ESG: START

WEDNESDAY 17 July 2024, DAY 2

Program Pathway
Learning Objectives Program Outcomes
1 Understand the business case for sustainability. Sustainability Action Plan (approved by senior
2 Able to develop organisation’s sustainability materiality matrix. management)
Carbon Footprint Calculation Scope 1 and 2
3 Able to align sustainability to organisation’s business strategy.

4 Able to develop organization’s sustainability action plan.

5 Able to calculate and report organization’s Scopes 1 & 2 emissions,

assess human rights, labour rights and anti-corruption practices.

Module 1 Module 3 Module 5

Sustainability Sustainability Scopes 1 & 2
Business Gaps Carbon
e-Learning

Purpose Assessment Accounting

Coaching
Sustainability Submission
Module 2 Module 4 Module 6 Action Plan of Action GRADUATION
Development Plan
Setting Sustainability DEI & BHR
Sustainability Action Assessment
Objectives Plan

Knowledge & Tool Based Coaching based

Workshop Objectives & Agenda

Time Topic Format /Activity

9.00AM – 9.30AM Recap of Workshop 1 (Tuesday, 7 May 2024) Presentation

9.30AM – 10.30AM Creating Business model Canvas and sustainability business model canvas Presentation

10.30AM – 10.45AM Tea break

10.45 AM– 1.00PM Organization activities Tools

1.00PM – 2.00PM LUNCH

2.00PM – 2.45PM Enablers Tools

2.45 PM – 3.30PM Malaysian Sustainability case study Review and discussion

3.30 PM – 3.45 PM Tea break

3.45 PM – 5.00PM Analysis of sustainability gaps Tools and discussion

QNA
RECAP OF WORKSHOP 1
ESG, Sustainability, SDGs: Correlation
VALUE

SUSTAINABILITY DATA SUSTAINABILITY TARGETS = PERFORMANCE

• Output based decisions • Impact focused

• Compliance centric PURPOSE DRIVEN • Whole of organization
• Departmental approach from “vs” to “and” approach
• Not growth centric • Growth, preservation and
acceleration
SUSTAINABLE BUSINESS MODEL
CANVAS
What is a Business Model?

BASICALLY HOW A BUSINESS CREATES VALUE FOR ITSELF

WHILE DELIVERING PRODUCTS AND SERVICES FOR ITS
CUSTOMER
What is a Sustainability Business Model?

BASICALLY HOW A BUSINESS CREATES ESG VALUE FOR A

MUCH BROADER RANGE OF STAKEHOLDERS
What is a Business Model Canvas?

• Invented by Alexander Osterwalder

• A tool used to Describe, design, Challenge and pivot

• It has 9 Building blocks– Value proposition, customer

segment, channels, customer relationship, revenue,
key resources, key activities, key partners and cost.
Building block 1: Value proposition

• Products and services that meets the needs of your customer

• What are you building or making?

• Who is it for?

• No about the features of the product or services or

sustainability program

• It is about solving a problem or addressing a need

• Does our products or services have an ESG trait along with it?
Building block 2: Customer segment

• Who are my customers?

• Who are they?
• Whats their job?
• What type of problems they face?
• Wat frustrates them?
• What inspires them?
• Is ESG something they really need?
Building block 3: Channels

• The bridge to get value proposition to customer

segment

• Physical channels – physical stores or delivery services

• Virtual channels – online platforms

• How can this be done with ESG elements?

Building block 4: Customer relationships

• How are we going to find customers?

• How are we going to keep our customers?
• How are we going to grow our customers?
• How do we keep staff engaged in ESG?
• How do we increase participation?
• How do we make them ESG champions?
Building block 5: Revenue

• How we make money from our customers

• How do we capture value?

• What is the strategy to capture value?

Building block 6: Resources

• What do we need to make this work?

• What resources is needed?
• Enough capital or financing?
• Do we need physical assets: location? Equipment?
Vehicle? Renewable energy? Etc?
• Do we need intellectual property? Patenting?
• Do we need talent? Or experts?
Building block 7: Activities

• The most important activities to make the business

model work

• Do need to improve product or services?

