: Surveyed close to 80 top suppliers in 2023.

Responsible Procurement

• Supplier Code of Conduct
• Responsible Minerals Policy
• Anti-Bribery and Anti-Corruption Policy

Climate-Related Risks & Opportunities

Physical Risks

• Higher and more volatile utilities costs due to damaged infrastructure, disrupted supply or rising temperatures

Transition Risks

• Evolving ESG requirements increasing business costs or affecting access to capital; increased procurement costs due to higher raw material prices; increased energy, materials and utilities costs due to rising carbon prices

Opportunities

• Pioneering innovative low-emissions products and services; building a GHG abatement cost curve; adopting circular economy practices; utilizing green financing opportunities.

Reporting Standards

Frameworks Used: GRI Standards, SGX Listing Rules, TCFD recommendations

Certifications: ISO 14001 (most sites), ISO 27001:2022 (Ang Mo Kio site)

Third-party Assurance: Internal Audit Department review; intends to seek external assurance progressively

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products designed with lifecycle approaches, using recyclable and reusable materials; using less water- or energy-intensive and less toxic raw materials.

Awards & Recognition

• Constituent of the FTSE4Good Index Series (December 2023).