Advancing Green Economy
Climate Change
Advancing Green Economy
Climate Change
With the effects of climate change worsening by the year, we have a responsibility to take immediate and meaningful action in order to protect our business, our surrounding communities and the environment as a whole.
In response, we have committed to become a net-zero carbon company by no later than 2050, establishing clear climate targets aligned with the Science Based Targets initiative (SBTi) Business Ambition for 1.5°C, which are pending validation. This is supported by our adoption of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), a structured framework that enables us to identify and enhances our ability to manage climate matters and disclosures effectively.
Outlook
Our journey towards net-zero requires the building of transformative partnerships through collaborations within our industry, other industries and government agencies. Collectively this will enable bigger impacts as we transition towards a lower carbon economy.
On our SBTi targets, we will commence the validation process in 2023. As we progress towards meeting our goals, we are confident that there will be advancements in technologies, shifts in the regulatory landscape and increasing national-level action to expedite the transition to a low-carbon economy.
Adopting A Three-Objective Strategy
Our Net-Zero Carbon Roadmap is comprised of three objectives. This formalises our focus on decarbonising our operations, transforming our value chain and delivering an inclusive climate agenda to energise societal action.
Objective 1
DECARBONISE OUR NETWORK OPERATIONS
TARGET
Reduce our operational network emissions (Scopes 1 and 2) by 45% from a 2020 baseline by 2030. However, this baseline has been revised to 2022. The baseline and near-term target is pending SBTi validation.
Objective 2
TRANSFORM OUR VALUE CHAIN
TARGET
Reduce value chain emissions (Scope 3) from our indirectly controlled sources
Objective 3
DELIVER AN INCLUSIVE
CLIMATE AGENDA
TARGET
Contribute to positive climate action through carbon removal and by enabling avoidance through technology and digitisation
Objective 1
DECARBONISE OUR NETWORK OPERATIONS
TARGET
Reduce our operational network emissions (Scopes 1 and 2) by 45% from a 2020 baseline by 2030. However, this baseline has been revised to 2022. The baseline and near-term target is pending SBTi validation.
Objective 2
TRANSFORM OUR VALUE CHAIN
TARGET
Reduce value chain emissions (Scope 3) from our indirectly controlled sources
Objective 3
DELIVER AN INCLUSIVE
CLIMATE AGENDA
TARGET
Contribute to positive climate action through carbon removal and by enabling avoidance through technology and digitisation
Our network operations make up the largest portion of our emissions. We will decarbonise by increasing energy efficiency and renewable energy consumption from self-generation or purchased energy.
Our milestones:
- Verify 2020 Scope 1 and 2 emissions baseline
- Set science-based targets for Scope 1 and 2 by 2021
- Increase energy efficiency by 2030
- Set OpCo level CO2 reduction target by end 2022
- Increase purchase of renewable energy by 2030
We will contribute to enabling value chain positive climate impact, including contributing to reduce our suppliers operational carbon emissions.
Our milestones:
- Define Scope 3 baseline and set reduction target by end 2023
We will contribute to decarbonisation efforts across society, leveraging technology and digitalisation to execute carbon removal strategies while encouraging carbon avoidance.
Our milestones:
- Increase carbon removal activities by 2030
- Quantify the impact of positive climate action
1.
ACCELERATE DECARBONISATION OF OUR NETWORK OPERATION
Our network operations make up the largest portion of our emissions. We will decarbonise by increasing energy efficiency and renewable energy consumption from self-generation or purchased energy.
Our milestones:
- Verify 2020 Scope 1 and 2 emissions baseline
- Set science-based targets for Scope 1 and 2 by 2021
- Increase energy
efficiency by 2030 - Set OpCo level CO2 reduction target by end 2022
- Increase purchase of renewable energy by 2030
We will contribute to enabling value chain positive climate impact, including contributing to reduce our suppliers operational carbon emissions.
Our milestones:
- Define Scope 3 baseline and set reduction target by end 2023
2.
ACCELERATE TRANSFORMATION OF OUR VALUE CHAIN
3.
DELIVER AN INCLUSIVE CLIMATE AGENDA
We will contribute to decarbonisation efforts across society, leveraging technology and digitalisation to execute carbon removal strategies while encouraging carbon avoidance.
Our milestones:
- Increase carbon removal activities by 2030
- Quantify the impact of positive climate action
Objective 1:
Decarbonise Our Network Operations
The first objective of our Net-Zero Carbon Roadmap is about reducing emissions from our operations (Scope 1 and 2). Our approach centres on strengthening energy efficiency and identifying opportunities for the introduction of renewable energy sources. We also engage in dialogue with industry players, government authorities and communities, where we advocate for climate policies and investments that would help us reach our goals and achieve national climate ambitions.
