Materiality Assessment

The aspect of information technology that deals with the protection of private corporate information, critical information systems, and networks from security breaches.

Enhancing Zain’s data privacy protocols in line with best practices and complying with local laws and regulations, improves the company’s data management practices and creates robust digital infrastructures. This approach helps safeguard stakeholders from issues such as unauthorized account charges, privacy breaches, and identity theft.

The dynamics of customer expectations that affect satisfaction, loyalty, and brand reputation, and the mechanisms to ensure consumers are treated fairly and honestly during commercial transactions.

Offering high-quality and inclusive products and services enhances and supports Zain’s customer needs. Ensuring that Zains’ customers have reliable connectivity reduces information gaps, boosts economic activity, and promotes greater efficiencies. The company also monitors its Net Promoter Scores (NPS) and maintains open communication channels throughout its operations to address and meet customer requirements effectively.

A company’s safety performance and the mechanisms it has in place to maintain a safe and healthy workplace environment. It captures protocols, training, work arrangements, and the physical and mental working conditions to which employees are exposed to.

Neglecting to maintain a safe and healthy work environment can result in fatalities, severe injuries, and illnesses, which can impact employees’ quality of life and, in turn, impact business productivity, and reputation. Zain remains committed to safeguarding employee health and safety, addressing both physical and mental well-being by evaluating risks and managing work-related incidents. Initiatives include facilitating remote work, offering comprehensive insurance packages, and implementing various programs under the BE WELL wellness initiative, which underscores the importance of mental health, especially during regional conflicts and socio-political turmoil.

The development and use of advanced technologies and digital innovations to generate new business processes and improve customers’ and other stakeholders’ experiences

Digital transformation profoundly affects a variety of other industries, and Zain’s 4WARD strategy seeks to advance the digital ecosystem by leveraging its core services, such as roaming and wholesale. Additionally, the strategy focuses on expanding into other sectors through its digital transformation and investment arm, addressing fields like fintech, ventures, application programming interfaces (APIs), and esports.

The moral code of conduct and guiding principles to the strategic and operational management of a business. It captures the management of risks and opportunities associated with ethical considerations, lawful behavior, and compliance practices.

The company prioritizes its integrity and ethics with all stakeholders to foster trust. By cultivating its various relationships, Zain can effectively and accurately address stakeholder concerns. A well-established governance model enables management to monitor and manage the organization’s value. Ensuring online safety is essential in this context, as it safeguards customer data and upholds trust and transparency.

Managing climate-related risks and opportunities from actual or potential physical and transition impacts. It also includes the direct and indirect emissions of greenhouse gases (GHGs) and emission reduction targets to limit individual company contributions to global warming.

The company remains committed to managing its emissions throughout its operations in line with best practice and international standard requirements. Climate change motivates Zain to adapt and manage its risks while actively implementing green solutions to assist other sectors in their efforts. Going beyond mere aspirations, Zain is focused on taking actionable steps, leveraging its influence to advocate for policy reforms, introduce energy efficient solutions, and raise awareness to combat climate change.

This issue refers to the process of ensuring the workforce is functioning at its most productive levels and copes with organizational changes. It captures employee recruitment, retention, and development practices.

With around 11,011 employees in eight markets and across all subsidiaries, Zain influences its workforce through its policies, practices, recruitment efforts, employee engagement and retention strategies, and skill development initiatives.

Processes and mechanisms a company has to grow and maintain diversity in the workforce and ensure equal opportunities and treatment for all employees.

Zain actively promotes inclusion, diversity, and equity (IDE) to enhance social equity, drive economic growth, and attract a wider range of potential talent. By developing IDE competencies, nurturing employees’ skillsets, ensuring fair and equal remuneration, implementing strategic Group-wide initiatives, and raising awareness, Zain cultivates a more diverse and inclusive culture.

The company’s ability to ensure all individuals and population groups can access its products and services without discrimination. It includes the management of universal needs, affordability, and accessibility.

Addressing the digital divide and ensuring inclusivity brings a range of socio-economic advantages. The company investigates the needs of marginalized communities and creates opportunities that address their concerns. Zain focuses on catering towards groups such as children and youth, women, the elderly, and individuals with disabilities, setting specific goals by providing inclusive products and services. In addition, the company also establishes programs that address the digital barriers faced by vulnerable segments.

