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AxiATA Sustainability Report 2016
AxiATA Sustainability Report 2016
AxiATA Sustainability Report 2016
TO DEVELOPMENT
TOWARDS A
DIGITAL FUTURE
SUSTAINABILITY &
NATIONAL CONTRIBUTION
REPORT 2016
MYANMAR MALAYSIA SINGAPORE CAMBODIA INDONESIA
SOUTHEAST ASIA PRESENCE
SOUTH ASIA PRESENCE
PAT
RM 657 million
USD159 million
Approximately
SUBSCRIBERS
320 million
EMPLOYEES 25,000
COUNTRIES 10
CONTENTS 55 PLANET & SOCIETY
58 Environment Management
59 Disaster Management & Response
59 Corporate Responsibility
20 MATERIALITY 86 Nepal
47 PROCESS EXCELLENCE &
GOVERNANCE
91 APPENDIX
50 Best Practices Across the Value Chain
91 List of Abbreviations
52 Customer Centricity
93 Aspect Boundaries
53 Digitising Processes
94 Data in Numbers
54 Strong Governance
GROUP
PROFILE
GROUP
PROFILE
INTRODUCTION
Customers Telecommunications
in Asia Groups in Asia
Beyond Short-
Axiata has controlling interests in six mobile operators under the brand names of Celcom in Malaysia, XL in
Term Profits
Indonesia, Dialog in Sri Lanka, Robi in Bangladesh, Smart in Cambodia and Ncell in Nepal, with strategic interests
in Idea in India and M1 in Singapore.
edotco, our Groups infrastructure company, operates in five countries to deliver telecommunications infrastructure
services, and operates and manages a regional portfolio of over 25,000 towers. It aims to be one of the top regional
tower companies and is committed to responsible and sustainable business operations.
Nurturing People
In 2012, Axiata established Axiata Digital to capture the rapid growth in internet-based businesses. Over the years,
Axiata Digital has built a portfolio of 29 digital brands including three subsidiaries and seven joint ventures, servicing
growing demands in mobile money, mobile advertising, e-commerce, entertainment and education.
Group revenue for 2016 was at RM21.6 billion (USD5.2 billion) while market capitalisation stood at over RM42.3 billion
(USD9.4 billion) by end 2016. We provide employment to more than 25,000 people across Asia.
Process Excellence
& Governance
Axiatas Journey
Axiata was incorporated in Malaysia on 12 June 1992 as a private limited company under the name of Telekom
Malaysia International (TMI), which then operated as a division within Telekom Malaysia Berhad (TM). TMI was
subsequently demerged from TM and listed on Bursa Securities on 28 April 2008. In March 2009, TMI changed its
name to Axiata Group Berhad and launched a new identity, enhancing our position as a leading mobile operator in
Asia.
Since then, we have gone from 40 million customers, pre-demerger, to approximately 320 million across ten
countries, making Axiata one of the leading mobile players in Asia. Our mobile telecommunications footprint now
Our Associates
spans across the Asian continent, covering Malaysia, Indonesia, Sri Lanka, Bangladesh, Cambodia, Nepal, Myanmar,
India, Singapore and Pakistan.
Axiata has always been ahead of the curve, quickly adapting to change and positioning its business model to
capitalise on developments of an increasingly digitalised world. Parallel to its investments in network and technology
Contribution Report
modernisation over the years, Axiata has also evolved its business to embrace the digital age and fast growing
demand for data. 2017 will be a critical year for Axiata as it progresses in its transformation beyond a traditional
National
telecommunications company.
In Advancing Asia, Axiata remains committed to its role as a responsible corporate citizen, to make a difference
in peoples lives and help transform the countries in which it operates. Further details of Axiatas sustainability and
national contribution efforts are now available online at www.axiata.com.
06 INTRODUCTION Axiata Group Berhad | Sustainability & National Contribution Report 2016
ENTITIES
ACROSS ASIA
MOBILE SUBSIDIARIES
Year of Investment/ No. of BTS: Year of Investment/ No. of BTS (2G/3G): Year of Investment/ Technology Deployed:
Shareholding: 24,900 Shareholding: 76,280 Shareholding: GSM, GPRS, EDGE, 3G,
2008/100% 2005/66.36% 1995/83.32% HSPA, 4G LTE (FDD)
Network Coverage No. of BTS (4G):
WiFi, VoLTE, CDMA
Nature of Business: (by population and Nature of Business: 8,204 Nature of Business:
2000, WiMAX, 4G LTE
Mobile technology): Mobile Communication
Network Coverage (TDD), GPON, XGPON,
2G-95.2% Telecommunications Services,
Subscribers: (by population): DTH, IPTV, OTT, MPEG-
3G-90% and Multimedia Services Telecommunications
10.6 Million 2G-93% 4, HEVC, SD, HD
4G-76% Infrastructure Services,
Subscribers: 3G-91%
Technology Deployed: Media and Digital No. of BTS
46.5 Million 4G-53%
GSM, GPRS, EDGE, 3G, Services (2G/3G/4GFDD/TDD):
HSPA+, WiFi, 4G LTE, Technology Deployed: 10,077
Subscribers:
LTE-ADVANCED GSM, GPRS, EDGE, 3G,
11.8 Million Network Coverage
HSPA+, DC-HSPA+,
(by population):
4G LTE
2G-97%
3G-85%
4G(TDD)-53%
4G(FDD)-36%
Year of Investment/ No. of BTS: Year of Investment/ No. of BTS: Year of Investment/ No. of BTS (2G/3G):
Shareholding: 2G-9,295 Shareholding: 2,103 sites on air Shareholding: 3,069 (Co-located:
1996/68.7% 3.5G-5,192 2013/92.5% 2G-2,068 2016/80.0% 1,864, Standalone
3G-2,100 2G: 1,115, Standalone
Nature of Business: Nature of Business: Nature of Business:
Network Coverage 4G-1,261 3G: 90)
Mobile Telecom Mobile Mobile Telecom
(by population):
Operator Operator Network Coverage:
2G-99% Subscribers: Network Coverage
2G Geographical
Subscribers: 3.5G-29% 8.1 Million (by population): Subscribers:
Coverage-48.68%
33.8 Million 2G-98.7% 14.9 Million
Technology Deployed: 2G Population
3G-63.2%
Technology Deployed: GSM, GPRS, EDGE, 3G, Technology Deployed: Coverage-91.97%
4G-52.3%
GSM, GPRS, EDGE, HSPA+, 4G LTE, 4G+ GSM, GPRS, EDGE, 3G Geographical
HSPA+, 3G HSPA+, 3G Coverage-7.46%
3G Population
Coverage-29.59%
AXIATA DIGITAL
Operating in ten countries in Southeast Asia and South Asia and serving approximately 320 million customers,
Axiatas Vision and Mission is defined as follows.
INTRODUCTION
Vision Mission
Beyond Short-
Term Profits
Code of Conduct
Axiata is committed to conduct its business fairly, impartially and in full compliance with all applicable laws and regulations in Malaysia and in
countries where the Group has operations.
The Groups professionalism, honesty and integrity must at all times be upheld in all of the Companys business dealings by all employees.
Nurturing People
Axiata has in place a Code of Conduct that serves as documentation of our commitment in ensuring our business dealings are conducted in a
manner that is efficient, effective and fair. Axiata ensures that it is the responsibility of every employee to act in accordance with the policies
detailed in the Groups Code of Conduct.
Core Values
Process Excellence
& Governance
At Axiata, there are two core values that we embrace across the Group:
Uncompromising Integrity and Exceptional Performance. These two values define who we are and how we operate.
We are committed to upholding the highest standards of We are determined to be the winner, leader and best-in-
lawful and ethical conduct, and in demonstrating honesty, class in what we do. Whilst we are tough with performance
fairness and accountability in all of our dealings. standards, we are compassionate with people - we call it
Performance with a Heart
Our Associates
Uncompromising Integrity and Exceptional Performance are our distinct values and key to our success as a New Generation Digital Champion.
We place great emphasis in building a culture based on these two values across the Axiata Group.
These two core values are incorporated into the existing values of the individual Operating Companies (OpCos) which include, amongst others,
service excellence, teamwork, creativity and customer centricity.
Contribution Report
We are committed to respect and protect the data and privacy of our customers throughout our regional footprint of ten countries across Asia.
Our commitment on privacy and data protection is available on page 108 of our Annual Report 2016.
08 INTRODUCTION Axiata Group Berhad | Sustainability & National Contribution Report 2016
ABOUT THIS
REPORT
This standalone Sustainability Report is a comprehensive document detailing the management of our
business impacts on Economic, Environmental and Social (EES) issues. The 2016 edition is the fourth
volume in our Commitment to Development series, which has been following the Global Reporting
Initiatives G4 (GRI-G4) guidelines since 2013.
While this report should be read as a continuation of our sustainability efforts over the past few years, readers should also note that 2016
marks the first year of activities under Phase 2 of Axiatas sustainability journey. Phase 2 is distinct from Phase 1 in that we are making
greater efforts to harmonise and standardise our sustainability practice across the Group, which includes our Operating Companies (OpCos).
Our Sustainability Report contains detailed information about Axiatas Sustainability Framework, anchored on our 4P approach to
sustainability.
This Sustainability Report should be read together with Axiata Group Berhads Annual Report 2016 for a
comprehensive overview of the Groups financial and non-financial performance for the year under review.
This report describes the scope and boundary of our sustainability Within each chapter which represents the 4Ps, we have highlighted
disclosures, and provides an overview of our management approach, our performance in terms of improvement, innovation, investment
details of our sustainability framework and a description of our and impact (4i):
initiatives under each respective pillar.
As this Sustainability Report has been prepared for the Axiata Group i. Improvement
as a whole, the materiality issues reported herein are those that apply The way in which we enhanced and
to the Group. In cases where our OpCos face unique sustainability improved our activities within the pillar
and/or materiality issues owing to their specific circumstances, the ii. Innovation
relevant passage will be denoted using the OpCos logo. The absence The new innovations and initiatives
of any demarcating symbols indicates that the narrative applies introduced for the pillar
Group-wide, at both the Group level and at the levels of each OpCo. iii. Investment
Our investments in new projects and
Our OpCos have also produced their own standalone sustainability
initiatives under the pillar
reports which provide more detailed analysis of their sustainability
iv. Impact
risks and opportunities. Our OpCos standalone sustainability reports
The socioeconomic impact of our
are available on their official websites listed below. Celcom, as our
OpCo in Malaysia, discloses its initiatives together with the Group in activities under the pillar
this report.
BOUNDARY
INTRODUCTION
Axiatas 2016 Sustainability Report provides detailed disclosure of the Groups management of EES
covers the sustainability risks and opportunities for the financial year ended 31 December 2016. The report is in compliance with
performance of Axiata the GRI-G4 guidelines, addressing 23 material aspects covering 33 identified indicators. Our materiality
including the Operating mapping methodology is specified on pages 20 and 21 of this report.
Companies (OpCos)
Report Boundary G4-17
where Axiata held a
Beyond Short-
majority share for the
Term Profits
This report discusses the sustainability of the Group as a whole. The 2016 volume of our Sustainability
Report differs from past years in that a focused effort was made to harmonise and integrate the
12-month period ending
reporting methods used throughout the Group, including our OpCos. We note that our OpCos operating
31 December 2016. environments may vary significantly from one market to the next, but we have nevertheless made the
attempt to harmonise general reporting areas.
These entities include:
Nurturing People
Independent Limited Assurance
Selected subject matter within this Sustainability Report has been independently assured by Deloitte
PLT (Deloitte) at a limited level as defined by ISAE3000. For more information on the subject matter
and scope of assurance, please refer to Deloittes assurance statement on pages 102 and 103.
Forward-Looking Statements
Process Excellence
& Governance
This report contains forward-looking statements characterised by the use of words and phrases
such as might, forecast, anticipate, project, may, believe, predict, expect, continue,
will, estimate, target, and other similar expressions. As our business operates in a changing
environment, it is subject to uncertainties that could cause actual results to differ from those reflected
in the forward-looking statements.
With the inclusion of Ncell to the Group portfolio in 2016, this report provides details of Ncells
sustainability performance outcomes for the reporting period.
Feedback
We welcome feedback regarding our sustainability framework and our reporting methods.
Our Associates
Please direct all correspondence to
sustainability@axiata.com
Contribution Report
National
10 INTRODUCTION Axiata Group Berhad | Sustainability & National Contribution Report 2016
Dear Stakeholders,
It has been four years since we first introduced our Commitment to Development in line with our broader goal
of Advancing Asia in Axiatas Sustainability and National Contribution Report 2013. This year, we reaffirm this
promise and continue delivering on our sustainability goals to bring the best in innovation, connectivity and
talent to our 320 million customers across Asia. 2016 may have been a challenging year in terms of business
and the operating environment, but it was also a very exciting year for us as we saw several of our longer-term
sustainability initiatives begin to have greater impact.
The year marked our entry into Nepal following the completion of our acquisition of Ncell, the countrys number
one mobile operator, which further strengthened our presence in Asia to ten countries. As we welcomed and
integrated Ncell to the Group, we have included them for the first time this year in our Sustainability Report.
In 2016, Axiata contributed RM57.2 billion (USD13.8 billion) to the collective GDPs of our operating countries,
supported 1.1 million jobs and ensured connectivity for approximately 320 million subscribers with a network
that covers close to two billion people across our ASEAN and South Asian footprint.
While aligned to the international understanding and measures of Economic, Environmental and Social (EES) indicators, Axiatas approach
to sustainability is unique to the nature of the Groups businesses, services and products, operations and reach of customers. Going beyond
the conventional context of sustainability, Axiatas method takes a long-term and holistic view of sustainable business custom in the markets
we operate in, in line with our business strategies, aspirations and vision. The Axiata 4Ps Sustainability Framework underpins our initiatives to
create long-term value for our stakeholders, and pave the way forward for our transition into a New Generation Digital Champion.
INTRODUCTION
Commitment to Beyond Short-Term Profits
In March 2017, Smart launched a similar fund in
As a committed investor in ten countries across Cambodia. Next year, we aim to establish a digital M-Insurance
Asia, with investments extending beyond 20 fund in Sri Lanka. subscribers
years in Malaysia, Bangladesh, Cambodia and Sri across the Group
Lanka, and over ten years in Indonesia, Axiata Mobile for Development
takes a strategic and long-term view of all its On the global stage, Axiata and its Operating
Spent
business decisions. Our decisions on investments, Companies (OpCos) are part of the global
RM26 million
Beyond Short-
Term Profits
capital expenditures, products and services and mobile development effort through our role in
building a digital ecosystem go beyond short-term the GSMA Foundation, which represents the on internal talent
profits and are based on long-term value creation interests and governs the development of the development
for customers, communities and stakeholders we telecommunications industry. We steer mobile programmes in 2016
serve. development in key areas such as the Connected
Women Initiative promoting the use of mobile More than
30,000
Nurturing People
Ensuring Rural Connectivity services to open up possibilities for women in the
Our capex investments in network infrastructure areas of education, healthcare, enterprise and
of our total BTS
for connectivity in these countries go beyond business. Our OpCos, Dialog and Robi, are among
are located in rural areas
high-density areas and cities; they extend to the first GSMA members to have committed to
far-reaching rural areas as well, underlining our Connected Women Initiative projects in Sri Lanka
Employees
commitment to delivering services beyond and Bangladesh respectively.
make up of over
commercial motivation. As at the end of 2016,
40
Process Excellence
Pillar 2
& Governance
more than 30,000 or 44% of our total base
transceiver stations (BTS) are located in rural Commitment to Nurturing People different
regions.
We believe that the sustainability of our business nationalities
Focusing on Digital Inclusivity depends on the quality of our people, the skills of
our workforce and the leaders we develop, both Women make up
In addition to network coverage, we are committed
to digital inclusivity through the development of internally and externally.
30%
Our Associates
Accelerated Development Programme and
per day translates to coverage worth one million
rupees for accidents and 100,000 rupees in cases OpCo Accelerated Development Programme are Connected
of natural death. We continue to explore similar focused on our internal talent development to Women
opportunities for digital inclusivity through our provide them with the skillsets and capabilities
for the Groups long-term success, as Axiata
Initiative
digital services arm, Axiata Digital.
transforms into a New Generation Digital
Champion. With these programmes, we now fill
Contribution Report
corporate venture capital fund in Malaysia, the our OpCos, including the CEOs position, with
Axiata Digital Innovation Fund (ADIF) has now internal talent. At present, five out of eight
committed RM30 million in funding across 12 CEOs at Axiatas major subsidiaries are internally
digital companies. Following ADIFs investment, developed talents.
the investee companies have reported an average
12 INTRODUCTION Axiata Group Berhad | Sustainability & National Contribution Report 2016
efforts and we have seen its multiplier technology and the use of alternative power Moving Forward
effect on economies. We work together sources - also known as our GOOD (Get
INTRODUCTION
with our vendors to develop process and Out of Diesel) programme - have reduced Axiata is intent on making a long-term
operational excellence based on our Group our carbon emissions by 29% and 25% in positive difference in the markets where
Procurement Policy. Through our Group Malaysia and Bangladesh respectively. we operate - from the macro level in terms
Procurement Assessment, three suppliers of contributing to GDP and jobs creation
were recognised at the inaugural Axiata Investing in Disaster Response to the micro level where we develop local
Supplier Awards 2016 for their outstanding A major focus for the Group is investing capabilities and provide assistance to
performance. our resources and technology in disaster targeted communities. We leverage on
Beyond Short-
Term Profits
response, as many of the countries we our role as a tech innovator and a leading
Digitising Everything operate in are prone to natural disasters such mobile innovator to empower and enrich
In becoming a New Generation Digital as tsunamis, earthquakes and floods. The stakeholders, and use our expertise to steer
Champion, Axiata is committed to the Group-wide Disaster Readiness Programme mobile development towards areas that will
digitisation of its internal processes to (DRP) identifies processes, procedures and best enrich and empower the less fortunate
optimise efficiencies within the Group roles of OpCos in responding to natural in our societies. However, we also recognise
Nurturing People
and, on a larger scale, to implement digital disasters in these countries. In 2016, that there is much more that we can do.
tools in the management of our network Ncell signed a landmark Memorandum
infrastructure. On this journey we are also of Understanding (MoU) to provide SMS Sustainability is the responsibility of all. As one
introducing digitisation in our products disaster warning alerts in Nepal. of the first companies in Malaysia producing
to improve customer experience through a sustainability report, we welcome the new
innovations such as Dialogs pioneering Recognition guidelines introduced by the Malaysian stock
Smart Home offering which leverages on exchange regulator requiring companies
Process Excellence
the Internet-of-Things (IoT). Axiatas sustainability performance has to manage and disclose their sustainability
& Governance
been acknowledged at both local and impacts. As for Axiata, we remain committed
Pillar 4 international levels. Ncell received the Global to our sustainability goals and will continue
Commitment to Planet and Society Mobile Award for Mobile in Emergency or to acknowledge that the way we integrate
Humanitarian Situations in 2016 from the and measure our deliverables will become
As a Group, we are mindful of the GSMA. Robi also received the Best Mobile increasingly important as we transition to
environmental impact of our industry. We Innovation for Education and Learning become a New Generation Digital Champion.
Our Associates
target of reducing the carbon footprint governance practice was acknowledged in delivering on our sustainability promises
of our passive infrastructure by 40% from at the Minority Shareholder Watchdog and as we continue on to the next phase of
2013 levels by 2018. Our commitment to Groups (MSWG) Malaysia-ASEAN our sustainability journey.
greener operations is being spearheaded Corporate Governance Awards 2016 where
by the edotco Group, our infrastructure and we received the Excellence Award for ESG
tower company. By the end of 2016, edotco Practices for the fourth consecutive year.
had 480 solar sites and remote monitoring Our sustainability disclosures continued TAN SRI JAMALUDIN IBRAHIM
Contribution Report
systems deployed on approximately 7,000 to receive recognition at ACCAs Malaysia President & Group Chief Executive Officer
National
OUR MANAGEMENT
APPROACH
OUR MANAGEMENT
APPROACH
Moving Forward
Process
Planet and
Excellence and
INTRODUCTION
Society Our sustainability management approach will
Governance
evolve in tandem with our business activities
and operations, which are changing to meet
our goal of becoming a New Generation Digital
Champion. Our management approach will
also change in line with new developments in
Best Practices Across Environment the industry to ensure that our sustainability
Management initiatives remain relevant, and will continue to
Beyond Short-
the Value Chain
Term Profits
address our stakeholders concerns.
