Cambodia Investment Review
Smart Axiata, Cambodia’s leading telecommunications company, has launched its Sustainability Report 2022 on Thursday at Hyatt Regency Phnom Penh, with representatives from more than 170 business partners, NGOs, government institutions, academic institutions and key stakeholders in attendance.
The report is of great significance to Smart, in that it became the first telecommunications company in the country to publish a sustainability report in 2014. Released annually, it showcases Smart’s commitment to transparency, responsible business practices and stakeholder engagement, all of which position it as a modern tech company that delivers more than products and services.
Recognized as the market leader with the highest Net Promoter Score (NPS) in the country among telcos, Smart has consistently placed sustainability at the heart of the organization, its offerings and its corporate responsibility activities. The company is guided by the sustainability pillars of Axiata Group: Beyond Short-Term Profits, Nurturing People, Process Excellence and Planet and Society.
Beyond Short-Term Profits
Under this pillar, Smart highlights its significant contributions to Cambodia’s nation-building agenda. In 2022, Smart invested 255 million USD in capital and operating expenditures, while also contributing 121 million USD to public finances. This investment facilitated the improvement of 4G coverage in Phnom Penh and various provinces. Additionally, Smart allocated 2% of its total revenue to the Universal Service Obligation Fund to bridge the digital divide, while 1% of its total revenue was dedicated to the Capacity Building and Development Fund to improve digital capacity and skills in the Kingdom.
To ensure affordable Internet access, Smart introduced entry-level smartphone, Smart Nano II priced below 100 USD. Smart also collaborated with partners to offer installment plans at the lowest possible rates for customers, broadening access to digital solutions.
Nurturing People
Recognizing the importance of nurturing people, Smart invested in fair employment practices and employee well-being in 2022, and the company continued to promote inclusivity and diversity, with 33% of senior leadership positions held by women. Last year, Smart employed 1,077 individuals, with 1,055 being Cambodian. Notably, Smart supported a total of 54,079 direct and indirect jobs during the year.
To ensure world-class capacity, Smart provided extensive training to its staff, averaging over 35.5 hours per employee, amounting to a total of 38,228 training hours. As a result, Smart achieved a remarkable 79% employee engagement score.
Process Excellence
Understanding the importance of corporate social responsibility, Smart has not only continued to follow a stringent internal code of conduct but has also expanded its sustainability efforts upstream to its suppliers. A notable 337 suppliers signed the Supplier Code of Conduct, committing to environmental compliance, ethical practices and anti-bribery measures. Smart also encouraged local economic growth; impressively, in 2022 alone, 74% of Smart’s suppliers, totaling 299 companies, were local.
Smart has focused on customer satisfaction by enhancing the functionality of its SmartNas app, too, which allows users to purchase eSIMs digitally and access digital top up services.
Last year, Smart also became the first telecommunications company in the country to obtain Information Security Management ISO certification, ensuring customer privacy and security in an uncertain world. Additionally, every Smart employee has received anti-bribery and anti-corruption training.
Planet and Society
Driven by its commitment to sustainability, Smart aims to achieve net-zero carbon emissions by 2050. As part of its efforts in pursuit of this objective, Smart equipped 242 sites with solar systems. , In 2022, 1,080 Smart sites are powered by solar panels. Average fuel usage per site per month also decreased from 310 liters in 2021 to 254 liters in 2022, reflecting Smart’s dedication to environmental preservation. Additionally, the company actively participates in circular economy initiatives, such as its collaboration with Ecobatt Energy to recycle batteries.
Smart’s contribution to social development was substantial in 2022. The telco invested over 650,000 USD in education, environmental protection, technology innovation, entrepreneurial ventures, digital literacy programs and community development initiatives last year. These programs, implemented with partner NGOs, UN bodies, the government and other stakeholders, have positively impacted the lives of 141,344 individuals. Over 140 Smart employees actively participated in these programs, demonstrating the company’s commitment to giving back to society.
Smart Chief Executive Officer Ziad Shatara expressed his satisfaction with Smart’s sustainability achievements, noting, “We are proud to be the leading company in sustainability, and we remain committed to reaching new heights. We operate transparently, benefiting customers and stakeholders alike, and actively engage in building a better foundation for the country’s accelerated transition towards a digital economy and society. We extend our gratitude to the relevant ministries, NGOs and stakeholders for joining forces with us to create lasting impacts. I also want to thank our dedicated Smart employees for making a real difference in society and contributing to our nation-building agenda.”
During the launch event, the company received positive feedback from its partners, who acknowledged the beneficial impacts achieved through collaborative projects with Smart. The partners’ praise serves as a testament to Smart’s success in driving sustainability initiatives and creating lasting value for various stakeholders. It also highlights Smart’s reputation as a reliable and responsible partner, too, fostering trust and further collaborations.
Smart continues to set new benchmarks in the telecommunications industry. By prioritizing transparency, responsible business practices and stakeholder value, the company is paving the way for a sustainable, prosperous future for Cambodia.
