Amdocs Limited (DOX) Earnings Call Transcript & Summary

Hello, and welcome, everyone, to our second ESG Webinar. We are here to talk about and highlight our recently published -- actually as recent as last week -- recently published ESG and CSR report forward for the year 2022, 2023. I'm Tamar Rapaport-Dagim. I'm CFO and COO of Amdocs. And I will be joined by a few of my colleagues to cover those highlights. We are very proud to be a key enabler of the communications media industry and this is an interest as all of you know, that is the backbone of society, making sure we all can connect and communicate with each other, touching billions of people around the world with our systems and capabilities that we provide to service providers around the world. And as you will hear later from Anthony, about our technology, our products, our offering and how we are making them sustainable for providing this kind of opportunity as well as from my colleague Idit, who will talk about the different aspects of our employees and our communities involvement. We are very active all around making sure that the pledge is in front of yourself, is something that we take daily interaction in everything we do and making sure that we are part of an ecosystem of partners, of employees, customers and new shareholders that leaves on the footprints of amazing around the world. So with that, I want to move to you, Matt, to take it forward.

Tamar, thank you for setting the stage for us today. And hi, everyone. I'm Matt Smith, Head of IR for Amdocs. Before we get going, please note that some of our comments today may be forward-looking statements and could include certain estimates and assumptions, which are subject to risks and uncertainties as described in Amdocs' filings. Just to introduce our speakers in a little more depth. You've already met Tamar of course, our joint COO and CFO. Today, we'll also hear from Anthony Goonetilleke, our Group President of Technology, also Head of Strategy and Idit Duvdevany Aronsohn, Amdocs is Head of corporate responsibility, inclusion and wellbeing. Just in terms of the agenda, Tamar will provide a progress update on Amdocs' ESG journey over the past year, and she'll also cover some important developments in the environment and climate strategy. And then Anthony will address the ways in which Amdocs is driving sustainability and innovation with our portfolio, after which Idit will discuss Amdocs' commitment to people and society. And we'll finish with a quick summary and a short Q&A session. Questions can be submitted anonymously using the chat function in your browser. So with that, Tamar, I'm going to hand it back to you and we can get into it.