Nurturing People
initiatives on education, green initiatives and
Digitising Processes disaster response, and we intend to continue
Corporate intensifying our efforts in this area. Our goal
Responsibility is to ensure that all OpCos are assigned
individual roles in these key areas, and that
these roles harmonise with the rest of the
Group, including the Corporate Centre, to
Process Excellence
Strong Governance
& Governance
maximise the effectiveness of our efforts.
Our Associates
customer experience levels via a set of OpCos deliver corporate responsibility
KPIs. We continue to work on enhancing (CR) initiatives that are designed to
our internal and external processes by empower and enrich the communities
introducing digitisation and automation. and societies where they operate. Under
The Axiata Group is governed by the Axiata Phase 2 of our sustainability journey, we
Regulatory Compliance Framework to have started standardising our CR efforts,
ensure that we comply with the regulatory which has seen all OpCos participate in
Contribution Report
RISK
MANAGEMENT
The Board is responsible and accountable for maintaining the processes of risk management and
internal control practices to safeguard shareholders investments and the Groups assets.
The Board Audit Committee (BAC), via the Axiata Group of the Group Risk Management Department, the GRMC ensures
Risk Management Committee (GRMC), has put in place a risk systematic implementation and monitoring of the effectiveness of
management framework and process to identify, evaluate and a risk management culture and processes across the Group.
monitor principal risks, and implement appropriate internal control
processes and procedures to manage these risks across the Axiatas risk management process is guided and principally
Group, excluding Associate Companies and joint ventures which aligned to ISO31000:2009 where risk is managed to ensure the
are not within the Groups control. achievement and implementation of strategic objectives. The
Groups risk management process typically involves identifying
The Group is committed to the continuous improvement of risk particular events or circumstances relevant to our objectives and
management processes and ensures that the processes remain risk appetite, assessing them in terms of likelihood and magnitude
relevant to the operating environment. The GRMC, which consists of impact, determining a response strategy, evaluating the
of all the members of Axiata Groups Senior Leadership Team adequacy of existing controls, and monitoring the implementation
(SLT) and is chaired by the Axiata Group BAC Chairman, plays a of the response. The objective is to protect and create value for
key role in driving Axiatas ERM Framework. With the assistance our key stakeholders.
Assists the Board in evaluating the adequacy of risk management & internal control framework
Board Audit Committee Reviews and endorses the Group Risk Profile
Receives and reviews reports from the Risk Committee and recommends them to the Board for approval
Assists in identifying principal risks at Group level and provides assurance that the ERM is implemented
Group-wide
Reviews and recommends frameworks and policies specifically to address enterprise risk inherent in all
Group Risk Management business operations
Committee Promotes cross-functional sharing of risk information
Monitors compliance to ERM Framework, regulatory requirements and status of action plans for both
Group and subsidiaries
Coordinates and promotes risk management culture and implementation
Establishes, formulates, recommends and manages sound and best practice ERM programme for Axiata
Group
Inculcates risk awareness within the Group
Group Risk Management Assists Axiata OpCos and Business Units in establishing their internal risk policy and structures, including
Department the business continuity programme for the Group
Identification and consolidation of risk matters
Secretariat for the GRMC
Consolidates risk reports from Axiata OpCos and Business Units for the GRMCs review
Encourages and recommends the adoption of mitigation actions where appropriate
RISK
MANAGEMENT
Principally, the Groups key risk factors are categorised into the following 11 areas:
INTRODUCTION
Risk Category Mitigation
The Axiata Treasury Management Centre has been tasked to oversee and control the Groups treasury and
funding matters, by developing hedging strategies which are governed strictly by the treasury policies, taking
Financial Risk
into consideration current and future outlook of the relevant economies and foreign exchange markets with
the ultimate objective of preserving the Groups profitability and sustainability.
The Group takes necessary measures to drive efficiencies and innovations through investments in new
technologies, establishing strategic ties with Over-the-Top (OTT) or other digital product developers in order
Beyond Short-
Market Risk
Term Profits
to create products and services that meet evolving customer needs, increase the Groups share of customers
wallets and rebuild customer loyalty.
The Group advocates strict compliance, transparency and putting our case before the relevant authorities. The
Group has also been at the forefront in engaging regulatory officials, participating in government consultations
and sharing knowledge and best practices in the development of healthy regimes for the telecoms sector.
Regulatory Risk
Underpinning the Group Regulatory Policy is the understanding that the Group shall comply with all applicable
Nurturing People
laws and regulations, regulatory obligations and governmental policies in the jurisdictions in which it operates,
and that regulatory advice should be obtained in an efficient and cost effective manner as and when required.
The Group has established a Cyber Security Steering Committee focused on the accelerated implementation of
security initiatives. The committee is at the forefront of safeguarding the Group by ensuring strict compliance
Cyber Risk
with security policies, procedures and putting in place technologies and tools to minimise the risk of security
breaches.
Process Excellence
The Group continuously addresses issues such as network congestions, dropped calls, upgrades to network
& Governance
coverage, etc. to ensure better quality network and service delivery. As at the end of 2016, the Group has
Operational Risk
completed the implementation of its Business Continuity Management (BCM) Framework for selected OpCos
including the Axiata Corporate Centre.
The Group works closely with the respective OpCo Management, leveraging on local expertise, knowledge
Geopolitical Risk and ability to continually assess the political situation and have in place various measures to ensure a timely
response in the event of geopolitical-related events.
We have put in place a Mergers and Acquisitions Committee that oversees all acquisitions and divestments,
and at the same time maintain a robust due diligence process to evaluate and manage the potential risks
Investment Risk
involved. Post-acquisition, transition teams are put together to ensure that organisational, cultural and mind-
Our Associates
set changes that are required are implemented appropriately.
We develop our people through robust talent development programmes, attractive performance-based
People Risk rewards and by providing a safe and healthy work environment. Employee engagement is also critical for the
Group.
The Group constantly reviews and refreshes its technology while maintaining financial prudence. The Group has
Technology Risk recently reviewed and revamped its capital expenditure (capex) governance and business planning process,
Contribution Report
The Groups Code of Conduct sets out rules and guidelines on how personnel acting for or on behalf of
Governance and the Group are expected to conduct business. The Group will continue its focus on maintaining and further
Integrity Risk developing its strong ethical platform and corporate governance standard to support Axiatas business
integrity and strong performance.
18 INTRODUCTION Axiata Group Berhad | Sustainability & National Contribution Report 2016
STAKEHOLDER G4-24
G4-25
ENGAGEMENT G4-26
G4-27
Axiata has a diverse stakeholder base in its presence across Southeast Asia and South Asia, and from
its myriad roles, which include being an employer, communications provider, technology innovator and
infrastructure developer.
Our stakeholders have a direct influence on our business as In ensuring that we are comprehensive in our identification of
customers, observers, regulators and vendors, but are also our stakeholders, Axiata adopts an engagement methodology
important barometers that gauge the impact of our business that is based on the principles of inclusivity, materiality and
activities and sustainability initiatives. responsiveness as defined by the AA1000SE Principle Standard.
Our OpCos are instrumental in identifying and engaging with
To fairly and accurately determine the concerns of our various our stakeholders in their respective markets, as they are best
stakeholder groups, we have started to conduct targeted positioned to hold regular and direct engagements with them.
stakeholder engagement sessions to assess our identification of
their concerns. Feedback from all stakeholders is collated and indexed at the
Group level and reported in this Sustainability Report. The
We will continue to enhance our targeted engagement sessions following table provides a comprehensive list of our stakeholders
over the next few years to create a comprehensive database of and engagements.
stakeholder concerns.
Customers
Our customers are key contributors to our success as a commercial enterprise and therefore a Customer Satisfaction Customer
direct gauge of the efficiency and effectiveness of our products and services. It is imperative via Net Promoter experience,
for us to maintain high levels of customer satisfaction given the competitive nature of our Score (NPS) product
industry and we can only achieve this by fully understanding the needs of our customers. affordability
Customer satisfaction levels are benchmarked through the Net Promoter Score system that and network
is conducted annually. availability
Employees
Our employees are our most important assets and a key resource for all our activities. We Employee Career
therefore take employee satisfaction very seriously to ensure that morale remains high in all Engagement development,
our business units. Axiata assesses employee satisfaction levels through its annual Employee Survey (EES) by employee
Engagement Survey, which is conducted by an independent research agency. Employees are Willis Towers feedback,
also encouraged to interact with Senior Management and express their concerns at town hall Watson (an employee
meetings that are held every quarter. independent communication
research agency)
Town hall meetings
Shareholders
As owners of the Company, shareholders are entitled to receive a return on their investment Annual General Business
and to be apprised of developments in the Company. They are also entitled to express their Meeting (AGM) performance
views on the Company or to share any concerns about the way the business is being run. Our Investor Roadshows and strategy,
engagements with our shareholders are conducted regularly at our Annual General Meeting, Meetings with the social
Investor Roadshows and analyst meetings, where we provide relevant Company updates and Top 100 Investors responsibility
where they can share their thoughts with us. Analyst Meetings initiatives
Axiata Group Berhad | Sustainability & National Contribution Report 2016 INTRODUCTION 19
G4-24
STAKEHOLDER
G4-25
G4-26 ENGAGEMENT
G4-27
Stakeholders Regulators and Government Authorities Frequency Types of Engagement Focus Areas
INTRODUCTION
Regulators and Authorities
Our regulators and authorities specify the laws and regulations that determine the scope Compliance with Information
and extent of our activities in our respective countries. We maintain open channels of the Malaysian security, PDPA,
communication with them, as they are the ones best positioned to provide advice and Communications pricing, tax
clarification in relation to our operations and obligations. Axiata works proactively with local and Multimedia issues
regulators and authorities from every jurisdiction as local requirements vary from one country Commission
Beyond Short-
Term Profits
to the next. (MCMC)
Compliance with
Bursa Malaysia
Suppliers
Axiata engages a broad range of suppliers to support all aspects of our business. Our Request for Payment
Nurturing People
suppliers range from vendors supplying infrastructure components to professional corporate Proposals (RFP) practices,
service providers. As providers of vital services that are key enablers for us, it is important Supplier Code of delivery and
that we maintain a professional relationship of trust where views from either party can be Conduct definition
freely exchanged. We also use our engagement sessions to apprise them of changes to our Vendor Satisfaction of vendor
procurement policy and to seek relevant feedback and information from them. Survey performance
Media
Process Excellence
& Governance
The media is our primary channel of communicating with the public at large. We engage with Media Meetings/ Company
the media to share information such as our Companys financial performance and changes to Survey performance,
our products and services, as well as information on our CR programmes. We conduct regular Media Releases/ strategy,
stakeholder engagement sessions with media practitioners to brief them on developments Conferences future business
and to solicit feedback on any general concerns or views that the public may have about us. aspirations
Community
Our Associates
Annually Ongoing Quarterly
Moving Forward
Our stakeholder engagements have yielded important lessons to both our organisation and our stakeholders, and substantially changed
Contribution Report
the way we conduct our operations and sustainability programmes. We believe we can further improve on our stakeholder engagement
going forward by holding direct stakeholder engagement on specific topics that will further build trust and credibility in the outcomes of
National
our stakeholder engagement. While we had planned on conducting directed stakeholder engagement in 2016, other prevailing priorities
prevented the implementation of the exercise during the year. Nevertheless, it remains a key priority and will be revisited in the future.
20 INTRODUCTION Axiata Group Berhad | Sustainability & National Contribution Report 2016
MATERIALITY G4-18
G4-20
G4-21
Axiatas Sustainability Framework addresses key material indicators identified by our stakeholders
We use a comprehensive methodology to identify these indicators which are subsequently addressed by our sustainability initiatives
and disclosed in this report. In identifying our material issues, Axiata consulted various sources including stakeholders, industry groups
and existing peer literature.
Internal
Material Issue
High
Digital Inclusion
Employee Development
& Welfare
Local Hiring
Customer Service
Community Impact/
Development
Disaster Management
& Response
Business Performance
Low
External
Low Medium High
External Sources
We perform regular studies on the We review the feedback from our We hold regular discussions with our
sustainability performance of top global regulators and address specific areas internal staff who engage directly with
telecommunication companies as well based on their requests. We also consider our key stakeholders. Their perceptions
as publicly available peer information the views of regulators not directly related on sustainability are collected and used in
to create benchmarks for our own to the telecommunications industry. designing our sustainability framework
performance.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 INTRODUCTION 21
G4-18
MATERIALITY
G4-20
G4-21
G4-27
INTRODUCTION
The following materiality matrix provides a summary of the outcome of our materiality assessment process at the Axiata level. A brief
description of our material issues is as follows:
The availability and reliability of our mobile service within the markets in which we
Network Quality & Coverage 24
operate
Our product offerings and special initiatives undertaken to ensure people at all
Beyond Short-
Term Profits
Digital Inclusion 24
socioeconomic levels can afford digital connectivity
Employee Development & Our initiatives to promote employee development and welfare such as training and
38
Welfare remuneration policies
The way that we emphasise the hiring of local talent in our operating countries in
Local Hiring 38
order to help invest in the local economy
Nurturing People
The level of protection we offer our stakeholders in terms of their private data and
Privacy & Data Protection 48
other confidential information
Ensuring that we effectively navigate all taxation and licensing requirements in our
Tax & Licensing 48
various operating countries
Process Excellence
The way in which we manage and interact with our suppliers to ensure that they
Supply Chain Management 48
& Governance
observe best practices
The way that Axiata governs our overall organisation and the transparency of our
Governance & Transparency 48
reporting to our stakeholders
Energy & Climate Change Our initiatives to mitigate the impact of our business on the environment 56
Community Impact/ The way our social programmes impact and create value in the communities we
56
Annual
Business Performance Our level of profitability and returns on investments to our shareholders Report
2016
Our Associates
Internal Sources
Group KPI Group Policy Top Management Perception Risk Management Matrix
We review the Groups Key We review the coverage of the We consider the frequency We assess the Groups Risk
Performance Indicators Groups policies in relation to of each sustainability issue Management Matrix and the
Contribution Report
(KPIs) and their relevance to sustainability or topic taken up in Senior relationship of key risks across
National
MATERIALITY G4-18
We derive our set of material indicators through a detailed identification process. The process is illustrated in the following diagram:
1
Identification
Through engagement Through surveys of Through collation of data
of Issues
with both internal and existing literature including points from day-to-day
external stakeholders internal policies business activities and
internal KPIs
2
Data
Analysis Data is used to create the Data is used to create Data is collated
materiality matrix benchmark indices and and analysed by
scorecards sustainability team
3
Action
Senior Management discusses results and Results and matrix published in
subsequent follow-up action the Annual Report
Material issues identified from each source are subsequently discussed in appropriate committees that then decide on the next course
of action. Solutions are identified for key material issues deemed to have a significant impact on our stakeholders or our operations,
and implementation plans drawn up. Targets are assigned to each initiative and serve as benchmarks measuring the effectiveness of the
initiative. Results are subsequently communicated to our stakeholders via our Sustainability Report and other channels of communication.
In 2016, we identified and added a new material issue to our list of key material indicators, namely Local Hiring. Local Hiring refers to the
practice of emphasising the hiring of local talent within each of our operating countries as part of our investment in the country. The
remaining list of material issues is unchanged from the previous year.
COMMITMENT TO
COMMITMENT TO G4-20
G4-27
BEYOND
SHORT-TERM
PROFITS
Axiatas business approach gradually recover from our operations over This model was replicated in Cambodia
time. At the same time, this investment where we launched the Smart Axiata
prioritises long-term partnerships
into infrastructure translates into effective Digital Innovation Fund (SADIF) in March
and looks beyond immediate and comprehensive network coverage for 2017. SADIF has been mandated to invest
profitability as the sole our customers. In 2016, the Group invested in ideas and businesses in Cambodias
determinant of the feasibility of a total of RM6.1 billion in capex. digital ecosystem to catalyse development
in the sector.
our business initiatives.
Axiata is also committed to the goals of
digital inclusivity and strives to bridge the Finally, as a global leader in
Of greater importance is the long-term
digital divide by ensuring our services are telecommunications, we play an active
value created by the initiative for our
accessible and affordable to all including role in the global mobile industry by
stakeholders and whether the value is
those living in rural areas or coming from participating in and leading global mobile
aligned with our goals in the specific
lower economic backgrounds. We see development. We help steer industry
market. In every market, our aim is to build
these efforts as part of our responsibility priorities towards areas that are most
a sustainable digital ecosystem where we
to create a more sustainable future for relevant to our stakeholders and to help
can create mutual benefits for both our
our business and our stakeholders, and to marginalised groups.
business and our many stakeholders in
create a brighter digital future for all.
those markets.
Our sustainability initiatives under this
In addition, we also invest in the local digital pillar are divided into four areas:
As a digital telecommunications
ecosystems of our operating countries
operator, our business activities require
through our investments, partnerships and Long-Term Investments
substantial long-term investment in
local procurement practice. In Malaysia, we Services Beyond Commercial Motivation
network infrastructure as well as other
created the Axiata Digital Innovation Fund Digital Inclusion and Digitised
operational enablers. These typically
(ADIF), a venture capital fund, to invest in Ecosystems
involve substantial frontloading of cost
and help promote the growth of young, Global Mobile Development
which is borne by us, and which we aim to
innovative tech companies in the country.
Network Quality and Network coverage and quality Pioneering new technological Enhanced accessibility to
Coverage are top priorities for our innovations to improve our services in our markets
business network quality and coverage and establishing Axiata as
the coverage leader in our
markets
Digital Inclusion The telecommunication Offering digital products Provide affordable digital
industries of our operating that are in line with our 4As solutions to all our customers
markets are at different levels model (affordable, accessible, in our markets
of maturity applicable and available) for
There are socioeconomic all segments of society
variations in our markets Diversifying our product line-
leading to the exclusion of up through new innovations
some segments of society from our tech innovator,
from digital technology Axiata Digital
G4-27
Reporting Highlights
Total m-money users growing steadily ADIF grows its investments in 2016
Total m-money users grew 18% year-on-year in Total investments by the Axiata Digital
2016 to 12.6 million users. Our m-money service Innovation Fund (ADIF) continues its strong
was expanded to Cambodia during the year growth momentum doubling its number of
as part of the Groups effort to harmonise its investee companies in 2016. The total amount
offerings in all its operating countries. invested grew more than double.
12.6 30.0
ADIF invested
10.7
RM30 million
Number of m-money users in million
in 12 companies in 2016
8.0 12.5
RM million VS
RM12.5 million
in six companies in
2015
OPEN
COMMITMENT TO G4-20
G4-27
BEYOND
SHORT-TERM
PROFITS
Axiatas business approach gradually recover from our operations over This model was replicated in Cambodia
time. At the same time, this investment where we launched the Smart Axiata
prioritises long-term partnerships
into infrastructure translates into effective Digital Innovation Fund (SADIF) in March
and looks beyond immediate and comprehensive network coverage for 2017. SADIF has been mandated to invest
profitability as the sole our customers. In 2016, the Group invested in ideas and businesses in Cambodias
determinant of the feasibility of a total of RM6.1 billion in capex. digital ecosystem to catalyse development
in the sector.
our business initiatives.
Axiata is also committed to the goals of
digital inclusivity and strives to bridge the Finally, as a global leader in
Of greater importance is the long-term
digital divide by ensuring our services are telecommunications, we play an active
value created by the initiative for our
accessible and affordable to all including role in the global mobile industry by
stakeholders and whether the value is
those living in rural areas or coming from participating in and leading global mobile
aligned with our goals in the specific
lower economic backgrounds. We see development. We help steer industry
market. In every market, our aim is to build
these efforts as part of our responsibility priorities towards areas that are most
a sustainable digital ecosystem where we
to create a more sustainable future for relevant to our stakeholders and to help
can create mutual benefits for both our
our business and our stakeholders, and to marginalised groups.
business and our many stakeholders in
create a brighter digital future for all.
those markets.
