Axiata Group Bhd

Axiata's Board holds ultimate responsibility over the Group's sustainability agenda and provides oversight of the integration of ESG matters in Axiata's corporate strategy with the aim of balancing stakeholder interests while ensuring that we grow responsibly and create long-term value. To keep the Board up-to-date and ensure that they understand the sustainability issues relevant to the Group, the Board receives regular Board Sustainability Committee (BSC) Reports from the BSC Chairman. Additionally, the Board schedules a minimum of two sustainability updates in a year, during which issues relating to the matter are presented, deliberated and resolved in an appropriate manner. The BSC provides oversight and strategic guidance to the Group and resolve matters relating to sustainability management as a Group-wide agenda. BSC also has oversight of climate-related matters, including climate risks and opportunities. The BSC also has the authority to appoint external counsels or advisers and obtain independent professional advice or services in managing sustainability practices. The BSC reviews and evaluates its performance at least once a year to ensure that it has carried out its responsibilities. In the year under review, the BSC met 10 times. GCEO and Managing Director is responsible for overall management on sustainability-related matters. The GCEO is supported by the Group Chief Corporate Officer, who oversees Group Sustainability, and other senior management members within their areas of responsibility. For accountability, sustainability-related key performance indicators (KPIs) including climate change performance linked to net-zero commitment are included in our GCEO as well as OpCo Senior Leadership Teams' (SLT) annual remuneration-linked KPIs. All OpCo CEOs are also authorised to sign-off on sustainability-related governance as part of internal control assurance. Chaired by the Group Chief Corporate Officer, the Axiata Sustainability Steering Committee (Steering Committee) consists of representatives from Group Sustainability, OpCo Sustainability teams and representatives, and selected Heads or nominees from key Group corporate functions. The Steering Committee is responsible for supporting the management of ESG matters and ensures collaboration to streamline the approach within the Group to achieve Axiata's sustainability agenda and promote sharing. Group Sustainability leads the development of overall strategy and framework to drive sustainability initiatives and programmes across the Group in a structured and cohesive way. Their responsibilities include monitoring and managing business sustainability practices and targets, keeping abreast of the sustainability development landscape and ensuring management of the Group's ESG risk and opportunities are assessed and evaluated. The team also provides advisory support and capacity building for the sustainability teams in all OpCos and receives sustainability progress updates. On all OpCo Boards and Board Committees, Axiata is represented by its Directors or Senior Leadership representatives. This enables alignment and oversight from the Group to OpCos, including ensuring the integration of sustainability across the organisation. Each OpCo has its own sustainability governance, where sustainability-related matters are elevated to OpCo Board, Board Committee, CEO or Management Committees by Sustainability Teams or representatives. For FY2023, a key priority was to promote accountability and ensure strategic alignment throughout the OpCos by leveraging on the BRCC of each OpCo. With guidance and support from OpCo BRCCs, the BSC was able to support the Group's and OpCo's sustainability agenda including compliance with ESG-related regulatory requirements. OpCos are responsible for the governance, daily management and operations, programme implementation and data collection for the Group's identified sustainability material matters, as well as their own sustainability matters or practices.

Axiata Sustainability Steering Committee Since the establishment of Axiata's Sustainability Steering Committee, consisting of Group Sustainability, OpCo sustainability teams as well as key Group corporate functions, the Committee aims to encourage and ensure a more streamlined and concerted approach towards progressing our sustainability agenda. The Committee meets quarterly to ensure alignment across sustainability goals and encourages cross-collaboration in meaningful sustainability progress. [...] The Board Annual Report Committee was rescoped, remodeled and renamed as the Board Sustainability Committee effective 8 April 2022 to provide enhanced oversight on ESG management across Axiata Group Overall, Axiata Board of Directors is accountable for Axiata's sustainable approach and practices. At the Board level, we've actively brought forward topics of key sustainability issues and management across the Group including development and implementation of the Net-Zero Carbon Roadmap, with emphasis on 2022 being the planning year that brings together a collaborative effort in organisational readiness. This top-down approach marks our commitment to embracing sustainability as a Group-wide agenda. Sustainability-related key performance indicators (KPIs) have been included in our Group CEO and OpCo CEOs' annual KPIs to ensure accountability to our sustainability commitments. Additionally, all OpCo CEOs sign-off on sustainability-related governance as part of internal control assurance.