• Do you need to audit the supply chain?

• Need to do RnD?
Building block 8: Key Partners

• Who do we need to make this successful?

• Directly linked to key resources and activities

• What resources do they provide?

• What activities do they complete?

Building block 9: Cost

• Upon understanding activities, resources and partners

– you can associate the related cost.

• Cost to operate business?

• Cost to invest in resources?
• How much will the activities cost?
• How much does our partners cost?
What is a Business Model Canvas?
Sustainable Building block 1: Value Creation

• Who benefits?
• Which people?
• Which organization?
• Which stakeholder benefit?
• What are the ESG value?
Sustainability Building block 2: Sustainability benefits

• Which is the relevant SDG?

• Whats the positive outcome to the community,

stakeholder and planet?
Sustainable Business Model Canvas
Business Model Canvas

Enter here Enter here Enter here Enter here Enter here

Enter here Enter here

Enter here Enter here

Sustainability Business Model Canvas

VALUE CREATION
- enter here

SUSTAINABILITY BENEFITS
- enter here
Activity

• Based on your Sustainability Objectives, complete your

organization’s Sustainability Business Model Canvas
ORGANIZATIONAL ACTIVITIES
Organizational Activities
• Organizational activities are the various
actions that an organization takes to achieve
Organizational its goals and objectives. When an organization
Activities has sustainability objectives, it will engage in
activities that help to support those objectives

Integration: Integration of sustainability considerations into all aspects of an

organization's operations.
Significance
to Accountability: Provides a framework for setting and tracking sustainability goals and
providing accountability for achieving them.
Sustainability
Efficiency: Sustainability-focused organizational activities can lead to more
Objectives efficient use of resources, reducing costs and improving the
organization's bottom line.
Future-proofing: Sustainability-focused organizational activities help to future-proof the
organization by preparing it for the risks and opportunities of global
trade.
Organizational Activities: Examples

Finance HR Purchasing

• Develop sustainability-related • Create and implement • Implement sustainable

budgets and financial plans sustainability-focused employee procurement policies and
• Allocate funds for sustainability training programs practices
projects and initiatives • Recruit and retain employees • Select suppliers who share the
• Track and report on with sustainability expertise organization's sustainability
sustainability-related financial • Incorporate sustainability into values and goals
metrics performance evaluations and • Conduct life cycle assessments to
• Implement sustainability-related career development plans evaluate the environmental
accounting practices (e.g., carbon • Reward employee engagement impact of products and services
accounting, social impact and participation in sustainability
accounting) initiatives.
Organizational Activities: Examples

Operations Sales & Marketing IT Services

• Conduct energy and resource • Develop and communicate the • Shift to cloud computing to
audits organization's sustainability reduce the number of physical
• Implement sustainable objectives to stakeholders servers and data centres needed.
manufacturing and production • Create sustainability-related • Implement systems that reduce
practices marketing campaigns the amount of paper used and
• Develop sustainable • Incorporate sustainability into the introduce online collaboration
transportation strategies (e.g., organization's brand identity and tools.
electric vehicles, public transit, messaging. • Implement systems that collect,
telecommuting) monitor and report on
• Integrate sustainable design and organizational ESG Data.
construction principles into
facility management
Organizational Activities

Mapping Sustainability Objectives to Activities

Objectives Activities Justification

Activity

• Identify the organizational activities required to support

your Sustainability Objectives.
• Provide brief justification for your selection of activities.
Malaysian Sustainability Case Studies
ENABLERS
 Enablers:

• Enablers are the resources, capabilities, and conditions that support

the successful execution of a strategic action plan. Enablers are
essential for achieving the desired outcomes of the Sustainability
Action Plan

