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

For ESG initiatives to succeed in businesses, active support and engagement from the government, customers, investors, civil society, industry associations and educational institutions are vital.” - Tay

Frontken Corp Bhd took home the gold award in the most improved performance over three years category at The Edge Malaysia ESG Awards 2023. Executive director and chief scientist Dr Tay Kiang Meng attributes this achievement to the engineering services provider’s commitment to ongoing efforts and self-improvement in ESG and sustainability.

This includes focusing on responsible management, innovation and service, green production, and inclusion and diversity, among other things.

“It is also the involvement and dedication of everyone in the group and the teamwork that contribute to our success,” he says, adding that what sets the group apart from the rest is its strong foundation and ongoing innovation.

“Through continuous investment in research and development, we pioneer innovative, eco-friendly solutions for sustainable development. Our technology and shared mission promote sustainability, having a positive impact on the environment and society alongside our customers, employees, shareholders and [other] stakeholders. Our core values guide us in driving progress and innovation through cutting-edge technology that enhances critical processes in various industries,” he says.

The group, adds Tay, has wholeheartedly embraced the imperative of achieving carbon neutrality, marking a pivotal milestone in the company’s ESG journey. This, he adds, is a testament to Frontken’s proactive stance on tackling climate change.

“Our commitment to this cause is manifested in our ambitious targets, where we have pledged to achieve net-zero emissions by 2050. This endeavour encompasses a comprehensive assessment of carbon emissions along our entire value chain, covering both direct and indirect emissions, which gives us a holistic grasp of our carbon footprint,” says Tay.

Over the past year, the biggest challenge in maintaining the group’s ESG performance has come from the collection and organisation of the ESG data related to various operating sites in different countries and regions in a systematic, accurate and timely manner.

Frontken, an engineering services provider, pioneers innovative, eco-friendly solutions through continuous investment in R&D - Photo by Frontken

“A very significant portion of ESG data is non-financial, such as sustainability metrics, social impact indicators and governance practices measurement. Therefore, we adopt various strategies including data formatting, using technology solutions, standardisation as well as regularly reviewing and updating our ESG data for continuous improvement and to be aligned with changing regulations and the global framework,” he says.

To ease the adoption of ESG for the year ahead, Tay hopes the government will provide financial incentives, tax breaks or subsidies to companies that invest in ESG initiatives.

“Such incentives can encourage businesses to prioritise sustainability,” he points out. Funding for research and development related to sustainable technologies and practices would also be welcomed as this can drive innovation and make it easier for companies to adopt ESG solutions.

“For ESG initiatives to succeed in businesses, active support and engagement from the government, customers, investors, civil society, industry associations and educational institutions are vital,” he says.

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