##### Governing Climate Action

###### Climate-related matters have been integrated within and form a key part of our sustainability governance structure.

Driven by the Board with a cascading system supported by strategic touchpoints across the Group, we are supporting the development and execution of our net-zero ambition that will effectively transform every part of our business, whilst adapting to evolving expectations from stakeholders at all levels.

Executing our Roadmap requires a shift in the way we make decisions for sustainable business growth.

Our governance structure is supporting the integration of resource-saving, energy-optimising and climate-resilient solutions across the Group. It furthermore catalyses the unlocking of innovative capabilities that will enable these solutions to be effectively scaled.

###### On this point, active collaboration amongst multiple Axiata functions across various operating markets will be key to achieving our climate action goals, as this will enable local solutions to be applied across other markets regionally.

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###### Sustainability and Climate Governance Climate Management

###### AXIATA OPCO

- Board: The ultimate owner of sustainability, focusing on driving an inclusive and just climate strategy while considering climate-related risks to Axiata and its stakeholders

- PGCEO: Oversees management of the Roadmap and its execution, convening quarterly updates to the Board on progress

- CTO: Group-wide council comprising of operational decision-makers that have oversight on technology and advancement in the networks field. Develops and executes programmes to increase energy efficiency and coordinates efforts towards managing energy reduction

- Steering Committee: Accountable for managing and monitoring climate tracking and reporting, including by managing the progress of the Roadmap and its accompanying initiatives

- Working Teams: Drives, monitors and executes climate action and initiatives

Board Sustainability Committee*

President & Group Chief Executive Officer

Axiata Sustainability Steering Committee Chairperson: Group Chief Corporate Officer

Climate governance to support Axiata's climate agenda, including the Net-Zero Carbon Roadmap and accompanying initiatives

Existing sustainability governance structure which includes climate-related matters

OpCo Board of Directors

OpCo Management Teams

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|resident ef Execu cer p er|& Group tive Officer|OpCo Manag|
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- Effective 8 April 2022, a Board Sustainability Committee was established to elevate the responsibilities of the Board Annual Report Committee to provide enhanced oversight on ESG management across Axiata.
** Axiata Chief Technology Officer Council (CTO Council) consists of Chief Technology Officers from each of our subsidiary companies in the Digital Telco stream. With operational targets within

