This article first appeared in The Edge Malaysia Weekly on September 14, 2026 - September 20, 2026

Pharmaniaga Bhd (KL:PHARMA) has been named Best Performing Company by Sector for healthcare at The Edge Malaysia ESG Awards 2026.

Its managing director Datuk Zulkifli Jafar says sustainability has become increasingly embedded across the pharmaceutical group, moving beyond a standalone ESG agenda to become part of how its businesses and functions operate, make decisions and pursue long-term growth.

The progress is reflected in Pharmaniaga’s FTSE4Good ESG score of 4.6 and four-star rating, supported by initiatives covering climate action, renewable energy, responsible sourcing, human rights, employee wellbeing and governance.

The group has also established a Business and Human Rights Task Force to advance the development of policies, frameworks and practices across its operations.

One of Pharmaniaga’s main challenges has been moving beyond measuring and reporting ESG performance towards using ESG information more effectively in business decisions. As a healthcare company with an extensive operational and supply-chain footprint, many of its sustainability impacts extend beyond its immediate operations.

Meanwhile, the expansion of Scope 3 reporting has given Pharmaniaga greater visibility into carbon emissions across its value chain while its climate risk work is helping the group understand how environmental risks could affect its operations and long-term resilience.

Zulkifli says wider participation will be needed to make ESG adoption more effective.

“ESG transformation cannot be achieved by companies working in isolation. We believe stronger collaboration is needed across government, industry, investors, suppliers, consumers and communities to create an ecosystem in which responsible and sustainable business practices can progress together,” he says.

“Clear and practical regulatory guidance will remain important but equally critical is capability building, particularly among SMEs and suppliers that may face increasing expectations relating to climate, human rights, governance and responsible business practices.

“For companies such as Pharmaniaga, supply-chain participation is particularly important because sustainability performance increasingly extends beyond the boundaries of an individual organisation.”

The broader aim should be to move ESG beyond compliance and reporting, stressed Zulkifli.

“Ultimately, we hope to see ESG evolve from being viewed primarily as a compliance or reporting requirement into a shared national agenda for resilience, responsible growth and long-term value creation. Greater alignment among stakeholders will allow businesses to make the transition in a way that is both meaningful and sustainable.”

In its next phase, Pharmaniaga will focus on translating its sustainability commitments into more tangible and measurable actions across the group.

Its priorities include strengthening climate transition planning, renewable energy and energy-efficiency initiatives as well as advancing its business and human rights agenda from policy and framework development towards implementation.

The group also plans to expand MediDrop, its medicine disposal initiative, while incorporating ESG considerations into risk management and growth areas such as halal pharmaceuticals and biopharmaceuticals.

“Embedding sustainability into our business is not simply about fulfilling ESG expectations. It is about protecting trust, strengthening resilience, managing long-term risks and ensuring that Pharmaniaga continues to grow responsibly while fulfilling its role in healthcare,” Zulkifli says.

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