Cambodia Investment Review
On August 30, 2024, Smart Axiata marked a significant milestone by launching its annual Sustainability Report, shining a spotlight on its enduring commitment to sustainability as an integral part of business operations rather than just a branding strategy. This initiative reinforces Smart Axiata’s role as a leader in promoting sustainability in Cambodia, inspiring other businesses to adopt sustainability as a core business principle.
The event, held under the spirit of advancing sustainability beyond traditional perceptions, was attended by around 200 participants and presided over by His Excellency So Visothy, Secretary of State of the Ministry of Post and Telecommunications, His Excellency Shaharuddin Onn, the Malaysian Ambassador to Cambodia, and His Excellency Dr. Santo Darmosumarto, the Indonesian Ambassador to Cambodia. Also in attendance were representatives from ministries, embassies, chambers of commerce, prominent private business partners, UN agencies, NGOs, educational institutions, and the media. This diverse gathering facilitated rich discussions and network-building among stakeholders with the aim of fostering collaborative sustainability efforts across the country.
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Mr. Ziad Shatara, CEO of Smart Axiata, said, “At Smart Axiata, sustainability is embedded in our business DNA. It is not a mere branding exercise but a fundamental way we operate and define our success. We are committed to making a tangible difference in Cambodia by integrating ESG principles into all aspects of our business.”
Progress Under the Four Pillars of ESG
Smart Axiata’s sustainability efforts are guided by four principal pillars inherited from its parent company, Axiata Group: Advancing Digital Society, Advancing Green Economy, Advancing People & Communities, and Driving Governance & Risk.
Advancing Digital Society
Under this pillar, Smart Axiata highlighted its significant contributions to the national agenda through investment, adding 462 million USD as Gross Value Added (GVA) to economic growth and supporting over 48,493 jobs. The company expanded its footprint by providing fast and reliable internet via Smart Fiber+ (fiber-optic internet) and commissioning 162 new sites to enhance service quality. Additionally, Smart launched “Smart for Business”, offering nine digital solutions tailored to help local businesses operate more effectively.
Advancing Green Economy
Smart Axiata underscored its commitment to achieving net-zero emissions by focusing on reducing Scope 1 emissions and intervening to lower Scope 2 emissions despite rising demand. The company showcased its ambition to align with the “Science-Based Targets” initiative by collecting baseline data for Scope 3 emissions too. Moreover, Smart has embarked on water usage monitoring, exemplifying its dedication to environmental stewardship.
Advancing People & Communities
The company has made significant investments in human resources development, providing world-class training and promoting diversity, equity, and inclusion, as evidenced by female representation of 36% in senior leadership. With employees from more than 10 countries, Smart promotes a multicultural environment conducive to growth and innovation. The company also notably achieved an industry-high 84% in its Employee Engagement Survey, which was conducted and evaluated by an independent third-party company. Externally, Smart invested 566,892 USD and contributed 1% of its annual revenue to the Capacity Building, Research and Development (CBRD) Fund, focusing on education, digital skills, and STEM programs, benefiting 135,189 people.
Driving Governance & Risk
To differentiate itself, Smart voluntarily deployed enhanced security measures, such as the Next Generation Signaling Firewall, to protect customer and business data. The company has strict governance protocols to guard against corruption, bribery, and human rights violations, and it also practices transparent ESG data reporting to reinforce stakeholder trust.
With the release of this report, Smart sets a precedent in ESG practices, cementing its reputation as a responsible corporate citizen committed to transparent and ethical business operations. The company continues to inspire others in Cambodia’s business landscape to view sustainability as both an ethical obligation and a strategic advantage.
