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

Bermaz Auto Bhd (KL:BAUTO) has been named Best Performing Company by Sector for consumer products and services at The Edge Malaysia ESG Awards 2026, a recognition that follows a year in which the group extended its sustainability efforts across its supply chain.

Much of that work focused on bringing suppliers into the effort as the group sought to make environmental and social practices part of its wider business network, says  its group head of sustainability and investement Chin Boon Chye.

“The sustainability team has invested considerable time working with the group’s suppliers and business partners, and has successfully educated and onboarded them on environmental and social practices, including the tracking of carbon emissions,” he says.

The group also formalised its governance framework in FY2024, requiring major suppliers to adhere to its Supplier Code of Conduct, while strengthening its upstream and downstream carbon emission data collection in FY2025 as part of its Scope 3 decarbonisation strategy.

For Chin, extending these practices beyond the group is also about making the business more resilient as its supply chain and investor base evolve.

With support and cooperation from its stakeholders, Bermaz Auto improved its data collection across all scopes and obtained external limited assurance for its sustainability performance data in FY2025, says Chin.

With that foundation in place, the group is now looking at strengthening both its reporting and operations.

“To ensure accountability, we are enhancing climate risk disclosures and tracking Scope 3 emissions,” Chin says, adding that the company is also aligning with Malaysia’s National Sustainability Reporting Framework (NSRF).

The company’s sustainability transition is also being reflected in Bermaz Auto’s vehicle business, with the group investing in the skills and capabilities needed to support the shift.

“We are expanding our electrified vehicle portfolio, backed by strategic localisation and domestic vendor partnerships,” says Chin.

At the same time, the group is continuously investing in its workforce through the Bermaz Auto Training School and technical and vocational education and training (TVET) programmes to deepen advanced electric vehicle skills.

As these changes extend across the business, Chin says, companies will also need support from the wider ecosystem. He hopes the government will provide “targeted financial incentives such as tax breaks and green subsidies as well as technical training and affordable consultancy” to help resource-constrained small and medium enterprises (SMEs) build ESG capacity.

Meanwhile, consumers can drive accountability by prioritising ethical supply chains and sustainable packaging, while investors can accelerate the transition through more green capital allocation and by directing venture capital to high-performing ESG companies, Chin says.

“Simple acts like saving energy, reducing waste and conserving water decrease operational costs, while treating the environment with respect [contribute to the country’s sustainability journey],” Chin says. “Mindful alignment with the NSRF prepares the business smoothly for future carbon and labour shifts.”

Those efforts form part of a longer-term transition, with the group targeting net zero carbon emissions by 2050 and setting interim resource-reduction goals for 2030.

“Our framework links sustainability with financial resilience,” Chin says.

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