Identifying and managing risks and opportunities connected to social, environmental, and economic challenges into business model planning. It focuses on how companies respond and adapt to these changes to carry on their activity, grow and create value for shareholders, and society in the long- term.

Zain remains committed to integrating business continuity into its risk management policies, practices, and processes. External circumstances such as natural and humanitarian disasters and geopolitical instability emphasize the need to systematically embed resilience mechanisms into the company’s operations. This highlights the company’s efforts in ensuring it optimizes long-term value creation while considering the shift in global demographic trends.

Major risks to public health, including exposure to radio signals and EMF from mobile network antennas and mobile devices, spread of infectious diseases and eventual pandemics, the availability of vaccinations and the anti-vaccine movement, and potentially deadly non-communicable diseases.

The GSMA states that exposure to low-level radio signals from mobile communications has not been linked to health risks. Zain adheres to official guidelines and upholds the policies and practices outlined in its Environmental and Social Management Plan (ESMP) to protect communities from electromagnetic fields (EMF). Additionally, public health considerations are included in the assessment to address all aspects of health related to this issue.

The establishment of commitments and policies designed to trace, screen, monitor, and follow up with supplier performance against one or more ESG dimensions and manage supply chain risks concerning supply shortages or disruptions. It captures strategies to maintain transparent communication and support between a company and its suppliers.

Societies with advanced supply chain management systems are significantly impacted as they create employment opportunities and often provide access to healthcare for many. However, supply chains also face increased risks of human rights violations, such as labor abuses, child labor, corruption, and health and safety issues. Zain is dedicated to enhancing and scaling its mechanisms and processes across all markets to address human rights concerns and protect biodiversity throughout its entire value chain. In addition, Zain also ensures it considers how its supply chain manages materials/waste, has ethical policies in place, and how its suppliers align to the company’s policies and values.

Employment practices related to internal and external workforces throughout the value chain, compliance with regulatory regimes, and internationally accepted labor standards in the workplace. It captures minimum labor rights, employee benefits, and fair compensation.

Adhering to local and international labor laws has significant economic implications. By following these practices, the company can shape employment standards not only within its own workforce but also across its supply chain, minimizing the risk of abuse or discrimination. Zain positively impacts this area by safeguarding the rights of its employees, workers, and those within its supply chain. The company also proactively ensures it follows best practice through its employee incentives, benefit plans and collective bargaining rights.

Providing a transparent understanding of the strategy and business through frequent engagement by hosting forums and meetings, issuing periodic financial reports, disclosing the company’s financial performance, and engaging in earnings conference calls.

By meeting its economic goals and objectives, the company generates and allocates wealth to its stakeholders. This economic value enables Zain to highlight critical investment opportunities in areas such as infrastructure, assets, and its workforce.

Company’s regulatory compliance strategy and how it engages and aligns itself with regulators to make public and corporate interests compatible. It captures corporate compliance management, lobbying, and government relations, as well as responsible tax planning.

Ensuring compliance with national and international laws, such as data protection and spectrum licenses and regulations, while adapting to changes in legislation. It also requires proactive engagement with regulatory bodies and stakeholders to address potential issues and influence policy reform on various topics including climate change and children’s rights.

This issue refers to practices that prevent or restrict free trade or competition between commercial actors in a market, including anti-competitive behavior and protectionism. It also captures protection and infringement of intellectual property rights.

Different aspects play a role in maintaining healthy marketplaces, such as promoting fair competition, protecting, and not infringing on intellectual property, and ensuring equal access to market opportunities. This aspect is also reliant on governmental policies and international fair-trade regulations.

Committed to the principles of the Universal Declaration for Human Rights, the Core Conventions for the International Labor Organization, and the United Nations’ Guiding Principles on Business and Human Rights Reporting. Committed to investigating any concerns and if we discover any adverse human rights impacts, we will act appropriately without delay and prioritize the right to freedom of opinion and expression.

Modern slavery, including forced labor, has increased with migrant workers being the most at risk. Strengthening and enforcing laws, regulations, and inspections is crucial for tackling modern slavery. Operating across eightmarkets and managing diverse suppliers, Zain seeks to broaden its impact and uphold its social and environmental practices and values throughout its supply chain.

