Chapter
12
In reference to the Global Reporting Initiative (GRI) standard, Zain assesses and identifies its sustainability topics on an ongoing basis. The company does so by conducting a high-level overview of its activities, business relationships, sustainability context, and stakeholder groups to identify the topics that have both financial and non-financial impacts.
The company conducted a double materiality approach for its 2023 materiality assessment to ensure it captures both financial and societal impacts. Through this assessment, the company can capture a comprehensive assessment of both financial and non-financial risks that supports greater transparency in its reporting mechanisms. The double materiality assessment also provides greater insights on sustainability-related topics that contribute to long-term value creation. As regulatory frameworks further evolve to include environmental, social, and governance (ESG)-related requirements, double materiality is essential in meeting such standards and requirements.
In 2023, Zain continued to use Datamaran, a software analytics platform that monitors current and emerging ESG-related risks, to conduct its materiality assessment. The automated analysis is conducted by benchmarking peers, assessing wider ESG regulations, online news, and media outlets, in addition to gathering insights through stakeholder engagement surveys.
Zain leverages the analytics derived from Datamaran’s platform and uses its telecom industry list to ensure that emerging risks are included in the company’s analysis. The updates are then subject to the approval of Zain’s Chief Sustainability Officer.
A shortlist of 27 topics were compiled that are based on previous reports and upcoming trends, and which included:
Zain bases its annual Sustainability Report on the results of the materiality assessment exercise to further understand the consequential issues for the company and its stakeholders.
Zain defines stakeholders using the definition provided by the GRI as follows:
“Stakeholders are entities or individuals that can reasonably be expected to be significantly affected by the organization’s activities, products and services, and whose actions can reasonably be expected to affect the ability of the organization to successfully implement its strategies and achieve its objectives.”
The stakeholders considered in this process range from those that directly invest in the organization such as employees, shareholders, investors, and suppliers, to those who are indirectly impacted by the company’s operations, including local communities, civil society, non-governmental organizations, and vulnerable groups.
Based on this definition, Zain identifies its main stakeholders for the purposes of this report as:
Zain frequently carries out stakeholder engagement activities throughout the course of the year, which enable the organization to address the needs and expectations of its stakeholders. Related engagement activities include:
Zain updated its topics for assessment based on the activities conducted by Datamaran. The materiality topics did not change, however, the following subjects were added:
| Material Topics | Ranking Order 2023 | Ranking Order 2022 |
|---|---|---|
|
Customer Privacy & Data Security |
1 |
1 |
|
Digital Transformation |
2 |
5 |
|
Employee Health & Safety |
3 |
3 |
|
Customer Service |
4 |
2 |
|
Climate Change |
5 |
4 |
|
Mobile Communications and Health |
6 |
11 |
|
Business Ethics and Governance |
7 |
7 |
|
Business model resilience |
8 |
10 |
|
Diversity, Equity & Inclusion |
9 |
6 |
|
Management of the legal & regulatory environment |
10 |
20 |
|
Workforce management |
11 |
8 |
|
Digital Inclusion |
12 |
9 |
|
Economic Performance |
13 |
15 |
|
Supply Chain Management |
14 |
12 |
|
Modern Slavery |
15 |
14 |
|
Competitive Behavior |
16 |
18 |
|
Labor practices |
17 |
13 |
|
Waste & Hazardous Materials Management |
18 |
17 |
|
Selling practices & product labeling |
19 |
27 |
|
Responsible Consumption & Production |
20 |
19 |
|
Socioeconomic Compliance |
21 |
16 |
|
Physical & Sociopolitical Risks |
22 |
22 |
|
Entrepreneurs and Skill & SME Development |
23 |
21 |
|
Philanthropy and Community Engagement |
24 |
24 |
|
Children’s Rights |
25 |
23 |
|
Ecological Impacts |
26 |
25 |
|
Natural Capital |
27 |
26 |
** Indicates there has been changes to the name (combined or divided) in comparison to last year’s topics
The company assesses and addresses its impacts across the value chain on a continuous basis to identify its ESG and human rights impacts. This enables Zain to embed such impacts in its decision-making priorities.
The table below provides an overview of its top 17 material topics:
Enables societies to optimize data handling practices to build strong digital pathways by strengthening Zain’s data privacy mechanisms as per best practices and adhering to the laws and regulation per country. This allows its stakeholders to avoid exposure to improper account charges, privacy intrusions, or identity theft.
Actual
Positive
Providing top quality and inclusive products and services, the company can empower and uplift its customers. By ensuring Zain’s customers have access to connectivity, it allows for the reduction of information asymmetries, increased economic activity, and allows for greater efficiencies. The company continues to track Net Promoter Scores (NPS) and ensure open communication channels across its footprint to engage and respond to its customers’ needs.
Actual
Positive
Failure to ensure a healthy and safe work environment for employees can lead to fatalities, serious injuries, and illnesses. Impacting the quality of life of employees may also damage the businesses’ productivity, finances, and reputation.
