The Group is committed to environmental protection through the efficient use of resources, promotion of green awareness, adoption of eco-friendly management practices, and support for community initiatives that encourage green living. In the long run, the Group targets year-on-year reductions in total greenhouse gas emissions intensity and total energy consumption intensity.

Emissions

Electricity remains the key energy source for the Group’s business operations and the major source of greenhouse gas emissions. To enhance energy efficiency, SmarTone has deployed the latest technologies across its mobile network. Through base station hardware and software modernisation, energy efficiency improved by 25%, while an AI-based power management solution delivered a further 11% gain by dynamically adjusting power consumption according to network traffic patterns, without compromising performance. Together, these initiatives achieved an overall 36% improvement in energy efficiency.

During the year under review, mobile network data energy efficiency also improved from 6.12 GByte/kWh for the year ended 30 June 2024 to 6.76 GByte/kWh for the year ended 30 June 2025. This was achieved despite rising data traffic driven by network expansion and increased customer usage, and is estimated to have reduced approximately 5,120 tonnes of CO2e emissions.

The Group has also upgraded its switching centres and data centres to reduce energy consumption. Traditional chiller systems have been replaced with oil-free variable speed chillers, while data centre ambient temperatures have been optimised to save energy while maintaining stable operations. In addition, a new carbon film coating technology applied to chiller condensers has improved the coefficient of performance by 6.15% and reduced power consumption by 6%.

Use of resources, the Environment and Natural Resources

SmarTone continues to promote resource efficiency in daily operations. Its retail shops use a wireless customer management system, with tablets, e-signatures and e-leaflets replacing paper-based processes and promotional materials. Recycling boxes have also been set up at major stores to collect old mobile phones, tablets and accessories for proper handling by certified local recycling organisations.

Climate Change Management

The Group recognises climate change as a growing risk to both communities and business operations. Increasingly frequent extreme weather events, such as typhoons and flooding, may disrupt infrastructure and services. To address these challenges, the Group is strengthening operational resilience and advancing sustainability efforts. It continues to implement low-carbon initiatives and environmental measures, aligning its operations with the global transition towards a more climate-resilient and sustainable future.