This article first appeared in The Edge Malaysia Weekly on November 27, 2023 - December 3, 2023

Sound corporate governance structure and practices are integral to the group’s long-term business sustainability, as well as to ensure accountability and responsibility.” - Tan

Beshom Holdings Bhd won the gold award in the most improved performance over three years category at The Edge Malaysia ESG Awards 2023. Managing director Tan Keng Kang attributed the group’s achievement to its uncompromising position on maintaining balanced growth and value creation in society and the environment for its stakeholders.

“Sustainability is embedded in our business strategies approved by the board, complemented by a sustainability strategy and sustainability policy that set the direction and focus for the group. We believe that sound corporate governance structure and practices are integral to the group’s long-term business sustainability, as well as to ensure accountability and responsibility,” he says, pointing out that the group’s sustainability initiatives are in consideration of the United Nations Sustainable Development Goals.

Tan adds that besides delivering stakeholder value through business operations, the group also focuses on supporting and promoting the development of communities to demonstrate social responsibility and engage with the community and wider society to achieve sustainable advancement. “Corporate social responsibility activities are designed to reach out to communities in need and contribute to the promotion of healthcare, education and cultural causes,” he says.

To ensure that businesses within the group are managed sustainably and responsibly, a holistic approach is critical, as is the integration of ESG considerations into the respective business strategies, he says.

“We have established a solid governance structure and implementation framework and have set sustainability key performance indicators for the respective business unit or operating arm to drive progress and achieve our long-term sustainability objectives.”

In addition, effective communication is key.

“We strive to facilitate effective and efficient communication with our stakeholders through surveys, conferences, events and activities, press releases and site visits. For instance, for supply chain management, the group endeavours to obtain sufficient understanding of its supply chain partners to align its beliefs and values along the value chain, especially in matters significant to the group’s produc4 and service quality, food safety, environment, social and regulatory compliance, and so on.”

Over the years, Beshom has continuously assessed and enhanced the management of sustainability in its business processes. “We have also reaped the rewards of our sustainability initiatives, such as streamlined operational processes, expanded online presence, cost savings through green energy and digitalised initiatives, as well as setting a consistent ethical culture across the group’s businesses,” says Tan.

For businesses to sustain and thrive, it is important that they meet the higher expectations of various stakeholders in the areas of ESG. “This includes understanding future risks and opportunities, managing climate change, delivering improved performance on sustainability issues, as well as meeting the increased requirement for ESG disclosures,” he says.

Tan believes a higher level of commitment to environmental sustainability from the government is expected, as is collaboration from all sectors and stakeholders to ensure Malaysia stays on track to achieve net-zero carbon emissions by 2025.

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