Driving Governance & Risk
Sustainable Supply Chain
Driving Governance & Risk
Sustainable Supply Chain
With an extensive supply chain that spans our 10 markets of operation, we have the opportunity to positively influence Environmental, Social and Governance (ESG) practices across the region through the standards we set.
More fundamentally, however, it is our responsibility to uphold the highest ethical standards in our procurement practices. To this end, our Procurement Policies provide the basis for our supply chain management approach, setting standards – that are enforced at the OpCo level – covering purchasing, management of vendor-related risks, vendor performance evaluation and the development of new business relationships to reduce our dependence on any one supplier. This holistic approach is overseen by our dedicated Axiata Procurement Centre, empowering our OpCos to develop sustainable supply chains that deliver shared value.
Outlook
To ensure responsible sourcing, we are committed to integrating sustainability considerations into our sourcing requirements, especially in areas that have significant environmental impact. Specifically, we aim to improve our sustainability assessments in order to evaluate our environmental, social and economic impacts across the entire supply chain, from sourcing to the final delivery of products and services. This will enable us to manage risks associated with sustainability issues – including reputational damage or regulatory compliance – thus allowing us to build more resilient supply chains.
We will also work closely with Axiata Procurement Centre to achieve the targets in our Net-Zero Carbon Roadmap through understanding and reducing our Scope 3 emissions contributed by our suppliers, towards effectively reducing emissions across our value chain. We will focus on a collaborative approach to meet the larger industry and national climate goals. Additionally, we are screening our suppliers for Scope 3 emissions to develop an inventory and baseline for Scope 3, which will set our target for 2030.
Setting Clear Standards For Suppliers
Business Practices
Health & Safety
Environment
Data Privacy & Cyber Security
Anti-Money Laundering
Labour Rights & Working Conditions
Business Practices
Health & Safety
Environment
Data Privacy & Cyber Security
Anti-Money Laundering
Labour Rights & Working Conditions
To ensure continued compliance, all suppliers are required to complete regular self-assessments, whereby they score their performance on the key focus areas of the code. These self-assessments are then evaluated and paired with other information relating to the supplier’s track record on sustainability reporting, anti-corruption, environmental management, labour practices and occupational health and safety, amongst other key ESG considerations. In line with our drive to reduce our Scope 3 emissions, the assessment was expanded in 2022 to include GHG emissions and reporting.
Supporting Local Suppliers
As part of our commitment to local economy development, we monitor the proportion of our suppliers who are local and prioritise the appointment of local suppliers to fill outstanding procurement requirements wherever possible. In addition to promoting socioeconomic multipliers in local communities – such as job opportunities – this policy also enables us to mitigate supply chain risks, reduce supply chain costs and lower our Scope 3 emissions.
60% of our total procurement spend was on local suppliers (across Digital Telcos, Infrastructure and Corporate Centre)
Empowering Supplier Development
We want our suppliers to grow with us. To this end, we conduct various engagements and initiatives that empower them to deliver better products and services, remain abreast of industry best practices and improve their ESG performance. Initiative focus areas include operational excellence, procurement practices, compliance and integrity, collectively ensuring that our standards in responsible and ethical business are reflected across our supply chain.