Assessing regulatory trends on environmental, social, and governance (ESG) indicators to ensure alignment and disclosure, alignment to international best practices and embedding a whistle-blowing policy to report and mitigate any unethical actions internally.

Ensuring compliance with all social and economic laws and regulations helps protect the communities in which the company operates. The company also ensures its non-financial reporting is audited by a third-party organization to ensure the highest level of accuracy in its ESG disclosures.

Uphold and protect the rights of the child as relates to anticipating, preventing or responding to any form of violence, exploitation, abuse or practices that might be harmful to a child’s physical and mental development and integrity. In addition, promoting children’s growth, wellbeing and a safer and more secure use of Internet-based services and associated technologies.

Zain is committed to safeguarding children across its operations. This focus aligns with Zain’s dedication to responsible business practices that safeguard children’s rights, particularly in digital spaces. Zain integrates children’s rights into its strategies, partnerships, and community initiatives, demonstrating a proactive approach to addressing this critical issue.

The company’s ability to promote sustainable consumption and production patterns.

Zain ensures that it follows specific guidelines under its Environmental and Social Management Plan to promote sustainable consumption and production. This refers to procedures set in place to ensure product safety and service quality for the public.

Challenges due to the changes in society, politics, and people due to an event or general trend and natural or human-induced disasters.

The company ensures it has proper and robust risk management in place to address any changes that occur to the business or society due to any external event that includes geopolitical conflicts or physical disasters.

Requirements, standards, certifications, and established practices regarding the information presented to consumers when advertising and selling goods and services. In addition, refers to the social challenges related to the failure to provide transparent, accurate, and complete information.

The products and services sold by Zain have all the needed certification, labeling and information as per regulatory requirements and are in line with best practices. The company’s Responsible Marketing and Communications Standards also ensures transparent communication, ethical advertising, embrace inclusive marketing, parental and guardian consent and control, responsible use of digital channels, and purpose driven partnerships and collaboration.

Gaseous, liquid, and solid substances used or disposed of in business operations or present in products that threaten human health or the environment. Captures the generation, treatment, recovery, recycling, and reduction measures of hazardous and non-hazardous waste and the handling, storage, and application of hazardous material.

The company takes a proactive approach to managing waste throughout its operational infrastructure, its waste management compliance framework as well as in compliance with regulations and international best practices.

Continuous engagement with the startup community through Zain Ventures, B2B, and community institutions to address their requirements, while fostering the entrepreneurship ecosystem.

The MENA region has the highest youth bulge and youth unemployment rate worldwide. To address these challenges, the company aims to build resilience amongst its youth in its communities by creating program, workshops and developing hackathons and entrepreneurship opportunities across the board.

Stock of capital derived from biological diversity and ecosystems, as well as natural resources.

The construction and operational activities of telecommunication-related infrastructure can impact nature and biodiversity and supply chain by disrupting local habitats and potentially affecting wildlife. To mitigate these effects, Zain has strategies and processes in place that are highlighted in the company’s ESMP guidelines to minimize environmental disruption and enhance biodiversity protection, such as site selection and habitat restoration initiatives.

Refers to the contribution to other organizations and communities through funds, volunteering efforts, and in-kind products or services. It also includes assistance given to people in immediate distress during and after emergencies and disasters, and engagement with indigenous people in reference to the land, workplace, and societal contexts.

Since its inception, Zain has contributed to various philanthropic efforts throughout its operating markets. The company either supports through funds, volunteering efforts or in-kind products and services, especially in crises response.

Contamination of natural resources due to harmful substances, excessive use or exploitation, and general corporate operational impacts that affect the protection of land, forests, and biodiversity resources, and the measures in place to remediate them.

Across Zain’s operational activities, the company monitors and tracks its impact on natural resources including non-greenhouse gas emissions, land use under base station construction, and pollution.

Refers to the processes and systems to control and regulate human activities in outer space. It includes the management of space traffic and low earth orbit, the mitigation of space debris, the prevention of collisions, and the minimization of the impacts of space weather.

As telecommunications technology continues to evolve, satellite networks are becoming crucial for expanding connectivity, especially in underserved and remote regions. As Zain considers future growth and innovation in connectivity, addressing outer space management aligns with a broader vision of Meaningful Connectivity.