Embedding ESG in the Telco industry – Q&A with CelcomDigi’s head of Sustainability

• Aims to reach 2mil people in 2024 for online safety awareness
• Prioritising mental wellbeing in the workplace, 78 employees trained as Mental Health First Aiders

CelcomDigi Berhad (CelcomDigi) recently shared its five-year Environmental, Social and Governance (ESG) strategy, which it says will focus on driving four priorities to build an inclusive, sustainable and trusted digital society. Sustainability Matters posed the following questions to Philip Ling (pic), head of Sustainability. Responses have been edited for brevity.

1. What are the main challenges and opportunities in implementing ESG initiatives within the Telco industry, and how do you overcome or leverage these?

We are on a journey of embedding ESG practices into all areas of our business. We believe that is crucial not just for driving business performance but also for creating positive impact on society and for sustainable growth in the future. We are committed to building an inclusive, sustainable and trusted digital society and we have a clear focus in delivering this commitment through four foundational pillars, namely Inclusive and Safe Digital Access, Sustainable Value Chain, Governance and Performance Culture, and Environmental Impact and Actions. These areas were determined based on the matters all stakeholders consider the most important for our business, and they are tracked and prioritised year on year.

Malaysia has a vision of being a thriving digital society. In the age of digital-everything, technology offers tools to learn, play, connect and contribute to solving some of the world’s greatest challenges and enabling prosperity for all. We however recognise that unequitable access and digital harms will continue to pose risks to these possibilities. CelcomDigi continuously monitors, evaluates, and adopts new technologies that advance sustainability best practices and continue to keep up with developments in the regulatory and cybersecurity landscape to safeguard our customers’ best interest. Staying ahead in these areas help us ensure our internal controls and framework remain relevant and resilient.

As the largest telecommunications provider in the country, we consistently work to implement responsible business practices across our extensive supply chain and complex operations, especially in ensuring compliance to regulations and high standards. We manage these challenges through strict requirements for all vendors and business partners to abide by our Business Partner Conduct Principles and the Agreement of Responsible Business Conduct (ABC). We create opportunities to raise the standards through regular capacity building engagements and trainings to address governance, human rights, environmental action and health and safety risks among others.

2. Telco subscription often is viewed from the lens of the retail consumer, but naturally there are many SMEs that make up your customer base too. SMEs however also likely do not have the resources to adapt to the ever evolving ESG landscape. Are there additional spillovers for the SME segment in adoption of 5G, that, directly or indirectly, also help them to be more ESG compliant?

As one of the largest corporates in Malaysia, we have an extensive supply chain comprising hundreds of Malaysian businesses of all sizes including SMEs and MSMEs. We strive to uplift these businesses through capacity building initiatives and by raising standards in various aspects of ESG like human rights, compliance, as well as environment and health and safety standards. Raising industry standards was one of our key considerations when we developed our ESG strategy; where there are two conflicting or competing standards, we aspire for the higher one, and where there are no established standards, we self-regulate.

Beyond suppliers and business partners, we are also empowering Malaysian enterprises through in-depth digital workshops and conference to understand and realise the full potential of 5G, AI and new digital solutions that can transform their business. We also provide new and innovative products and services for MSMEs, SMEs and large enterprises to integrate digital solutions across different aspects of their operations and accelerate their overall productivity.

We also continue to be cognizant about managing our environmental impact in our business, and work towards carbon reduction initiatives as we fulfil rising demands for data consumption. Towards this end, we made a commitment in December 2023 to achieve Net Zero by 2050 in alignment with the Science Based Targets initiative (SBTi). While the mobile sector ranks relatively lower in terms of global carbon emissions - accounting for less than 0.3% of global carbon emission, we believe that digital technologies and mobile connectivity are key enablers of decarbonisation and efficiency opportunities. This is where we play our role in helping other sectors reduce their carbon footprint, for example through smart agriculture, smart logistics and smart manufacturing.  

3. You’ve identified ‘online safety’ and ‘digital inclusion’ as a materiality. One can argue that online scams ultimately run on your infrastructure. While it is a complex issue that cannot be pinned down to any one party, still there doesn’t seem to be any reduction in incidences of scams. Should we be expecting a lot more from our Telco’s to help keep us safe? For e.g., if it can be proven that a scam took place using a number that belonged to a particular Telco, shouldn’t there be some responsibility on the part of the operator since all Telco’s register their users before issuing SIM numbers. What, if any, are potential technological solution that Telcos can incorporate to help keep users safe?

