This article first appeared in The Edge Malaysia Weekly on October 28, 2024 - November 3, 2024

Nestlé (M) Bhd (KL:NESTLE), which emerged as a silver award winner in the consumer products and services sector at The Edge Malaysia ESG Awards 2024, has been championing initiatives such as its Project Save that manage post-consumer waste, emphasise plastic neutrality and drive the transition towards a circular economy.

“We have a strong multi-stakeholder engagement approach that involves municipal councils and concessionaires and active community participation,” says CEO Juan Aranols. Since its inception in 2020, Project Save has reached about 200,000 households across six cities, with five initiatives across different sectors.

To support the programme’s expansion, Nestlé Malaysia funded the installation of a semi-automated material recovery facility for its partner, KPT Recycle. “This has enabled us to sort up to 30 tonnes of recyclables per day,” says Aranols.

The company is aware that the road ahead is not easy. For example, a key challenge it faces is addressing Scope 3 emissions, which account for around 90% of its total emissions. Scope 3 emissions come from the supply chain, and for Nestlé Malaysia, many of these are small and medium enterprises (SMEs) that lack the resources and capability to adopt green practices.

To mitigate this, Nestlé Malaysia has adopted a multi-pronged approach that fosters mindset change and capacity building, sharing best practices and providing support to suppliers.

When asked about making ESG adoption more effective in Malaysia, Aranols says a shift in mindset and more wholehearted involvement from all stakeholders are needed.

“We hope for increased collaboration among key stakeholders … The success of initiatives like Project Save highlights the importance of partnerships with governments and NGOs as well as active community engagement in developing a robust recycling infrastructure,” he says.

Aranols believes that placing more emphasis on communication, education and public awareness efforts would drive the positive behavioural change needed for improved ESG adoption.

“If we are to move towards a waste-free future for the nation, more companies will need to take proactive steps in adopting sustainable practices … As a founding member of the Malaysian Recycling Alliance, Nestlé welcomes other companies to join collaborative efforts to address Malaysia’s shared sustainability challenges,” he says.

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