Our sustainability initiatives under this
In addition, we also invest in the local digital pillar are divided into four areas:
As a digital telecommunications
ecosystems of our operating countries
operator, our business activities require
through our investments, partnerships and Long-Term Investments
substantial long-term investment in
local procurement practice. In Malaysia, we Services Beyond Commercial Motivation
network infrastructure as well as other
created the Axiata Digital Innovation Fund Digital Inclusion and Digitised
operational enablers. These typically
(ADIF), a venture capital fund, to invest in Ecosystems
involve substantial frontloading of cost
and help promote the growth of young, Global Mobile Development
which is borne by us, and which we aim to
innovative tech companies in the country.
Network Quality and Network coverage and quality Pioneering new technological Enhanced accessibility to
Coverage are top priorities for our innovations to improve our services in our markets
business network quality and coverage and establishing Axiata as
the coverage leader in our
markets
Digital Inclusion The telecommunication Offering digital products Provide affordable digital
industries of our operating that are in line with our 4As solutions to all our customers
markets are at different levels model (affordable, accessible, in our markets
of maturity applicable and available) for
There are socioeconomic all segments of society
variations in our markets Diversifying our product line-
leading to the exclusion of up through new innovations
some segments of society from our tech innovator,
from digital technology Axiata Digital
G4-27
Pillar Underpinnings Championing Inclusivity in Our Products and Services Beyond Short-Term Profits
The inclusivity of our products and services is a key priority of ours. We strive to In 2014, we introduced the 4i aspects of each of our Sustainability Pillars. We continued to describe our sustainability initiatives in
ensure that our offerings bridge the digital divide and create positive value for all 2016 based on these four aspects:
The Beyond Short-Term our stakeholders.
Profits Pillar is focused on
long-term value creation in the Inclusivity of Our Products
Affordability
connectivity for Innovation
infrastructure and through our children to help
Affordable parents ensure
products and services. 1
at SLR4990 their safety at
Axiata contributed
WSO2.Telco
RM6.1 billion ADIF create
1 Improvement Platform in 2016
Our initiatives introduce Axiata Network Services
Management tool
918 jobs
improvements to the lives of our
stakeholders through digital means
Digital Axiata
Services Digital
2 Innovation
grew the number
of its brands to Innovation
Applicability
Our initiatives bring about new
1 No SMS facility, 29 in 2016 from Fund (ADIF)
to catalyse the Malaysian
24 in 2014
innovations that include new GPRS or internet
products and services for targeted connectivity for digital ecosystem
children
communities, as well as our efforts
to drive innovation, such as through
the Axiata Digital Innovation Fund
2 Allows parents
to track their m-insurance
childrens introduced in Cambodia
location via SMS
to ensure their
3 Investment safety
Accessibility
Our initiatives invest in the network
infrastructure of the countries 1 Designed for children
where we operate to expand our Minimum number
2
network coverage and enhance our of buttons
technological offerings
3 Predefined settings
4 Impact
BEYOND
SHORT-TERM PROFITS
Indonesia.
99%
USD13.8 92%
billion
in Gross Value Added to
Our long-term investments are the Services Beyond Commercial Motivation
the GDP of our operating
foundation of our presence in our markets
countries
enabling the delivery of value-adding The priority we place on long-term value
products and services to our customers. creation requires that we look beyond
Capital expenditure (capex) incurred in commercial returns to determine the
the expansion of our network is part and feasibility of our initiatives. Our approach
parcel of our commitment to expand takes long-term social and non-commercial
digital connectivity and improve network values created by our initiatives into
quality. consideration such as rural coverage and
inclusivity. In this way we secure the long-
These investments also represent a direct term sustainability of both our presence
contribution to the GDP of our operating and our markets.
countries. In 2016, our investments
contributed approximately USD13.8 billion
in Gross Added Value to the GDP of our
operating countries. Additional information
is available in our National Contribution
Report on page 65.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 BEYOND SHORT-TERM PROFITS 27
BEYOND
SHORT-TERM PROFITS
Introduction
Our investment in infrastructure is not based in turn means better connectivity and service for
only on commercial considerations, but also on its customers. Mithuru
the non-financial values that we create for our service was launched for
stakeholders. Our OpCos strive to expand their Dialog was also a part of South Asias first 4.5G Sri Lankan farmers by
network coverage in the country to connect the
previously unconnected and to enrich lives by
demonstration featuring download speeds
in excess of 1Gbps. A demonstration of 4.5G
Dialog
facilitating access to digital connectivity. While capabilities was held at Dialogs Iconic Centre,
BEYOND SHORT-
TERM PROFITS
Developing digital
our network expansion plan extends coverage which also included explanation as to how 4.5G
ecosystems to provide
to areas that are less commercially viable than will affect customer experience. Some of the
basic services such as
others, for example to rural regions rather key benefits of the higher bandwidth include the
than key population centres, we believe these ability to stream ultra-high definition video and m-money and
initiatives will result in greater social uplift and
will make a greater impact on the market as a
data transfer capabilities.
m-commerce
services
whole over the long term. The BBG investment and 4.5G demonstration
Nurturing People
exemplify Dialogs commitment to provide the
As at the end of 2016, more than 30,000 of our best in connectivity and enterprise solutions to
base transceiver stations (BTS), or approximately Sri Lankan businesses and internet users.
44% of our total number of BTS, were located in
rural areas. Inclusivity in Products and Services
Investing in Technology
Process Excellence
To complement connectivity, we develop
& Governance
inclusive products and services that fit the unique
Our investment in technology has made us the context of our customers. While these products
widest 4G LTE service provider in many of our may not be as commercially viable as products
markets. We strive to expand 4G LTE services with mass appeal, they have been designed for
in these areas as the service is essential in a specific context and can significantly create
supporting new beneficial innovations such as greater social value than a generic product.
e-banking, e-commerce and online education. These products are typically aimed at a specific
Our Associates
the-art Cable Landing Station (CLS) at Mount
Lavinia (South Colombo). With this connection, Axiata innovates on its digital offerings to meet
Sri Lanka is linked to one of the worlds most the needs of all our communities including those
technologically advanced cable systems and this located in rural regions. We focus on developing
represents the single largest global bandwidth digital ecosystems that provide basic services
infusion into the country. such as access to capital (m-money) and trade
transactions (m-commerce). We also focus
Contribution Report
The new cable system delivers over 6.4 terrabits on the specific contextual needs of specific
National
per second (Tbps) of international bandwidth to segments of the community, such as the Govi
Sri Lanka thereby representing a significant step- Mithuru service that was launched for Sri Lankan
up with respect to connectivity. The BBG cable farmers by Dialog.
28 BEYOND SHORT-TERM PROFITS Axiata Group Berhad | Sustainability & National Contribution Report 2016
RM100
million
RM30 million
in 12 Companies
918
Axiata Digital Bumiputera companies
50%
Innovation Fund
(ADIF)
Direct Jobs
of ADIFs Portfolio
240%
in 2016
RM56.6 million
The Axiata Digital Innovation The fund, the largest digital services ADIF is aiming to create at least five regional
corporate venture capital fund in Malaysia, digital companies by 2020, and is presently
Fund (ADIF) was created in
also aims to increase the participation of one of the most active venture capital
2014 to encourage and spur Bumiputera in the domestic tech space by funds in the region with investments in 12
innovation and growth of supporting Bumiputera-led companies. companies, half of which are Bumiputera
Malaysias digital ecosystem. companies. The fund has committed
In addition to funding, ADIFs investee RM30 million of its RM100 million mandate,
companies also receive unparalleled access following which the companies have shown
to Axiatas network of partners across an average year-on-year revenue growth
ten countries in Asia and network of 240%. Investee companies reported a
subscriber base of approximately 320 collective revenue of RM56.6 million and
million customers. Investees also receive created 918 jobs. ADIF invests up to RM10
access to Axiatas digital ecosystem to million in each of its investee companies.
explore possible synergies or collaborative
efforts to enhance their products and Moving forward, Axiata hopes to replicate
services. They also benefit from the ADIF in its various operating countries
experience and expertise of a professional with plans in place to create SADIF in
investment team that will help guide them Cambodia. As with ADIF, SADIF will focus
in meeting their business objectives and on developing the local digital ecosystem in
growth plans beyond Malaysian borders. Cambodia by providing funding and value-
added assistance to investee companies.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 BEYOND SHORT-TERM PROFITS 29
Introduction
1 2 3 4 5 6 7
E-commerce Big data The Internet- Traditional Online billing Other digital Location-
analytics of-Things to cloud and payment and internet- based services
services systems enabled sectors
BEYOND SHORT-
TERM PROFITS
Nurturing People
KFIT SUPAHANDS SLURP! TRIPFEZ
www.kfit.com www.supahands.com www.getslurp.com www.tripfez.com
Process Excellence
& Governance
Service has achieved More than 200 clients in Serves over 400 F&B Launched Salam Standard
breakeven at gross Malaysia, Singapore and establishments at Arabian Travel Mart
margin level Australia Processed over RM127 2016
Revenue is stabilising million worth of
transactions
Our Associates
memberships and offers them SupaAgents, made better customer experience. F&B to create a global reference site
to subscribers at a discount of with in-house innovative establishments that use for Muslim travellers worldwide
up to 70%. Meanwhile, partner cloud technology to produce Slurp! tend to generate higher looking for travel solutions.
businesses benefit from an optimum output, provide Lead revenue and lower operational Accommodations are rated
increased client base and Generation, Data Management, costs compared to the average based on their hotel class, and
greater brand exposure. Online Support and Content restaurant due to Slurp!s information on Muslim-friendly
Moderation services to analytics platform that tracks facilities is also provided.
Contribution Report
BEYOND
SHORT-TERM PROFITS
Almost three-quarters of Sri its crop advice to include paddy, maize, the cultivation of strategic crops and
potato, tomato, aubergine and big onion disseminates time-critical information
Lankas population reside
cultivation. Farmers from all over Sri Lanka on weather and disease control. It
in rural areas and depend have welcomed Govi Mithuru with growth also provides important analytics
on agriculture for their particularly strong in agriculturally strong information by offering insights into
livelihoods. Despite the areas such as the North Central, Central yield availability and better insight
and Eastern provinces. and tracking of farmers progress and
prevalence of mobile phone
needs.
ownership - the majority of Under the programme, voice recordings
farmers have mobile phones providing customised information on Govi Mithuru is also being observed as a
land preparation, cultivation, harvesting pilot programme by global development
- there remains inadequate
and post-harvest activities are available agencies including the Department for
access to relevant farming to farmers for Rs. 1 per day. The service International Development, UK and the
information leading to also provides advice on seed selection, GSMA who are following its progress
stunted farm growth. pest and disease control and family and developing best practices from
nutrition. Implementing this advice leads its implementation. The project is part
Govi Mithuru (Farmers Friend or Ulavar to better agricultural practice and onwards of the mAgri Challenge Fund, a GSMA
Tholan in Tamil) is a mobile advisory to improved crop security, greater initiative designed to improve the
service created by Dialog in partnership profitability, better family nutrition and livelihoods of smallholder farmers in
with the GSMA for farmers to address enhanced engagement with officials. African and South Asian countries using
the information gap. mobile services. Dialog is among the
Officials overseeing agricultural six operators worldwide to have been
By January 2017, over 267,000 activity have also benefitted from the chosen as a winner of the Challenge
farmers were registered with the Govi implementation of Govi Mithuru. In terms Fund by the GSMA.
Mithuru service, which has expanded of planning, the service helps promote
XL Axiata is playing a part connections by the national help students familiarise themselves
with online access and to learn how
in bridging the digital divide telecommunications industry.
to benefit from connectivity. Through
in Indonesia through its programmes such as these, XL Axiata is
In 2016, XL Axiata outfitted 50 schools with
1,000 Broadband Schools ushering in a new technologically literate
mobile broadband connectivity benefitting
Programme as part of generation and bringing connectivity to
some 15,000 students throughout the
the previously unconnected.
the national agenda of country. XL also conducted an internet
literacy programme in the schools to
securing 1 billion internet
Axiata Group Berhad | Sustainability & National Contribution Report 2016 BEYOND SHORT-TERM PROFITS 31
BEYOND
SHORT-TERM PROFITS
Introduction
Helping pensioners access their retirement funds
Dialog is a participant of By subscribing to the service, pensioners The service, a collaboration with the
are able to request for up to Rs. 25,000 Sri Lanka Department of Pensions,
the eZ Cash mobile money
BEYOND SHORT-
of their pension to be instantly remitted leverages on the security and speed of
TERM PROFITS
network, which allows to their eZ Cash account. These funds mobile money transfers to ensure that
pensioners across Sri Lanka can then be used to pay for their utilities, pensioners receive their funds promptly
to receive their monthly insurance premiums and other payments and securely. It also gives pensioners
from the convenience of their mobile better control of their funds, as they
pension payments through
phones. The funds can also be transferred will be the sole custodians through their
their mobile wallet. to other users or withdrawn in part or full mobile phones. eZ Cash is a pioneering
from any of the 16,000 eZ Cash merchants service and the largest licensed mobile
Nurturing People
across the country. money service in Sri Lanka. All pensioners
are eligible for this service after
submitting the application documents to
the Department of Pensions.
Process Excellence
& Governance
Empowering womens enterprises
Robi launched Maya Apa Plus, This can sometimes put lives at stake when The launch of the service underlines
Our Associates
The service also includes an offline SMS- the Government of Bangladesh in 2016
advice on personal, health or based pay-per-use model to access Maya in recognition of its efforts to promote
Apa Plus services. The SMS service lets healthcare in the country
psychological issues which
Robi users ask health and psychological
is often difficult to obtain in questions either in Bangla or English. The
Bangladesh. service also offers subscription-based
SMS tips from the experts on health and
Contribution Report
psychosocial issues.
National
32 BEYOND SHORT-TERM PROFITS Axiata Group Berhad | Sustainability & National Contribution Report 2016
BEYOND
SHORT-TERM PROFITS
Enhancing safety nets for our stakeholders For example, with Robis m-insurance offering,
subscribers receive free life insurance covering
M-insurance offers much needed financial safety up to USD740 based on their mobile usage.
nets to our customers who are uninsured. Our They can also opt to subscribe to a Doctors
OpCos provide affordable insurance coverage Consultation service for USD0.40 per month,
as part of customer subscriptions to reach out to which gives them unlimited calls to a panel
segments of the population who, for financial or of doctors for immediate advice over the
other reasons, cannot afford insurance through telephone. In Sri Lanka, Dialog offers Personal
regular channels. One of our key insurance Accident (PA) insurance for between USD0.20
partners is BIMA MILVIK, a leading provider of and USD1.00 per month which translates to
mobile-delivered insurance and health services USD7,400 to USD37,000 in coverage. Table 1
in emerging markets. gives an overview of our existing m-insurance
programmes offered in collaboration with BIMA.
As at the end of 2016, BIMA had successfully
partnered with Dialog, Robi and Smart to offer We have seen encouraging take-up numbers in our
insurance to their subscriber base, and is in talks existing markets, particularly in Cambodia where
of doing the same with Celcom. In the case of Smart Axiata has added 80,000 new m-insurance
Celcom, surveys show that the bottom 40% of subscribers each month between December 2015
the Malaysian population are uninsured, and will and February 2016. As a result, Smart is now the
stand to benefit significantly should they enroll top provider of life insurance for Cambodians,
in m-insurance. especially to low-income households. In addition
to coverage, our partnership with BIMA also takes
on an educational component as BIMAs agents
actively engage with subscribers to educate them
on the importance of insurance.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 BEYOND SHORT-TERM PROFITS 33
BEYOND
SHORT-TERM PROFITS
Given the escalating costs of healthcare, we believe that m-insurance is one way in which we can leverage on our mobile offering while
creating positive social value for our communities. We plan on further expanding our m-insurance offerings in the future to our other OpCos.
Introduction
Table 1: Axiata Groups m-insurance offerings in partnership with BIMA
% of mobile
Monthly Insurance Registered operator
Country Product price cover (USD) customer base Achievements
Bangladesh Life Insurance Free Up to $740 7m 28% Cover 4% of Bangladesh
BEYOND SHORT-
population
TERM PROFITS
Doctors Consultation $0.40 Unlimited 0.2m 0.5% (new)
doctor calls
Sri Lanka Personal Accident $0.20-$1.00 $7,400- 1m 13% Dialog Gold Award winner
$37,000 for best business creation
2016
Hospital Insurance $0.70 Up to $200 0.7m 10%
Nurturing People
Cambodia Life Insurance $0.80-$1.60 $1,000- 0.5m 10% No. 1 Insurer in Cambodia
$2,000
Hospital Insurance $1.60 Up to $300 <0.1m <0.1% (new)
Process Excellence
& Governance
Providing safety nets against health threats in Indonesia
Dengue fever and typhoid In order to lighten the burden of seeking XL Axiatas Mega Sehat M-insurance
medical help for these afflictions, XL scheme was designed to leverage on
are common diseases in
Axiata, together with Bank Mega, has mobile services to provide an essential
Indonesia. Both are crippling
Our Associates
than two days. Policyholders will receive
may not be able to afford
Rp. 500,000 each day of hospitalisation
or choose not to seek for up to 10 days.
immediate medical help.
Contribution Report
National
34 BEYOND SHORT-TERM PROFITS Axiata Group Berhad | Sustainability & National Contribution Report 2016
BEYOND
SHORT-TERM PROFITS
Creating Value through Digitisation It also leverages on the Groups strength Building and expanding digital skills,
as a leading regional telecommunications mindsets and capabilities across Axiata
We established Axiata Digital to manage operator by building on existing customer
and develop the Groups digital products relationships within all our mobile markets. Axiata Digital has investments in five
and services. Axiata Digital enhances the Axiata Digital plays a key contributing role key business verticals namely Digital
Groups core business revenue by creating in the following areas: Advertising, e-commerce/Marketplaces,
new sources of value and contributing Mobile Money, Digital Entertainment and
to long-term upside creation through Generating revenue from adjacent Education, Disruptor Models and OTT
partnerships and acquisitions in the digital businesses that also increases Enablement Platforms. As at the end of
digital ecosystem. Axiata Digital plays a customer engagement within our core 2016, it has 29 digital brands under its
key contributing role in our third phase of mobile business portfolio.
growth, which is focused on becoming a Supplementing our core business
Digital Champion. with value creation opportunities by
unlocking assets within the core
Axiata Digital caters to online customers on Transforming our core business to an
smartphones, tablets and broadband, and Over-the-Top (OTT) and Internet-of-
aims to increase its share of online wallets. Things (IoT) ready business
Company Description
StoreKing StoreKing was established in India in 2012 to enhance rural retail business. Under the platform, rural retail shops become
franchisees and are outfitted with customised kiosks equipped with a mobile tablet and 3G connection. The tablet
connects customers to StoreKings inventory of over 1,000,000 products and various digital services, and the customer
can make the purchase in cash through the franchisee. The goods are subsequently delivered to the franchisee store
for pickup by the customer.
StoreKing essentially transforms rural convenience shops into points of sale for online transactions, serving as both the
payment point as well as the pickup point. Franchisees act as advisors, taking the customers through the shopping
process on the StoreKing app. Some of the products and services on offer via StoreKing include:
StoreKing is available across nine states and 106 districts in India, covering over 1,200 towns and 20,000 retailers.
StoreKing aims to be the digital touch point for rural India by leveraging on existing rural retail stores as the point of
intersection between digital and traditional.
Twig Twig is a mobile lock screen advertising and rewards app incubated by Axiata Digital. It was launched in Malaysia in
November 2015 and has been downloaded over 180,000 times to date. It has plans to launch in other Axiata markets.
At its core, Twig functions as a mobile advertising platform that displays ads directly on the lock screen of a mobile
device. Clicking on the ad takes the user to a landing site, and users simultaneously earn reward points for engaging
with the ads. They also earn points by watching videos, trying new apps and completing missions. These points can
subsequently be used to redeem various items including mobile reloads, virtual coins or credits, and vouchers.
