Sustainability Statement

Our company’s motto goes beyond making profits. We embrace the responsibility of catalysing economic growth by empowering businesses, and serving in the best interests of our people, customers, community and the environment.

As an Enabler of the Digital Nation, we are committed to help propel Malaysia towards a digital economy. In achieving our business purpose, we also fulfil our social and environmental responsibilities as a corporate citizen. In other words, our efforts extend beyond just driving financial performance. Our longterm approach to business is also to create positive Economic, Environmental and Social impact.

In 2018, the historical shift in national leadership and the impending policy reforms have had an impact on our business operations, with our role as a Government-Linked Company (GLC) placing us in a unique position. On one hand, we want to continue to catalyse national development projects, supporting local businesses and creating income opportunities. On the other hand, we want to succeed as a competitive and innovative business committed to deliver growth and value for our stakeholders. In short, we have to balance the greater responsibility that we inherited from our legacy as a multifaceted and experienced organisation, while continuously monitoring to meet the rising expectations of our various stakeholders.

Therefore, in 2018, we conducted an in-depth engagement exercise with our priority stakeholders to include our regulators, investors, customers, employees as well as chain partners. With their feedback and rich insights, we have been able to re-evaluate our priorities and address some of the most material aspects to our business and stakeholders. This will enable the future-proofing of our organisation to prepare TM for whatever lies ahead. Digital preparedness and digital transformation, in particular, will go a long way into positioning TM as a forward-looking organisation, equipped to deliver solutions of the future.

In the midst of a challenging business and operating landscape, we realised our strategies towards identifying and managing long-term risks and opportunities, with near-term as well as long-term approaches and strategies. We will focus on building a sustainable and responsible business, which will create value for all our stakeholders. We endeavour to improve stakeholder experience and our strategic response to their needs and expectations. This is part of our promise, to always be ‘Here for You’.

Sustainability Disclosures

SCOPE OF REPORT

This year, as we progress on our integrated reporting journey, the management has taken a decision to digitise our sustainability report into an e-book, which will be more accessible, environmentally-friendly and easy-to-navigate. For more details on our sustainability initiatives, kindly refer to our Sustainability Report 2018.

REPORTING STANDARDS

TM’s Sustainability Report 2018 was developed in keeping with various local and international standards and frameworks:

  • Bursa Malaysia’s Main Market Listing Requirements on Sustainability Reporting
  • Global Reporting Initiative (GRI) Sustainability Reporting Standards
  • The ACCA Malaysia Sustainability Reporting Guidelines for Malaysian Companies
  • ISO 26000:2010 Guidance on Social Responsibility
  • The United Nations Sustainable Development Goals (UN SDGs)

BOUNDARY

Our online Sustainability Report covers TM’s operations and initiatives in Malaysia, covering 15 TM states, where we have a strong presence and coverage. We have identified 22 materiality topics to include in this report, which are all directly/indirectly linked to our business. Our response to these issues is addressed through our stakeholder engagement and materiality exercise.

REPORTING PERIOD

All data and information covered in this report is for the calendar year 1 January 2018 – 31 December 2018, unless stated otherwise. The last report was published in April 2018 for the year 1 January 2017 – 31 December 2017.

INDEPENDENT ASSURANCE

The authenticity of this report was verified through an independent assurance, which was conducted through an external audit by SIRIM QAS International Sdn Bhd. This is a part of our commitment to go the extra mile to obtain independent assurance as recommended by the GRI Sustainability Reporting Standards.

POINT OF CONTACT

We are always trying to improve the quality of our reporting. We welcome all questions and feedback on TM’s Sustainability Report 2018. Please contact us at: gbc@tm.com.my

Sustainability Framework

Our approach to sustainability is founded by the Company’s vision of making Life Easier for A Better Malaysia. This, in turn, translates to the creation of our Sustainability Framework, which has five (5) pillars that mirrors our Strategic Framework described on page 33 of our 2018 Integrated Annual Report. We have also aligned our activities to the United Nation’s Sustainable Development Goals, or UN SDG, so that we can play a role in providing action plans to address challenges that have been identified by the global community.

LIFE MADE EASIER FOR A BETTER MALAYSIA
Better Future
Economic Value
Green Citizenship
Social Equity
Good Principles
Economic

Catalyse Malaysia’s transformation into a ‘Digital Economy’ via integrated network infrastructure, digital platforms, seamless connectivity and innovative solutions.

ENVIRONMENTAL

Manage our environmental impact through resource optimisation and reduction of our carbon footprint, mainly from our operations across the value chain.