Our Carbon Emissions Performance
In 2023, we updated our 2022 carbon emissions data to reflect:
- Changes in our organisational structure, including the acquisition of Link Net, the Celcom-Digi merger and the divestment of Ncell
- The latest IEA Emissions Factor
During the year, we also changed our baseline for Scope 1 and 2 emissions from 2020 to 2022 to align with the criteria of SBTi. This adjustment enabled us to incorporate Scope 3 emissions into our baseline, ensuring uniformity across all scopes.
Our Group-wide carbon emissions (covering Scope 1 and 2) increased by 7.7% in 2023. Specifically, we recorded a 6.5% reduction in Scope 1 emissions, while our Scope 2 emissions was approximately 8.5% higher than in 2022. This can be attributed to an increase in our number of sites, the installation of additional equipment and the impact of our efforts to enhance network quality and efficiency.
Group Total Carbon Emission (tCO2e)
Scope 1
Scope 2
2022
30,767.99
1,008,878.61
2023
28,767.76
1,094,612.60
This data was subjected to external independent limited assurance.
Our Energy Consumption Performance
Group-wide energy consumption increased by approximately 6% in 2023 (from 5.82 million GJ in 2022). This can be attributed to an increase in our number of sites, our use of additional equipment and our efforts to enhance network quality and efficiency.
We consumed 6.19 million GJ of energy in 2023
Direct: 0.40 million GJ
Indirect: 5.79 million GJ
Network Fuel: 4.35%
Network Electricity: 89.77%
Facilities Fuel: 2.14%
Facilities Electricity: 3.74%
Our OpCos’ Renewable Energy Progress
Our collective efforts to increase use of renewable energy have resulted in the establishment of over 4,500 sites in 2023 alone – a 25% increase compared to 2022.
Deployed an additional 295 solar sites in 2023 and had equipped 1,534 solar sites at base stations by the end of the year.
Reduced its carbon emissions by 2,286 tonnes through solar energy use and other energy efficiency initiatives.
Has a cumulative of 776 solar sites while continuing to implement tower site solarisation, network modernisation initiatives and Internet of Things monitoring systems.
EDOTCO’s Actions
on Decarbonisation
With a presence spanning ASEAN and South Asia, EDOTCO is capitalising on a unique opportunity to drive renewable energy adoption and efficient resource management across the region.
Presently, the company has over 2,600 solar sites, enabling its customers to reduce their reliance on traditional grid electricity. Meanwhile, EDOTCO Sri Lanka achieved a landmark by installing its 700th multipurpose streetlamp pole in 2023, driving energy savings and resource efficiency by reducing the need to construct additional telco towers.
Ultimately, EDOTCO is working towards achieving carbon neutrality across all its National Tower Companies (NTCs) by 2030.
Our OpCos’ Energy Efficiency Progress
By implementing advanced and intelligent technologies, our OpCos continued to drive substantial energy savings during 2023.
Implemented green Base Transceiver Station (BTS), using direct current fans and air conditioning to optimise energy efficiency. The process undertaken of modernising BTS equipment has reduced energy consumption by up to 50% since 2014.
Rolled out a range of intelligent power solutions – consisting of AI-based energy saving features, DCS optimisation and IBC optimisation – to enhance energy efficiency and drive cost savings.
Partnered with Huawei to deploy the latest PowerStar 2.0 technology, which offers intelligent energy-saving features that adapt power usage based on real-time network usage.
Rebuilt almost 300,000 Homepassed of Hybrid Fiber Coaxial (HFC) to Fibre to the Home (FTTH) cables, which provides wider coverage and reduces electricity consumption, directly lowering carbon output.
Objective 2:
Transform Our Value Chain
Our goal to reduce our carbon footprint goes beyond our operations and cuts across our value chain.
Scope 3 emissions are emissions that are outside the direct control of a company and occur across their value chain. They can typically make up more than two-thirds of a telco’s total carbon emissions footprint and sometimes more than 90%, and thus constitute a key area of focus.
In 2023, we determined our Group-wide Scope 3 emissions and set 2022 as our baseline year. This baseline, and our near-term target, is currently pending SBTi validation.
As part of our ongoing efforts to reduce our Scope 3 emissions, we will engage and collaborate with our suppliers to inculcate emissions reduction practices, including by setting specific emissions standards that we require of our suppliers.
ACTION PLAN
Organisational preparedness:
Commence Scope 3 data collection training within all OpCos
Collaborations:
Design and collaborate with GSMA to define Scope 3 methodology
Scope 3 Data Collection
By end 2023:
Scope 3 emissions baseline established
Scope 3 emissions target determined
Advocacy and Collaboration Within Our Industry
At GSMA, we represent our operating markets within the Axiata Group. GSMA provides a platform for us to leverage on the sharing of best practices among peers and to collaborate towards contributing to the United Nations Sustainable Development Goals.
