A leading publicly listed company and integrated Electronics Manufacturing Services (EMS) provider in Malaysia hired ESC to create a 3-Step Sustainability Roadmap. This roadmap outlines short-, medium-, and long-term targets and milestones for the client to achieve excellence throughout their Environment, Social and Governance (ESG) practices. The roadmap involves adopting international best practices and sustainability initiatives such as GRI, GHG Protocol, and alignment with the United Nations Sustainable Development (UNSDGs).
About the Project
The client is a public corporation that offers a one-stop solution for all manufacturing requirements. Their services include plastic injection mold design and fabrication, multiple injection tonnage and finishing processes, printed circuit board assembly, and automated assembly. The company employs over 12,000 people across its manufacturing facilities in Malaysia, Indonesia, China, and Vietnam.
The client has been reporting sustainability initiatives since 2013 in their annual report. However, they needed help to improve their ESG sustainability performance. Top management was profoundly involved and committed to improving the company’s sustainability initiatives. They decided to embark on a long-term solution to improve their sustainability performance by setting realistic goals and targets and setting forth a sustainability roadmap and action plan to achieve these targets. They also wanted to help successfully track GHG emissions from their manufacturing plant to meet international sustainability regulations and standards.
For all this, they required a practical and customized ESG framework that included establishing ESG and sustainability targets, adopting international sustainability frameworks such as GRI, alignment to UNSDGs and TCFD, and successfully tracking their GHG emissions according to the GHG protocol (scope 1 and scope 2 emissions).
Our Approach
First, ESC’s local team of experienced consultants leveraged their insights and deep understanding of Bursa Malaysia and international sustainability requirements. They developed a sustainability strategy that positioned our client as an industry pioneer in adopting excellence in sustainability across their business operations. This strategy was tailored to address the client’s needs and requirements while considering their current sustainability performance. More importantly, it was a practical strategy – so the client can successfully convert their ESG goals and initiatives into tangible results.
Next was to help the company start tracking GHG emissions, specifically Scope 1 and Scope 2 emissions from the manufacturing plant. While the client calculated and tracked their GHG emissions for their facilities (plants/offices), these were not done according to international standards. ESC recommended that the client follow international standards like the GHG Protocol. ESC used its team’s vast knowledge, technical expertise, and capabilities to create a customised GHG solution for easy tracking and monitoring of GHG emissions according to the GHG Protocol and reducing product carbon footprint.
We implemented the following strategy for the 3-step sustainability roadmap:
The first step included short-term goals that were achievable for the client within one or two years. These were determined by looking at the client’s current sustainability performance and identifying low-hanging fruits or targets easily achievable by the client. For the Client, this was aligning and tracking UNSDGs, calculating existing carbon emissions according to the GHG protocol, and aligning current sustainability reporting processes according to the GRI-standards.
For the medium-term, ESC provided the client with the tools and structure to undertake more detailed reporting and disclosures to be ahead of competitors within this space. Some suggestions included TCFD reporting over the next two or three years, compliant with Bursa Malaysia’s requirement of complete TCFD-aligned disclosures by FYE 2025.
In the long-term, ESC outlined other international frameworks and initiatives that the client can consider to position themselves as early adopters of sustainability initiatives still in the nascent stages within Malaysia’s sustainability space.
The initiatives included Science-Based Targets Initiatives (SBTi) – for emission reduction and net-zero target setting, Carbon Disclosure Project (CDP) to encourage transparency on ESG and sustainability disclosures to investors and clients through a public platform, and an increase in renewable energy procurement over the next three to five years to reduce reliance on non-renewable energy resources.
Outcome
The client has a perfectly aligned sustainability strategy and ESG framework mapped out for the next five years, thanks to ESC’s valuable insights, proactive measures, and practical solutions. As an early adopter of new sustainability initiatives in Malaysia, they now have a competitive advantage over their competitors. They comply with UN SDGs and other international sustainability regulations and standards today. They can continue to nurture their environmental policy of becoming a world-class, environmentally responsible business partner. That is an especially significant point in development as they had been receiving increasing pressure from their multinational and intercontinental clients to be more sustainable.
Are you looking for a highly effective environment, safety, and sustainability solution that meets local and global standards? ESC has the technical expertise and global reach to provide local and international knowledge, experience, and quality solutions customized to your industry and company. Call us today to learn more about how we can help you achieve your sustainability goals through our 3-step sustainability roadmap.