Thanks, Matt. So for those of you are less familiar with who we are, I want to talk about the Amdocs at a in terms of what do we do? We are a leading provider in mission-critical software and services that enables the communication and media companies to actually provide their services, their value to individuals, to businesses, the world and provide that with an amazing customer experience. And we do that through digitizing and automating their business processes and operations, accelerating the journey of the industry to the cloud, providing them the tools and the ability to monetize different opportunities such as the major 5G rollout that is happening all over the world. And to ensure all of that through seamless connectivity with the network automation capabilities that we are providing, and we are doing that with hundreds of customers. Many of them are very familiar names to all of you people who make sure that the world is connected. Guys like AT&T and Comcast, Vodafone, SingTel, Telefónica, America Movil and many other big names out there in the world. We're actually in 90 countries with the people base of 30,000 employees, so you can understand the reach out that we have to different communities around the world and the impact that we can bring through that. We're a public company for over 20 years since 1998, traded in NASDAQ. So we have also the capacity, the ability to think about those aspects as a company that has been in existence for some years now. I can say clearly that what we are going to share today is definitely part of the DNA of the company in many assets of what we do. So when we think about the role we play in connecting the world and connecting societies all over the world and creating the billions of people, the ability to talk to each other, to educate themselves, entertain, just be connected with the love ones, we obviously want to see how we are waiving in -- winning in, sorry -- the focus areas we want to have as part of our ESG and CSR framework. And that will be championing ethical and responsible conduct making sure that we're improving the lives of the people in the different communities. And again, we're talking want billions of people that are influenced with what we do, fostering diversity, equity and inclusion, inbound and outbound and prioritizing our employees well-being and the ability to develop their careers and personnel capabilities. Well, definitely the environment and making sure that the climate change is being handled in the best way and promoting sustainability in the offering with the technology through services we provide to the world. When we are thinking about our ESG journey and how it evolves, we are looking all the time how to govern that and how to take the accountability to something that is sustainable and providing the maximum impact starting with the Board of Directors and their great focus and passion to the topic. Obviously, the executive management, the CEO, Joshua Sheffer and executive management and how we putting our focus into this topic. And then ESG strategy core teams that are dealing with the different topics were going to cover as well as more functional corporate functions or other functions within the business units and technology is that taking forward the things that we are pushing as the focus areas. All of that augmented with a lot of champions we have in the field, which I think is extremely important, as we want to make sure that our employees are really participating and really championing those different things that we are doing. So on top of this, we take a top-down approach of making sure the governance and monitoring is there. Obviously, we want to make sure we're involving as many employees as possible to move forward and push forward those initiatives. I just want to give a glimpse of one example from a cybersecurity and privacy how we think about those things. So for example, from structural, Board of Directors point of view, obviously, there's a lot of very diligent processes done and engagement of the Board in these topics and then periodical sessions that are happening and evaluations of this topic. And then we have a very seasoned leader, a Chief Information Security Officer, who reports directly to me and needs all of these activities across the company when he is with his team, with his experts. We have a full-time data protection officer that works around the privacy and go 24/7 staff. Cybersecurity center, obviously, to handle any bridge, any incident that may come along and prioritizing it according to severity and initiation aspects of how to deal with this kind of events, validating that what we think is happening is actually happening for different audits and different validation points including drills and things like that. And continuously making sure that everybody is aware and learning about those topics because eventually with all the processes, tools and governance that we put in place, the human aspect, people and [indiscernible] extremely important. This is really like a glimpse of many, many activities that are running behind those few examples that I just shared. Again, just on cyber and privacy and of course, there are many, many other topics we can talk about. When we are thinking about the ecosystem we live in, obviously, we are not in a vacuum. And we have very important stakeholders to consider as we're thinking about the ESG and CSR aspects that we are promoting, starting with our employees, which I want to spend a bit more about, the customers, you, the shareholders, the partners and supply chain and the communities we live in and of course, regulators, et cetera. So just doing a bit of a deep dive on employees to give you how we are assessing our effectiveness around the organizational health, we are using one of the leading models coming from [indiscernible] to do organizational health check that checks both the effectiveness of our sources aspect of the business as well as the managerial practices that we have in place. And we promised very thorough process already twice, recent one was in 2022. And you can see continuous improvement. And you can see from this chart that we are in the top this side comparing to benchmark of hundreds of companies, both -- if we compare to the overall global peer group that has been provided as well as more specifically into tech and technology media and telecom, we are appearing at 10%. And okay. So we can be obviously very proud about that and happy with that, but it's much more granular than just an overall assessment of the health score and engagement score. It goes into different aspect, different dimensions. And we focus accordingly on the amount of group. For example, a couple of years ago when we did for first time, we saw that the understanding of direction, and purpose is extremely important to our employees and it needed to be more clarity around that, more connection of the activities to what is the job to be done, what is the purpose behind that, and we've invested a lot in that aspect. We definitely see the improvement 2 years later, as we said that again. And we do a lot of this analysis and taking into an executive management discussions and different kind of programs that are continuously improving around those kind of topics. I want to touch now about the other very important stakeholders, which are customers. And to us, involving in the dialogue with customers and everything we do with customers, the security aspect is extremely important. So we do that