Twig therefore helps our advertisers reach out to our customers while encouraging our customers to engage with new
trends and offerings through the rewards system. As a commercial enterprise, Twig generates revenue from both the
advertisers as well as its mobile and e-commerce partners who will pay Twig a commission for all redemptions.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 BEYOND SHORT-TERM PROFITS 35
BEYOND
SHORT-TERM PROFITS
Introduction
Axiata influences global mobile development initiatives towards this goal. We are pleased to note a participant of the
through our role in the GSMA Foundation. Our
commitments on the global stage are aimed at
that Dialog and Robi are among the first GSMA
members to have made CWCI commitments in Sri
GSMAs
steering mobile development towards areas that Lanka and Bangladesh. Through their initiatives, we Connected
are relevant to our stakeholders. In 2016, we signed
on as a participant of the GSMAs Connected
have increased the participation of female users
of technology to forward the goals of gender
Women
Women Commitment Initiative (CWCI), which equality and womens empowerment. Commitment
BEYOND SHORT-
TERM PROFITS
opens up possibilities for women in the areas of Initiative
education, healthcare, enterprise and business
through the use of mobile services.
Nurturing People
Building ICT capabilities in Bangladeshi women
Process Excellence
large format LED screens, sound system, WiFi
& Governance
Bangladesh Governments Digital data facility, customised training modules,
Training Bus Project. learning software and a stand-by generator.
Our Associates
ICT, especially those in rural areas. These
special purpose buses will be air-conditioned, Contribution Report
National
36 BEYOND SHORT-TERM PROFITS Axiata Group Berhad | Sustainability & National Contribution Report 2016
BEYOND
SHORT-TERM PROFITS
Moving Forward
COMMITMENT TO G4-20
G4-27
NURTURING
PEOPLE
Axiatas approach to talent to intensify efforts to transform our Immersing our general workforce in a
workplaces into inclusive environments culture of integrity and excellence
management is linked to our
conducive for productivity and are Transforming our workplaces into
ambition of building a New actively engaging our employees to obtain inclusive and caring areas conducive to
Generation Digital Champion. feedback about what works. productivity for all our employees.
We spend over RM20 million
Our talent management strategy These strategies are anchored in four
annually to develop the very
focuses on four key areas of the talent focus areas under this pillar:
best people that will guide us development process:
towards becoming a Digital Nurturing Future Leaders
Establishing Axiata as an attractive Developing a Culture of Integrity and
Champion.
employer that nurtures and rewards Performance
skilled talent Embracing Inclusivity
Our total workforce of 25,000 employees
Identifying top candidates with Building Conducive Workplaces
across the Axiata Group are provided
leadership potential and enrolling
ample opportunities to participate
them in accelerated development
in a range of training and personal
programmes
development programmes to realise their
latent potential. Meanwhile, we continue
Employee Diverse geographic footprint Opportunities and platforms A sustainable internal pipeline
Development Dynamic industry where talent for talent development and of talent that will meet our
and Welfare requirements change quickly retention leadership succession needs
alongside developments in Cross-cultural exposure to Building the capabilities of the
technology different markets local workforce
Inculcating core UI.EP values
Amount spent on Training & Development AYTPs total spend to date from
RM100 million
Axiata spends more than RM20 million each year
on employee training and development. Our Since launching AYTP in 2011, the Group has
internal Accelerated Development Programme, spent RM42.4 million from its pledged RM100
held at both the Group and OpCo levels, is million in delivering unique learning and training
designed to build an internal pipeline of talent to opportunities to Malaysian youth. Through this
staff key leadership positions within the Group. effort, we are building the next generation of
CEOs for the country.
26
23
21
RM42.4
RM million
million
spent
from inception
to end-2016
OPEN
COMMITMENT TO G4-20
G4-27
NURTURING
PEOPLE
Axiatas approach to talent to intensify efforts to transform our Immersing our general workforce in a
workplaces into inclusive environments culture of integrity and excellence
management is linked to our
conducive for productivity and are Transforming our workplaces into
ambition of building a New actively engaging our employees to obtain inclusive and caring areas conducive to
Generation Digital Champion. feedback about what works. productivity for all our employees.
We spend over RM20 million
Our talent management strategy These strategies are anchored in four
annually to develop the very
focuses on four key areas of the talent focus areas under this pillar:
best people that will guide us development process:
towards becoming a Digital Nurturing Future Leaders
Establishing Axiata as an attractive Developing a Culture of Integrity and
Champion.
employer that nurtures and rewards Performance
skilled talent Embracing Inclusivity
Our total workforce of 25,000 employees
Identifying top candidates with Building Conducive Workplaces
across the Axiata Group are provided
leadership potential and enrolling
ample opportunities to participate
them in accelerated development
in a range of training and personal
programmes
development programmes to realise their
latent potential. Meanwhile, we continue
Employee Diverse geographic footprint Opportunities and platforms A sustainable internal pipeline
Development Dynamic industry where talent for talent development and of talent that will meet our
and Welfare requirements change quickly retention leadership succession needs
alongside developments in Cross-cultural exposure to Building the capabilities of the
technology different markets local workforce
Inculcating core UI.EP values
Axiata has a team of 13,026 employees of which 30% are female employees. They In 2014, we introduced the 4i aspects of each of our Sustainability Pillars. We continue to describe our sustainability initiatives in 2016
are guided by our Uncompromising Integrity, Exceptional Performance (UI.EP) core based on these four aspects:
The Nurturing People Pillar value to seek out excellence in all they do and to observe the highest codes of
details our approach in conduct at all times.
3 Investment
4 Impact
30% 70% Joining 39% 61% Joining 59% 41% Joining
Male Female
Our initiatives are forwarding 26% 74% Leaving 37% 63% Leaving 20% 80% Leaving
the national training agenda,
promoting the best qualified
people in our organisation and Corporate Centre
graduating future CEOs for the 54% 46% Joining 30% 70% Joining 8% 92% Joining 26% 74% Joining 35% 65% Joining
region 39% 61% Leaving 23% 77% Leaving 12% 88% Leaving 45% 55% Leaving 35% 65% Leaving
40 NURTURING PEOPLE Axiata Group Berhad | Sustainability & National Contribution Report 2016
NURTURING
PEOPLE
Our leadership development Nurturing Future Leaders Candidates are put through a focused
training regime and given greater attention
initiative is spearheaded by two
At Axiata, we understand that our by management staff to aid in their
flagship programmes: the Group ambition to become a New Generation development. Through these programmes,
Accelerated Development Digital Champion is a long-term goal that we have now filled the majority of key
Programme (GADP) and OpCo requires sustained effort as we make management positions in our OpCos,
incremental improvements in all aspects including the CEOs, with internally
Accelerated Development
of our business. Successive leaders in groomed talent. At present, 59% of the
Programme (OADP). our organisation must understand the Groups senior leadership positions are
necessity of sustaining the effort and staffed by internally promoted talents.
recognising the importance of maintaining
At present, continuity in our activities. Candidates are encouraged to form
59%
mentorships within the Group, and must
of the By staffing management positions with display an aptitude for self-learning in
Groups senior leadership internally groomed and trained people, order to succeed in the programme. We
positions are staffed by we ensure that the key roles of our also make use of our diverse geographic
internally promoted talents organisation are occupied by qualified footprint to send our staff on secondment
individuals who recognise the importance programmes, thereby exposing them
There are presently of our long-term initiatives and objectives. to various markets and operating
OADP
external talent and mitigates concerns development initiatives independently
that external appointees may not have the within their own localities. In Malaysia,
right culture-fit. Celcom runs the First Line Manager (FLM)
In Malaysia, Celcom runs the Programme and the Skim Latihan 1Malaysia
(FLM)
Programme (GADP) and OpCo Accelerated
Development Programme (OADP). Both
Programme and the programmes help groom our staff with
(SL1M)
when they arise.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NURTURING PEOPLE 41
NURTURING
PEOPLE
Introduction
Identifying the Right Talent: Our Talent Councils
Identifying the right talent The Talent Councils are a part of our twice a year and are responsible for
commitment towards ensuring that the combing through candidates within
Beyond Short-
for the right position is an
Term Profits
right talent is placed in the right position. their companies and discussing their
important process. At Axiata, Some of the key considerations deliberated suitability for key positions. They
we look beyond tenure and include the culture-fit of the candidate as also identify candidates suitable for
competencies to ensure that well as the adaptability of the candidate reassignment to the Group level.
to be successful in a new ecosystem.
the right person is assigned
The process of identifying talent through These candidates are then assessed
the right job. Talent Councils our Talent Councils is resource and time by the Groups Talent Council, which
NURTURING
have been formed at both consuming, but significantly reduces the comprises the Group CEO as well as
PEOPLE
risk of putting the wrong person in a key the CEOs of the other eight companies.
the Group and OpCo level to
position. The Group council conducts a similar
assess candidates in the talent process and makes appointments
pipeline for competencies Each of our six OpCos as well as our based on the findings of the council.
and culture-fit. infrastructure company edotco and Axiatas use of this mechanism
Process Excellence
technology company Axiata Digital ensures that appointments receive the
& Governance
Services have formed their own Talent general assent of the council and that
Councils. Largely made up of senior appointees are thoroughly vetted by
management, the councils meet at least more than one individual.
We are committed to Towards this end, we practise a 7-2-1 Axiata in November 2016. Mahtab
Our Associates
philosophy (70% appointments of local was seconded to the Axiata Group
investing in the local talent
talent, 20% from elsewhere in the Group on a special assignment prior to his
capacity of our operating and 10% external talent), in appointing appointment to Robis top position.
countries, and aim to leaders for our OpCos. This is followed by He was previously the Chief Operating
preserve national diversity the establishment of local talent pipelines in Officer (COO) of Robi from April 2014
each of our operating countries in creating to March 2016. Meanwhile, Supun
when we expand our
a more sustainable pipeline of talent. Weerasinghe, the previous CEO and
Contribution Report
Developing Young Talent Thus far, AYTP has impacted 1,129 individuals since
Our Approach
Experience-based Development
Personal Development
Debriefing sessions
Coaching
360 evaluation
Education-based Development
Classroom training
Workshops
The AYTP Journey
AYTP is an umbrella programme with three leadership development tracks under it. These are:
School Leadership
University Leadership
Development
Development Programme
Programme
Our Framework
Leadership
AYTP is anchored on a holistic framework aimed at building essential values, attitudes and
Introduction
Competencies
competencies to equip young Malaysians with leadership skills to be future CEOs.
Leadership Competencies:
Communication
Critical thinking
Strategic Thinking
Creativity
Beyond Short-
Business Acumen
Term Profits
Results Achievement
Coalition Building
Customer Orientation
People Management & Development
Self Awareness Self Management
Attitude
NURTURING
PEOPLE
Im glad that I applied for the Young CEO Development
Process Excellence
Programme, and Im even more thankful that I was
& Governance
selected to be part of it.
Apart from having my confidence level leap up, Ive met an incredible bunch
of individuals. To top that off, although its only been a year since I joined the
programme Ive learnt a lot of new skills and practical knowledge! Im very
much looking forward to the second year because were going to immerse
Our Associates
Young CEO Development AYTP Alumni
Programme Association
NURTURING
PEOPLE
XL Future Leaders
The Indonesian public has responded well to the programme with demand greatly exceeding the number of places available:
XL launched XL
5,543 applicants 7,741 applicants 12,441 applicants 16,440 applicants
Future Leaders
120 accepted 135 accepted 145 accepted 150 accepted
42,165 Programme is part of XLs efforts that are socially informed, creative and confident
among young people across Indonesia by:
applicants since 2012 to build future leaders in Indonesia
in line with the goals of the AYTP. 1. Developing capabilities through self-reflection
550 students Since the start of the programme 2. Building an awareness of Indonesias
development needs
accepted in 2011, some 20,690 students
3. Inspiring confidence and encouraging
have benefitted from its initiatives. independent thinking
innovations Global Thinking Programme; 10,890 through 5. Developing innovation that positively impacts
generated for the online learning courses; and 500 scholarship society
telco industry recipients.
To ensure that XLFL is aligned with global best
1,920
XLFL is a youth-focused programme designed practice, XL conducts an annual evaluation
to prepare university students for the rigours process using an evidence-driven framework to
enrolled in XL E-Learn of leadership. Its Global Thinking programme assess the educational impact of the programme.
is a two-year long developmental programme, It was also discovered that XLFL benefits not
3,500+ hours
making XLFL the most comprehensive and
longest youth programme in Indonesia.
only the student participants but also other
sectors including government, businesses,
of intensive
universities and XL as well.
mentoring sessions XLFL also provides online and offline workshops
to participants, one-on-one mentoring sessions, Since its start in 2011, XL Future Leaders has
62 student-led
scholarships, and an e-learning platform
accessible by the general public.
received four awards including the Best CSR
Award from the Perhumas Awards 2016. The
projects in education,
programme has been innovated to meet
technology, food,
Indonesian education objectives and has evolved
environment
from one subject programme in 2011 to eight in
and womens
2016. As with the AYTP, XL Future Leaders is
empowerment
helping build capabilities and capacities of our
future generations.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NURTURING PEOPLE 45
NURTURING
PEOPLE
Developing a Culture of Integrity and be honest, fair and accountable in all is included as a component of their annual
Excellence relationships with stakeholders, customers, performance evaluation, and forms part
Introduction
colleagues and suppliers. Axiata has of each individual employees overall
Axiata places high expectations on instituted a zero-tolerance policy on unfair assessment.
its general workforce in terms of their treatment and discrimination which covers
integrity and their level of performance. all Axiata employees from the Board all At the Group level, the measure of our
This is codified in our core value system the way down to our auxiliary staff and employees UI.EP immersion is gauged
of UI.EP (Uncompromising Integrity, suppliers and contractors. through our Sustainability Engagement
Exceptional Performance), which has Index (SEI), which is constructed by an
Beyond Short-
Term Profits
been disseminated to all our OpCos. In 2016, we continued to hold UI.EP independent surveyor. In 2016, our SEI
While our OpCos may have other values refresher workshops throughout the Group. measured score for the Group was 86%,
incorporated into their culture, UI.EP is Participants of the UI.EP workshops receive which is within the range of the Willis
pervasive throughout the entire Group. a briefing on company expectations and Towers Watson Global High Performance
also sit a Situational Judgement Test, which Companies Norm.
Under UI.EP, we expect our staff to assesses the employee behaviour and
act with integrity and respect towards standards based on given situations. The
NURTURING
their colleagues and customers, and to level of our employees UI.EP understanding
PEOPLE
Engaging Our Employees
Process Excellence
& Governance
Axiata places great stock We believe that there must be open lines topics such as sustainability and the
of communications between all employees effectiveness of Axiata in supporting
on the opinions of its
regardless of their function, and we nurture employees in their work.
employees and seeks their the development of an open culture
feedback in addressing
Our Associates
what works and what does commissioned yearly to conduct the survey 2015. The tool helps managers
not. to ensure greater objectivity in the findings identify systemic problems based on
of the survey. Questions included in the poll aggregated employee data and base
vary from year to year, and have included solutions on these findings.
Contribution Report
National
46 NURTURING PEOPLE Axiata Group Berhad | Sustainability & National Contribution Report 2016
NURTURING
PEOPLE
We focus on improving our processes throughout the value chain to ensure we operate
at peak efficiency and to maintain high levels of customer satisfaction. To these ends, we
work together with various stakeholders including our vendors and business partners to
ensure our entire supply chain remains sustainable. We also take customer feedback very
seriously and conduct regular and thorough engagement with them to determine their
evolving digital needs.
COMMITMENT TO G4-20
G4-27
PROCESS
EXCELLENCE &
GOVERNANCE
We believe that the quality of our Each of our OpCos has its own specific Our sustainability initiatives under this
set of tax, licensing and other regulatory pillar have been formulated to ensure
processes and the level of our
requirements. We have a subscriber base that we meet all our commitments to our
organisational governance are of approximately 320 million customers stakeholders in an efficient and effective
important factors contributing across ten countries to whom we have manner. The initiatives are categorised
to improved customer and made a commitment to meet their under five focus areas:
expectations and protect their personal
supplier relations, greater cost
data. Best Practices Across the Value Chain
efficiencies and enhanced Customer Centricity
organisational oversight. Privacy and Data Protection
Digitising Processes
Strong Governance
Customer Service We are a highly customer- OpCos measure customer Improve customer experience
centric operation and operate satisfaction levels regularly and in each market to be the best
in a changing environment take all feedback seriously to amongst service providers
where customer expectations identify issues and anticipate
are constantly evolving changes in their expectations
Privacy and Data We have access to confidential Adherence to local and Build customers trust in us to
Protection customer information industry regulations safeguard their personal data
Digitisation has increased the Incorporating best A secure environment ensuring
risk of data breaches cybersecurity standards into the careful handling of sensitive
our practices information
Governance and We operate in six different Setting our own standard of A strong reputation as a reliable
Responsible Business markets each of which have conduct using UI.EP business partner in the region
Conduct their own regulatory frameworks Axiatas Enterprise Risk Best practices in governance
The telecommunications Management Framework has and compliance practices.
business is a highly regulated been adopted as a standard
industry involving numerous approach throughout the
stakeholders Group
Tax and Licensing The telco industry is generally Proactive engagements with Arrive at solutions where tax
subject to stringent regulations local tax and regulatory bodies and fees are balanced with the
and high taxes in our operating long-term sustainability of the
markets industry.
G4-27
Reporting Highlights
Held the first Axiata Introduced the Axiata Suppliers Held the inaugural Axiata
Suppliers Forum to share Code of Conduct to establish the Supplier Awards to recognise
best practices and obtain Groups expectations from our our top-performing vendors
feedback from our vendors vendors and suppliers
COMMITMENT TO G4-20
G4-27
PROCESS
EXCELLENCE &
GOVERNANCE
We believe that the quality of our Each of our OpCos has its own specific Our sustainability initiatives under this
set of tax, licensing and other regulatory pillar have been formulated to ensure
processes and the level of our
requirements. We have a subscriber base that we meet all our commitments to our
organisational governance are of approximately 320 million customers stakeholders in an efficient and effective
important factors contributing across ten countries to whom we have manner. The initiatives are categorised
to improved customer and made a commitment to meet their under five focus areas:
expectations and protect their personal
supplier relations, greater cost
data. Best Practices Across the Value Chain
efficiencies and enhanced Customer Centricity
organisational oversight. Privacy and Data Protection
Digitising Processes
Strong Governance
Customer Service We are a highly customer- OpCos measure customer Improve customer experience
centric operation and operate satisfaction levels regularly and in each market to be the best
in a changing environment take all feedback seriously to amongst service providers
where customer expectations identify issues and anticipate
are constantly evolving changes in their expectations
Privacy and Data We have access to confidential Adherence to local and Build customers trust in us to
Protection customer information industry regulations safeguard their personal data
Digitisation has increased the Incorporating best A secure environment ensuring
risk of data breaches cybersecurity standards into the careful handling of sensitive
our practices information
Governance and We operate in six different Setting our own standard of A strong reputation as a reliable
Responsible Business markets each of which have conduct using UI.EP business partner in the region
Conduct their own regulatory frameworks Axiatas Enterprise Risk Best practices in governance
The telecommunications Management Framework has and compliance practices.
business is a highly regulated been adopted as a standard
industry involving numerous approach throughout the
stakeholders Group
Tax and Licensing The telco industry is generally Proactive engagements with Arrive at solutions where tax
subject to stringent regulations local tax and regulatory bodies and fees are balanced with the
and high taxes in our operating long-term sustainability of the
markets industry.
