Axiata Sustainability

With our Group present in 11 countries across ASEAN and South Asia, we place continual focus on implementing policies, standards and systems that enshrine best practices throughout the value chain and across borders. We view the adoption of these best practices as central to the creation of sustainable, long-term value for all our stakeholders.

It is imperative that good corporate governance is ingrained from the highest levels of our organisation, with our Board of Directors playing a pivotal role in this regard. As the link between our shareholders and our diverse business units, they are responsible for establishing clear policies and procedures that drive discipline and accountability at all levels of the organisation. Guided by our governance framework, they ensure that the best interests of the Group, its shareholders and other stakeholders are prioritised in the decision-making process at all times.

It is imperative that good corporate governance is ingrained from the highest levels of our organisation, with our Board of Directors playing a pivotal role in this regard. As the link between our shareholders and our diverse business units, they are responsible for establishing clear policies and procedures that drive discipline and accountability at all levels of the organisation. Guided by our governance framework, they ensure that the best interests of the Group, its shareholders and other stakeholders are prioritised in the decision-making process at all times.

Highlights

Instituted mandatory anti-bribery and anti-corruption training for all employees Group-wide

Implemented a Group-wide Privacy Programme to enhance our data protection capabilities

Launched Digital Trust and Resilience 2023, the latest and most advanced evolution of our cyber security strategy

Highlights

Instituted mandatory anti-bribery and anti-corruption training for all employees Group-wide

Implemented a Group-wide Privacy Programme to enhance our data protection capabilities

Launched Digital Trust and Resilience 2023, the latest and most advanced evolution of our cyber security strategy

Underpinned by our corporate value of Uncompromising Integrity, our governance material matters reflect a holistic approach to enshrining best practices throughout our value chain and across borders.

In Advancing Asia, we assume leadership in representing the highest standards of professionalism, ethics and integrity across our operating countries. A culture of ethics and compliance is embedded in our daily operations and our engagements with our stakeholders, while a zero-tolerance policy towards bribery and corruption places the onus on all members of our workforce to uphold our values in their everyday dealings.

Our standardised Enterprise Risk Management (ERM) Framework governs our risk management and governance process, overseen by the Board Risk and Compliance Committee (BRCC), who report directly to the Board of Directors. This well-established framework enables the alignment of risk management practices among our OpCos, driving consistency and improved outcomes in ethics and compliance management across our footprint.

Outlook

With the introduction of the S.17A Malaysian Anti-Corruption Commission (Amendment) Act 2018 that came into effect in June 2020, the Group has established adequate procedures to ensure full compliance with this section. Further, in view of the current COVID-19 pandemic which has dominated the risk landscape since 2020, the Group continues to demonstrate agility, supply chain risk oversight with technology and network resilience.

Our Risk Governance Structure

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Board of Directors

Sets the tone and culture towards effective risk management and internal control in all aspects of the Company’s activities. Decides on the Board's acceptable risk appetite whilst maintaining a proper balance between risks incurred and potential returns to shareholders.

Board Risk and Compliance Committee

Responsible and accountable for maintaining sound risk management and internal control practices to safeguard shareholders’ investments and the Group’s assets. The BRCC also monitors Axiata’s ERM framework and risks relating to cyber security, data privacy, as well as compliance, ethics and integrity.

Risk and Compliance Management Committee

The primary function of the Risk and Compliance Management Committee (RCMC) is to support the BRCC in fulfilling its responsibilities on risk management and compliance.

Group Chief Risk and Compliance Officer

Leads the Group Risk and Compliance Department.

Group Risk and Compliance Department

Executes and implements the strategies for risk and compliance at Group level and across OpCos, including establishing and monitoring ERM Programmes, strengthening risk and compliance policies, implementing adequate procedures in line with Section 17A of the Malaysian Anti-Corruption Commission (Amendment) Act 2018, identifying key risks and mitigating actions, and inculcating a culture of risk and compliance within the Group.