in many ways, of course. And Anthony will cover more later the technology and the offering we bring to the market and to our customers. Maybe he will touch about all kinds of examples of joint programs we deal with them. But I just want to use this example as I think it's emphasized how much we see that as an important part of our engaging with customers. I think NWC this year, which is the largest conference of the industry, we took literally a center stage to this topic by having an immersive huge role that continuously talked about the activities that we are doing around the ESG and the CSR, which created a great dialogue with customers to engage in further with them, enjoy to thinking how we can push forward those kinds of activities. And just as an anecdote, every visitor into our booth also created in collaboration with -- and connected to Amdocs, contribution of Internet connectivity for girls in India and their families that kind of help to be digitally included. So that was a win-win from our point of view. The feedback by the way from customers for this kind of initiative has been excellent and will create one full discussion and additional collaborations with customers around this topic. Going back to our stakeholders. I also want to touch the shareholders. As we've been meeting over the years with many of you, discussing ESG, thinking about this topic, understanding how you see that, what's important to you in thinking about Amdocs and how we should be actually focusing on ESG. We heard comments around sustainability of product, and the innovation we can bring to the market, privacy in cyber, climate, diversity and inclusion and current attraction engagement. I think you will see, as we move to talk about the materiality assessment that we'll do with -- this topic also right in the center of how we are thinking about those things. And definitely, the inputs in regard to those dialogues have been very valuable. So thank you for everyone. This is -- right now this has been part of the dialogues. So as you're thinking about the materiality assessment, trying to focus ourselves, how do we reinforce the commitment to sustainable growth and responsible corporate product in a way that is more targeted in terms of one of the top issues that hold most of the relevant to us. We narrowed down to 20 topics of which we even highlighted 9 that are here appearing in color in the list that are the ones we want to focus on more in terms of how we are thinking about strategy on the ESG. Definitely something that we are thinking about a lot. It doesn't matter that -- there are things that we do all day long. And I'll give you an example, a customer experience and satisfaction, that's a bread and butter. We're the customer experience company. So don't get allowed -- and in fact, it's not highlighted. That's like our day-to-day focus. So we didn't feel we need to highlight it even more. But when we're thinking about climate change, and how we, as a company, can influence the environment, you wanted to elevate that and make focus -- intentional focus on that in a higher way, as I will show in a minute. Recently published report is focusing on a variety of topics that covering what we think about in terms of ESG and CSR, also sustainability, the social aspect of people, the communities were involved in on the environment and climate aspects, how we create sustainable value, governance and many, many other topics, including very detailed annexes with a lot of information that is maybe interesting to you to see. So we're trying to really bring there a lot of things that we thought you care about and the people that are reading these kind of reports are showing interest in and reading this kind of disclosure and [indiscernible] approach to show transparency and show the story that we are very proud of. Just interestingly, this picture that you see on the cover page, that's the international Yoga Day. We used that day to do, at the same time all over the world, in all of our sites, Yoga exercise, that of course was greater for the well-being of our employees. But this specific picture is actually from the recently completed the campus in Israel that is also led gold certified, and we talk about that as part of the environmental commentary. So we were actually enjoying both the garden and the green capabilities that we have in this wonderful garden within the new campus as well as the international Yoga Day. Thinking about our global and local ESG recognition. I would say, first and most of all, we do it because it's the right thing to do, not because we are looking for recognition. And we are doing many, many, many activities. Getting this kind of recognition, I think it's good to give ourselves some kind of an assessment to understand where we are, what we can improve and also these dialogues and these kind of impacts are really helping us understand how others are thinking about it and what potentially we can do to generate this kind of continuous improvement moving along. And I can say very proudly that we are already getting very strong scores and different assessment, whether it's a Dow Jones Sustainability Index, whether it's a CDP rating, sustainability, et cetera. And also in the local level, getting external recognition by many aspects of assessments, whether it's a great place to work at, that we're getting in many of the countries we're working like Brazil, Philippines and India and Mexico and Cyprus, et cetera, whether it's around, being the best workplace for women in India in 2023, which has been recognized by Economic Times. So we continue to see and assess ourselves through the glasses -- I would say, the viewpoint of external bodies to see where we stand and then promote this topic even further. Thinking about the environmental and climate aspect, this is an area that is getting a lot of focus from us. And we are looking forward to see how we are pushing the envelope even further. But just to frame it, when we are looking on our climate action and how it impacts the environment, we're looking at it in 3 different dimensions. One is our design offering that for most sustainability, and Anthony will explain about that, that it's about putting people first and promoting the communities we are involved in, not just our own employees, different kinds of initiatives that put the environmental topic at a very important place. And then, obviously, our operations -- our internal operations, now we are doing different kinds of activities in a different way, whether it's increasing the share of renewable energy, how do we do data center optimization, reducing travel and many, many other activities that are locking us actually get better in terms of the environmental footprint we are moving. I mentioned before already, the Amdocs Israel campus that was opened up with many aspects and very detailed design around how we are making this very environmental friendly design. And I'm proud to say that as of January 2024, all of the campus will be fully powered by renewable energy, which is definitely a big step up for us. So we're very happy about that. I want to share with you very quickly glimpse through a video clip of our activities. This video was actually prepared for a day of the Global Environmental Day that we wanted to leverage to put the awareness internally in the company and on the environment and also outbound vis-a-vis potential talent that shares the same value with us. So let's go ahead and watch the video. [Presentation]