G4-27
Pillar Underpinnings Strengthening Our Data Security Process Excellence & Governance
We are constantly enhancing the level our commitment to privacy and data security In 2014, we introduced the 4i aspects of each of our Sustainability Pillars. We continue to describe our sustainability initiatives in 2016
initiatives beyond the baseline level of compliance and governance. Axiatas CSOC based on these four aspects:
The Process Excellence & was established to drive our security initiatives and implement our IT security policy
Governance Pillar details our across the Group. We also comply with all applicable data security and privacy laws
and regulations in the countries where we operate.
initiatives to streamline and
optimise our processes and
www.axiata.com/sustainability
Customers
need to know why
Process Excellence & Governance
Procurement Practices
4 Impact
Procurement Spend in 2016 Percentage local Percentage foreign
Our initiatives have developed the 42% 58% 28% 72% 83% 17%
capabilities of our vendors, ensuring
our customers receive the highest
levels of service and ensuring our Corporate Centre
organisation complies with best 29% 71% 44% 56% 53% 47% 50% 50% 40% 60%
international practice
50 PROCESS EXCELLENCE & GOVERNANCE Axiata Group Berhad | Sustainability & National Contribution Report 2016
PROCESS EXCELLENCE
& GOVERNANCE
We are committed to Best Practices along the Value Chain Supplier Performance Management
(SPM)
maintaining optimal efficiency
We are committed to maintaining optimal
and upholding best ethical efficiency and upholding best ethical The SPM is a process implemented by the
business practices throughout business practices throughout Axiata, and Axiata Procurement Centre (APC) which
Axiata, and this commitment this commitment extends to our third- creates a common framework across the
party suppliers and vendors. Our robust Group to communicate transparent and
extends to our third-party objective feedback to our key suppliers
procurement practices ensure that our
suppliers and vendors. business partners uphold our expectations for the purpose of driving continuous
of them in the areas of ethical practice and improvement. In the past, SPM was
sustainability which have been codified managed by individual OpCos using
Recognised in our Axiata Supplier Code of Conduct. different methodologies and evaluation
3 suppliers
Additionally, Axiata works closely with its criteria.
vendors to minimise procurement costs
at our inaugural by leveraging on Group-wide volumes and The Axiata SPM framework assesses
PROCESS EXCELLENCE
& GOVERNANCE
The first assessment cycle in 2016 involved Axiata receives Procurement Award
235 cross-functional evaluators across the Axiatas collaboration
Introduction
organisation from various business functions and Axiatas collaboration with its suppliers received with its suppliers was
covered 23 key suppliers. It culminated in the an award at the Procurement Leaders Asia recognised at the
inaugural Axiata Supplier Award given to three
suppliers in recognition of excellent performance
Pacific Awards 2016. Axiata was recognised for
its work together with turnkey suppliers on large
Procurement
and collaboration amongst Axiatas supply base. projects underlining our commitment towards Leaders
Supplier Sustainability Self-Assessment
developing mutually beneficial relationships with
our suppliers.
Asia Pacific
Awards 2016
Beyond Short-
Term Profits
As part of the SPM process, APC conducted a Strengthening our Procurement Policies in recognition of our work
Supplier Sustainability Self-Assessment. This together with turnkey
assessment required references to any publicly In addition to managing our relationships with our suppliers on large projects
available document, webpage or report to external partners, we strengthened our internal
demonstrate our suppliers compliance to procurement policies in 2016 by introducing our The first assessment
Nurturing People
sustainable business practises. If the supplier had Group-wide Capex Governance Framework. The cycle in 2016 involved
not formalised any public disclosure on any of the
areas assessed, they were to provide reference
formalising of our capex policy acknowledges
the Groups involvement in managing our
235
to any internal policy or guidelines providing OpCos capex. The new policy will help our cross-
evidence of their sustainability practice. OpCos reduce costs and discover alternative
solutions by leveraging on the knowledge-base
functional
The Sustainability Assessment builds on of the Group as a whole. evaluators
PROCESS EXCELLENCE
the Axiata Supplier Code of Conduct self- across the organisation
& GOVERNANCE
certification exercise in 2015 and assesses the Internally, as part of building the capability of our
following areas: procurement function, APC conducted a training
on Category Management, an essential skill in
Availability of a Sustainability Statement/ strategic sourcing with the participation of team
Report members from all OpCos and APC. As a follow-
Policies on Anti-Corruption, Environment up to this workshop, category teams have been
Protection established across the Group to further enhance
Our Associates
suppliers through our annual Axiata Supplier company.
Forum where we share and discuss issues and
solutions. Suppliers with excellent track records
were recognised at the inaugural Axiata Supplier
Awards following a performance evaluation of
their performance.
Contribution Report
National
52 PROCESS EXCELLENCE & GOVERNANCE Axiata Group Berhad | Sustainability & National Contribution Report 2016
PROCESS EXCELLENCE
& GOVERNANCE
Further complementing our Groups efforts to The Groups approach to protecting customer
gauge customer satisfaction are our OpCos data is grounded on the Group Privacy
individual efforts to better engage customers or Framework which is focused on enhancing
obtain feedback. security to improve data safety, proactive
engagement with our customers about
protecting their information and seeking explicit
consent in the use of their personal details. We
conduct periodic audits on our systems and
ensure that customer data is deleted when no
longer required.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 PROCESS EXCELLENCE & GOVERNANCE 53
PROCESS EXCELLENCE
& GOVERNANCE
Introduction
Bringing Smart Technology to the Home
Dialog, in collaboration various components of their homes IoT has been identified as the emerging
including: revolution in technology-enabled
with a technology partner,
futures, designed to optimise and
Beyond Short-
Term Profits
introduced its pioneering home security systems, change the way people live and interact
Smart Home product, lighting, with their environment.
which provides a range of air conditioning,
entertainment systems, and With a growing number of household
connectivity solutions and
smart switches and power points. appliances and security products being
packages to suit all customer fitted with IoT capabilities, Dialog is
Nurturing People
needs. Smart Homes are designed to save energy committed to further develop the
and related costs for homeowners while technologies required to sustain the
Dialogs Smart Home leverages on the providing greater convenience, flexibility ecosystem.
Internet-of-Things (IoT) technologies to and control. They grant greater ease of
give customers the ability to connect mind as homeowners will be able to check
and control household systems and in on the state of their homes at any time
through the use of a mobile device, and
PROCESS EXCELLENCE
appliances anytime and anywhere.
& GOVERNANCE
Through their mobile phones, Smart make appropriate adjustments as the
Home subscribers can engage with situation warrants.
However, customer information does play Digitising Processes We are also committed to the digitisation
a vital role in helping us tailor new products of our internal processes to optimise
and services that will add value to them. In As an aspiring Digital Champion, Axiata is efficiencies within the Group and, on a
Our Associates
any stage of the data mining process. stakeholders. of-Things (IoT) to create a digital home
environment for our customers. Contribution Report
National
54 PROCESS EXCELLENCE & GOVERNANCE Axiata Group Berhad | Sustainability & National Contribution Report 2016
PROCESS EXCELLENCE
& GOVERNANCE
The long-term sustainability of Axiata and We are cognisant of the fact that we
the execution of our business strategy in operate in a heavily taxed environment and
the region requires that we maintain an we take every step to comply with all local
impeccable governance track record for requirements, including those covering
both operational and reputational reasons. licensing issues. In 2016, we complied with
Our commitment to governance has seen all tax and licensing requirements in all our
us go beyond compliance in many of markets with no instances of breaches or
our operating countries to safeguard the violations reported.
interests of all our stakeholders including
minority shareholders and business Moving Forward
partners. Our policy on governance
requires that the Group and OpCos meet In our bid to become a New Generation
all local requirements, including tax, Digital Company, we are taking measures
licensing and cybersecurity requirements. to ensure that we are an end-to-end
digitised company. This is not only to take
We are committed to the principles advantage of the new capabilities offered
of transparency and accountability by new technology, but also to cater to
in our governance practices. In 2016, our customers who are living increasingly
our corporate governance record digital lifestyles. Customers today expect
was acknowledged by the Minority immediate responses from their service
Shareholder Watchdog Group (MSWG), providers in relation to their queries or
which presented us with several awards requests for new services, which in turn
including the Excellence Award for ESG requires new investments on our side. At
Practices for the fourth consecutive year. the same time, we have also put in a lot of
processes to tighten data security to ensure
Regulatory Compliance Framework that our customers personal information is
protected from unauthorised use.
The telecommunications industry is heavily
regulated by local authorities in all our The initiatives under this pillar which
operating markets. The Axiata Regulatory address our supply chain, our customers,
Compliance Framework ensures OpCos our governance framework and our internal
meet local regulatory requirements processes thus play key roles in helping us
and the Group provides direction as to reduce our costs without sacrificing the
how these needs are to be met. The quality and level of compliance of our Group.
Framework stipulates the principles by
which regulatory compliance is to be
approached by our OpCos.
COMMITMENT TO
COMMITMENT TO G4-20
G4-27
PLANET &
SOCIETY
Responsible environmental Our environmental efforts are focused Meanwhile, Axiatas OpCos also
on reducing the carbon emissions of our simultaneously deliver their own corporate
stewardship and community
passive network infrastructure, which responsibility programmes which have
empowerment are key factors accounts for the highest amount of been tailored to the specific needs of
enabling the long-term energy consumed within our operations. their own communities. These range from
sustainability and viability of our To reduce our impact on the environment, educational programmes to initiatives
our infrastructure company, edotco, targeted at specific groups depending
business in all our markets.
is leading the Groups environmental on identified needs. While some of these
mitigation efforts and is aiming to reduce initiatives have been disclosed in this
Issues such as climate change, social
the Groups emissions by 40% from 2013 report, we invite you to consult our OpCos
unrest and an under-developed society
levels by 2018. individual sustainability reports for more
can potentially disrupt our business and
comprehensive disclosure.
affect the long-term sustainability of our
The Group is also working together as a
presence. In light of these challenges,
unit to enhance the disaster preparedness Our sustainability initiatives under this pillar
we have made commitments to mitigate
and management of the countries in are divided into three focus areas:
our impact on the environment and to
which we operate. We have implemented
give back to a society which has been Environmental Management
a Group-wide Disaster Response Plan
supportive of our business presence and Disaster Management and Response
as a key initiative to ensure the effective
activities. Corporate Responsibility
response from our OpCos in the event of
a disaster.
Energy and As a telecommunications player, Axiata will continue introducing To reduce the size of our
Climate Change our environmental impact is green solutions including improved carbon footprint
relatively smaller than most other tower designs, innovative technology Be more environmentally
industries and the use of renewable energy responsible in our business
However, a substantial portion sources to reduce its environmental activities
of our environmental impact impact
is due to the construction and
operation of our passive network
infrastructure
Disaster and Response Our operations are located in A comprehensive and robust Quick and effective
disaster-prone regions business continuity management deployment of disaster
Being a mobile network operator, (BCM) to ensure the recovery of our relief efforts by our OpCos
we play a critical role in providing network and our critical business in the event of a disaster in
communications connectivity processes in the event of a disaster our operating markets
Committed to disaster management Ensure the minimum
and response through our role downtime of our networks
as a signatory of the GSMAs in the event of a disaster
Humanitarian Connectivity Charter
edotco leads the Groups environmental conservation efforts through green initiatives such as:
1 2 3
Introducing new and Using remote surveillance Powering sites with alternative energy
optimised tower designs technology: Over 7,000 sites sources: Under edotcos Get Out
are remotely monitored via of Diesel programme, an increasing
edotcos echo system number of our sites are being
powered by alternative renewable
energy sources. As at the end of
2016, approximately 480 sites were
powered by solar hybrid energy
OPEN
COMMITMENT TO G4-20
G4-27
PLANET &
SOCIETY
Responsible environmental Our environmental efforts are focused Meanwhile, Axiatas OpCos also
on reducing the carbon emissions of our simultaneously deliver their own corporate
stewardship and community
passive network infrastructure, which responsibility programmes which have
empowerment are key factors accounts for the highest amount of been tailored to the specific needs of
enabling the long-term energy consumed within our operations. their own communities. These range from
sustainability and viability of our To reduce our impact on the environment, educational programmes to initiatives
our infrastructure company, edotco, targeted at specific groups depending
business in all our markets.
is leading the Groups environmental on identified needs. While some of these
mitigation efforts and is aiming to reduce initiatives have been disclosed in this
Issues such as climate change, social
the Groups emissions by 40% from 2013 report, we invite you to consult our OpCos
unrest and an under-developed society
levels by 2018. individual sustainability reports for more
can potentially disrupt our business and
comprehensive disclosure.
affect the long-term sustainability of our
The Group is also working together as a
presence. In light of these challenges,
unit to enhance the disaster preparedness Our sustainability initiatives under this pillar
we have made commitments to mitigate
and management of the countries in are divided into three focus areas:
our impact on the environment and to
which we operate. We have implemented
give back to a society which has been Environmental Management
a Group-wide Disaster Response Plan
supportive of our business presence and Disaster Management and Response
as a key initiative to ensure the effective
activities. Corporate Responsibility
response from our OpCos in the event of
a disaster.
Energy and As a telecommunications player, Axiata will continue introducing To reduce the size of our
Climate Change our environmental impact is green solutions including improved carbon footprint
relatively smaller than most other tower designs, innovative technology Be more environmentally
industries and the use of renewable energy responsible in our business
However, a substantial portion sources to reduce its environmental activities
of our environmental impact impact
is due to the construction and
operation of our passive network
infrastructure
Disaster and Response Our operations are located in A comprehensive and robust Quick and effective
disaster-prone regions business continuity management deployment of disaster
Being a mobile network operator, (BCM) to ensure the recovery of our relief efforts by our OpCos
we play a critical role in providing network and our critical business in the event of a disaster in
communications connectivity processes in the event of a disaster our operating markets
Committed to disaster management Ensure the minimum
and response through our role downtime of our networks
as a signatory of the GSMAs in the event of a disaster
Humanitarian Connectivity Charter
Pillar Underpinnings Making a Positive Impact on Planet and Society Planet & Society
Our green and CR initiatives in our footprint across Southeast Asia and South Asia In 2014, we introduced the 4i aspects of each of our Sustainability Pillars. We continue to describe our sustainability initiatives in
have reduced the environmental impact of our organisation. The implementation of 2016 based on these four aspects:
The Planet & Society Pillar our Group-wide DRP has ensured that disaster-relief efforts in any of our operating
contains our initiative to mitigate countries will receive the full support of the Group while our CR initiatives are
helping uplift the lives of the less privileged.
the environmental impact of
our operations and to create
www.axiata.com/sustainability
Our Impact
value in the communities where Impact
Indonesia
we operate.
Innovation
Sisternet Internet
Our environmental initiatives are primarily Sri Lanka Literacy Robi Axiata provided
focused on reducing the carbon footprint
Nenesa 1,000 Education electricity access
of our passive network infrastructure while Smarts to more than
Broadband Schools
our community outreach programmes Education Channel Investment
comprise our Group and OpCos corporate for 2,000 schools National 4,000 people
Literacy
responsibility (CR) projects. by installing solar
Dialog Merit home systems in
Scholarship Malaysia
Improvement
Programme Investing in national sports:
950
The 4i Aspects of the Pillar
Sponsored
benefitting 1 Celcom households
Our initiatives under this Pillar are described
Disaster & Emergency
Warning Network 5,000 92,000 adults The main sponsor
for Badminton
through the 4i Aspects: (DEWN) copies of relief Association Malaysia Group disaster
organisation edotco explores using preparedness and
Rathmalana Mercy 480 carbon fibre 2 Robi response/support
1 Improvement Malaysias
Audiology
Centre Annual solar- as an alternative building
Sponsor Bangladeshs through
free SMS,
National Cricket
powered
Our initiatives introduce material for its structures
Report Team and partner of
calls and
improvements to the the Bangladesh Cricket
sites
environmental impact of our Board
Community
operations and bring positive
fundraising
change to the communities that
we serve
Programmes
with the Traffic
7,000 3 Dialog initiatives
Sponsor of
Police and
sponsoring orphans
Towers Sri Lanka cricket
managed with echo
2 Innovation remote surveillance system 7
Our initiatives have reduced the Axiata strives to reduce its carbon emissions to create a more sustainable and
3,653 303,538 122,161 43,330 434,432 68,016 69,544 173,745 24,404
carbon emissions of our passive greener environment. edotco is leading the way.
network infrastructure and
supported the various national Direct Energy Consumption (GJ) Indirect Energy Consumption (GJ)
agendas of our operating countries
CO2 GHG Emission Scope 1 + Scope 2 (Tonnes CO2)
201,249 2,435,358 531,204 161,166 706,910 229,019 120,415 231,342 9,930
58 PLANET & SOCIETY Axiata Group Berhad | Sustainability & National Contribution Report 2016
PLANET &
SOCIETY
4,583,164 GJ
levels by 2018. Over the last few years, 7,000 of edotcos sites were monitored
edotco has introduced a number of new under echo.
innovations including new tower designs,
Direct Energy:
remote surveillance systems and upgraded Optimising tower design and processes
599,357 GJ sites that are powered by solar energy to
reduce the Groups environmental impact. In 2016, edotco continued working on
Indirect Energy:
initiatives to improve tower designs and
3,983,807 GJ In 2016, the Group consumed 4,583,164 GJ improving process efficiencies to optimise
of energy of which 599,357 GJ comprised carbon reductions throughout the Group.
direct energy and the remaining 3,983,807 Specifically, these initiatives include:
GJ drawn from the grid1. In determining our
total energy consumption, we rely on data 1. Reducing steel consumption by
coming directly from our OpCos. redesigning and re-specifying towers
2. Reducing the size of the construction
Reducing our environmental impact plot
through innovation 3. Reducing the consumption of diesel
4. Reducing the truck roll to site, i.e.
Since embarking on its journey to reduce petrol consumption
the carbon emissions for the Group in 5. Increasing the use of renewable
2015, edotco has implemented a number of energy
initiatives to improve demand management, 6. Using alternative materials to steel on
introduce new green technology and site
enhance operational efficiencies. This is
Where numbers are not available, we use estimates based on the per site energy consumption data
1
known to us. The measurement of our OpCos individual energy consumption and emission levels also takes
the consumption and emission levels of edotcos passive infrastructure operations in their country into
consideration as edotco has started taking control of our passive infrastructure in our markets. We therefore
add the energy consumption and emission levels of edotcos passive structure to each respective country for
the purposes of this report.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 PLANET & SOCIETY 59
PLANET &
SOCIETY
To quantify the carbon reduction achieved from as a communications provider to make a bigger
its initiatives, edotco commissioned independent difference in the area of disaster relief, and have Optimised site designs
Introduction
research arm SIRIM to conduct a study on initiated a Group-wide Disaster Response Plan have resulted in
the savings resulting from optimised design.
Specifically, the report measured the reduction
(DRP). The DRP is also in line with our commitments
as a signatory to the GSMAs Human Connectivity
Carbon
in carbon emission achieved in two countries, Charter (HCC), which we helped found in 2015. The Savings
namely Malaysia and Bangladesh. Based on the DRP enhances coordination between our OpCos, of up to
findings of the report, the optimisation of tower
design which includes building lighter structures
and strengthens partnerships between ourselves
and the government and humanitarian sector.
29% and 25%
Beyond Short-
respectively for Malaysia
Term Profits
and the use of optimised site layout designs has
and Bangladesh
resulted in carbon savings of up to 29% and 25% Business Continuity Management
for each respective country.
edotco started a
The Group has implemented a Business Continuity
programme exploring
According to the two studies conducted by SIRIM, Management (BCM) plan, which dictates the
the use of
the use of optimised tower design in Bangladesh processes of recovering critical business processes
Carbon
Nurturing People
reduced carbon dioxide emissions per site by and the continuity of day-to-day services. Axiatas
approximately 435 tonnes over a ten-year period
to 1,300 tonnes from 1,735 tonnes using pre-
BCM policy contains principles and guidelines that
ensure coordinated and consistent deployment of
Fibre
as alternative material
optimised design. In Malaysia, the use of optimised BCM throughout the Group. It contains three key
for its structures
tower design could result in CO2 savings of principles:
approximately 11,720kg to 28,394kg per site from
As a Group, we
40,120kg using pre-optimised towers. Critical business functions shall be maintained
have implemented a
Process Excellence
or recovered in a timely manner in the event
& Governance
Additionally, edotco also started a programme of a disruption to minimise operational, Group-wide
exploring the use of carbon fibre as alternative
material for its structures. Carbon fibre possesses
financial, legal, reputational and other material
consequences.