Here For You...
to Create Better Value

We have always been at the forefront of delivering cutting-edge technology in connecting Malaysians. We also realise the role that we play in the nation’s economic well-being. Our purpose is clear for each and every Warga TM – to always provide the best value in every product and services that we have to offer for the country, helping Malaysia achieve the aspiration of living in a Digital Economy.

ENSURING QUALITY IN EVERYTHING WE DO

M1 Product Innovation
Digitisation and digitalisation have pushed us towards innovating our products and services. With an extensive network of fibre, copper and submarine cables, we have inculcated an innovative culture that meets the needs of the new-age digital customers, while providing seamless connectivity for Malaysians across the country and worldwide.
M2 Service Quality
At TM, we believe that customer experience is an emotional connection. The journey that customers go through with our organisation is the ethos of our branding. This year, we continue to go the extra mile by incorporating digital technology into consumer interactions, which resulted in a simpler yet engaging customer journey.

MANAGING OUR SUPPLY CHAIN

M3 Responsible Supply Chain M19 Fair & Equitable Policies M20 Regulatory Compliance M22 Engagement
Our suppliers are expected to follow a set of clearly defined principles based on international and sectoral standards, which is a mandatory part of their agreement in working with our team. The contractors are also advised to meet or exceed international standards on environment, safety, human rights and sustainability measures. Their compliance is actively tracked for our risk and analysis process.

DELIVER WITH INTEGRITY

M19 Fair & Equitable Policies M20 Regulatory Compliance
Our license to operate depends on our ability to meet and exceed all relevant regulatory requirements. We commit and comply with all regulations applicable not only because we have to, but because these standards reiterate our own standards of operating at the highest level of integrity.

PROTECTING THE PEOPLE

M5 Consumer Health & Safety
We have mandatory policies and standards in place to ensure that we meet this promise. For instance, our Customer Premise Equipment (CPE) must comply with TM’s CPE Technical Specification. This clause has high technical standards that ensures the supplied products are safe to be operated in the premises of consumers.
M6 Consumer Data & Privacy M21 Grievance Mechanism
With the nation moving towards an increasingly more digitalised lifestyle, concerns regarding online safety and data privacy have become more prevalent. We recognise the critical role we play in protecting our users from these risks. As such, our Group Information Security (GIS) is always on the lookout for any potential breaches while implementing the best initiatives to increase online safety.

Connectivity

>90% population of converged network coverage
>30 submarine cable systems
>2.5 million homes and
>400,000 SMEs customers
>540,000 km fibre-optic cables
>3,400 LTE sites
>12 Data Centres

Supply Chain

>3.70 billion contributed to local suppliers
>7,000 total active suppliers in 2018 (compared to 6,901 in 2017)
>85.0% of suppliers made up of SMEs

Customer Experience

95.0% of customer complaints resolved within target time
70.0% reduction in waiting time for walk-in customers due to increased digital adoption
10.0% increase in complaint resolution performance in 2018
>73 customer satisfaction measure, above global telco average of 66

Here For You...
to Build a Sustainable Tomorrow

Our future is dependent on our individual efforts in taking care of the environment. As a corporate citizen, we are committed to the preservation and conservation of the natural world so that it can be enjoyed by future generations. We understand that the impact we leave on the environment affects the well-being of everyone and therefore are always looking for ways to play our part.

MANAGING ENERGY CONSUMPTION AND CLIMATE CHANGE

M7 Climate Change & Energy Management
There is an almost universal consensus on the detrimental role of greenhouse gas (GHG) emissions in global climate change, particularly carbon dioxide (CO2) emissions. We continue to monitor and better manage our carbon footprint and energy consumption to minimise the impact on the environment.

HANDLING OUR RESOURCE AND WASTE

M8 Resource Use & Waste
We take great responsibility in finding ways to minimise our use of resources as well as our waste generation to help reduce pressure on natural resources. Our buildings and operations employ the 3R principles of Reduce, Reuse and Recycle, which is further instilled in our staff and contractors.

PROMOTING ENVIRONMENTAL AWARENES

M9 Green Awareness/Education
In addition to monitoring our own environmental impact, we have the responsibility of educating others and raising awareness on how everyone can play their part. As a strong supporter of the UN Sustainable Development Agenda, we understand the need to raise the awareness of Malaysians to help achieve a better and more sustainable future for all.