Risk and Compliance functions at OpCo- and business unit-level

Responsible for risk and compliance related matters in their respective OpCos and business units, as well as coordinating with the Group Risk and Compliance Division on the implementation of risk and compliance related initiatives, policies and procedures.
Our Risk Governance Structure

Hover on the boxes below for more information.

Tap on the boxes below for more information.

Board of Directors

Sets the tone and culture towards effective risk management, internal control in all aspects of the Company’s activities and decides on Board’s acceptable risk appetite whilst maintaining a proper balance between risks incurred and potential returns to shareholders.

Board Risk and Compliance Committee

The BRCC is responsible and accountable for maintaining sound processes of risk management and internal control practices to safeguard shareholders’ investments and the Group’s assets. The BRCC also monitors Axiata’s ERM framework and risks relating to Cyber Security, Data Privacy, as well as Compliance, Ethics and Integrity.

Risk and Compliance Management Committee

The primary function of the Risk and Compliance Management Committee (RCMC) is to support the BRCC in fulfilling its responsibilities on risk management and compliance.

Group Chief Risk and Compliance Officer

Leads the Group Risk and Compliance Department.

Group Risk and Compliance Department

Executes and implements the strategies for risk and compliance at Group and across OpCos, including establishing and monitoring ERM Programmes, strengthening risk and compliance policies; implementing adequate procedures in line with Section 17A of the Malaysian Anti-Corruption Commission (Amendment) Act 2018; identifying key risks and mitigating actions; and inculcating culture of risk and compliance within the Group.

Risk and Compliance function (OpCos) and each Business units (Axiata Corporate Centre)

Responsible for risk and compliance related matters in their respective OpCos and business units and coordinating with Group Risk and Compliance Division on implementation of risk and compliance related initiatives, policies and procedures.
Strengthening Risk Governance and Risk Management

In 2020, the evolution of the Board Risk Management Committee (BRMC) into the BRCC, alongside the establishment of the Group Risk and Compliance Department and the appointment of a Group Chief Risk and Compliance Officer (GCRCO), resulted in the strengthening of our risk governance for risk management and reinforced the implementation and review of risk programmes, policies, and procedures.

Anti-Bribery and Anti-Corruption

In line with our UI.EP values, we have adopted a zero-tolerance policy towards bribery and corruption and a No Gift Policy. This is reflected in our Group-wide Anti-Bribery and Anti-Corruption (ABAC) and Gifts, Donations and Sponsorships Policies respectively. In support of these new policies, a range of training and awareness sessions were held throughout the year to engage and inform staff members, further fostering a strong risk and compliance culture.

Our Whistleblowing Channel

As we seek to uphold the highest standards of lawful and ethical conduct, our Whistleblowing Policy includes the Speak Up Channel, a central and unified platform for all employees, vendors and stakeholders to speak up in an independent and unbiased manner without the fear of reprisal.

 

As such, the Speak Up Channel enables greater reporting of any breaches, suspected misconduct or violation of any of our policies, procedures or applicable laws and regulations by the Group’s employees. It is managed by an independent third-party service provider, under the administration of the Group Chief Internal Auditor.

Tax Transparency

As a Group, we contribute to the nation-building efforts and socioeconomic development of the jurisdictions in which we operate. We achieve this both directly through our investments in local communities as well as indirectly through taxes paid whereby these funds can be utilised by the Government in their initiatives to help local communities.

 

We have tax teams in each of the countries where we operate to ensure taxes are paid in accordance with local laws and regulations. The teams report their annual tax contributions in our National Contribution Report and our Group Financial Statements. The Audit Committee of the Board deliberates and approves Axiata’s financial reporting, including the review of tax matters that are material to the financial statements.

 

In 2020, Axiata paid USD1.3 billion direct and indirect taxes and fees to the governments of all countries where we operate.

To stand as industry leaders in the adoption of corporate governance best practices, facilitating meaningful decision-making that protects and enhances the interests of all our stakeholders.

To stand as industry leaders in the adoption of corporate governance best practices, facilitating meaningful decision-making that protects and enhances the interests of all our stakeholders.

Sustainability & National Contribution Report 2020

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