Disaster
a number of properties making it a viable material BCM shall encompass crisis management Response
as it is 70% lighter than steel, 40% lighter than
aluminium, has a high strength-to-weight ratio and
including emergency response, disaster
recovery for IT and network systems and
Plan (DRP)
Our Associates
alternative. Corporate Responsibility
Disaster Management and Response The Axiata Group discharges its corporate
responsibilities (CR) both as a Group entity and
Our operations are located in countries that as individual OpCos. All efforts are focused
experience a number of natural disasters including on empowering and enriching lives within our
earthquakes, floods and tsunamis which have communities and mainly concentrated on the
Contribution Report
significant impact on the lives of the local areas of education, environmental protection,
National
PLANET &
SOCIETY
PLANET &
SOCIETY
Moving Forward
Introduction
Axiata will continue exploring
Expanding our disaster preparedness into Nepal ways to further mitigate its
impact on the environment
through the implementation
of green initiatives. We believe
We have integrated Ncell in Nepal 2016, this system was used to warn subscribers
of potential floods through SMS messages. The that much more can be done in
into the DRP to respond in the the area of renewable energy
system, which receives immediate rainfall and
Beyond Short-
event of natural disasters. In 2016,
Term Profits
water information from the DHM in flood-prone and tower design, and we aim
Ncell signed a Memorandum of areas of the country, issued more than 20 to apply our innovations in all
alerts covering 48 areas and eight river basins. markets within our footprint.
Understanding (MoU) with the
Government of Nepal to develop At the same time, we will further
Additionally, Ncell received a Global Mobile
a pro-active early warning system Award in 2016 for Mobile in Emergency or enhance the Groups disaster
Nurturing People
using mobile technology. Humanitarian Situations. The award, presented response plan. We are exploring
by the GSMA, recognised the aid and ideas including improving our
Under the new early warning system, relevant humanitarian relief Ncell provided to displaced pre-emptive warning systems
data from the Department of Hydrology and Nepalese post the 2015 earthquake. The and leveraging on mobile
Meteorology (DHM) will be logged, analysed earthquake was the worst to strike the region technology in providing disaster
and transmitted to Ncell subscribers to provide in over 80 years and affected the lives of over relief. The Group will also
advance warning of impending disasters. In eight million people in the country. intensify the sharing of best
Process Excellence
practices between all our OpCos
& Governance
who have developed invaluable
experience in providing disaster
relief.
Our Associates
affected students from 33 schools. In the third
through a special charity app, all stakeholders.
phase, Senehe Siyapatha widened its scope to
which was matched 1:2 by Dialog. provide housing facilities to families displaced
by the landslide in the Kegalle District.
This initiative quickly collected Rs. 14.9 million
from customers and staff, and was matched The Senehe Siyapatha fund is a model of
with a donation of Rs. 35 million from Dialog the way Axiata approaches disaster response
Contribution Report
to reach its targeted donation of Rs. 50 million. management. OpCos, in addition to supporting
National
gapore
Sin
M1 is Singapores most vibrant and dynamic communications company, providing mobile and fixed
services to over two million customers. Since the launch of commercial services in 1997, M1 has achieved
many firsts, including being the first operator to offer nationwide 4G service, as well as ultra high-
speed fixed broadband, fixed voice and other services on the Next Generation Nationwide Broadband
Network (NGNBN).
India
Idea Cellular is a pan-India integrated GSM operator offering 2G, 3G and 4G services with its own
Introduction
National Long Distance (NLD) and International Long Distance (ILD) operations, and ISP licence. Idea
is among the top three mobile operators in India, with annual revenue in excess of USD5 billion and
a revenue market share of 19%. With nearly 200 million subscribers, Idea ranks sixth in the global
rankings of operators in terms of subscribers for single country operations.
Beyond Short-
Term Profits
Idea is listed on the National Stock Idea endeavours to become the leading chats, and internal social networking
Exchange (NSE) and the Bombay Stock Indian conglomerate for sustainable business platforms to minimise commute time and
Exchange (BSE) in India. Ideas pan-India practices across all its operations by 2017. It increase productivity.
network covers over 400,000 towns aims to establish a sustainability programme
and villages across the country and is in Ideas current operations, under the heading The company through an Aditya Birla
further expanding network infrastructure Responsible Stewardship, which will see Group initiative has engaged the
Nurturing People
to make high-speed mobile broadband the company voluntarily aligning itself with services of an international agency for
services available to over a billion people. international standards set by the global bodies. implementation of an IT system capable
Idea executed the fastest 4G roll-out in of providing management with all data
the country in 2016 - with one broadband Network Access and Coverage required to be managed and published in
site being installed every ten minutes - a Sustainable Development Report. Idea
taking the overall tally of Idea sites to To reduce the collective carbon footprint of is all set to develop its first dedicated
Process Excellence
nearly 230,000 and connected by a the telecom sector in India, Idea pioneered Sustainability Report as per GRI Guidelines
& Governance
fibre network of over 128,000km. By the concept of Shared Telecom Infrastructure in FY2017.
March 2017, Ideas 4G services will have services along with other industry leaders. This
expanded to 20 circles covering 94% of initiative is committed towards continuous Going forward the company is working
its revenue market. innovation; the optimisation of tower rollouts; hard to further improve/strengthen its
and enhanced operational efficiencies leading to systems and processes especially those
Idea Cellular has played a key role in a substantial reduction of the carbon footprint. linked to (a) supply chain and contractor
Our Associates
infrastructure sharing, use of eco-friendly Ideas Employees: Flag Bearers of five basic tenets:
renewable energy sources, leveraging Sustainability
on the latest technology and smart Board accountability to the company
logistics are some of the best practices Idea is committed to attracting and retaining and shareholders
implemented in our network infrastructure the best talent, encouraging innovation, Strategic guidance and effective
CONTRIBUTION REPORT
and day-to-day business operations to and creating an engaging and motivating monitoring by the Board
ensure sustainable operations. workplace environment. Ideas Human Protection of minority interests and
NATIONAL
NATIONAL
CONTRIBUTION
REPORT
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 65
NATIONAL CONTRIBUTION
REPORT
As one of the leading telecommunications To continue to make a real economic 2016 National Contribution Report:
groups in Asia with a presence in ten difference in the countries and communities Report Scope and Information
Introduction
countries and a customer base of served, Axiata has been measuring
approximately 320 million, Axiata Group its investment impact in its National This report consists of an economic
Berhad (Axiata) makes a substantial Contribution Report annually over the past impact assessment at six of Axiatas major
contribution to the countries in which the three years. In its National Contribution operating companies. The report includes
Group operates. Through its investments Report 2016, the Group has extended the a two-part analysis comprising:
in its portfolio of operating companies rigour of the methodology and assessment
across the region, Axiata is recognised as used in its report to include the non- 1. Economic and financial analysis of
Beyond Short-
Term Profits
one of the largest Foreign Direct Investors, economic or dollar value imprint as well as the Axiata operating companies
best employer, significant taxpayer and the support that the Group and its operating contribution to the national economy,
substantial purchaser of local services. companies bring to all its major markets. which includes an assessment of their:
Nurturing People
and digital services have created significant
Contributed USD13.8 billion to the c. contribution to public finance
economic value and opportunities, both
respective national GDPs of the countries d. talent development
directly and indirectly to close to two billion
it has a presence in
people in ten countries across ASEAN and
Collective direct operational and capital 2. Impact assessment on Axiata
South Asia.
expenditures reached USD7.7 billion and companies contribution and support to
2.5 billion respectively in 2016 national priorities.
Additionally, as a committed long-term
Every USD1 spent by the Group
Process Excellence
investor in all its countries of operations,
& Governance
translated to between USD1.0 and This Report has been developed together with
Axiata has further supported and created KPMG based on its economic impact modelling and
USD2.3 contribution to GDP in its six key
non-economic value in areas identified methodology. All information, financial and economic
operating markets data contained in this report has been calculated and
as national priorities and agendas in the
Across Asia, both directly and indirectly, verified by KPMG.
countries within its footprint.
1.2 million jobs are supported by Axiata
companies
2.5
Indonesia
Every
translated
spent on to
Employed more than
Capex US$1.4 Cambodia
25,000
NATIONAL
aysia
Mal
National Contribution
Contribution to Gross Value Added Direct Employees Total Jobs Supported
Operational
Direct GVA
Total Employees Directly
Employed
3,687
USD770 Capital 44%
million Investment Female Supported
Indirectly -
34,872
Operational Indirect USD142 Operations
million
and Induced GVA 99.5%
USD733 Malaysian
Supported
Indirectly -
7,622
million Citizens Capital Investment
Celcom Axiata Bhd is Malaysias premier mobile telecommunications company and provides postpaid
mobile and digital services to close to 11 million subscribers. Celcom has the widest network in Malaysia
with population coverage of 95% for 2G, 90% for 3G and 90% for 4G/LTE networks.
Malaysia continues to make steady progress towards becoming Due to growing affluence, Malaysian consumers have become
a high-income nation by 2020. In 2016, the Malaysian economy increasingly tech savvy resulting in a highly competitive
expanded by 4.2% driven mainly by domestic demand and telecommunications market. The mobile penetration rate in
government-led infrastructure projects under the National Malaysia in 2016 was approximately 141.6% comprising 43.9 million
Transformation Programme. subscribers, while the broadband penetration rate reached 77.9%.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 67
NATIONAL CONTRIBUTION
REPORT
Figure 1: GVA contribution to the Figure 2: Total capital investment: Talent Development
Malaysia economy 2016 2012-2016
Introduction
Celcom provided 3,687 direct jobs in
321
USD142 million USD770 million 2016 of which 99.5% were staffed by
GVA by capital Operational 286
investment direct GVA 258
Malaysian citizens (see Figure 4). About
256
228
44% of Celcom employees were women,
9%
which is higher than the national average
USD million of 38%. During the year, Celcom engaged
six graduate management trainees as
Beyond Short-
Term Profits
part of its goal to provide young people
USD1,646 47%
with specialist skills required in the digital
million
economy. Celcoms operations also
45%
indirectly supported an additional 34,900
2012 2013 2014 2015 2016 jobs through its engagement with suppliers,
and a further 7,622 jobs through Celcoms
Nurturing People
Contributions to Public Finance capital investments.
USD733 million
Operational Indirect and Induced GVA Figure 4: Total employment impact 2016
Total tax contributions for Celcom over the
last five years totalled USD1,677 million.
Economic and Financial Contributions
In 2016, Celcom contributed USD200 7,622
Supported by 3,687
million in tax, accounting for 0.5% of the capital investment Directly
Celcoms Gross Value Added (GVA) in employed
Malaysian Governments total tax revenue
2016 was estimated at USD1,646 million
Process Excellence
(see Figure 3). Celcoms tax commitments
& Governance
comprising direct operational contributions 16% 8%
in Malaysia include direct taxes such as
of USD770 million, indirect operational
corporate and withholding tax, as well as
contributions of USD733 million and capital
indirect taxes such as value-added tax and
investments of USD142 million (see Figure 1).
licensing fees. 46,181
Total GVA of USD1,646 million was derived Jobs
from Celcoms total opex of USD990 supported
Figure 3: Total tax contributions to
million and capex of USD321 million, which public finance, 2012-2016
Our Associates
288 Celcom is committed to forwarding
USD million
Celcom invested a total of USD1,350 million the national agenda of developing the
between 2012 and 2016 towards improving 200 capacities and capabilities of Bumiputera
its products and services, expanding and other stakeholders. In addition to
its network coverage, introducing new its vendor development programme,
technology and enhancing its infrastructure Celcom sets key performance indicators
CONTRIBUTION REPORT
for the Malaysian market. Total investment benchmarking its contribution to national
of USD321 million in 2016 represented a 2012 2013 2014 2015 2016
development. These include:
NATIONAL
NATIONAL CONTRIBUTION
REPORT
- Partnerships with Anchor Partners Figure 5: % e-commerce value from SMEs in Malaysia - by SME sector
including Government regulatory US benchmark for e-commerce sector value contribution
agencies to fund Bumiputera SME % of e-commerce value from SMEs in Malaysia
and SMI companies, as well as
funding through Axiata Digital 6% 10%
Innovation Fund (ADIF) Services - e.g. wholesale, retail,
(ii) Developing Employees financial services (581K)
10% 52%
- Trained 127 employees under the Manufacturing (38K SMEs)
Celcom Accelerated Development
Programme 2%
NATIONAL CONTRIBUTION
REPORT
Introduction
been playing a key role supporting the +11%
Government initiative through various
6.3% 6.4%
programmes including its Kampung Tanpa 6.2%
6.0%
Wayar (KTW) and Pusat Internet 1Malaysia +12% 5.9% 5.9% 114
(Pi1M) programmes. Through KTW and 5.5% 103
5.4%
Pi1M, Celcom is bridging the digital divide 93
5.0%
of the underserved communities, and 83
Beyond Short-
RM (billion)
Term Profits
75
promoting greater use of technology and 68
digitisation. 61
53
49
Talent Development
Our efforts to develop talent in Malaysia 2012 2013 2014 2015 2016 2017 2018 2019 2020
Nurturing People
is delivered primarily through our Axiata
Young Talent Programme (AYTP), which Source: IDC Bullish on Malaysias digital economy potential, Enterprise Innovation, November 2016; Department of
Statistics Malaysia; National eCommerce Strategic Roadmap
provides training and grooming to youths
at different stages of development. Celcom
National eCommerce Strategic Roadmap Celcom has launched three new
also develops partnerships with relevant
e-commerce portals since 2013. They are
education authorities such as the MoHE
The Government of Malaysia launched the Bachabooku (an online store providing local
to hold training classes on selected topics.
National eCommerce Strategic Roadmap electronic books and magazines), Buzzaar
Process Excellence
In 2016, Celcom collaborated with MoHE
& Governance
in October 2016. The Roadmap highlights (an online specialty store that offers
to develop greater entrepreneurship in
the need to provide good and affordable delivery of popular regional specialties)
university students by providing workshops
broadband and mobile phone penetration and Crescent (an Islamic lifestyle hub). The
as well as by providing distribution access
for connectivity, physical infrastructure portals are aligned with Celcoms goal to
through its e-commerce platform 11Street.
and the widespread use of payment cards, develop more online business avenues
eWallets and mobile wallets for convenient as a key revenue pillar, and support the
Celcom continues to be a keen participant
electronic payments. development of a dynamic e-commerce
Our Associates
Roadmap revenue streams that would eventually
E-commerce
benefit customers, service providers
Data from International Data Corporation and content developers, as well as the
ICT is one of the most important
(IDC) indicates that total IT spending, traditional brick-and-mortar merchants.
determinants for the rapid growth of
including infrastructure, software and
e-commerce which is being driven by
CONTRIBUTION REPORT
onesia
Ind
National Contribution
Contribution to Gross Value Added Direct Employees Total Jobs Supported
USD1,485 Every
USD1 USD1.2
million
in 2016 translated to
Spent on Capex GVA Contribution
and Opex
Capital Operational
Expenditure Expenditure Contributed
USD487 USD998 USD120 million in taxes in 2016
million million
(0.1% of the total tax revenue of the Indonesian Government)
PT XL Axiata Tbk is one of Indonesias leading telecommunications service providers. XL offers an array
of innovative products and services ranging from voice, SMS and Value Added Services (VAS) to mobile
data covering more than 90% of the population throughout Indonesia. XL continues to innovate and is
transforming itself into a leading mobile data provider, serving the burgeoning demand for data amongst
Indonesians.
Southeast Asias largest economy, Indonesia has charted impressive Growing affluence translated into strong mobile growth rate over
economic growth post the Asian financial crisis of the late 1990s. the past ten years although the rate has started to moderate.
Gross national income per capita has risen steadily resulting in Increasing pressure from competitors in the market coupled with
a quickly emerging middle-class in the fourth most populous market maturity has prompted the growth of VAS as an important
country in the world. The country has made enormous gains in revenue source for mobile telecommunications players.
poverty reduction, having reduced the poverty rate by more than
half since 1999.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 71
NATIONAL CONTRIBUTION
REPORT
Figure 1: GVA contribution to the Investing and Innovating for the Long Talent Development
Indonesian economy 2016 Term
Introduction
XL provided 1,892 direct jobs in 2016 of
USD104 million USD698 million XL invested a total of USD2,652 million which 99% of positions were staffed by
GVA by capital Operational
investment direct GVA
between 2012 and 2016 to improve its Indonesian citizens. About 32% of XL
network and in launching new innovative employees were women. During the year,
products and services (see Figure 2). The XL engaged 46 new graduates, apprentices
23% OpCos total investment of USD487 million and interns as part of its goal to provide
3% in 2016 represented a 34.6% increase from young people with specialist skills required
Beyond Short-
Term Profits
USD362 million in 2015. XL further invested in the digital economy. XLs operations also
USD3,058 in the country and continued to innovate on indirectly supported an additional 89,600
51% million its VAS and quality of services to grow its jobs and outsourced a further 930 jobs. Its
presence in the country. capital investments, meanwhile, supported
23%
66,000 jobs (see Figure 3).
Figure 2: Total capital investment:
2012-2016 Figure 3: Total employment impact
Nurturing People
2016
USD714 million 746
USD1,543 million Operational
GVA by productivity Indirect and 66,019
Induced GVA 1,892
572 Supported by Directly
capital investment employed
486 487
Economic and Financial Contributions
USD million
362
Process Excellence
XLs total Gross Value Added (GVA) to the
& Governance
1%
Indonesian economy was approximately
USD3,058 million comprising direct 42%
158,409 56%
operational contributions of USD698 Jobs
million, indirect operational contributions supported
of USD714 million, capital investment 1%
2012 2013 2014 2015 2016
contributions of USD104 million and
Our Associates
mobile penetration rate. Every USD1 spent
indirect taxes such as value-added tax and
by XL in Indonesia through its operations
licensing fees.
and capital investment added USD1.2 in
GVA to the Indonesian economy in 2016.
CONTRIBUTION REPORT
NATIONAL
Note: As a % of total GVA contribution; Numbers may not balance due to rounding
72 NATIONAL CONTRIBUTION REPORT Axiata Group Berhad | Sustainability & National Contribution Report 2016
NATIONAL CONTRIBUTION
REPORT
In Support of the National Agenda ICT supports the expansion of e-commerce SMEs
E-commerce and SMEs, identified The Government of Indonesia launched Indonesias SME sector plays an important
as priorities under the Indonesian the Indonesia Broadband Plan in 2014. A role in the Indonesian economy. Digitisation
Governments National Agenda, are areas key priority under the Broadband Plan is helps to lower costs and enhance efficiency
that stand to benefit significantly from delivering improved logistics infrastructure, of the SME supply chain. Indonesias annual
the growth of mobile connectivity and to enhance e-commerce efficiency GDP growth rate could increase by 2% by
the use of digital technology. These areas and competitiveness. The improved improving SMEs digital engagement. XL
represent opportunities for XL to play a infrastructure would be necessary to has invested more than IDR500 billion
role in advancing Indonesias national goals support growing demand for e-commerce to set up DigiBiz, a service to help SMEs
and to contribute to society. The following services which is correlated to the rapid strengthen their marketing initiatives and
section provides an overview of these growth of the internet and social media grow their businesses.
national priorities and XLs contribution users in Indonesia.
towards them. SMEs as drivers of growth
The number of internet users in Indonesia
E-commerce is expected to increase from 72.8 million in In 2014, 57.9 million SMEs contributed to
2013 to 123 million in 2018, at a CAGR of 58.9% of total GDP and employed 97.3%
ICT is an essential support to the 11.1% whereas the number of smartphone of the countrys workforce. Recognising
development of e-commerce, as the users is expected to reach 100 million the importance of SMEs in Indonesia, the
development of ICT infrastructure creates by 2018. There are approximately 333.6 Government of Indonesia has introduced
channels for retailers to do business million active mobile numbers in Indonesia, various initiatives such as tax incentives,
online. Growing use of the internet and translating to a mobile penetration rate of lower lending rates, reduced restrictions
smartphones also creates demand for ICT 130%. Meanwhile, there are more than 69 on foreign investments, and support for
services. Indonesia is expected to be the million active Facebook users in Indonesia, market expansion opportunities to boost
largest e-commerce market in Southeast which is the fourth largest Facebook user the sectors growth.
