A fundamental component of our varied businesses, our supplier base of more than 5,600 provide us with products and services which support the continuity of our daily operations, making a substantial impact on the environment, local communities and national economies in the process.
We hold all our suppliers to high standards of conduct in relation to the environment and human rights, amongst other areas, in order to maximise positive impact across our value chain. Moreover, in contributing to national development agendas in our markets of operation, we view our supplier relationships as long-term investments, prioritising the appointment of local suppliers wherever possible.
Effective supply chain management plays a vital role in managing our performance and exposure to supply chain risks. The performance and responsibility of our suppliers also impact our own services and extend across our ecosystem. In view of this, we will continuously collaborate with our suppliers to enhance industry standards across our value chain and beyond our supplier community.
We intend to integrate more positive attributes to our suppliers through our supply chain dealings, such as increasing their attention on sustainability management. With the increased efforts in the year ahead on understanding and reducing our Scope 3 emissions (emissions of our suppliers) we aim for a collaborative approach towards meeting larger industry and national climate goals.
To balance the need for service reliability and continuity with social, environmental and ethical risks across our supply chain, all suppliers are thoroughly screened to meet our requirements and must adhere to the standards of the Axiata Supplier Code of Conduct – including those related to sustainable business practices – at all times. Furthering positive impact on ESG issues, we provide our suppliers with training to develop key competencies and implement best practices in sustainability, improving their standing within their respective fields too.
Finally, we hold ourselves accountable to ethical practices in our supplier dealings, with the Speak Up hotline providing a means for suppliers to voice any concerns without any fear of retaliation or unfair treatment.
Note: Graphs represent spending across Axiata Procurement Centre, which excludes edotco
With the goal of collaborating to unlock shared value, Axiata Procurement Centre conducted a virtual supplier forum in 2021, identifying opportunities for cost optimisation, efficiency improvement, digitisation and revenue generation. Reflecting our commitment to mutually beneficial, long-term supplier relationships, we also provide our suppliers with training in key areas such as:
In line with our sustainability objectives, we strive to maximise the proportion of local suppliers in each of our footprint markets. This not only reduces the negative environmental impact related to the transport of goods and services, but helps to sustain local business ecosystems, creating social multipliers whereby local talent and businesses can in turn benefit from our existing supplier relationships, thereby further circulating economic value within national economies.
of our total spending across Group is on local suppliers
(includes Axiata Corporate Centre, our 6 MNOs and edotco Group)
Our vendor development programmes have played a crucial role in uplifting our suppliers to become national and global champions in their respective fields.
Celcom Vendor Development Programmme supports and develops local vendors within the digital ecosystem. In 2021, one vendor, Grass 2 Route was awarded RM950,000 that matched with the Ministry of Finance (MoF). We also proposed the use of their Tuleva product to MoF. Currently, there are 50 vendors in Celcom Vendor Development Programme.
With a focus in 2021 of enhancing the competitiveness of vendors in the local market, two vendors won substantial Civil Mechanical & Engineering (CME) works contracts.
With our net-zero commitment as well as Scope 1 and 2 interim targets addressed through our operational oversight, we are now dedicated to tackling emissions across our whole value chain, where a larger percentage of our environmental impact derives from the manufacturing, purchasing and consumption of our products.
To this end, we are currently undertaking the screening of Scope 3 emissions across our supplier base towards developing a Group-wide Scope 3 inventory and baseline. This will subsequently allow us to identify a science-based Scope 3 target for 2030 and 2050.
With the goal of collaborating to unlock shared value, Axiata Procurement Centre conducted a virtual supplier forum in 2021, identifying opportunities for cost optimisation, efficiency improvement, digitisation and revenue generation. Reflecting our commitment to mutually beneficial, long-term supplier relationships, we also provide our suppliers with training in key areas such as:
In line with our sustainability objectives, we strive to maximise the proportion of local suppliers in each of our footprint markets. This not only reduces the negative environmental impact related to the transport of goods and services, but helps to sustain local business ecosystems, creating social multipliers whereby local talent and businesses can in turn benefit from our existing supplier relationships, thereby further circulating economic value within national economies.
of our total spending across Group is on local suppliers
(includes Axiata Corporate Centre, our 6 MNOs and edotco Group)
Our vendor development programmes have played a crucial role in uplifting our suppliers to become national and global champions in their respective fields.
Celcom Vendor Development Programmme supports and develops local vendors within the digital ecosystem. In 2021, one vendor, Grass 2 Route was awarded RM950,000 that matched with the Ministry of Finance (MoF). We also proposed the use of their Tuleva product to MoF. Currently, there are 50 vendors in Celcom Vendor Development Programme.
With a focus in 2021 of enhancing the competitiveness of vendors in the local market, two vendors won substantial Civil Mechanical & Engineering (CME) works contracts.
With our net-zero commitment as well as Scope 1 and 2 interim targets addressed through our operational oversight, we are now dedicated to tackling emissions across our whole value chain, where a larger percentage of our environmental impact derives from the manufacturing, purchasing and consumption of our products.
To this end, we are currently undertaking the screening of Scope 3 emissions across our supplier base towards developing a Group-wide Scope 3 inventory and baseline. This will subsequently allow us to identify a science-based Scope 3 target for 2030 and 2050.
Our material matters are determined through a bi-yearly process of materiality assessment, detailed below:
We review and update our material matters in response to changes in our business landscape, risk environment, internal policies, KPIs, emerging local and global sustainability trends, regulatory developments and stakeholder opinions. Our review also incorporates peer benchmarking.
We conducted a structured stakeholder prioritisation exercise by leveraging insights from our dialogue with various stakeholders on our material matters. This allows us to identify the influence and dependence of key stakeholders on the Group. We then engage with the prioritised stakeholders to obtain their feedback on material matters.
Upon identification of our material matters, we conducted workshops within the Group to further prioritise materiality matters from the business perspective.