**BOARD APPROVAL** This Report has been reviewed and approved by the Board, which is represented by the Board Sustainability Committee (BSC). The BSC oversees the preparation of the content of Axiata's reporting suite and ensures the credibility of the reports. This includes reviewing and approving the quality of reporting, level of disclosure, design and structure of the reports to ensure that they reflect the Group's vision and strategy in engaging with its stakeholders. [...] Sustainability governance was elevated with the formation of a Board oversight committee, i.e. the Board Sustainability Committee (BSC). The BSC is a platform that enables overall governance and transparency of our sustainability framework, materiality assessment and progress monitoring and focuses on future developments in sustainability. The establishment of the BSC also helps in our commitment at the highest levels to delivering strong ESG performance. [...] The BSC has oversight of management deliverables and activities with respect to a broad spectrum of sustainability matters and scrutiny of climate-related risks, opportunities and measurement. For instance, the BSC oversees the development and adoption of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The TCFD recommendations will equip us with the insights to prepare our business to navigate, mitigate and respond to negative climate impacts. [...] **BOARD LEVEL** Axiata's Board holds ultimate responsibility of the Group's sustainability agenda and provides oversight of the integration of ESG matters in Axiata's corporate strategy with the aim of balancing stakeholder interests while ensuring that we grow responsibly and create long-term value. **Board Sustainability Committee (BSC)** The renaming and rescoping of the Board Annual Report Committee to the Board Sustainability Committee took effect from 8 April 2022 to provide enhanced oversight on ESG management across Axiata Group. This was in response to increasing stakeholder interest in ESG integration in Axiata. The change underlines our top-down approach and our commitment to embracing sustainability as a Group-wide agenda. The BSC also has oversight of climate-related matters, including climate risks and opportunities. Led by two Independent Non-Executive Directors and the Group Chief Executive Officer and Managing Director (GCEO)*, the BSC also has the authority to appoint external counsels or advisers and obtain independent professional advice or services in managing sustainability practices. The BSC reviews and evaluates its performance at least once a year to ensure that it has carried out its responsibilities. The BSC met seven times in the year under review, including four times as the Board Annual Report Committee (BARC), and among the matters discussed were: - Reviewing and approving of the IAR suite - Refreshing and endorsing the Axiata's Sustainability Framework - Reviewing Axiata's sustainability performance and activities - Receiving progress on Axiata's Net-Zero Carbon Roadmap rollout - Commencement of TCFD adoption recommendations, and - Tracking responses to local and global trends and developments pertaining to sustainability [...] **MANAGEMENT LEVEL** The overall management responsibility and oversight of sustainability-related matters lies with our GCEO*. The GCEO is supported by the Group Chief Corporate Officer, who oversees Group Sustainability, and other senior management within their areas of responsibility. For accountability, sustainability-related KPIs including climate change performance linked to our net-zero commitment are included in our GCEO as well as OpCo's Senior Leadership Teams (SLTs) annual remuneration-linked KPIs. All OpCo CEOs are also authorised to sign off on sustainability-related governance as part of internal control assurance. **WORKING LEVEL** **Axiata Sustainability Steering Committee (Steering Committee)** Chaired by the Group Chief Corporate Officer, the Steering Committee consists of representatives from Group Sustainability, OpCo Sustainability, and selected Heads or nominees from key Group corporate functions. The Steering Committee is responsible for supporting the management of ESG matters and ensuring collaboration to streamline the approach within the Group and promote sharing. **Group Sustainability** Group Sustainability leads the development of overall strategy and framework to drive sustainability initiatives and programmes across the Group in a structured and cohesive way. Their responsibilities include monitoring and managing business sustainability practices and targets, keeping abreast of the sustainability development landscape and ensuring management of the Group's ESG risks and opportunities are assessed and evaluated. The team also provides advisory support and capacity building for the sustainability teams in all OpCos and receives sustainability progress updates. In 2022, the team led the process of refreshing Axiata Sustainability Framework. To better engage the OpCos, Group Sustainability hosted a Sustainability Forum with the OpCos. The team was responsible for the development of the Net-Zero Carbon Roadmap and commencement of the journey to adopt the TCFD recommendations. **SNCR, for more information on the climate-related work by Group Sustainability** refer to TCFD on page 63 **OPCOS** On all OpCo Boards and Board Committees, Axiata Group is represented by its Directors or senior management representatives. This enables alignment and oversight from the Group to OpCos, including ensuring the integration of sustainability across the organisation. Each OpCo has its own sustainability governance, where sustainability-related matters are escalated to OpCo Board, Board Committee, CEO or Management Committee by Sustainability Teams or representatives. Moving forward, the respective OpCo's Board Risk and Compliance Committee (BRCC) will be responsible for monitoring and overseeing risk assessment of sustainability-related matters. OpCos are responsible for the governance, daily management and operations, programme implementation and data collection for the Group's identified sustainability material matters. As part of the Group's Net-Zero Carbon agenda, OpCos monitor climate-related performance, and developments pertaining to the evolving regulatory landscape, policies and systems within their respective country of operations.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Policy advocacy across the countries we operate in to encourage positive action, including by enabling incentives and market mechanisms in support of a net-zero economy.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes