M1 Annual Report 2017

M1’s sustainability goals are to create value for our stakeholders, make a positive impact on our community and minimise our environmental footprint

key stakeholders engaged

material topics identified

We are committed to behaving responsibly and ethically in all our endeavours; tackling the challenges of sustainability to create enduring value and meet the expectations of all our stakeholders, both now and into the future.

In this sustainability report, the Company’s seventh, we present the economic, environmental, social and corporate governance performance of our operations in Singapore during 2017. Our achievements, progress and targets for the reporting year are detailed in four sections, each representing a key area of focus for our operations, namely: Our Business, Our People, Our Community and Our Environment.

We welcome feedback on this report, any aspect of our sustainability performance and possible areas of improvement at corpcomms@m1.com.sg

REPORTING SCOPE AND BOUNDARIES (GRI 102-54, 102-12, 102-56)

This M1 sustainability report has been prepared in accordance with the Global Reporting Initiative’s (GRI) Standards¹: Core option, and is limited to operations under our direct control for the period 1 January to 31 December 2017. The GRI content index and the relevant references are provided on pages 109 to 112 of the report. To ensure comparability, we have used internationally-accepted measurement units and conversion factors for the reporting of performance data and indicators.

We regularly review our sustainability performance, monitoring and reporting processes, as well as new developments in sustainability reporting, to ensure ongoing improvement. This report has been updated to incorporate changes to Singapore Exchange’s sustainability reporting guidelines and the latest GRI Standards. We have sought assistance from a sustainability consultancy to ensure that alignment between the report content and the requirements of these two frameworks has been respected.

The content of this report has not been externally assured by any independent party.

SUSTAINABILITY MANAGEMENT WITHIN M1 (GRI 102-18)

The evaluation of M1’s economic, environmental and social performance is carried out at top management level by our Chief Operating Officer, supported by the heads of our key departments. Engagement approaches with our stakeholders, material topics and relevant mitigation measures are discussed and prioritised based on expectations and best practices within the current local and global sustainability contexts, but also on the risks and opportunities relevant to M1’s business operations. M1’s management approaches and performance data are regularly re-assessed according to defined targets and adapted if necessary.

Key outcomes, performance updates and proposed changes in our sustainability framework are presented to the Board of Directors for their approval and input. The Board also has oversight of M1’s sustainability reporting agenda.

STAKEHOLDER ENGAGEMENT AND MATERIALITY (GRI 102-42)

We have identified eight stakeholder groups whose engagement with M1 is key to our sustainability efforts. We have strengthened existing engagement channels and created new ones to understand the expectations of each stakeholder group and identify the topics that are material to them.

¹	We have chosen GRI Standards (2016) as this is the latest version of the most widely used global and independent sustainability reporting framework.

M1 STAKEHOLDER GROUPS (GRI 102-40, 102-43, 102-44, 102-46)

Stakeholder	Main engagement channels	Stakeholder’s expectations
Consumer and corporate customers	24-hour contact centre M1 Shop outlets Mobile and fixed sales team Corporate sales team Technical support team M1 website and Facebook page feedback forms My M1 App	Reliable, quality network access Relevant and affordable products and services Effective customer service Data protection
Institutional and retail investors	Access to our Investor Relations team and senior management through: Email Teleconferences Meetings Investor conferences Investor roadshows Annual general meetings (AGM) Annual reports	Sustainable business growth Long-term shareholder value Good corporate governance Transparency in business strategy and operations Consideration for minority shareholders’ interest Relevant corporate social responsibility (CSR) initiatives
Business partners and suppliers	Meetings Email Teleconferences	Transparent and fair procurement and other business practices Compliance with terms and conditions of business contracts
Employees	Employee feedback Team-building sessions Annual employee appraisal sessions Quarterly townhall events Open-door policy Quarterly CEO messages Grievance-handling channels through line management and/or Human Resource Department Union representation	Safe working environment Fair remuneration and benefits Non-discriminatory practices Career growth Relevant employee training
Regulators	Regular formal and informal discussions Teleconferences Active participation, including written submissions, in relevant industry consultation sessions	Compliance with regulations and service requirements Deliver continued socio-economic benefits to society Work with industry to maintain consistent technological standards
Analysts and the media	Access to our Corporate Communications and Investor Relations teams through: Email Teleconferences Meetings Organised visits and industry events Quarterly results teleconferences	Timely and transparent disclosure of corporate information Prompt response to queries Access to senior management
Trade associations	Membership of and engagement with relevant trade associations²	Make available industry approved products and services Adoption of industry best practices
Non-governmental organisations and community partners	Discussions with community groups Participation in relevant conferences Reporting on our sustainability strategy and performance	Minimise any social, public health or environmental impact Support deserving community efforts and underprivileged groups

The following table summarises the key material sustainability topics for M1, as determined through our stakeholder engagement channels and management discussion. The table identifies which stakeholder group is impacted by each topic, explains why it is important and outlines our management approach for each topic, as well as summarises our progress during the reporting period and identifies our targets for 2018.

In addition to the material topics highlighted in the table, there may be other important sustainability related topics, such as impact on biodiversity. This report does not include information and performance data on these topics, as they are not material to our business, due to our operating environment or the nature of our business.

²	Contact Centre Association of Singapore, National Trade Union Congress, Singapore Internet Exchange, and Singapore National Employer Federation.

M1 KEY MATERIAL TOPICS (GRI 102-47)

Why the Topic is Material	M1’s Management Approach	2017 Achievements	2018 Targets
OUR BUSINESS
Governance, ethics and integrity	Impacted stakeholders: All
Maintaining a high standard of corporate governance, in the economic, social and environmental aspects of our business, is key to protecting the interests of all our stakeholder groups. This includes seeking feedback from and communicating transparently with all parties	We communicate our business policies to staff and ensure that management, staff and suppliers abide by strict guidelines, codes of conduct and regulatory compliance We obtain annual Business Continuity Management (BCM) certification We conduct appropriate risk and awareness training sessions for staff We respond to media and analysts’ queries in a timely manner and provide relevant and prompt updates on company developments We work closely with media and analysts to advance the Company’s interests We continually review and improve sustainability performance and reporting	No cases of regulatory non-compliance during the year Increased number of performance indicators in the sustainability report	Maintain our current record of zero cases of regulatory non-compliance
Responsible procurement	Impacted stakeholders: Business partners and suppliers
Adopting a responsible procurement policy helps M1 to indoctrinate among its suppliers the same stringent sustainability principles and corporate values that it adheres to itself	We review our Supplier Code of Conduct annually to ensure best procurement practices We ensure transparency throughout the tendering process Through our whistle-blower policy, we create avenues for reporting incidences of abuse and corruption	Reviewed our Supplier Code of Conduct and found it to be valid	Annual review of Supplier Code of Conduct
Data privacy	Impacted stakeholders: Consumers and corporate customers
Given our role as a provider of mobile and fixed communications services, and being fully aware of the sensitivities that customers rightly have concerning data privacy, protecting that privacy is M1’s prime material topic	We subscribe to the principles and requirements of the Personal Data Protection Act 2012 (PDPA) to ensure the privacy of customers’ personal data	No regulatory breaches	Maintain positive record of zero regulatory breaches
Transparency in customer communications	Impacted stakeholders: Consumers and corporate customers, regulators
Being fully transparent in all forms of customer communications, builds trust and strengthens our engagement with our customers and other stakeholder groups	We have a training roadmap for our frontline staff which enables them to provide customers with comprehensive and transparent information with which to make informed decisions regarding our products and services. The process covers both content knowledge and soft skills, and includes: New staff academy training Skills enhancement training Refreshers on important topics e-Learning platform	All frontline staff were trained in key modules including compulsory on-the-job training	Maintain 100% of frontline staff trained in key modules including on-the-job training
Customer satisfaction	Impacted stakeholders: Consumers and corporate customers
Customer satisfaction impacts all stakeholder groups either directly or indirectly. Satisfied customers are more likely to be loyal customers who become ambassadors for the brand and build economic growth, which, in turn, leads to a better stakeholder experience for employees, investors and suppliers	We continually invest in and review our products and services to ensure they are relevant, competitive and meet customer needs We conduct regular and appropriate staff training to enhance the customer experience	Achieved 85% customer satisfaction rating³	Achieve at least 85% customer satisfaction rating
Public safety	Impacted stakeholders: Consumers and corporate customers, regulators
Having a strong public safety record, particularly in the sensitive area of radio frequency (RF) radiation levels, builds confidence and support for M1 among our customer base and industry regulators	We comply with the Info- communications Media Development Authority’s (IMDA) strict controls over the installation and transmitter power limits of our base station equipment We are open and transparent in the area of public health and safety, and work closely with the National Environment Agency and IMDA to ensure the levels of exposure of RF radiation from our networks are well within guideline limits We have mechanisms in place to respond promptly to any public safety incidents	No public safety incident	Maintain record of no public safety incident
OUR PEOPLE
Attracting and retaining talent	Impacted stakeholders: Employees