Today, many of these initiatives that we've shared with this media clip are actually coming to ideas of our own employees and then they are the champions that they help us push it and also it's wonderful. So forward-looking, our new client and the action commitment, fresh from the oven, we are committed on top of the science-based targets that we already had for 2024. We are coming out now with a long-term commitment for both carbon neutral by 2024 for our business operations [indiscernible]. And that by 2040, we will also have all of our operations powered with 100% renewable energy. And as a company that is making those long-term targets, obviously, we want to have a very concrete plan of how we're getting there. So the way we are thinking about it is starting with about 20% carbon neutrality pre this kind of commitment. Now we're going to reach over 50% already with some activities that we have secured including the new decision to have the renewable energy transformation in the Amdocs in Israel. We, later on, will reach over 70%, including several actions. One of the important ones there is to have direct purchase in India of this kind of capabilities, and then cover many sites that we have around the world and gradually expanding the renewable strategy by 2040 to 100%. So very excited about this new program, getting a lot of attention and I would say, excitement also internally in the company. And by that, I want to move to you, Anthony, to talk about our portfolio, sustainability and innovation and now we are taking it from that aspect.

Thank you, Tamar. It definitely is an exciting journey, and good morning, good afternoon, good evening from wherever you are joining. It is my pleasure to talk to you today and share a little bit about our exciting journey that we've had since the last time we updated you. Definitely, if you think about it today, our sustainability effort is more important than it has been ever before. If you think of the world being connected, if you think of technology being driven to all parts and corners of the earth -- there was a statistics I recently saw that there are close to 6.5 billion people around the world with a smartphone. That's almost every person on earth has some type of phone device. This essentially means that there is technology needed, there is power needed, there is carbon emissions. So we are just excited to build software that powers the world, but to do it in a way that drive sustainability, that drives inclusivity, that brings together and tries to close the digital divide and not have 2 different worlds that we're building. And so in the next several minutes, I'd like to share some of the things that we are doing. Definitely, if you look at our customers, our customers in a post-COVID world continue to connect the world. Broadband is reaching levels that has never been reached before, the data saturation through technologies such as 5G. We're using more data than we ever used as a society before, whether it be streaming video, playing games online, shopping, e-commerce, all sorts of technologies that are all powered through the systems that we put together and the systems that we connect. And so as we kind of look at our portfolio and think of it, we bring sustainability. We start right at the beginning. It's right at the heart. So how do we lower our footprint? How do we bring emissions down? These are not an afterthought. This is not something that we build a platform, build a module or a service and say, "Oh, now what do we do about it?" Because we also know that our customers expect that we need to, I would say, inversely reduce the amount of energy we're consuming even though the data consumption is going in the opposite direction. So both from kind of reducing pollution, providing accessibility and inclusiveness, to make sure the technology is available to the broader spectrum of the population that we can do, and like I mentioned before, also around the digital divide. So a few, I would say, examples that I would like to share with you is -- I would say one of the primary focuses is to constantly keep reducing our footprint. So as you can see here, we work with the provider, where our latest suite basically allowed them to reduce close to 20% in reduction in terms of how much energy and operating costs is being used throughout the platform. Now if you think about this, this is almost directly opposite to the amount of data that's being used, the amount of services that's being provided because this is growing while we're still reducing the footprint. And so we're very, very conscious that this is a challenging job, but it's very, very needed. If you take technologies such as eSIM, for example, we are now reducing -- taking away physical SIM cards, replacing it with a virtual SIM card and just this little thing reduces around 45% to 46% less CO2 through its entire product life cycle, if you think of creating these, manufacturing these, shipping these out, for example. And also with our journey to the cloud -- so Tamar spoke about our efforts of moving our customers or helping them build a hybrid cloud strategy. If you think about how we operated in the past, everyone of our customers would have their own data centers, which would mean that because they're a mission-critical service, they would need to have high availability across the country. They would have to have geographical redundancy. They would have to have capacity to cater to events such as Christmas or Black Friday, which are huge sales days, for example, in the U.S. And so this requires an immense amount of hardware. And so today, we can come with a cloud strategy and say, "Hey, you can have a hybrid cloud strategy, we can normalize our hardware footprint and help you reduce." And so one of our customers in Asia