Asia. base in the world. Exposure to social
media drives demand for e-commerce, Nurturing Young Talent
E-commerce drives economic growth as this provides convenient channels to
connect with the global market. XL is committed to nurturing young talent
Indonesia was the largest e-commerce in Indonesia through its XL Future Leaders
market in ASEAN in 2014. E-commerce is XL Axiata is involved in the e-commerce (XLFL) programme. XLFL replicates the
expected to grow at an accelerated rate marketplace through PT XL Planet, a joint aims and objectives of AYTP in Indonesia
given the countrys demographics that venture company. to provide unique learning and training
have made Indonesia the worlds fourth opportunities to Indonesian students. From
largest country by population. the programmes implementation in 2011
to end 2016, some 20,690 Indonesian
To support Indonesias goal of becoming students have benefitted from the
the biggest digital economy in Southeast programme, which also offers scholarships
Asia by 2020, the Indonesian Government on top of training workshops and online
released the E-commerce Roadmap learning courses.
in 2016 which forecasts the value of
e-commerce transactions to reach USD130
billion by 2020.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 73
NATIONAL CONTRIBUTION
REPORT
Introduction
Award from the Perhumas Awards 2016.
New innovations have been introduced to
the programme such that it now meets
Indonesian education objectives and has
evolved from one subject programme in
2011 to eight in 2016. As with the AYTP, XL
Future Leaders is helping build capabilities
Beyond Short-
Term Profits
and capacities of our future generations.
Driving Inclusivity
Nurturing People
the digital divide within the Indonesian
community. In 2016, XL focused its efforts
on bringing connectivity and digital services
to Indonesian women, whose rate of
internet use lags 30% to 40% behind their
counterparts in other ASEAN countries.
Sisternet, XLs digital home for Indonesian
Process Excellence
women, was introduced to empower and
& Governance
enrich womens online experience, and to
encourage their participation in the digital
economy.
Our Associates
CONTRIBUTION REPORT
NATIONAL
74 NATIONAL CONTRIBUTION REPORT Axiata Group Berhad | Sustainability & National Contribution Report 2016
Lanka
Sri
National Contribution
Contribution to Gross Value Added Direct Employees Total Jobs Supported
Dialog Axiata PLC operates Sri Lankas largest and fastest growing mobile telecommunications network
and is also Sri Lankas largest Foreign Direct Investor (FDI) with investments totalling over USD2 billion.
Dialog, a winner of six GSMA Mobile World Awards, has topped Sri Lankas Corporate Accountability
rankings for the past six years in succession.
Sri Lankas economy has grown at an average of 6.4% between 2010 The countrys strong economic growth over the last decade has
and 2015. Sri Lankas economy transitioned from a predominantly seen the population grow more affluent while poverty rates are
rural-based agriculture economy towards a more urbanised steadily declining. Increasing wealth in the population has translated
economy driven by services. into healthy mobile subscriber growth. Although mobile penetration
has historically been relatively low compared to more developed
Asian markets, the rate is now catching up. Between 2011 and 2016,
mobile penetration rate increased from 87% to 123%.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 75
NATIONAL CONTRIBUTION
REPORT
Figure 1: GVA contribution to the Sri Dialogs total GVA contribution increased Figure 3: Total capital investment:
Lankan economy 2016 to USD804 million in 2016 from USD693 2012-2016
Introduction
million in 2012, translating to a CAGR of
201
USD93 million 3.8% (see Figure 2). The improving trend
GVA by capital 180
investment
was due to increased operational profits 167
USD250 million
Operational and a surge in the number of subscribers.
133
USD203 million direct GVA Over the last five years, total operational 116
GVA by
USD million
productivity profit grew to USD208 million in 2016
12% from USD142 million in 2012. The total
Beyond Short-
Term Profits
number of mobile subscribers in Sri Lanka
31% expanded to 26 million from 19 million
during the same time period translating to
25% USD804 a mobile penetration rate of 122% in 2016
million (95% in 2012). 2012 2013 2014 2015 2016
Nurturing People
Figure 2: GVA contribution to the Sri
Lankan economy, 2012-2016
32% Total tax contributions for Dialog from 2014
as a % of total GDP
to 2016 totalled USD603 million, expanding
USD257 million
1.2% to USD217 million in 2016 from USD198
Operational Indirect and Induced GVA
1.1% 1.0% 1.0% 1.0% million in the previous year (see Figure 4).
Economic and Financial Contributions 803 804 Dialogs tax contributions in 2016 accounted
765
Process Excellence
717 for 2.2% of the Sri Lankan Governments
693
& Governance
Dialogs Gross Value Added (GVA) total tax revenue. DIalogs tax commitments
in 2016 was estimated at USD804 in Sri Lanka include direct taxes such as
corporate and withholding tax, as well as
USD million
Our Associates
4.8% increase in the mobile penetration between 2012 and 2016. The OpCos total
rate. Every USD1 spent by Dialog in Sri investment of USD180 million in 2016
USD million
198
Lanka through its operations and capital represented a 7.9% increase from USD167
investment added USD1.2 in GVA to the Sri million in 2015 (see Figure 3). Dialog is
Lankan economy in 2016. committed to further investing in Sri Lanka 187
so as to enhance its network coverage
CONTRIBUTION REPORT
NATIONAL CONTRIBUTION
REPORT
NATIONAL CONTRIBUTION
REPORT
Introduction
The SME sector has been identified as an important strategic sector in the Governments providers and strengthening
overall policy objectives. Under the National Human Resources and Employment Policy, technology transfer programmes;
ICT is considered necessary to empower SMEs to network and improve efficiency and
productivity of their business. The use of ICT helps SMEs access technology, infrastructure (iii) Establishing a technology bank
and funding. for collecting and disseminating
information on technology resources
SME growth as driver of economy and strengthening training centres to
Beyond Short-
Term Profits
enhance the skills of entrepreneurs.
Nurturing People
to help SMEs strengthen productivity and
of all businesses of employment of GDP gain access to new markets.
Process Excellence
ICT infrastructure supporting growth in
& Governance
businesses, providing 45% of employment that the weak use of email and websites
mobile, fibre optics, high speed broadband
and 52% of GDP. by SMEs was responsible for the countrys
and digital television technologies. This
poor performance under the connectivity
includes investments of over Rs. 1 billion
Under the national development plan pillar of competitiveness.
annually in the community to uplift
Mahinda Chintana Socio Economic
education, health, sports and other social
Development Strategy 2010, growth of The Government of Sri Lanka wants to
and community development activity. The
SMEs has been identified as a key thrust improve SMEs access to appropriate and
Our Associates
Lanka to launch 1,000 start ups by 2022.
CONTRIBUTION REPORT
NATIONAL
78 NATIONAL CONTRIBUTION REPORT Axiata Group Berhad | Sustainability & National Contribution Report 2016
ng ladesh
Ba
National Contribution
Contribution to Gross Value Added Direct Employees Total Jobs Supported
Operational
Direct GVA
Total Employees Directly
Employed
1,962
USD226 Capital 9%
million Investment Female Supported
Indirectly -
56,190
Operational Indirect USD158 Operations
million
and Induced GVA 99.5%
USD211 Bangladesh
Supported
Indirectly -
37,137
million Citizens Capital Investment
Robi Axiata Limited is the second largest mobile operator in Bangladesh with 33.8 million active
subscribers. It provides the countrys widest network coverage, covering 99% of the population with 2G
and 3.5G sites. Robi has introduced many first-of-its-kind digital services in the country and has invested
heavily in providing mobile financial services to underserved communities in rural and semi-urban areas.
Bangladesh has maintained an impressive growth track record over Bangladesh aspires to become a middle-income country by 2021,
the past decade, posting annual growth rates of 6%. Poverty has which will require the country to grow between 7.5% and 8% per
dropped by nearly a third while key social indicators such as life annum. Connectivity continues to grow steadily following a late start
expectancy, literacy and gender equality are steadily improving. with the internet coming to Bangladesh in 1996. Mobile subscriber
rates remained strong between 2011 and 2016, although the rate is
beginning to moderate because of market maturity and saturation.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 79
NATIONAL CONTRIBUTION
REPORT
Figure 1: GVA contribution to the Investing and Innovating for the Long Talent Development
Bangladesh economy 2016 Term
Introduction
Robi provided 1,962 direct jobs in 2016
USD226 million Robi invested a total of USD1,050 million of which 99.5% of employees were
USD158 million Operational between 2012 and 2016. The OpCos total Bangladeshi citizens (see Figure 3). About
GVA by capital direct GVA
investment of USD254 million in 2016 was 9% of Robi employees were women.
investment
marginally lower than the USD256 million During the year, Robi engaged 61 new
invested in 2015 (see Figure 2). Robi aims to graduates, apprentices and interns as
27% continue investing in the country to further part of its goal to provide young people
Beyond Short-
Term Profits
improve service offerings and to ensure with specialist skills required in the digital
38%
greater inclusivity among underserved economy. Robis operations also indirectly
USD596 community segments. supported an additional 56,000 jobs. Its
million
capital investments, meanwhile, supported
Figure 2: Total capital investment: 37,000 jobs.
2012-2016
35%
Figure 3: Total employment impact
Nurturing People
270 2016
256 254
USD211 million
Operational Indirect and Induced GVA 37,137
Supported 1,962
by capital Directly
165 investment employed
Economic and Financial Contributions
USD million
Process Excellence
Robi contributed USD596 million in Gross 105
& Governance
Value Added (GVA) to the Bangladeshi 2%
economy in 2016 (see Figure 1). This 39%
comprised direct operational contributions 95,289
of USD226 million, indirect operational Jobs
Supported 59%
contributions of USD211 million and capital 2012 2013 2014 2015 2016
investment contributions of USD158
million. The total GVA of USD596 million Contributions to Public Finance
Our Associates
indirect taxes such as value-added tax and
licensing fees.
CONTRIBUTION REPORT
NATIONAL
Note: As a % of total GVA contribution; Numbers may not balance due to rounding
80 NATIONAL CONTRIBUTION REPORT Axiata Group Berhad | Sustainability & National Contribution Report 2016
NATIONAL CONTRIBUTION
REPORT
Agriculture Source: Seventh Five Year Plan FY2016-FY2020, Planning Commission of Bangladesh
Growth of the agriculture sector is a ICT increases productivity of agriculture Mobile Krishe, a fertiliser recommendation
priority in the Seventh Five Year Plan software, has been implemented as a
2016-2020 for Bangladesh. Promoting the ICT is being considered as a tool to collaboration between Robi and Grameen
effective use of ICT in agriculture is one of expedite credit delivery to farmers by Intel Social Business Ltd. This initiative
the major objectives of the Seventh Five paying Government subsidies directly aims to help farmers achieve high yields
Year Plan, as prioritised by the Ministry of through mobile money. It is also being used from their crops sustainably through the
Agriculture. Robi launched Mobile Krishe as a platform to disseminate important application of this mAgriculture-based
to promote modernised farming and agricultural information to farmers. modern farming method.
enable farmers to achieve sustainable high
yield on their crops. A key challenge that must be overcome Womens Employment
is making technology available and
Agriculture reduces poverty and increases accessible to rural Bangladeshis, especially The Seventh Five Year Plan 2016-2020
rural incomes for farmers given their low rate of literacy. highlights womens employment as a
Services that are available include: strategic goal. Bangladesh projects that it
In 2015, agriculture contributed to is able to increase its GDP growth by 1.6%
15.6% of GDP and employed 50% of the weather forecasting if female labour participation increases
labour force. The sector helped reduce production and cultivation advice from 33.7% to 82.0%, a figure on par with
Bangladeshs poverty levels from 48.9% in disease and insect information the male labour participation rate. ICT
2000 to 31.5% by 2010, with over 87% of through e-Krishok provided by civil enables women to access information
the rural population deriving a portion of society organisations related to development opportunities and
their income from agriculture (see Figure up-to-date price information services, learning and networking, and has
4). Two-thirds of rural households rely on an important role in outsourcing business
both farm and non-farm incomes. A 10% opportunities at different stages of the
increase in farm incomes generates a 6% value chain.
increase in non-farm incomes through
economy-wide forward and backward
linkages.
NATIONAL CONTRIBUTION
REPORT
Womens employment the engine of the ICT helps empower women across
Bangladesh economy different sectors
Introduction
The National Women Development Policy Case studies in Africa and Asia have proven
was ratified in 2011 to create a national that mobile phones can be effective in
vision for social, legal and economic helping women become more efficient
empowerment of women. and generate greater income. The number
of women entrepreneurs has grown in
Economic empowerment of women is still these areas following the implementation
Beyond Short-
Term Profits
at low levels and Bangladesh is ranked of m-money services while women in other
135 out of 147 countries for economic locales have started using ICT to build new
participation by the Gender Gap Report networks.
of the World Economic Forum 2016.
According to the World Banks World The number of women involved in small-
Development Indicators, Bangladesh has and micro-enterprises is increasing in
Nurturing People
a 57.6% female labour force participation Bangladesh. For women entrepreneurs,
rate compared to a world average of ICT serves as an effective learning and
50.3% (see Figure 5). networking tool as well as for outsourcing
business opportunities in different stages
The Bangladesh Development Update of the value chain.
noted that if Bangladesh wants to reach
middle-income status by 2021, the country SME Foundation Bangladesh, an
Process Excellence
will have to add more women to the autonomous organisation that facilitates
& Governance
workforce. the development of SMEs with a focus on
women entrepreneurs, provides regular
Figure 5: Female labour force training programmes to prepare women-
participation rate (%) led SMEs in ICT adoption.
57.6
In collaboration with the GSMA mWomen
Our Associates
Digital Smart Buses project, using six buses
to provide basic ICT training to 240,000
young and talented women across 64
2008 2010 2011 2012 2013 2014 districts of the country.
mbodia
Ca
National Contribution
Contribution to Gross Value Added Direct Employees Total Jobs Supported
Operational
Direct GVA
Capital
Investment
Total Employees Directly
Employed
1,047
USD140 USD33 37%
million million Female Supported
Indirectly -
26,921
Operations
Operational Indirect Productivity
and Induced GVA GVA 98%
USD69 USD71 Cambodian
Supported
Indirectly -
12,688
million million Citizens Capital Investment
Smart is a leading mobile telecommunications company in Cambodia with over eight million subscribers
and was the first telco to rollout 4G LTE services in 2014 and 4G+ in 2016. Being a strong advocate of
digital innovation that has continued to evolve into a digital lifestyle brand, Smart has launched various
value added services and digital services, in various areas including finance, insurance and entertainment.
Aside from launching Smart Music, the countrys first music has been recognised by the industry and international organisations
streaming application in partnership with Universal Music, Smart for its superior services, strong financial performance and national
also launched SmartLuy, a mobile money service that allows mobile contribution. For its contributions to social development, Smart won
consumers to transfer funds and make financial transactions digitally. the Telecom Asia Best Community Project Award for its involvement
Through Smart Life Insurance, a product implemented in partnership in Cambodias National Literacy Campaign in collaboration with the
with BIMA, Smart is now the largest provider of life insurance in Ministry of Education, Youth and Sport as well as UNESCO. It has also
Cambodia in terms of the number of people insured. In 2016, Smart been lauded by the Global Banking and Finance Review as the Best
launched SmartPay, a payment solution via phone balance. Smart Telco and the Best CSR Company in Cambodia for two consecutive
years - in 2015 and 2016.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 83
NATIONAL CONTRIBUTION
REPORT
Cambodia remains one of Asias fastest capital investment contributions of USD33 Investing and Innovating for the Long
growing economies posting a GDP million and productivity gains of USD71 Term
Introduction
growth of 7% in 2016. Economic growth million (see Figure 1). Productivity gains
in the country is being largely driven by are defined as the improvement in national Smart invested a total of USD269 million
infrastructure investments, tourism, real productivity due to the rising mobile between 2012 and 2016 to improve its
estate development and growing exports. penetration rate. The total GVA of USD313 network infrastructure, including rolling
million was derived from Smarts total opex out its 4G LTE network and expanding
While per capita income is still low and capex of USD133 million and USD75 its range of products and services. The
million respectively, and the 8.3% increase companys total capital investment of
Beyond Short-
compared to neighbouring countries, it has
Term Profits
in the mobile penetration rate. Every USD1 USD75 million in 2016 represented a 25%
been rising rapidly, leading to increased
spent by Smart in Cambodia through its increase compared to the USD60 million
telecommunications consumption and
operations and capital investment added in 2015. Smart plans to continue investing
greater demand for technology. The
USD1.4 in GVA to the Cambodian economy in the country to further enhance its 4G
growing affluence of Cambodians coupled
in 2016. LTE leadership and enhance its offerings
with the proliferation of affordable
to stave off competitors in a saturating
smartphones means that there is ample
Nurturing People
Smarts total GVA contribution increased mobile market. At the end of 2016, 60% of
room for the introduction of higher-value, to USD313 million in 2016 from USD98 its more than 2,100 base stations across all
digital services. million in 2012, translating to a CAGR of 25 provinces have been equipped with 4G
33.6% (see Figure 2). The improving trend already while 100% of base stations feature
Economic and Financial Contributions was due to higher operational profits and 3.75G. Smarts push to further improve 4G
significantly increased number of mobile customers experience is evident with the
Figure 1: GVA contribution to the subscribers. Over the last five years, introduction of 4G+ in September 2016
Process Excellence
Cambodian economy 2016
total operational profits grew to USD130 which increases the capacity of the base
& Governance
million from USD25 million. With a total stations and consequentially speed Smarts
USD33 million number of mobile subscribers (as active users can enjoy.
GVA by capital
investment declared SIM cards by the operators) in
USD140 million
USD71 million Operational Cambodia at 19.9 million as reported to Figure 3: Total capital investment:
GVA by direct GVA
the Telecommunications Regulator of 2012-2016
productivity
Cambodia, the mobile penetration rate
75
as % of total GDP
million 45%
24
1.5% 1.6%
1.4%
313
Our Associates
22% 0.8%
0.6% 275
237
USD69 million
Operational Indirect and 2012 2013 2014 2015 2016
USD million
98
CONTRIBUTION REPORT
Note: As a % of total GVA contribution; Numbers may not balance due to rounding
84 NATIONAL CONTRIBUTION REPORT Axiata Group Berhad | Sustainability & National Contribution Report 2016
NATIONAL CONTRIBUTION
REPORT
Total contributions by Smart over the last 12,668 1,047 Education is one of the significant drivers
five years reached USD199 million. This Supported by Directly for country development. Through its CSR
capital investment employed
expanded to USD65 million in 2016 alone, pillar Education, Smart continues playing
up from USD19 million in 2012, representing an active role in various initiatives as a key
a CAGR of 36.1% (see Figure 4). Smarts development partner with the Ministry of
contribution of USD65 million includes 31% 3% Education, Youth and Sport and Ministry
regulatory related fees, levies and payments. of Posts and Telecommunications of
Smarts tax contribution alone accounted for 40,656 Cambodia to ensure sufficient skilled
3.6% of national tax income, excluding other Jobs human resources for the country.
supported
regulatory related fees and payments.
