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

Tomypak Holdings Bhd (KL:TOMYPAK) won the silver award for the most improved ESG performance over three years category at The Edge Malaysia ESG Awards 2024, thanks to its incorporation of recyclable and biodegradable materials into its product range, which addresses environmental concerns.

“Through investments in research and collaboration with our stakeholders, we developed flexible packaging solutions that address our clients’ needs while reducing the environmental impact,” says Lee Kwee Heng, the company’s managing director.

Tomypak Holdings, the parent company of the packaging business Tomypak Flexible Packaging Sdn Bhd, revised its material sourcing, testing and production processes to ensure its packaging remained functional while being sustainable.

Lee says this is part of Tomypak’s ongoing close collaborations with its industry stakeholders and clients in developing sustainable packaging solutions. In the financial year 2024, 33% of Tomypak’s commercial stock-keeping units have sustainable structures, with more on the way.

“Additionally, we remain dedicated to expanding our sustainable offerings, having successfully developed Avinya, a high-barrier [polythene] product designed for sustainability,” says Lee.

In addition, Tomypak extended its focus to environmental governance by integrating sustainability into its risk management approach, aligning its greenhouse gas (GHG) emissions tracking with global standards and setting reduction targets for financial years 2025 to 2030.

Reducing GHG emissions is Tomypak’s biggest challenge, especially to track and categorise its emissions to form an accurate baseline.

“To address this, we implemented a step-by-step emissions tracking methodology and worked closely with cross-functional teams to ensure that the data captured was comprehensive and accurate. We also leveraged external expertise to validate our approach and ensure alignment with international standards,” says Lee.

Lee hopes to see stronger collaboration and alignment between the government, industry players and consumers to further drive sustainability efforts.

The government can encourage businesses to be sustainable through benefits like supportive policies and incentives for businesses investing in renewable energy and sustainable practices.

Additionally, investors who prioritise ESG performance in their investment decisions and consumers who demand eco-friendly products will drive companies to further innovate in sustainable solutions.

“A collective effort from all stakeholders will accelerate the shift towards a more sustainable packaging industry. By incorporating ESG performance into their investment criteria, investors can push companies towards sustainable practices, making ESG not just a corporate responsibility but a market expectation,” says Lee.

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