Pacific, we were able to reduce that footprint by around 30%, for example, just by helping them move to a hybrid cloud strategy. If we just continue on one thing that we are also very, very conscious of is fostering accessibility. So if you think about our customers and think about our systems, at the end of the day, our systems really just need to work for everyone. And so we are aligning to standards such as WCAG to make sure that -- if you're vision impaired, for example, and if you need to use different devices, you still have the ability to be able to use the technology. And it's not something that separates you as an individual. One of the other things that we're doing, we're very, very honored to partner with [ Herflex ]. We believe that representation matters. So being able to kind of champion in initiative like this where it's completely female-led narrative in terms of content and movies being put out on a streaming service and Vubiquity -- Amdocs Vubiquity platform was there to kind of support them and help them launch the service. And we think that initiatives like this are very important, not just from a company strategy perspective, but I think also for all of our employees overall. As we kind of continue on, one of the things that we also believe that we have a big part to play is closing what we call the digital divide. Today, we are touching in some shape or form over 2.5 billion consumers on a daily basis. So customer journeys around the world in some shape or form is touching an Amdocs platform. And so we're very conscious that we are helping society move forward as much as possible and not creating kind of 2 separate worlds. And so whenever there is a project like this, I know all of our folks really jump on board to make sure that it's delivered in a way that exceeds expectations. So one of the examples here is something we did in Brazil for rural communities, rolling out access, rolling out, for example, broadband connectivity in areas that would have never seen broadband connectivity. If you think about the services that you access on a day-to-day basis, this is not just streaming movies today, right? It's accessing council information. It's renewing car registrations. All these types of services that we take for granted are basically online. Going and setting up an appointment, sometimes the only way you can do it is online. So we believe that closing this digital divide is more important than ever. Also looking at things such as the on bank population around the world, for example. So we have a financial services arm, really focuses on this area to bring platforms to be able to kind of filling that gap from a technology perspective because we know that at the end of the day, this is a way that you can move a segment of the population to a different place from where they are. And really, banking is core capability that most of us take for granted. As we kind of move on, I would say that generative AI is probably something that you cannot escape, no matter where you go, whenever any company is presenting, we're all talking about generative AI. And of course, we're very excited about it, and we're doing many things around it. But there are also some aspects that we really need to take a step back and think about, right? How is generative AI deployed in a non-biased way. At the end of the day, we are training systems with large amounts of data. So any type of -- even a small scale human bias or subconscious bias can very easily unintentionally be exaggerated throughout technology. How do we provide things like observability. I'm sure many of you have used kind of all different types of GPT services around the place. Where is this data coming from? What is the source of this data? This is very, very important. At the end of the day, we work with customers that focus on providing a mission-critical service. And so providing a non-biased service with observability and guardrails is super, super critical for us. And of course, employee education and upskilling as the world moves on, it is imperative that we train our employees. We're just about to launch into a what we call generative AI days, where we're having a month-long program to kind of launch education to upskill our employees. One of the other tools that we've started to deploy with our customers is the way to be able to model the types of emissions that we are releasing. So for example, if you're deploying one of our systems, you can go and say, okay, hey, I'm deploying this, here are the amount of subscribers I have, this is how I'm going to deploy it. And you can start to get a rough idea of the carbon emissions that you're going to release. This is really, really important when you start to kind of plan out where we're going in the future. And I think this is something that really helps our customers. And at the end of the day, really generates value, I believe. So just to kind of bring it all together, everything we do from an ESG perspective, we believe is also vital and critical imparity for business success, whether it's reducing your energy consumption, your carbon footprint, whether it's making sure that you're deploying your systems to the widest, broadest possible population on the planet at the end of the day. When it comes to accessibility providing nonbiased services through generative AI and providing the governance that's needed for it. So these are some imperatives and principles that very, very intentionally, we build in right at the start of our platform in all of our products and services offerings. At the end of the day, I think it serves a multipurpose. It's great for business. I think it's great for society. And of course, our employees love being involved in initiatives like this. So with that, I think I'm going to hand it back to Idit.

