Axiata set to launch net-zero carbon roadmap

KUALA LUMPUR: Axiata Group Bhd is set to launch the Axiata Net-Zero Carbon Roadmap this year to achieve net-zero emissions no later than 2050, with a near term 2030 target to reduce operational carbon emissions by 45 per cent.

President and group chief executive officer Datuk Izzaddin Idris said having established a strong foundation, especially under the social and governance pillars, Axiata is on track to develop a focused climate action plan to further strengthen its environment, social and governance (ESG) responses.

“Our three-objective strategies for climate action in 2022 include decarbonising network operations, transforming our value, and driving an inclusive climate agenda.

“We will embark on our Task Force on Climate-related Financial Disclosures (TCFD) journey to deep dive into our climate-related risks and opportunities and expand our net-zero commitment to Scope 3 emissions, which covers the entire value chain of our operations,” he said in Axiata’s Annual Report 2021.

Izzadin said enhancing the group’s net-zero carbon agenda in 2022 will involve efforts that leverage climate governance and targets established in 2021.

Driving Axiata’s sustainability agenda

Throughout 2021, Axiata recorded significant milestones, with a key moment being the signing of the Science-Based Target Initiative (SBTi) Business Ambition Pledge for 1.5°C to formalise its commitment to reach net-zero emissions no later than 2050.

Through the adoption of sustainable business practices throughout the organisation, Axiata aims to incorporate sustainability into daily operations and the long-term goals of its diverse business.

“Establishing our sustainability framework and strategy will entail identifying specific objectives and targets aligned with existing ambitions, our stakeholder expectations and contributing to the United Nations Sustainable Development Goals.

“We have and will continue to ensure that our goal of ‘Advancing Asia’ is balanced by ESG elements, focusing on our net-zero commitment and sustainable development,” said Izzaddin.

Axiata 5.0 Vision

Staying the course in executing the 10 key focus areas of the Axiata 5.0 Vision had enabled the group to deliver improvements across all metrics in 2021.

“Overall, Axiata closed the year with a resilient balance sheet as gross debt/earnings before interest, taxes, depreciation, and amortisation were held at 2.6 times and a healthy cash balance of RM7.0 billion.

“With this, we are able to confidently defend against market uncertainties, as well as capitalise on potential opportunities to further strengthen our value proposition in this digital era,” he said.

Among the group’s focus under Axiata 5.0 Vision for 2022 will be the completion of the Celcom Axiata Bhd and Digi.com Bhd merger upon receiving the relevant approvals and integration of the two businesses.

Izzadin said the group will also focus on the completion of Indonesia’s PT Link Net Tbk acquisition with XL Axiata and offering customer-focused converged solutions for homes and enterprises in Indonesia.

Axiata will also launch its digital banking services upon successful application of a digital banking licence under the partnership of Boost Holdings Sdn Bhd with the RHB banking group.

The group will also focus on Boost and Axiata Digital Advertising Sdn Bhd’s regional expansion in ramping up towards realising their unicorn status ambitions.

“Alongside expansion in Malaysia and Indonesia, edotco will continue to explore portfolio optimisation opportunities in footprint countries in line with its growth plans,” Izzaddin said.

The Next Generation Digital Champion

According to Izzaddin, Axiata’s vision of becoming “The Next Generation Digital Champion” is anchored on enabling its business and society to leverage the opportunities and capabilities of a digital future.

“In 2022, Axiata will scale up to build a regional enterprise solutions provider by leveraging the internal capabilities of its digital telcos, digital businesses and Axiata digital labs (ADL) assets,” he said.

Axiata will also identify potential acquisitions in Indonesia, Cambodia and Nepal to strengthen its presence in those markets.

Among others, it will continue securing new technology and capability partners with extensive solutions and proven industry transformation expertise for various verticals and smart services including logistics and ports, healthcare and agriculture.

Pioneering into the 5G era

In preparation for the 5G network, Izzaddin said Celcom, together with other mobile network operators (MNOs), will work closely with the Ministry of Finance, Ministry of Communications and Multimedia, and Digital Nasional Bhd (DNB) to further understand the implementation model, including the proposed shareholding offer and transaction process.

“With rollouts gaining traction across the world, 5G is also taking off in Asia, with most of our footprint markets poised for deployment in the short to medium-term.

“In line with this, our Opcos continue to be supportive of national 5G ambitions in their respective countries and work is ongoing to prepare for rollouts, even as we step up internally on our digital transformation to lead our customers and communities into the 5G era,” he said.