LEADERSHIP PEOPLE PROCESS RESOURCES TECHNOLOGY SUPPLIERS ESG

DATA
 Enablers: Leadership

• Leadership sets the tone, provides direction for the Example:

organization's sustainability initiatives and inspires • Unilever’s former CEO, Paul Polman,
employees to embrace sustainability. was a vocal advocate for
sustainability and had driven the
company's sustainability agenda.
Under his leadership, Unilever's
sustainable brands, grew 69% faster
than the rest of the business in 2019.
Assessment

• Is the organization’s management directly involved in overseeing or

executing the company’s sustainability initiatives?
• Does your organization’s management regularly communicate a need
Leadership to focus on environmental sustainability as a core business priority?
• Are your organization's management performance incentives
designed to encourage sustainable behaviour?
• Does your organization's management receive trainings and have
capabilities and knowledge around sustainability?
 Enablers: People

• People are the ones who enable change and Example:

implement sustainability initiatives within an • Maybank’s “1000 hours”
organization. Without engaged and committed sustainability program is an initiative
employees, it is difficult to achieve sustainability goals launched by Maybank, in 2016. The
program aims to encourage Maybank
employees to contribute 1000 hours
of their time towards sustainability
initiatives, which includes
volunteering for environmental and
social causes such as tree planting,
beach cleaning, recycling, and
Assessment community engagement. Employees
are also encouraged to come up with
• Does your organization dedicate meaningful staff time to their own sustainability initiatives,
explore and implement sustainability initiatives? which are supported by the company
• Is there someone or a team in your organization that is
People responsible for driving sustainability initiatives?
• Does your organization have trained sustainability professionals?
• Does your company's employees receive trainings and have
capabilities and knowledge around sustainability?
 Enablers: Process

• Process provides structure and a systematic approach Example:

to managing sustainability initiatives. Well-designed • Levi Strauss & Co. has implemented
processes can help ensure that sustainability is a waterless finishing process for its
integrated into an organization's operations. denim products, which reduces the
amount of water required for
production by up to 96%. This
process has helped the company to
save over 1 billion litres of water
since its implementation in 2011.
Assessment

• Does your organization have a detailed plan to achieve its

sustainability goals?
• Has your organization made efforts to incorporate sustainability
Process into your core products and services?
• Is your organization actively looking for process improvements
to reduce waste and increase efficiency in water and energy
usage?
• Does your organization set up processes to track its
sustainability performance?
 Enablers: Resources

• Resources provide the necessary means to implement Examples:

sustainability initiatives, invest in sustainable • Enel, an Italian multinational energy
technologies and products, and achieve sustainability company, issued a €3.25 billion
goals. Resources include financial, natural and human sustainability-linked bond in 2020 to
capital. finance renewable energy projects
and reduce its carbon footprint.
• Apple uses recycled aluminium,
recycled plastic, and bio-based
plastics in its products.

Assessment

• Does your company have dedicated funds set aside to invest in

sustainability initiatives?
• Has your company identified potential sources of funding for
Resources sustainability initiatives (e.g. external investors, grants,
subsidies)?

• Does your company provide adequate resources and support for

employees during the company's transition into a sustainable
organisational culture?
 Enablers: Technology

• Technology enables organizations to reduce their Examples:

environmental impact, improve social outcomes, and • Kering Group’s Materials Innovation
achieve economic benefits. It can be used to develop Lab, is a research and development
and implement new sustainable products and centre that focuses on developing
services, reduce resource consumption, and increase sustainable materials for use in the
efficiency. company's products.
• Siemens uses digitalization and IoT
technology to optimize energy
systems and reduce energy waste.

Assessment

• Has your organization started to explore technologies to

enhance your sustainability initiatives and performance?
• Does your organization have allocated funds to invest in
Technology technology for sustainability?
• Does your organization have trained technology professionals
whose jobs involve digitalising and supporting technology
adoption in the company?
 Enablers: Suppliers

• Suppliers play a critical role in the sustainability Examples:

performance of an organization's supply chain. • Adidas, sources materials from
Sustainable procurement practices can help suppliers that meet strict
organizations reduce their environmental impact, environmental and social
improve social outcomes, and achieve economic responsibility standards and has set
benefits. a goal to use only recycled polyester
in all of its products by 2024.
• Starbucks works with coffee farmers
to promote sustainable agricultural
practices and sources coffee from
suppliers that meet strict
Assessment environmental and social
responsibility standards
• Has your organization made efforts to encourage its suppliers,
Suppliers distributors, or partners to also embrace sustainable business
practices?