Hi, everyone. Good morning, good afternoon. So as a company that has 30,000 employees operating in 90 countries and generating billions of digital transactions every day, this is a great privilege. With that, also comes a very big responsibility and commitment and as you've heard from Tamar and Anthony, we're translating this commitment into a few areas of operations. The next few minutes I'm going to devote into going deeper into how we look at it from a people and social impact. So starting with our never-ending people centricity journey, it's a journey that we've embarked on a few years ago and represent really -- we know how we put our employees or our people in the center of everything that we do, with flexibility serving a very, very strong design principle in the last few years and even more so since COVID taking us into the future as well. I will maybe just, say, to go into a few of the highlights, starting with internal mobility. We really transformed and redesigned our entire interior mobility practice, allowing our employees full flexibility in managing their career within Amdocs. We're very proud of the results. Between 36% to 40% of our internal -- of our positions are filled internally. This is way above the benchmark. And the external benchmark looks at between 15% to 20%. Vacation with no limit last year -- in last year's webinar, we announced our new program for vacation with no limit. And as we said last year, we were very intentional about it. We want people to take more vacation, so we're proudly sharing today that in the past year, our employees took 30% more time off, thanks to this policy. Speaking of flexibility, last January, we announced going back to office after COVID time and working from home. And again, in the last 8 months, we've done a lot of work globally. Our policy looks at the spending time at the office, at least, 3 days. Very, very proud to share that our employees are back in the office. We've done extensive work to really make the office back, the place where we collaborate, where we work together, when we meet up with each other and make the most out of spending time together. And maybe last, I would refer to our newest platform, internal one, speaking of Anthony's AI conversation, it's an AI-powered skill system that really looks at how we proactively match our employees with their skills and aspirations and capabilities into career opportunities. It's a very robust program, super promising that really enables our employees to plan their career and maybe connects to my first point about internal mobility. I want to spend a few minutes to talk about our diversity, equity and inclusion ecosystem. We have a robust framework that looks on how we consistently and intentionally promote representation, equity and then belonging and inclusion. We're doing it through different programs from internal leadership or managerial development program for women, all the way to external boot camps that we do for people with disabilities or other ethnic minorities. We have a strong employee community-based ENGs or ERGs, depending how you know the term BPENG or black professional ENG is one example for it. So for example, when we're looking at Black History Month or Martin Luther King's Day, these are the things that we work hand-in-hand together with our employee community groups and really do the cultural transformation, the constant cultural transformation, adaptation of our global workforce. I want to say a word about and, it's maybe not the coincidence, both Tamar and Anthony are serving as our executive sponsors for 2 important domains, and we have more. So Tamar is our executive sponsor for gender diversity. Anthony is our executive sponsor for ethnic diversity mostly in North America. And this is a concept that we've seen that when we're taking our top leaders to sponsor it, whether it's a part of the community or allies, this is something that drives a very, very strong message top-down on what is the workplace that we want to create for one another. Here, you can see a few -- I mentioned our black professional ENG. So we can see here some of the things that happened in the past year from Black History Month to International Women's Day, the International day for people with disabilities, Pride Month and other activities that we're doing. And for us, part of looking at inclusion and belonging is also looking from a broad perspective into our physical and mental health of our employees. As you can see here from the Breast Cancer Awareness Month, all the way to Yoga Day that Tamar mentioned earlier. Maybe an example coming all the way from India. As part of our robust framework on how to close the gender gap, which is one of our #1 focus areas when it comes to our diversity inclusion measurements and direction. We took India as an example where -- this is where we have a large base of our employees. In terms of women representation, we're very much aligned with the industry in India. So we're at about 30%. And we thought that we need to do something to accelerate and to move the needle even faster. So we created a program called W factor. And this is a program that looks at India as a whole versus the different business units that are comprised in India and looking how we are giving responsibility, ownership and accountability to the -- all the leaders that we have in India as a whole, as a group. So we kicked it off in 2022. We are now, by the way, already kicking off the 2023 one, and we will have one obviously every year. This is a multiyear plan. And we dedicated a lot of our efforts and the intentional work that was driven by the local leadership looking to work as a group through the talent acquisition processes that we have, leadership development program and additional tailor-made programs that were made. We've seen the impact as tremendous. The conversation changed. Everything was connected throughout the year, and the results didn't wait to come. So we already see -- and this is a great achievement, an increase of 33% year-over-year in the leadership -- in women in leadership positions in our Amdocs technology unit. This is one of our biggest struggles to see how we don't have the classic pyramid and how we're not losing women as we go up the ladder. So this is just an example of the work that we're doing. And this is taking us year-over-year and obviously expanding globally. And in the next few months, we're going to also announce our new gender target focusing on women in leadership programs and the places where we see the biggest shortage, which is around technology and customer facing. Ending this part I would -- this part around DI, I want to mention again our strong commitment to pay equity for almost a decade. We are being -- we've been monitoring closing the gaps that we have through data tools, prevention, consistent work that we do in calibration in moments of truth, but also on the ongoing, looking to train our teams and our managers to make decisions and to eliminate unconscious bias whenever it kind of raises its head. With that, I want to move to the very last part of our digital inclusion and social impact. Anthony mentioned earlier in the presentation, how we look at the digital inclusions from our product portfolio point of view. I want to take us into a slightly different direction here. When we're looking at digital inclusion, we're looking at the broad spectrum and our responsibility and commitment to drive connectivity, accessibility, literacy of those populations who are not that tech savvies driving future employability and of course, how we are promoting through technology, one of the concepts that we created, we call it, tech for good, is a partnership model that looks at creating the technological solutions that are scalable and sustainable for different social and environmental challenges. We do it that together with different social organizations, NGOs, academia, municipalities and other social organizations as well as with our partners, CSPs, our customers and other companies in our ecosystem. We have many examples. I want to maybe give 2. Here, one example coming from Israel. You know the Internet could be a very dangerous place, unfortunately, even more so for people with disabilities. What we've done here is to actually create an application that was created together with people with disabilities and organizations that are dedicated to working with these populations. It's a tutorial that really teaches them, and you can see even in the colors and how it looks like. It's something that really addresses the ability of people with disability to consume this and to really use it in the moments of truth and to see how we get them to avoid any danger in the -- that can come from browsing out there. The next example, which will take us to even a broader topic, as Tamar mentioned earlier how we work with our customers. So one angle is, of course, and we will look into it in a second, is how we do it in the day-to-day operation with them, but we're looking at it from a broader perspective, seeing how -- being their partner means also to be in the -- in times of need of different people. And also in creating opportunities to advance society and to progress the communities in which we live and work. And here is an example, together with Globe, our partners, and the Ayala Foundation in the Philippines, we created the marketplace for farmers in rural areas that enable them to sell their products directly to consumers; by that, enabling them to have financial stability but also promoting a very much sustainable value through different data processes behind the scene that helps these farmers to better plan their yields and to avoid their future waste. So Globe is one angle of the partnership. By the way, we do with them a lot of things along the year. I want to take us now to a video that we created that looks at how really the devastating typhoon that occurred at the end of 2021 and how we partner together to restore the ability of people to connect with each other and also to be in touch, unfortunately with emergency team. So let's go ahead to see the video. [Presentation]

