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

Kawan Food Bhd (KL:KAWAN) took home the silver award at The Edge Malaysia ESG Awards 2024 in the most improved ESG performance over three years (market capitalisation between RM800 million and RM5 billion) category.

This is thanks to the company’s sustainability team, which prioritises the safety and well-being of its people, promotes environmentally responsible business activities and responds to material sustainability risks, says Kawan Food marketing director Gan Ka Bien.

Gan credits the company’s leadership and sustainability team for the company’s inclusion in the FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah Index last December.

She believes these achievements not only underscore the company’s commitment to sustainability but also reflect the impact of its initiatives on the economy, environment and communities it serves.

“Since embarking on our sustainability journey in 2021, the results of our actions are [now] becoming evident, alongside our guiding principles that inspire us to set a long-term direction for our actions. We have surpassed our targets and continue to deliver our 2024 strategy across our entire business today,” she adds.

Over the past two years, the company has been guided by its Sustainability Strategy Framework 2021-2030. Navigating the challenges was no easy feat, says Gan.

“A primary challenge was the ability to effectively capture and analyse the necessary data to monitor and improve our ESG performance. As big data becomes more prevalent, we will need advanced data and analytics capabilities to capture new data sources needed to respond to the ESG challenge.”

To overcome this challenge, the company is sourcing a robust system that will effectively collect and centralise its greenhouse gas (GHG) emissions and other sustainability-related data in real time.

“This will enable decision-makers across the organisation to incorporate ESG considerations into their strategies and operations,” says Gan.

Currently, the frozen food manufacturer has managed to reduce GHG emissions and intensity. According to Kawan Food’s 2023 annual report, a total of 1,649 tonnes of carbon dioxide (CO2) has been avoided through energy-efficiency measures and the use of renewable energy.

The company is committed to focusing on setting measurable targets and key performance indicators to strengthen emissions management in financial year 2024. Gan hopes for mandatory ESG regulations and standards that all businesses can adhere to.

“It is crucial for governments operating at the local, regional, national and global levels to cooperate on setting consistent policies and standards that enable organisations to meet their own ESG goals,” she says.

She believes cross-collaboration among industries is also essential to making a collective impact to improve the nation’s sustainability goals.

“Data should be shared between companies to cooperate effectively in the transition to a sustainable economy. Consumers need to be aware of sustainability and see ESG as a driver for purchase decisions rather than price alone.”

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