PETALING JAYA: Drawing on decades of industry experience, Penang-based waste management solutions provider Shan Poornam Group of Companies is a shining example that reflects the viability of contributing to a more circular economy .
Shan Poornam is a regional group with an integrated and environmentally friendly management facility to manage hazardous and non-hazardous industrial waste.
Speaking at the “Greening the Supply Chain” webinar, the first event of the StarESG Academy – part of the ESG Positive Impact Awards 2022 outreach and education initiative – its Executive Director Rose Kuan identified the opportunities and impact that optimizing the raw materials supply chain can bring.
“While Malaysia continues to be an attractive investment destination for global investors, the manufacturing sector remains a mainstay of the economy. Thus, the raw material supply chain is extremely important,” he said. she stated.
A supply chain begins with the sourcing and extraction of raw materials from natural resources, which are delivered to manufacturers to be transformed into finished products. From there it is used by the consumer at the end of the supply chain.
At the manufacturer level, scrap or defects that do not meet required specifications are often scrapped and discarded. Consider, for example, what consumers do when upgrading gear or gadgets. Quite often the choice is to throw these items away, which in turn end up in mass landfills.
This state of affairs, however, sees a marked change in a world moving towards post-pandemic recovery.
After suffering the grim ill effects of accumulated actions that benefit mother nature, all stakeholders across different industries are re-evaluating their priorities away from pure profit.
Going forward, all stakeholders must shift to eco-innovations that can lead to sustainable consumption and production patterns, which is advocated by the United Nations Sustainable Development Goal 12.
She said: “Some companies have started to explore and reverse some of the processes from this scrap, so they can rework and reuse these materials in production, minimizing releases. For irreparable pieces of equipment, we can always salvage and refine the metals and feed them back into the raw material supply chain pool.
“Recovering metals using state-of-the-art recycling processes only generates a fraction of carbon dioxide emissions. For example, the production of one kg of aluminum by recycling uses only a tenth or less of energy, compared to what is necessary for the primary production of aluminum from bauxite.
By adopting eco-innovations, primary metals and energy resources can be conserved for future generations, she added.
At the national level, regulators such as Bank Negara are also putting in place the building blocks needed to accelerate the adoption of ESG principles in the corporate world.
Deputy Director of Bank Negara’s Sustainability Unit, Suraya Sani, highlighted the role of the financial sector in supporting the green agenda, especially with the growing impact of climate change on businesses.
“Climate change poses a significant and growing risk to businesses, our economy and the financial market. Unlike Covid-19, there is no vaccine against climate change.
“Climate change is real and it has an impact on the competitiveness of companies, as well as on their viability. The physical risks associated with climate change are already with us and are in fact increasing,” she said, pointing to the recurring floods Malaysia has been experiencing in recent times.
Transition risks are also intensifying alongside growing consumer demand – alongside high expectations from trading partners and regulators – for more environmentally and socially conscious businesses.
Malaysian businesses can also suffer a blow to their competitiveness and risk losing market access if they do not comply with sustainability drive, such as the requirements of the United Nations Carbon Border Adjustment Mechanism (CBAM). European Union.
And this is nothing new. Prior to the CBAM, Malaysia has already been challenged on the environmental sustainability front by its trading partners. For example, there has been a significant impact on commercial exports and the livelihoods of smallholders in the case of the oil palm industry.
Suraya noted that similar issues are very likely to spill over into other sectors, adding, “At the national level, under the announcement of the national net zero goal, we can expect further changes. in climate policies, because this is unavoidable. This has increased transition risks for businesses and technological changes will also have significant financial consequences for businesses.
This means it is essential for businesses to switch to green and sustainable practices, as delaying the transition will lead to more precise and costly adjustments in the future, she warned.
Roberto Benetello, Executive Director of the Business Council for Sustainable Development (BCSD) Malaysia, Roberto Benetello, as well as Shafiq Sheikh Mohamed, Director of OCBC Bank and Head of Islamic and Structured Finance, were also present at the event to share their points perspective, their strategies and their top priorities when optimizing supply chains. .
The hour-long session was moderated by Ernst & Young Consulting Sdn Bhd Malaysia, leader in climate change and sustainability services, Arina Kok.
The ESG Positive Impact Awards 2022 are organized by Star Media Group Bhdwith OCBC Bank (M) Bhd as main sponsor.
Ernst & Young is the advisor for the awards program, while working partners include ABAC Center of Excellence, Business Council for Sustainable Development (BCSD) Malaysia, Climate Governance Malaysia, Earthworm Foundation, Green Growth Asia Foundation, Institute for Democracy and Economic Affairs (IDEAS), Malaysia Green Building Council, Malaysian Green Tech and Climate Change Centre, Malaysian Institute of Corporate Governance, Jeffrey Sachs Centre, Sustainable Development Solutions Network (SDSN), as well as Malaysian Research Accelerator for Technology and Innovation (MRANTI).
To register your interest in participating in the rewards program, visit https://staresgawards.com.my/.