We talk about digital inclusion in so many ways, but this is really digital conclusion in actions. And I remember when it happened, we heard feedbacks from people saying, connectivity is really now like the bottom of the mass flow, right. Like without connectivity, we can't do anything these days, and this is really a huge privilege to be able to serve our partners in such a way. So I want to conclude this chapter by kind of looking forward. In our -- when we're looking at our commitment to people, the journey of people centricity will continue with strong focus on flexibility, DI, employee well-being and really connecting everything to our purpose. And of course, maintaining our commitment -- our strong commitment to bridge the digital divide and to really advance our society forward as much as we can. With that, I want to move to Tamar to conclude our session before moving to the Q&A.

Thank you, Idit. So I want to quickly wrap up to leave time for questions. Just saying that we were definitely committed as you see for those examples and sharing some of the ways in which we think about the different focus areas that we are targeting, whether it's the digital inclusion that Idit mentioned and how we're well helping people around the world, be connected, how we're thinking about the business we do in an ethical way throughout operations and supply chain. Thinking about our employees well-being and how we are dedicated to making sure they have an environment in which they can develop themselves and their career. And making sure that we are providing there the industry innovation that is providing the best functionality and capabilities, but also the sustainability and the environmental friendly aspects that are required. And last but not least, I would say that everything around the diversity and inclusion and people-centric organization, we are very committed to that, both internally with our employees as well as making an impact on so many communities we touch around the world through our presence geographically in 90 countries, which is definitely a privilege to be able to do so. So I want to take opportunity before we move to Q&A to say thank you to all of you and to many of our partners in this doing, customers, our employees, our partners and shareholders. Our Board is very supportive of all of that, as we move along and continue to do good for all. So let's open it up for questions.

Great. Thanks a lot, Tamar and everybody, Anthony and indeed, we'll take a few questions. We do have a few minutes. Anthony, I want to start with you, generative AI. You touched on it in your presentation where you referenced the need to educate, upscale employees in readiness for GenAI. Can you talk a little bit more about our strategy around that, how we're managing the process, the way in which we're preparing different teams and so on, just to give us some color. It's obviously a major focus for investors.

Yes. Yes, sure. Look, I think there is a lot -- I would say a lot of noise and a lot of fear sometimes around is it going to displace a whole bunch of people from their roles. We are kind of maybe taking a little bit of a different approach. We think it's a very, very necessary life skill in terms of upskilling our employees. If you're not already doing it today, you will be using generative AI in some shape or form, whether it be standard Microsoft application that's rolling out, whether it be would be ChatGPT or Bing GPT or Google Bard or anything like that, you will be using some type of basic prompt engineering all the way to kind of the advanced generative AI things such as training, large language models. So we think that skill sets at different levels are very, very important, no matter what your job is. And so this is why, as a company, we are investing heavily in terms of upskilling and training our employees at every level. So what we're doing in the next couple of months is we've opened it up to all of our 30,000-odd employees globally. We have sessions where we're training them on consumer applications, enterprise applications, how to use the Amdocs tools within it, how to use it safely, securely, what you can do with it, what you can't do with it, what the guidelines are. So I think it's very, very important for a company to have a very clear and intentional strategy on how they roll this out through the organization because it's one of these things that are here and here to stay.

