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

For the second year in a row, Duopharma Biotech Bhd (KLSE:DPHARMA) has won gold in the healthcare sector at The Edge Malaysia ESG Awards 2024. Group managing director Leonard Ariff Abdul Shatar says one of the achievements he is proudest of is the progress made in the company’s climate action efforts.

In 2022, Duopharma pledged to achieve carbon neutrality by 2030 and net zero carbon emissions by 2050. Last year, it established its net zero transition plan, a road map outlining key emission reduction initiatives and targets.

“What’s particularly exciting is that we’ve already begun rolling out impactful changes. For instance, we’ve installed solar panels across all our manufacturing sites and established greenhouse gas Scope 3 emissions,” says Leonard.

“This is a critical piece because it involves reducing not just our direct emissions but also those from our entire supply chain. It’s a comprehensive approach that ensures we’re addressing climate change from all angles.”

These initiatives are driving the company closer to its long-term net zero goals, and this reflects its deep commitment to sustainability, he adds.

Adapting to regulatory standards and frameworks while ensuring that ESG principles are fully integrated into every aspect of its business is challenging, Leonard acknowledges. “Navigating this rapidly evolving landscape, along with meeting the rising expectations of our stakeholders, has undoubtedly been one of our biggest challenges this past year.”

The company is prioritising cross-functional collaboration and support to tackle these challenges, led by its Sustainability Management Council. Additionally, the introduction of group-wide ESG-related key performance indicators has accelerated the progress towards achieving its goals.

Leonard says the company remains committed to continuous investment in employee training, which is crucial to fostering deep understanding of its ESG objectives.

“This empowerment allows our workforce to contribute meaningfully to the company’s broader sustainability efforts. I’m proud of how we’ve navigated these challenges together, and I believe it positions us well for the future,” he adds.

Collaboration with all stakeholders will be needed to enhance ESG adoption in the country. Clear, actionable frameworks are required from the government to lay out long-term ESG objectives, Leonard adds.

This should be accompanied by support mechanisms such as tax incentives and subsidies. He also sees great potential in fostering public-private partnerships to drive innovation and accelerate the adoption of sustainable practices.

Consumers have a role to play as well through their purchasing decisions. “If consumers increasingly choose to support companies that demonstrate a strong ESG commitment, it sends a powerful signal to the market. I think this can be amplified through greater transparency in ESG reporting,” says Leonard. “When consumers have access to clear information, they can make informed choices. This, in turn, encourages more businesses to adopt sustainable practices, creating a positive feedback loop.”

Investors should also commit to making ESG criteria central to their investment strategies, he says, because it pushes businesses to think beyond short-term profits. “At the heart of our organisation lies a commitment to sustainability that drives our unique ESG strategy, which requires more than just compliance. It should drive meaningful change and be woven into the very fabric of our operations.”

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