Education as a key component of a
66%
Figure 4: Total contribution to public knowledge-based society
finance, 2012-2016
The Government of Cambodias long-term
65 26,921
59
vision of Education for All is to ensure
Operations - indirectly supported
equal access to quality basic education for
Smarts labour productivity over the all citizens and to prepare its citizens to
last three years play an active role in building the country
USD million
Note: As a % of total GVA contribution; Numbers may not balance due to rounding
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 85
NATIONAL CONTRIBUTION
REPORT
ICT to support digital education U-16 Youth Championship. Smart has been 2016 also saw Smart partnering with World
tremendously active in partnering with the Vision International and Salt Academy in a
Introduction
Cambodia has embarked on a journey of Ministry of Education, Youth and Sport, sports for development pilot programme
building a digital society in tandem with local authorities, football institutions and which reaches out to over 300 vulnerable
the rapid expansion of mobile broadband NGOs in supporting sporting events, youth youth in Battambang, Preah Vihear and
availability and affordability. The programmes and national sports initiatives Takeo. These programmes have enabled
Telecommunication and ICT Development to spur Cambodias sports development. and encouraged many young Cambodians
Policy 2020 specifies targets such as to dream big, not only in football but also
100% of high school graduates equipped Supporting Cambodias first National in life. Smart is also the main sponsor of
Beyond Short-
Term Profits
with basic ICT skills and 15% of ICT Games Phnom Penh Crown Football Club and
human resource in the country. Mobile Smart Dragon Basketball Club; the former
connectivity can increase access to The national policy on the development also runs a Young Talent Academy to
education and enrich learning experiences of physical education and sports is cultivate talented players, an initiative
with digital content to ensure inclusive, accelerating rapidly ahead of the that Smart believes will eventually create
equitable and sustainable education. prestigious regional 2023 SEA Games world-class footballers in Cambodia. As
part of promoting a healthy lifestyle,
Nurturing People
which will be hosted by Cambodia. In
Besides having much better 4G LTE collaboration with the National Olympic Smart supports every marathon activity in
services compared to its neighbouring Committee, the National Games were Phnom Penh, Sihanoukville, Siem Reap and
countries, smartphone penetration and launched in 2016 as a result of an eight- Kampot, which saw a total of more than
internet literacy in Cambodia is booming year partnership reflecting Smarts 20,000 participants in 2016.
day by day whereby there are about commitment to playing a part in developing
eight million internet subscribers and new sportsmen and sportswomen in the
Process Excellence
4.9 million social media users as at end- country. Sports covered by this bi-yearly
& Governance
2016. Whilst supporting programmes that event include athletics, swimming, boxing,
help to promote Science, Technology, badminton, basketball, Kun Khmer and
Engineering and Mathematics (STEM), Bokator football, wrestling, table tennis,
Smart is also gearing up its involvement taekwondo, volleyball, tennis, petanque
in innovation initiatives that contribute and acrobatics. The inaugural National
towards supporting digital education; for Games in 2016 involved 2,700 athletes
Our Associates
Government is to promote sports and Sports, Smart aims to trigger positive
a healthy lifestyle at all levels while change and to empower Cambodians
contributing to social, cultural and to help their communities and families
economic development. Football, in become more sustainable. In the second
particular, has been gaining popularity after year of Smarts three-year partnership with
improved performances of the national Happy Football Cambodia, the Cambodian
CONTRIBUTION REPORT
team in the 2018 World Cup Qualifications team won the Mens Globe Trophy at the
and the 2016 ASEAN Football Federation 2016 Homeless World Cup in Scotland.
NATIONAL
86 NATIONAL CONTRIBUTION REPORT Axiata Group Berhad | Sustainability & National Contribution Report 2016
Nepal
National Contribution
Contribution to Gross Value Added Direct Employees Total Jobs Supported
Ncell Private Limited has been in operation in Nepal since 2004 as the first private mobile service provider
in the country. Ncell provides services of international quality with a local touch. Most of the employees
of Ncell are Nepali and its services are designed to meet the needs of local society.
Nepal has achieved remarkable progress since 2006. Poverty has Nepal is making progress in education, health care and gender
reduced considerably, with the country having halved the number equality and continues to hold significant economic potential in
of people living on less than USD1.25 a day, from 53% in 2003-2004 spite of the devastating earthquake that occurred in 2015. Mobile
to 25% in 2010-2011. penetration rate continues to grow at a relatively strong rate despite
the growing maturity of the market. The current mobile penetration
rate stands at about 115% and is expected to grow over the next
four years to 132% by 2020.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 87
NATIONAL CONTRIBUTION
REPORT
Figure 1: GVA contribution to Nepals Investing and Innovating for the Long In Support of the National Agenda
economy 2016 Term
Introduction
Education and Agriculture are national
USD123 million USD27 million Ncell made capital investments totalling priorities under the Nepal Governments
GVA by GVA by capital
productivity investment
USD61 million in 2016. With USD34 million National Agenda. They were selected
invested in Nepal, based on the assumption because of the substantial benefits they
4% that 55% of total capital investments would gain from the growth of mobile
19% were made within the country, USD25 connectivity and the use of digital
million GVA was generated and 17,850 technology. These areas represent
Beyond Short-
Term Profits
jobs created. Capital investment plays a opportunities for Ncell to play a role in
significant role in enhancing the companys advancing Nepals national goals and to
USD662 competitiveness and contributing to contribute to society. The following section
20% million
Nepals economy. provides an overview of these national
priorities and Ncells contribution towards
57%
Contributions to Public Finance them.
Nurturing People
USD134 million Ncell contributed USD369 million in taxes Figure 2: Total employment impact 2016
Operational indirect
and induced GVA
to the Nepal Government, accounting for
USD379 million
Operational 7.7% of the countrys total tax revenue. Ncell 17,850
direct GVA has been recognised by the Government Supported by
capital investment 536
of Nepal as the largest income taxpayer Directly
Economic and Financial Contributions of the country in FY2012-2013 and 2013- 1,150 employed
Process Excellence
Outsourced
2014. 16%
& Governance
Ncell contributed USD662 million in
Gross Value Added (GVA) to the Nepal 1%
Ncell contributes to the Government
economy in 2016 (see Figure 1). This treasury in the form of License Fees, 1%
comprised direct operational contributions Telephone Service Tax, Ownership Tax, 108,881
of USD379 million, indirect operational Value Added Tax, Withholding Tax, Income Jobs
contributions of USD134 million, capital Tax, Royalty, Frequency Fee and Rural supported
investment contributions of USD27 million
Our Associates
and capital investment translated into also indirectly supported an additional
USD2.3 in GVA in 2016. 89,000 jobs and outsourced a further
1,150. Its capital investments, meanwhile,
supported 17,850 jobs.
CONTRIBUTION REPORT
NATIONAL
Note: As a % of total GVA contribution; Numbers may not balance due to rounding
88 NATIONAL CONTRIBUTION REPORT Axiata Group Berhad | Sustainability & National Contribution Report 2016
NATIONAL CONTRIBUTION
REPORT
rate stood at 57.4% in 2015. The current Source: The World Bank
enrolment ratio of secondary and tertiary
education is quite low with the tertiary Ncells also supports schools through Agriculture is an important factor in
enrolment ratio at 15.8% in 2014 (see its Adopt a School Programme, boosting the economy
Figure 3). implemented in partnership with Save the
Children, which works closely with Ministry The World Development Report 2008
Integrating ICT into Education Reform of Education and District Education recognised that agriculture is four times
Offices. The programme has seen Ncell more effective in driving GDP growth than
The Government of Nepal enacted the ICT help build education infrastructure and any other sector.
in Education Master Plan in 2013 to address outfit schools with facilities to enhance
the role of ICT in Nepals education reform. student enrolment and develop more Agriculture is an important sector in Nepal.
conducive learning environments. It also In 2015, agriculture recorded a value add
The National Centre for Educational delivers initiatives to improve student of NPR623.6 billion and contributed 33%
Development (NCED) provides training attendance and encourage students to of GDP (see Figure 4). It also provided for
to teachers across the country through stay in school and continue their studies. 66% of jobs in Nepal.
National Radio while computer education
courses are offered in schools. The Agriculture According to the WHO, 40% of Nepali
Department of Education (DOE) has children under five have stunted growth,
developed interactive digital learning Agriculture is an important sector 29% are underweight, and 11% are
materials in Nepali for the students supporting economic growth in Nepal. ICT deemed to be wasting. To address these
covering different subjects. is used to enhance the supply of agricultural long-term debilitating effects, one of the
products, improve farmers livelihoods priorities of the Government of Nepal is
To facilitate the delivery of digital and reduce poverty. By providing high- ensuring safe and sufficient supply of food
education, Ncell established its digital quality, cost effective and modern for its citizens.
libraries project in partnership with telecommunications infrastructure, Ncell
Help Nepal Network. The programme helps connect farmers with both local
also provided training to students and and global markets and boost economic
teachers to increase computer literacy by growth. The availability of accurate and
leveraging on ICT. timely information, such as information
on agricultural technology, market prices,
demand changes, weather and low-cost
pest control, is helping farmers implement
best practices in their agricultural activities.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 NATIONAL CONTRIBUTION REPORT 89
NATIONAL CONTRIBUTION
REPORT
Introduction
800 40%
38%
Nepalese rupee (billion)
600
36%
Beyond Short-
Term Profits
400 34%
32%
200
30%
Nurturing People
0 28%
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Process Excellence
and productivity, two Government-funded address the lack of digital support for
& Governance
projects Agriculture Commercialisation agriculture in Nepal, Ncell supported the
and Trade and Agriculture Management development and adoption of digital
Information System developed mobile solutions for agriculture, such as the Smart
applications to track field verification Krishi, Krishi Ghar and IFA Krishi apps
of sub-projects and check details of through its Mobile App Challenge.
subsidised sub-projects via GPS in mobiles.
Our Associates
improve their farming practices and boost
yields.
CONTRIBUTION REPORT
NATIONAL
90 NATIONAL CONTRIBUTION REPORT Axiata Group Berhad | Sustainability & National Contribution Report 2016
NATIONAL CONTRIBUTION
REPORT
1.1 KPMGs methodologies and computational formula 1. Total Value Added = Direct Value Added x Total
Value Added Multiplier
Direct Value Added contributions were estimated
based on operational data provided by Axiata Where,
regarding operating revenues, operating expenditures,
compensation of employees and indirect taxes and Direct Value Added = Operating Revenue
levies. Operating Expenditure + Compensation of
employees + Indirect taxes and levies
Total Value Added Contributions were estimated using
an economic multiplier. The total multipliers (Type II) Note: Operating expenditure provided by Axiata excludes
for the Telecom industry were derived from national depreciation.
Input-Output (I-O) tables published by OECD, ADB and
national statistical agencies. 2. (a) For countries employment multipliers are
available,
Employment is generated through a number of avenues Total Employment = Total Operational
including: Expenditure x Average Employment Multiplier
(b) For countries employment multipliers are
1. Directly through Axiata and related industries. not available,
2. Outsourced support services including customer Total Employment = Total Indirect Value
support and network operations and maintenance. added/Average Value Added per worker +
3. Indirectly through firms that provide services to Direct Employment Direct Employment = As
Axiatas operations. per Axiata data
4. Induced as employees from the above spend their 3. Axiatas labour productivity = Direct Value Added/
household income thereby generating further Number of employees
rounds of employment.
Note: Number of employees includes both direct and outsourced
Total employment impact is estimated using I-O tables employees.
and Average Value Added per Worker derived from
relevant Departments of Statistics for each country. 1.4 Productivity Analysis
APPENDIX
Gigajoule (GJ)
Over-the-Top (OTT)
Global Reporting Initiative (GRI)
Annual General Meeting (AGM)
Government-Linked Company (GLC)
Axiata Digital (AD)
Greenhouse Gas (GHG)
Axiata Digital Innovation Fund (ADIF)
Gross Domestic Product (GDP)
Axiata Procurement Centre (APC)
Gross Value Added (GVA)
Axiata Treasury Management Centre (ATMC)
Group Accelerated Development Programme (GADP)
Axiata Young Talent Programme (AYTP)
Group Risk Management Committee (GRMC)
Badminton Association Malaysia (BAM)
GSM Association - An association of mobile operators
Base Transceiver Station (BTS)
and related companies devoted to supporting the standardising,
Bombay Stock Exchange (BSE) deployment and promotion of the GSM mobile telephone system
(GSMA)
Board Audit Committee (BAC)
GSMAs Humanitarian Connectivity Charter (HCC)
Business Continuity Management (BCM)
High Throughput Satellite (HTS)
Business Development Programme (BDP)
Human Resources (HR)
Capital Expenditure (Capex)
Improvement, Innovation, Investment & Impact (4i)
Compound Annual Growth Rate (CAGR)
Info-communications Media Development Authority (IMDA)
Connected Woman Commitment Initiative (CWCI)
Information and Communication Technology (ICT)
Corporate Responsibility (CR)
International Finance Corporation (IFC)
Corporate Social Responsibility (CSR)
International Long Distance (ILD)
Cyber Security Operations Centre (CSOC)
International Standard on Assurance Engagement (ISAE)
Cyber Security Steering Committee (CSSC)
Internet Data Centre (IDC)
Department of Education (DOE)
Internet-of-Things (IoT)
Department of Hydrology & Meteorology (DHM)
Kampung Tanpa Wayar (KTW)
Disaster and Emergency Warning Network (DEWN)
Keretapi Tanah Melayu (KTM)
Disaster Readiness Programme (DRP)
Key Performance Indicators (KPI)
edotco group (e.co)
Kilowatt (kW)
Employee Engagement Survey (EES)
Local Partner Development Programme (LPDP)
Enterprise Risk Management (ERM)
Majlis Amanah Rakyat (MARA)
Environmental, Social and Governance (ESG)
Malaysian Communication and Multimedia Commission (MCMC)
Economic, Environmental and Social (EES)
Malaysian Sustainability Reporting Awards (MasRA)
First Line Manager (FLM)
Market Capital (Market Cap)
General Packet Radio Service (GPRS)
92 Axiata Group Berhad | Sustainability & National Contribution Report 2016
APPENDIX
Multimedia Development Corporation (MDEC) Technical Vocational Education & Training (TVET)
National Centre for Educational Development (NCED) Telekom Malaysia International (TMI)
National Secondary School Leadership Development Programme University Leadership Development Programme (ULDP)
(NSS)
Value Added Services (VAS)
National Stock Exchange (NSE)
Vendor Development Programmes (VDP)
Net Promoter Score (NPS)
Venture Capital (VC)
Next Generation Nationwide Broadband Network (NGNBN)
Year Over Year (Y-o-Y)
Occupational Health and Safety (OHS)
Young CEO Development Programme (YCDP)
One Laptop per Child (OLPC)
G4-19
APPENDIX
G4-20
G4-21
ASPECT BOUNDARIES
The table below provides an overview of our material issues and their corresponding material aspects. The table also illustrates the areas
of our operations in which these material aspects apply.
Employee Employment
Development &
Welfare Training & Education
Labour Grievance
Human Rights
Grievance
Supplier: Environment
Notes:
This segment is within the boundary of the concerned aspect and we have reported on it
This segment is within the boundary of the concerned aspect, but we have not reported on it due to the unavailability of information for the reporting cycle
* Reported in the Axiata Annual Report 2016
94 Axiata Group Berhad | Sustainability & National Contribution Report 2016
APPENDIX
Data in Numbers
Notes:
a
Reference page 91 for definitions
b
Conversion from diesel and petrol to energy was performed using imperial conversion values
c
edotco energy and emissions data is added to the respective OpCo data for each country
d
Source of reference for emission factors used to calculate the GHG emissions resulting from direct energy: Department for Environment, Food and Rural Affairs (DEFRA)
2015 emission factor database
e
GHG protocol tool was used for calculating the grid GHG emissions for Malaysia, http://www.ghgprotocol.org/calculation-tools/all-tools.
f
Emissions factor for Indonesia was derived using the IEA Statistics 2015 document from sections: Electricity output and CO2 emissions by sector in 2013, to calculate grid
GHG emissions
g
Emissions factor for Sri Lanka was derived using www.info.energy.gov.lk/content/pdf3/2014%20Energy%20Balance.pdf and EIA 2016 edition - CO2 emissions by sector
in 2014 to calculate the grid GHG emissions for Sri Lanka
Axiata Group Berhad | Sustainability & National Contribution Report 2016 95
APPENDIX
h
Grid GHG emissions for Bangladesh was determined using the emissions factor derived using the IEA Statistics 2015 - Electricity output and CO2 emissions by sector in
2013
i
Grid GHG emissions for Cambodia was calculated using emissions factor derived from IEA Statistics 2015 - Electricity output and CO2 emissions by sector in 2013
j
Grid GHG emissions for Nepal was determined using the emissions factor referenced from https://ecometrica.com/assets/Electricity-specific-emission-factors-for-grid-
electricity.pdf
k
GHG protocol tool was used for calculating the emissions for Malaysia, http://www.ghgprotocol.org/calculation-tools/all-tools
l
Employees and all outsourced personnel employed in office premises belonging to the Group
96 Axiata Group Berhad | Sustainability & National Contribution Report 2016
APPENDIX
Notes:
m
Does not include outsourced staff
n
Does not include Senior Management
Axiata Group Berhad | Sustainability & National Contribution Report 2016 97
APPENDIX
GRI CONTENT
INDEX
GRI CONTENT
INDEX
Category: Economic
GRI CONTENT
INDEX
GRI CONTENT
INDEX
G4-HR10 Page 50-51 The percentage of new suppliers screened The information -
is currently
unavailable
Material Aspect: Supplier Assessment for Labour Practices
G4-DMA Page 14-15, 38 Page 102-103
G4-LA14 New suppliers screened using labour The percentage of new suppliers screened The information Page 102-103
practices criteria is currently
unavailable
Sub-Category: Society
Note:
1
Deloitte PLT has provided a limited external assurance on selected indicators for Corporate Centre only.
102 Axiata Group Berhad | Sustainability & National Contribution Report 2016
ASSURANCE
STATEMENT
Axiata Group Berhad has engaged Deloitte PLT (LLP0010145-LCA) to perform limited assurance procedures for the Corporate Centre (CC)
on selected subject matter (the Subject Matter) for the year ended 31 December 2016 presented in the Axiata Group Berhads Sustainability
Report 2016, in accordance with the reporting criteria (the Criteria).
Subject Matter
The selected Subject Matter related to the Corporate Centre chosen by Axiata comprises:
Criteria
The selected Subject Matter above is included in the Axiata Group Sustainability Report 2016 and has been assessed according to the
Sustainability Reporting Guidelines version 4 Global Reporting Initiative (GRI-G4) - Core option.
Basis of our work and level of assurance
We carried out a limited assurance engagement in accordance with International Standard for Assurance Engagements 3000 (revised)
Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (ISAE 3000). A limited assurance engagement
consists of making enquiries, applying analytical procedures, reviewing the process and systems used to compile the Subject Matter and
gathering other evidence to enable us to obtain a meaningful level of assurance. The procedures performed depend on our judgement and
take into account the risk of material misstatement in the Subject Matter, whether due to fraud or error.
The procedures performed in a limited assurance engagement vary in nature, and are less in extent than for a reasonable assurance engagement.
As a result, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been
obtained had we performed a reasonable assurance engagement.
We have complied with the independence and other ethical requirements of the Code of Ethics for Professional Accountants issued by
the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, professional
standards and due care, confidentiality and professional behaviour.
Axiata Group Berhad | Sustainability & National Contribution Report 2016 103
ASSURANCE
STATEMENT
The firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control including
documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and
regulatory requirements.
Inherent limitation
Inherent limitation exists in all assurance engagements due to the selective testing of the information being examined. Therefore, fraud, errors
and non-compliance may occur and not be detected. Additionally, non-financial data may be subject to more inherent limitations than financial
data, given both its nature and the methods used for determining, calculating and estimating such data.
Considering the risk of material error, we planned and performed the work to obtain all the information and explanations considered necessary
to provide sufficient evidence to support our assurance conclusion.
Managements responsibilities
The management of Axiata (Management) is responsible for the preparation of the Sustainability Report which is in-accordance with the
Sustainability Reporting Guidelines issued by the Global Reporting Initiative (GRI-G4) Core option. Managements responsibility also includes
the collection, preparation and presentation of the Subject Matter in the Report in accordance with the above Criteria, and for maintaining
adequate records and internal controls that are designed to support the sustainability reporting process.
Our responsibility
Our responsibility is to independently express a limited assurance conclusion on the selected Subject Matter in accordance with the Criteria.
Our assurance engagement has been planned and performed in accordance with ISAE 3000.
Limitation of use
This report has been prepared in accordance with our engagement terms, solely for the Board of Directors of Axiata for the purpose of
reporting on the select Subject Matter set out within the Axiata Sustainability Report 2016. We do not therefore accept or assume any
responsibility for any other purpose of to any other person or organization. Any reliance that any such third party may place on our report is
entirely at their own risk. No statement is made as to whether the criteria are appropriate for any third party purpose.
We have not performed any work in respect of sustainability information published elsewhere, including Axiata.coms website.
Based on the work described above, nothing has come to our attention that causes us to believe that the selected Subject Matter for the year
ended 31 December 2016 included in the Axiata Group Berhads Sustainability Report 2016 has not been prepared, in all material respects, in
accordance with the Criteria.
www.axiata.com