Absolutely, absolutely. And I'm very much looking forward to those sessions myself just to learn more about it all. Gender diversity. I want to switch now to gender diversity and Tamar perhaps your best position to just comment on this. But could you elaborate a little bit on our strategy for increasing women as a share of total workforce across different levels of management, whether it be junior management, top level management and ultimately, the Board of Directors even. Maybe you could just comment on some of those things.

Thank you, Matt. So I'll say that beyond making sure the general diversity is a topic because it's socially such an important topic. Even just looking on pure numbers, as CFO, I have to look on things through the numbers. 50% of the world potential talent is female. So clearly, if we want to make sure that we unleash this amazing potential, we need to focus on gender diversity, starting from early stage of working with different schools and different youth, around stem studies, all the way to the top of the pyramid that we did talk about in terms of how do we make sure that it comes across to all the leadership levels in the company. And we are very focused around that. And just to give you some example of how we're thinking about it, so obviously, it's, first of all, tackling things that around unconscious bias because a lot of diversity aspects in general, not just gender related about unconscious bias. So we structure the workshop that we take to all managers in the company that make them understand their unconscious bias and how it comes to play, and then they're much more cautious about it. And then it gets to how we're thinking about strategizing the different programs we have in the company and taking that into consideration and putting data in front of managers, in all people-related processes, keeping them a mirror for their own decisions before they finalize this decision or different moments of truth when you need, doesn't manage it to decide how you allocate your salary revision budget, giving you back the data by gender to understand whether you had some unconscious bias to the process. And then it goes, by the way, all the way up to head of the people organization and myself and the management to make sure we -- as the governance process and those kind of things, a lot of exercises and programs that are focusing on educating and providing tools to females to promote themselves through the organization, whether it's networking, whether it's about presenting and making a point, many, many other things that are really effective in seeing but I'll give an example. And I'll end with that because I can talk about this topic of hours. We understand that the first level of managerial position in the company is very critical as we are thinking about starting to close the gap within representation in the employee level to managerial level. So we focus on, what we call, the team leader function, which is the first managerial level in the company. And just by deciding and being intentional about it and obviously doing a lot of activities there, we managed to improve by 20% the female representation in the team leader job. Okay, that's the first level in the pyramid moving up from there. So I think it's extremely important that these programs are intentional. It's coming as something with a lot of support from the top management and with a lot of exciting results. So we will keep doing more.

Good. Thank you very much for the answer. And I know we're right on time, and I'm just going to squeeze one more in and again this one for you, Tamar fortunately. Amdocs Park, I mean, it's obviously an amazing new campus that we've taken several years to build. It's obviously a very important part of our 2040 carbon neutral goal and reduction of emissions across scopes and so on. Can you just talk a little bit about that? And also what does it mean for our employees? What is the sense of employee satisfaction, how people sort of enjoy the campus on a day-by-day basis. And what have you noticed about the workforce there in Israel as they get to employ that.

So when we started thinking years ago about how do we want to see the facility of [indiscernible] one of our key R&D functions of the company, it's the R&D center in Israel, lot of innovations coming out of these teams. And we wanted the facility in an environment -- the work environment that really fits those kinds of needs that promotes collaboration, promote innovation, openness, transparency, different type of concepts, a lot of opportunity to meet up informally within meeting rooms, so we have a vision of how we want to do that. And it's an amazing feeling to see that in reality today. And I invite all of you to come visit if you can because you really feel that energy. You really kind of see that change in spirit and excitement of people working together and leveraging the opportunity. And again, I can go to statistics, et cetera, but that you can go into the report and just look into different aspects of why we eventually achieving lead gold. If you want information, you can get that. But I think the real, real impact of the campus is the excitement in which employees are coming into the office and the work environment that is really there to promote the innovation and the collaboration that we wanted to achieve. So by all means, just come and visit.

I'm sure people would be very happy to take you up on that invitation. We are, over time, very sorry if we didn't get to your questions, but I would like to thank Tamar, Anthony and Idit, for today's very rich colorful presentations and for everyone who joined the call. We hope we found this to be a great reflection of our commitment to ESG. And please don't hesitate to reach out to us here in the Amdocs IR department if you have any further questions. So thanks, and with that, have a great day.