DIGI - Annual Report 2021

Our Key Risks Talent and Succession Management Risk Climate Risk Regulatory Risk Employees are key to ensure Digi delivers on our strategy and purpose.We continue to invest in the right talent and skills for future growth and to accelerate our digital transformation. Digi is committed to foster a culture of responsible business in all our activities.This risk relates to Digi’s climate action commitment towards achieving net zero ambition. Digi is subjected to regulations that govern the telecommunications industry, ranging from technical, to commercial and corporate frameworks that seek to develop the sector, protect consumers, and advance the country’s digital ambitions. As we evolve our operating model and execute our strategy, we have focused on developing diverse talent for the future and uplifting competencies through learning and development interventions. The proposed merger between Digi and Celcom Axiata Berhad aims to create a company that will be a powerhouse of top digital, technical, and commercial talent, and become a leading employer in Malaysia. As part of our commitment to operate ethically and sustainably, we have been increasing our understanding of climaterelated risks and opportunities as well as embedding responses into our business strategy and operations. Non-fulfilment of Digi’s responsible business commitments and new regulatory requirements on climate-related disclosures may lead to negative brand perception, loss of investors’ confidence and financial penalties from enforcement agencies. Digi constantly engaged with regulators, key stakeholders, and industry to advocate for a sustainable regulatory framework and for fair and transparent policies that meet the long-term needs of the industry.  Strengthen employer branding and expand employee value proposition to attract highperforming and diverse talent  Provide access to learning programmes on building critical skills and conduct regular career development reviews, to support employees’ career growth  Encourage structured leadership succession planning and continuous engagement efforts to retain talents and drive overall employee satisfaction  Improve Digi’s sustainability framework to further enhance commitment in raising standards on responsible business conduct  Maintain stakeholder engagement regarding our material sustainability matters  On-going climate change and environment initiatives to minimise carbon footprint and mitigate climate risks  Implement renewable energy and energy saving initiatives in network, and drive ecopractices in the workplace  Adopt recommendations of TCFD in phases  Proactive dialogues with regulators to anticipate emerging regulatory changes, address concerns and views as an industry, and advocacy for a sustainable framework  Collaborate with key stakeholders and industry players to participate in regulatory consultations and industry events  Explore 5G opportunities with technology partners to bring cutting-edge digital experiences to our consumers Key Risks & Descriptions 2021 Performance & Challenges Mitigation Actions Capitals Capitals Risk Movement in 2021 Unchanged Risk Movement in 2021 Unchanged Risk Movement in 2021 Unchanged Capitals 36 Digi.Com Berhad At A Glance Message To Shareholders How We Create Value Strategies To Create Value

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