We today live in a world where scams and frauds are regrettably a byproduct of a digital society, and a risk for all players to mitigate – from those who provide the digital infrastructure, to those in the financial sector, to law enforcement agencies and policymakers. Combating this enemy requires actions from all parties involved – including and especially building resilience among digital citizens. As a company that serves over 20 million customers, we recognise our responsibility to protect the safety and security of our customers. Protecting our customers from scams and fraudulent activities while safeguarding our network is a top priority for us. We have reiterated our mission in tackling this issue is to A.C.T - that is to create Awareness, drive Compliance to high security and safety standards internally while supporting enforcement agencies, and leverage Technology advancements to build the right safeguards against cybercrime. We are constantly exploring new technologies and digital solutions with both local and global partners to tackle this issue effectively.

We’ve implemented a range of technological solutions to safeguard our network and users. This includes threat intelligence controls for detection and monitoring, enhanced security measures in our apps and subscription processes and we have added additional layer of security including time-out and transaction validation for all Transaction Authorization Code (TAC) requests. Additionally, we have also established a task force consisting of experts from fraud management, consumer business, sales governance, network strategy, and sustainability investigate scam cases and strategise to improve mitigations. We have made it easier for customers to report scams and fraud through a centralised helpline and have also supported national efforts to block scam-related messages and URLs.

While we proactively find measures to address and combat scams, we believe that large-scale action through partnerships is key to winning this war and continue to advocate a whole-of-society approach to combat scams and fraud more effectively. For 2024, CelcomDigi plans to raise awareness for 2,000,000 people both via virtual and offline engagements alongside our various partnerships.

4. ‘Inclusive & Safe Digital Access’ makes up one of your 4 pillars, with a sub-pillar on ‘affordable & inclusivity’. CelcomDigi has also recently announced it is ready to build the 2nd 5G network. There has been comments in the press that the introduction of a 2nd 5G network will ultimately make it more costly for consumers. What can consumers expect and how will CelcomDigi ensure that accessibility remains affordable and inclusive.

While we remain committed to ensuring that we provide affordable and safe access to digital connectivity, it is important to note that the development of a 2nd 5G network is mainly to accelerate widespread adoption for businesses and industries. 5G is an enabler that can transform businesses, public sector and industries to provide advanced services, solutions and products that can enhance our lifestyle. We are committed to ensure consumers continue to enjoy affordable 5G connectivity and bring this to more customers across the country, while enabling businesses and enterprises to adopt and realise the full potential of 5G technology. 

5. The Human Capital chapter of your Annual Report 2023 mentions Mental Health First Aiders as part of the training programme on offer. Talk a bit about the experience of acknowledging and incorporating mental health awareness in the work environment and how employees are responding to this. Naturally this is a big cultural shift for corporations. How would you evaluate the success of such programmes and justify the costs associated with it.

Bringing awareness on mental health in the workplace has been an educational journey for us, and our commitment to creating a supportive environment has led to significant progress.

The introduction of initiatives, such as our annual mandatory Occupational, Safety and Health (OSH) and Wellbeing e-learning, Mental Wellbeing Day and even training employees to be Mental Health First Aiders (MHFA) has been some of our efforts. The presence of MHFAs has led to a growing trust in the support system, with several employees confidentially sharing their concerns with them. In 2023, we trained 45 MHFAs, and this number grew to 78 in 2024. This reflects not only our commitment but also an increased understanding amongst employees on the importance of support and mental health care for their peers. Additionally, many of our employees are also actively participating in self-assessments to better understand their mental wellbeing, demonstrating a proactive approach to mental health.

Leaders in CelcomDigi are also committed to prioritising mental wellbeing through various engagements on mental health awareness and insights. The engagements show a growing openness and receptivity to addressing mental health concerns within the organisation. The benefits of these initiatives extend beyond financial metrics and contribute to a more resilient and sustainable workforce. The investment in mental health awareness and support is not just a cost but a crucial element of our strategy to foster a healthy, productive, and sustainable workforce.