Significant initiatives include industry taskforces to drive climate action, where some of the ongoing work includes implementing Scope 3 data collection and target-setting for our industry.
See our Net-Zero Carbon Roadmap for more.
Objective 3:
Deliver An Inclusive Climate Agenda
While the digital sector is responsible for only small percentage of global emissions, its technology has the potential to unleash a transformative effect on climate action efforts worldwide and could directly enable a third of the global emissions reductions needed by 2030.
With this in mind, our target is to contribute to positive climate action via carbon removal and enable avoidance through the targeted use of technology and digitalisation.
Increasing Carbon Removal Activities
In line with the SBTi Standard, we prioritise value chain emissions reductions as a strategy to reach net-zero. Wherever abatement is not possible within an owned or supported project, we will explore and future take steps to neutralise residual carbon emissions through natural or technological solutions.
Enabling Carbon Avoidance
We are committed to enabling society, businesses, enterprises and small-sized and medium-sized enterprises (SMEs) to achieve carbon avoidance by providing products and services that enable emissions reductions.
See our Net-Zero Carbon Roadmap for more.
Adopting The TCFD Recommendations
Worked with relevant partners and third-party expert to identify TCFD-related gaps from the previous year’s disclosures and practices
Shortlisted selected OpCos for the pilot assessment based on considerations such as exposure to natural hazards, revenue contribution and business segments
Identified and assessed climate-related risks and opportunities relevant to the selected OpCos
Selected suitable climate scenarios to be applied to evaluate the potential implications of the material climate risks and opportunities on our business, financial performance and resilience
During our pilot year of 2022, we took the following key steps:
Worked with relevant partners and third-party experts to identify TCFD-related gaps from the previous year’s disclosures and practices
Shortlisted selected OpCos for the pilot assessment based on considerations such as exposure to natural hazards, revenue contribution and business segments
Identified and assessed climate-related risks and opportunities relevant to the selected OpCos
Selected suitable climate scenarios to be applied to evaluate the potential implications of the material climate risks and opportunities on our business, financial performance and resilience
We are committed to closing any gaps in our climate action strategy by progressively expanding our TCFD scope and conducting more comprehensive climate risk and opportunity assessments. Our current report is based on the latest information and current practices available, and we expect to amend, update and improve our climate-related practices moving forward.
Read about our TCFD journey on page 63 of our Sustainability and National Contribution Report 2022.
Climate-Related Roles & Responsibilities
Our Board of Directors (BOD), through the Board Sustainability Committee (BSC) at Group level and Board Risk and Compliance Committee (BRCC) at OpCo level, provides oversight of our strategic approach to climate action. This includes the management of our climate-related risks and opportunities and continuous enhancements of our sustainability governance to align with our Group level agenda.
Our TCFD-related risks are discussed at the Risk and Compliance Management Committee (RCMC) meetings at the OpCo level. The risks arising from implementing TCFD are also deliberated on as part of our Enterprise Risk Management update to the RCMC. To ensure that ESG topics are addressed at each OpCo, the OpCo BRCC also deliberates the progress on addressing climate-related risks and opportunities identified.
Identifying Climate-Related Risks and Opportunities
Risk Assessment
After introducing the TCFD assessment and framework in 2022, which covered five OpCos, we expanded the TCFD risk programme to include all digital telco OpCos in 2023. We further reviewed and enhanced the calibration of the capability to mitigate the risks identified, enabling us to use the Capability Maturity Model Integration (CMMI) matrix. This saw us implementing an easy-to-follow process to measure and monitor our ability to address the risks over a structured timeline.
Opportunity Assessment
Identifying climate-related opportunities encourages innovation and the development of new products, services, or business models that align with a low-carbon economy. In line with this, each of our OpCos have quantitatively assessed identified climate-related opportunities to gauge their potential impact within the context of their operating landscape.
Scenario
Current Policies
Existing climate policies and actions to address climate change are insufficient to address commitments and targets, and remain unchanged
Aligned to a future with 3°C of warming
Net Zero 2050
New climate policies and investments are introduced to achieve commitments and targets, with aggressive actions taken to address climate change
Aligned to a future with 1.5-1.8°C of warming
Current Policies
Existing climate policies and actions to address climate change are insufficient to address commitments and targets, and remain unchanged
Aligned to a future with 3°C of warming
Net Zero 2050
New climate policies and investments are introduced to achieve commitments and targets, with aggressive actions taken to address climate change
Aligned to a future with 1.5-1.8°C of warming
