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

MR D.I.Y. Group (M) Bhd (MR DIY) clinched the gold trophy in the best newcomer category at The Edge Malaysia ESG Awards 2022. The company was newly included in the benchmark FBM KLCI Index last June after a successful initial public offering in October 2020.

Sustainability has been an important aspect of the company since its founding in 2005, says CEO Adrian Ong.

“As Malaysia’s leading home improvement retailer, and one of the top companies on the Malaysian stock exchange, we see it as our responsibility to set benchmarks in sustainable principles and practices across all areas of our operations,” says Ong.

The company integrates ESG into its operations and investments by listening to and learning from its stakeholders so it can evaluate the group’s impact on the community, workplace, environment and industry.

This lays the foundation for a more holistic community investment strategy and sustainability road map. “At MR DIY, we see sustainability as a journey and not a sprint. We ensure our ESG blueprint is anchored to long-term goals that are aligned to clear strategies, defined targets and decisive actions. With these goals and strategies in place, we can closely track our progress and mark critical milestones and achievements,” says Ong.

One of the biggest challenges it faces is managing the evolving expectations of the company as it grows. The company has a store network of over 1,000 stores and an employee base of over 15,000 across its retail, warehousing, distribution and management operations.

The pandemic exacerbated these challenges. “Our role as a responsible retailer, employer and business partner took on an even greater purpose, giving us the added impetus to ensure that our products and services remain accessible during this challenging period, while ensuring that our employees remain informed, safeguarded and engaged,” says Ong.

“We were one of the many first responders to assist frontliners and those impacted by the swift spread of the virus by providing protective gear, medical equipment, food supplies and other daily necessities.”

To further drive adoption of ESG principles in Malaysia, practical policies, equitable approaches to measuring success and effectiveness and incentives such as tax reliefs and competitive sustainability-linked financing would be helpful for companies.

On the other hand, “consumers have also played a fundamental role in driving the adoption of ESG practices. They have become more conscious of the choices they make when they purchase goods and services”, says Ong.

This has inspired retailers to differentiate themselves, and ESG is one area that MR DIY is focusing on.

“As we make this journey towards sustainability integration, we are also cognisant of the need to ensure that our business model remains resilient to external sustainability-linked risks,” says Ong.

To do so, the company is committed to ensuring the accessibility of its products at affordable prices and growing the range of eco-products in its stores. The company’s target is to increase its eco-product sales mix by up to 10% by 2030.

Last year, the company began tracking its greenhouse gas emissions. “As part of our efforts to reduce our carbon footprint, we are currently in the process of retrofitting our warehouses with solar panels and energy-efficient systems,” he says.

“In addition, we proactively encourage our suppliers to practice sustainability in their processes ... going forward, we will be disclosing emissions avoided in our supply chain and the number of suppliers who have formally signed on to disclose Scope 1 and 2 emissions reduction targets.”

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