Zain continued to prioritize employee health & safety, and well-being from a physical and mental standpoint by assessing the possible risk and addressing any work-related injury, fatalities, or illnesses. Activities conducted include enabling employees to work remotely and provide equitable insurance packages in addition to the various programs under Zain’s ‘BE WELL’ wellness streams. BE WELL emphasizes the importance of employees’ mental health, which is crucial in times of conflict and socio-political upheaval in the region.
Actual
Negative
The company continues to address its emissions across its footprint while also tackling the increase in data consumption. Climate change continues to be a driver for Zain to adapt and mitigate its risks while continuously rolling out green solutions to help other sectors do the same. Moving beyond ambition, Zain is dedicated to taking the necessary steps and use its sphere of influence to lobby for policy reform, introduce green technologies, and spread the awareness needed to combat climate change.
Actual and Potential
Positive / Negative
Digital transformation has profound impacts on the world, affecting all industries. Zain’s 4Sight strategy aims to enhance the digital ecosystem through its core services, which includes roaming and wholesale, but also to develop other industries, under its digital transformation and investment arm tackling areas such as fintech, ventures, application programming interface (API), and esports.
Actual
Positive
Zain continues to proactively promote diversity, equity, and inclusion (DE&I) to foster social cohesion, further economic development, and gain access to a larger set of potential employees. Establishing DE&I competencies, launching strategic Group-wide initiatives, and creating greater awareness allows Zain to nurture a diverse and inclusive culture.
Actual
Positive
The company emphasizes the importance of strengthening its integrity among all stakeholders to build trust. By developing a strong relationship, Zain can address stakeholder concerns in an effective and accurate manner. Having a well-equipped governance model provides management with the ability to oversee and address the organization’s impacts. Online safety falling under this topic is crucial as it protects customer data, maintains trust, and ensures the integrity of the network.
Potential
Positive
With around 7,900 employees across seven markets, Zain impacts its workforce through its policies, practices, recruitment, retention, and skill development.
Actual
Positive
Bridging the digital divide and ensuring that no one is left behind leads to a multitude of socio-economic benefits. The company explores the needs of excluded and marginalized segments to provide opportunities that are inclusive by design. Zain targets various segments that include children and youth, elderly, and people with disabilities, and sets targets accordingly.
Actual
Positive
Zain continues to embed business continuity in its risk management policies, practices, and processes. The pandemic highlighted the need to ensure resilience as it leads to better business and societal outcomes. Other external crises such as natural or humanitarian disasters, in addition to geopolitical instability, continue to underline the need to systemically embed business resilience mechanisms within the company’s practices.
Actual
Positive
According to the GSMA, no health risks have been established from exposure to the low-level radio signals used for mobile communications. Zain ensures that it follows official guidelines and maintains the policies and practices specified in its Environmental and Social Management Plan (ESMP) to safeguard its communities against exposure to electromagnetic fields (EMF). To ensure this topic covers all aspects of health, public health was included under this topic’s assessment.
Potential
Negative
Societies with highly developed supply chain management systems are proven to have great influence on all facets of societies. Numerous stakeholders depend on the supply chain as it provides vast employment opportunities where some are then able to gain access to healthcare. However, the risk of human rights abuses, including labor rights, child labor, corruption, and health & safety concerns, are more prominent across supply chains. Zain continues to expand and scale its mechanisms and processes across all markets to address human rights impacts and biodiversity across its entire value chain.
Actual
Negative
There are several economic implications to upholding local and international labor laws. Through adherence to such practices, the company can influence employment practices not only for its own workforce but also throughout its supply chain. This reduces the risk of any abuses or discrimination occurring. Zain impacts this topic from a positive aspect by upholding the rights of its employees, workers, and supply chain.
Actual
Positive
Modern slavery, including forced labor, has increased significantly in recent years, where most cases of forced labor are found in the private sector with migrant workers being the most vulnerable. Improving and enforcing laws, regulations and inspections helps progress towards addressing modern slavery. Operating in seven markets and working with a high volume and range of suppliers, Zain aims to expand its influence and uphold its social and environmental values across its supply chain.
Potential
Positive / Negative
Achieving its economic goals and objectives allows the company to create and distribute wealth to its stakeholders. Through the economic value generated, Zain identifies key investment areas such as infrastructure, assets, and its workforce.
Actual
Positive
Compliance with laws and regulations showcases a company’s ability to manage and conform to certain performance parameters. By ensuring the company complies with all social and economic-related laws and regulations protects the communities in which it operates.
Actual
Positive
Child online safety continues to be an important area where a variety of risks can arise from online addiction, access to child sexual abuse material, cyber bullying, widespread online scams and other threats. Zain’s approach to spreading awareness and engaging with stakeholders to strengthen child protection mechanisms such as child helplines, allows the company to tackle the negative effects of connectivity. Through monitored use, children can reap the benefits of accessing the internet through e-education and edutainment services.
Actual
Positive / Negative