Dear Reader,

I am pleased to present Digi's 2013 Sustainability Report, giving an overview of our commitment and activities undertaken during the year in delivering responsible and sustainable business practices.

Our sustainability strategy supports our ambition to enable Internet For All. It addresses issues that are of importance to our stakeholders, and key to our long-term growth and success. These include digital inclusion, ethical and responsible business practices, people, and the environment.

This year, Digicontinued to inspire positive adoption of mobile internet services through various community empowerment initiatives.

In season five of the Challenge For Change programme, Digiworked with Malaysians at large to to unearth community-centric ideas, brought together young developers to turn these ideas into mobile applications, and look towards supporting the commercialisation of these apps by promoting them to our customers and through various touchpoints and strategic partnerships. The Challenge builds on an established partnership with the Economic Transformation Programme (ETP), the National Digital Economy Initiative (Digital Malaysia), Google Malaysia, Microsoft Malaysia, and welcomes into the programme new partners 1Malaysia for Youth (iM4U) and the Malaysian Administrative Modernisation and Management Planning Unit (MAMPU).

In 2013, we deepened our efforts on raising awareness and creating safe online experiences for students through Digi’s CyberSAFE in Schools Programme. The focus this year was on developing trusted ambassadors comprising teachers and education ministry staff who are able to influence students’ appreciation of cyber safety. Digialso published a comprehensive nationwide survey detailing students’ level of awareness on online safety, from a pool of 15,256 students trained.

During the year, we continued to conduct our business in an ethical and responsible manner by ensuring high standards of corporate governance across our value chain, addressing health and safety risks, and by responding to customers' and stakeholders' expectations of our business.

We also strengthened Digi’s ‘Way of Work’ governance framework, focused on streamlining policies, processes and internal controls, and strengthening compliance to laws and regulations critical to our business performance. We also established a new, comprehensive set of compliance principles, frameworks and initiatives, in addition to the existing Information Security Management programme to secure the personal information of our 11 million customers in line with the requirements of the Personal Data Protection Act 2010.

In 2013, we invested strategically in the engagement, development, performance and well-bring of our employees, guided by the principles of cultivating a challenging and supportive work culture and environment, providing attractive development opportunities at all levels, and offering competitive, performance based rewards for all DiGizens. We believe we have made solid progress in strengthening our Best on People aspiration, and continue to be among the most preferred places to work in Malaysia. During the year, we have also refreshed our organisational structure and senior management line-up to drive stronger cohesion and focus across the company to better drive the next phase of our growth.

Climate change and environmental risks remain a key concern from an operational efficiency standpoint, and as part of our overall corporate responsibility focus. We continued to drive efficiency improvements in our network and facilities, and addressed broader issues across the business to stabilize the growth of total energy consumption and carbon dioxide (CO2) emission levels. With the completion of our network modernisation exercise, we expect to see gradual improvements in energy efficiency year-on-year. This year, we were recognized for diligently reporting and managing carbon savings across our operations. Digiwas ranked No. 1 in Malaysia for the second time in the Climate Disclosure Leadership Index 2013, and was also awarded a best year-on-year disclosure score award for South East Asia, putting us on the same league as leading Asian organisations in displaying a strong approach to the disclosure of climate-related information.

Our Sustainability approach is aligned to Telenor Group’s Corporate Responsibility Strategy, Bursa Malaysia’s CSR Framework and the United Nations Global Compact (UNGC) which ensures we actively address all key sustainability aspects consistent with the Global Compact Principles. We remain guided by our comprehensive policies and processes, with practices monitored across key business functions, and periodically reported to the senior management and Board of Directors.

We continue to look at ways to improve the disclosure of our sustainability performance, and hope this report provides a comprehensive overview of our position and performance on key issues. Selected key performance indicators in this year’s Sustainability Report has obtained an independent assurance from Ernst & Young.

I trust you will find this Sustainability Report informative and useful, and thank all customers, partners and employees for their commitment and support.

Henrik Clausen
Chief Executive Officer