This article first appeared in The Edge Malaysia Weekly on December 12, 2022 - December 18, 2022

Hartalega Holdings Bhd’s commitment to grow its business responsibly has enabled the company to clinch the gold trophy for the healthcare sector.

“Sustainability has always been part of our operations. Guided by our corporate vision of being a caring company and core values of synergy, honesty, innovation, excellence, learning and dedication (SHIELD), we stand firm in our belief to do the right thing at all times, prioritising caring for our people and making a positive impact on our stakeholders, society and the environment,” says CEO Kuan Mun Leong. “We are committed to leading by example and this is one of the key factors that has contributed to our success and resilience over the years.”

While Hartalega is steadfast in its view that embodying ESG practices will deliver better profitability, Kuan says its pursuit has not been without challenges.

“The challenge is to find a balance between idealistic goals and practicality. We constantly seek out meaningful ways to translate sustainability goals into practical action. One of the ways we do this is via our innovation ecology programme that gathers innovative ideas from our employees across all levels to develop solutions to challenges,” he says.

Effective change requires getting all employees on board with the same goals. This is a complicated task for a manufacturer with more than 9,000 employees, says Kuan.

“Nevertheless, we constantly strive to keep our people engaged, informed and empowered, helping to close gaps in communication and implementation.”

Kuan says the company’s strategy is anchored on four pillars: upholding the highest standards in business practices and product quality; safeguarding the environment; caring for employees; and contributing to the well-being of local communities.

“For Hartalega, ESG begins at home. We continue to invest in the well-being of our people, as demonstrated by our stringent health and safety measures along with best practices in social compliance standards within the industry. Progress in our ESG agenda through tangible initiatives is testament to this,” he says.

Hartalega was one of the first glove companies to embark on a remediation programme in December 2019. It sought to address issues faced by its foreign employees who were subjected to recruitment fees by third parties. The company completed the programme in 2022, remediating a total of RM45.5 million in recruitment fees.

“In addition to this, to ensure good quality of life for our foreign workers, Hartalega has invested RM98 million to date in providing first-rate accommodation, which complies with the International Labour Organization’s regulations and exceeds the requirements of the Workers’ Minimum Standards of Housing and Amenities (Amendment) Act 2019 specified under Malaysian law,” says Kuan.

“The multi-purpose accommodation includes all essential facilities and amenities on-site, from industrial-grade kitchens and grocery shops to prayer rooms, leisure and recreation areas, sporting facilities and sundry shops.”

Currently, ESG practices are integrated throughout the various facets of its operations, covering human rights, health and safety, water and effluent management, as well as business ethics and governance, among others.

By 2024, Hartalega aims to reduce its water consumption intensity by 5% and carbon emissions intensity by 22%.

“We believe that this will not only unlock greater value for our stakeholders in the long run, but also help to future-proof our business and strengthen resilience to ensure the sustainable growth of Hartalega,” says Kuan.

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