Our Footprint

54,642 tCO2 of greenhouse emissions (1.3% drop from 2017)
1.5% reduction in greenhouse gas emissions from energy consumption
1.4% drop in electricity consumption
86.0% decrease in greenhouse gas emissions from work-related travel.
5.7 MkWh of energy conserved by switching to LED lighting system in TM facilities
Data centres upgraded to energy efficient Tier III standards

Awareness Programmes

>RM0.5 million invested in >3,000 participants of environmental green awareness campaigns
>3,000 participants of environmental green awareness campaigns programmes

Awards

Winner of e-Payment Excellence 2018 for converting 100.0% of unifi customers to electronic bills to reduce paper

Here For You...
to Empower Lives

We are a people-centric organisation – the success of our journey is supported by our dedicated workforce, loyal customers and local communities. Our business is built on this network of people. We believe that by giving back to society, we will be able to build a sustainable environment that benefits everyone. Therefore, it is our duty and obligation to empower the lives of our people and communities, and to prepare them for excellence in the digitalised future.

NURTURING A HIGH-PERFORMANCE CULTURE

M10 Talent Retention & Attraction
Our people are the backbone of the organisation. We would not be who we are today without our dedicated workforce. Thus, it is important to continuously bring in the best talents to the organisation. The Yayasan TM (YTM) scholarship programme was established to enable us to scout for and recruit high- potential talents.
M10 Talent Retention & Attraction M11 Training & Development
It is not enough to just attract the top talent available. We are also responsible for providing sufficient training and development opportunities to tap into their full potential. Our training programmes not only include career progression, we also provide guidance on other areas such as financial concerns, health and family relationships.
M12 Employee Health & Safety M15 Work-Life Balance M18 Corporate Culture M22 Engagement
Our business in serving the communication needs of all Malaysians requires a healthy, motivated workforce. We understand the important role we have in grooming and taking care of the wellbeing of our staff, not just for the efficiency of running our operations but also our responsibility as a corporate citizen.
M15 Work-Life Balance M11 Training & Development M17 Compensation & Renumeration M22 Grievance Mechanism
Over the past two (2) years, we have taken concerted steps towards the digitisation of our internal processes, and HR is an area where this effort has seen tremendous progress. As part of our efforts to digitise our HR services, various apps have been developed internally to provide better access to tools and resources for employees, anytime and anywhere.
M19 Fair & Equitable Policies M21 Grievance Mechanism M22 Engagement
At TM, we understand the need for Unions in protecting the rights of workers and partners. We conduct regular engagements with our Unions to create an open and positive relationship. We try to consistently listen to their grievances and maintain industrial harmony.
M14 Diversity & Inclusion
We understand the value of diversity when it comes to our workforce and seek to aptly reflect the country’s cultural diversity within Warga TM. We are also strong advocates for gender equality, as seen in our talent recruitment, development, promotion and remuneration, with career progression that is based on merit and not gender.
M12 Employee Health & Safety
The health and safety of our employees, as well as our contractors, are vital. We have in place a strong culture of safety that is supported by continuous training, supervision and monitoring to ensure that everyone in TM has the required skills and knowledge to carry out their job function safely. We are guided by TM’s Occupational Safety, Health and Environment (OSHE) Policy.

EDUCATING FUTURE INNOVATORS

M16 Community Welfare & Wellbeing
YTM was established as the scholarship unit in TM on 10 November 1994. Since then, it has provided aid to over 15,000 deserving students to pursue secondary and tertiary studies in Malaysia and abroad, with a total sponsorship value of over RM500.0 million. Yayasan TM remains committed in its mission to support nation-building through investment in the education and development of future leaders.
Our private university, MMU, provides quality education to young Malaysians in engineering and technology, with special emphasis on innovation, creativity and entrepreneurship.

EMPOWERING A DIGITAL NATION

M13 Employee Volunteerism M16 Community Welfare & Wellbeing
We take our corporate responsibility (CR) work to heart. However, our CR programmes go beyond just charity work. Our programmes are specifically cultivated to align with the United Nations Sustainable Development Goals (SDGs), and the Industrial Revolution 4.0 (IR4).

Employees

32.0% women in management roles
21.0% of positions in the Board held by women
>RM17.0 million invested in employee training and development programmes
>450,000 total training hours
>1,400 training session conducted via various mode including classroom and e-learning
>700 potential leaders were identified among Warga TM
>97.0% rentention rate, since 2016
>16,000 downloads for FLOW app, an internal communication tool
18.0% drop in work-related injuries, with zero cases of fatalities
Winner of Malaysia Best Employer Brand Awards 2018
9,165 total union members

Education

>RM500.0 million in scholarships awarded by Yayasan TM to over 15,000 students since 1994
An average of 90.0% of MMU students securing a job within first six (6) months of graduating
MMU ranked 175 in the QS Asia University Rankings among Asia’s Top 250 Universities

Community

>RM300,000 contributed to local communities via CSR programmes
>28,000 lives touched through 14 TM’s adopted schools, since 2003
>200 women entreprenuers participated in Program Usahawan Wanita since 2015
>RM7.0 million contributed to Arts, Culture and Heritage in 2018