DIGI - Annual Report 2021

How We Create Value Climate Action Digi takes a pragmatic approach in addressing climate change and will work in collaboration with the industry, government, environmental agencies and partners towards achieving a net zero greenhouse gas emissions by 2050, in line with a 1.5-degree pathway.While there remain challenges in large scale CO2 reductions due to our dependency on the national grid,we will continue to strengthen our governance and reporting mechanisms while exploring new technologies and solutions. Develop carbon reduction strategy and conduct climate risk assessment to guide strategies and target setting. Enhance business resilience over climate transition risks and adopt Board ownership in climate governance. Short Term Medium Term Long Term 2022-2025 2025-2030 2030-2050 Develop greenhouse gas (GHG) strategy in parallel to national net zero targets and to drive climate actions across our value chain. Excellence in climate reporting, compliant with mandatory requirements and guided by global best practices Driving network modernisation and cleaner energy innovations for sustainable growth 31 Fuel powered off-grid sites converted to grid power 102 sites CSON1 AI pilot initiative 15 Off-grid sites on hybrid with lithiumion battery 3G Sunset Progressive efforts to shutdown remaining 30 Core Base Station Control (BSC) and 41 Radio Network Controller (RNC) in 2022 > 4000 sites Site Battery Autonomy Prediction Tool2 to reduce downtime and drive greater efficiencies 1CSON AI initiative In 2021, Digi worked with ZTE through the Centralised Self Organising Network (CSON) Artificial Intelligence (AI) pilot initiative, deploying tools to automatically analyse and implement power-saving mode at our Radio Access Network (RAN) sites. 102 sites were involved in the pilot over the course of a month and demonstrated 3.77% energy reductions (kWh consumed) per site, on average.We will be taking a phased approach in scaling the initiative, targeting to equip more than 50% of our sites to be equipped with this capability in 2022. 2Site Battery Autonomy Prediction Tool The ‘Site Battery Autonomy Prediction Tool’ is another AI-based initiative deployed to automatically monitor and record usage information of backup batteries at Digi’s network sites.This information is crucial for timely sites restoration and battery replacements planning to ensure minimal service disruptions. natural Capital 68 Digi.Com Berhad At A Glance Message To Shareholders How We Create Value Strategies To Create Value

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