Our people form an important stakeholder segment and are a critical component to our long- term success	We offer competitive remuneration packages commensurate with qualifications, experience and job responsibilities We value diversity within our workforce We promote employees based on performance and merit	Employee attrition rate of 14.8% in 2017, from 13.1% in 2016.	Achieve annual attrition rate equal or lower than industry norms
Training and education	Impacted stakeholders: Employees
Investment in the training and education of our people gives M1 an edge in our ever-changing and highly competitive industry. By supporting their personal development, we are enabling our people to reach their full potential	We provide continuous training programmes to build on our employees’ knowledge and skills	3.66 days of training per employee	An average of 4 days of training per employee per year
Workplace health & safety	Impacted stakeholders: Employees, business partners and suppliers
Providing a safe and healthy workplace protects all stakeholders who carry out their professional responsibilities on M1 sites and strengthens our engagement with those same stakeholders	We maintain a safe and inclusive working environment We conduct regular workshops to keep employees up to date with M1’s workplace safety and health procedures and regulations We are a signatory to the Tripartite Alliance for Fair Employment Practices’ Employers’ Pledge of Fair Employment Practices	No fatality	Maintain zero fatality rate
OUR COMMUNITY
Supporting the community	Impacted stakeholders: Non-governmental organisations and community partners, employees
We believe that for a company to be successful in the long term, it should help create value for the community within which it operates. Participation in CSR programmes is a significant motivation factor for our employees	Through our strong CSR programmes, we continuously provide financial assistance and support to adopted community causes and conservation efforts We focus our efforts on the arts and sports causes in their start-up stage, where our contributions can make a meaningful impact We ensure products and services are available to and address the needs of underserved communities We involve our employees through M1 SunCare Club volunteers	We invested more than S$1.9 million toward arts, sports and charity	Make a combined community investment of more than S$1.5 million toward arts, sports and charity
Digital inclusion	Impacted stakeholders: Non-governmental organisations and community partners, regulators
As connectivity becomes an ever greater part of our lives, it is important to ensure that digital services are made accessible to all members of our society	Participation in industry events and dialogue sessions Harmonise our policies and networks with globally accepted technologies and standards	M1 partnered with IMDA on the NEU PC Plus Programme, and the Home Access Programme and Digital TV Assistance Scheme	Continue to partner government agencies to enable low- income households to benefit from digital/ connectivity services
OUR ENVIRONMENT
Energy usage	Impacted stakeholders: All
In line with the Singapore Government’s 2015 pledge that the country will become more efficient in its economic activity by the year 2030, a reduction in the use of non-renewable energy sources is a priority for M1	We continually measure and review our environmental footprint to identify feasible initiatives to make the most efficient use of limited resources in a sustainable way We implement more energy-efficient technologies	Total power consumption of our operations increased 0.1% despite an 11% increase in new base stations deployed	Minimise increase in total power consumption, despite expansion of mobile networks and ICT systems
Carbon footprint	Impacted stakeholders: All
It is essential to prevent our current actions on the climate from compromising the life of future generations. The Singapore Government’s 2030 targets towards the global fight against climate change also highlight the need for companies to reduce their carbon footprint and look towards renewable energy sources	We have implemented new approaches, such as use of solar panels, to reduce our consumption of non-renewable energy We adopt new measures to reduce indirect carbon emissions (electronic equipment recycling and reduction in paper consumption)	Launched e-waste recycling trial at selected M1 Shops and M1 buildings eBill penetration at 15% (May 2017)	Roll out e-waste recycling to more collection sites Raise eBill penetration to 20% of customer base
Water usage	Impacted stakeholders: All
The supply of fresh water in Singapore is limited. Maximising opportunity to replace fresh water with reclaimed water is an important step towards environmental sustainability	We continually seek out opportunities to reduce our consumption of potable water and increase consumption of reclaimed NEWater, e.g. for cooling	NEWater/potable water consumption ratio: 23/77	Increase NEWater/ potable water ratio to 30/70

³	Customer Satisfaction Survey across our customer touch points (Hotline, Customer Service Centres and Retail Shops).

Sustainability Report Introduction (GRI 102-53)