• Does your organization incorporate ESG factors as part of the

supplier selection process?
 Enablers: ESG Data

• ESG Data provides information and insights into Examples:

an organization's sustainability performance. It • Nestle, has developed a
helps organizations identify areas for sustainability dashboard that tracks
improvement, measure progress, and its water usage, energy consumption,
communicate their sustainability performance to and waste generation across its
stakeholders. operations. The dashboard provides
insights into areas where the
company can improve its
sustainability performance and
Assessment reduce its environmental impact.
• Coca Cola uses data analytics to
• Has your organization collected and reported on any ESG data? track its energy usage, water
consumption, and carbon emissions
• Does your organization set up ESG data metrics that are material across its supply chain.
ESG Data to the company?

• Does your organization have most of the systems in place to

start tracking your ESG performance?

• Does your organization set up a team responsible for ESG data

collection and reporting?
Map Enablers to Sustainability Objectives

Enablers
Objectives
Leadership People Process Resources Technology Suppliers ESG Data
Activity

• Identify the Enablers required for your Sustainability

Objectives.
MALAYSIAN SUSTAINABILITY
CASE STUDIES
Malaysian Sustainability Case Studies

Sustainability Actions

• Reducing carbon footprint: invested in renewable

energy sources and implementing energy-efficient
HEXA Food Sdn. Bhd. is a home-grown food technologies in its operations, and targets to reduce
manufacturing company, producing more than a its greenhouse gas emissions.
hundred different types of spices, herbs, • Responsible sourcing: implemented a robust
seasonings, ready-to-cook premixes and supplier screening process that evaluates suppliers
marinades in our factories based on their environmental and social
performance.
• Waste reduction: implemented a closed-loop
production process and reducing the use of
packaging materials, and recycles all waste
Reports of increase in morale and commitment materials.
in the workforce. • HR: education and training for employees
Malaysian Sustainability Case Studies

Sustainability Actions

• Circular Economy: collects used IT equipment from

its clients and refurbishes them to extend their
Specializes in remanufacturing, refurbishing and lifespan, instead of disposing of them in landfills.
disposal of IT assets. • Renewable energy: installed solar panels on the
roofs of its facilities to generate clean energy and
reduce its carbon footprint.
• Waste reduction and recycling measures.
implemented a dedicated waste management
system in place to minimize waste generation, and
it works to recycle and reuse materials discarded by
clients.
Through its circular • DEI: promotes gender diversity and equality in its
economy approaches, Rentwise helps workforce, and provides training and development
businesses to prolong IT product life spans, opportunities.
which in turn reduces the frequency of IT
product replacement and thus reduces costs
Malaysian Sustainability Case Studies

Sustainability Actions

• Anti-corruption: implemented a whistleblowing

policy that encourages employees to report any
Commercial printing company with suspected unethical behavior or corruption.
international clientele • HR :training sessions for its employees on
company's anti-corruption policies and procedures.

Thumbprints is now SEDEX certified,

FSC certified, and ISO certified,
and an antibribery advocate. These
certifications allow the company to be a key
supplier to MNCs, and enables it to compete in
the global market.
Malaysian Sustainability Case Studies

Sustainability Actions

• Energy conservation: installed solar panels on its

facility to generate its own electricity and reduce its
Manufactures and distributes advanced carbon footprint.
fibre-reinforced plastic (FRP) products for • Carbon footprint: encourages the use of public
various construction, transportation, and transportation and carpooling among its employees,
marine industries. and provides charging stations for electric vehicles.
• HR :training sessions for its employees on
company's anti-corruption policies and procedures.
• Waste management: implemented a number of
measures to reduce its waste, such as using
recycled materials in its production processes,
Fibromat’s sustainable approach in using reducing the use of single-use plastic.
recycled materials in its products allows it
to
meet international standards and make it
competitive with large-sized EU based
companies.
.
Malaysian Sustainability Case Studies

Sustainability Actions

• DEI: promotes inclusive hiring practices.

Intellectual property (IP) consulting firm • Carbon footprint: installed solar panels on its facility
to generate its own electricity and encourages
work-from-home, installation of solar panels,
promotes sustainable transportation. .

Reduction in utilities costs - energy and

water consumption
.
Your Organization Successful Case Study
•3 elements
1. Brief description on your organization
2. What type of Sustainability action has been taken or plan
to be taken
3. What was the outcome from your actions? Or potentially
expected outcomes?
 GAPS ANALYSIS OF
ORGANIZATIONAL SUSTAINABILITY
Analysis of Sustainability Gaps

Sustainability Happy with… Unhappy with… Will support Benefits to organization

Objectives with…
What is current What is current Resources and support Qualitative Quantitative
performance (positive) performance (negative) provided
Activity

• Using Gaps Improvement Analysis Tool, identify the

current gaps and how you propose to support them.
• Apply some of the insights from the case studies and SME
business owner session.
SUSTAINABILITY ACTION PLAN
Sustainability Action Plan

Advantages of a Sustainable Action Plan

A sustainability action plan is a Risk Mitigation Identify and address risks associated with climate change,
roadmap to guide your resource depletion, and other environmental and social issues.
organization to become more Resource Efficiency Identify opportunities to improve energy and resource efficiency,
sustainable and responsible, reduce waste and pollution, and conserve natural resources
and it helps to identify Innovation Drive innovation by encouraging the development of new
opportunities for products and services that are environmentally and socially
responsible.
improvements and innovation
Reputation & Brand Value Enhance reputation and brand value by demonstrating a
in your business. commitment to environmental and social responsibility
 Sustainability Action Plan
Components of the Program Outcome
Section Topic Task Tool

A Sustainability Business Purpose • State your organization’s current and aspired sustainability • Sustainability Business Purpose
business purpose Matrix
• Identify your business impacts in connection with the 3 capitals • Sustainability Business Purpose Map
B Material Assessment • Identify and classify your organization’s stakeholders • Stakeholder Engagement Matrix
• Identify material issues based on the 8 indicators • Materiality Matrix
C Sustainability Objectives • State your organization’s sustainability objectives for each • Sustainability Objectives
Environmental, Social & Governance topic
• Map sustainability objectives to organization’s business • Sustainability Objectives to Business
objectives Objectives Map
D Sustainability Business Model • Complete your organization’s Sustainability Business Model • Sustainability Business Model Canvas
Canvas
E Activities • Identify activities required to support Sustainability Objectives • Activities to Sustainable Objectives
and provide justification Map
F Enablers • Identify enablers required to support your Sustainability • Enablers to Sustainability Objectives
Objectives Map
• Assess the current gaps in sustainability that need to be • Gaps Improvement Analysis
addressed
G Reflections • Outline key reflections from this program • Key Reflections Table
Sustainability Action Plan
Sustainability Action Plan Template Walk-thru

Fill-in all the information required in Sections A to F in template. Use the

tools provided.

INSTRUCTIONS Get your Sustainability Action Plan approved by your organization’s senior
management.

Submit your Sustainability Action Plan (.pdf format) after the coaching
session
Activity

• Based on the learning in Workshops 1 and 2, complete a

draft of your organization’s Sustainability Action Plan
based on Template provided.
• Share the key components of your plan with the rest of
the participants.
ESG, Sustainability, SDGs: Correlation
VALUE

SUSTAINABILITY DATA SUSTAINABILITY TARGETS = PERFORMANCE

• Output based decisions • Impact focused

• Compliance centric PURPOSE DRIVEN • Whole of organization
• Departmental approach from “vs” to “and” approach
• Not growth centric • Growth, preservation and
acceleration
“The Earth is a fine place and worth fighting for.”
— Ernest Hemingway

THANK
YOU