Frontken Corp Bhd won the gold trophy in the most improved performance over three years category at The Edge Malaysia ESG Awards 2022. Executive director and chief scientist Dr Tay Kiang Meng says the engineering solutions provider attributes its success to the hard work and persistence of its team, which has overcome many challenges.

He adds that this achievement makes the company confident in continuing to tackle pressing issues for the next generation.

“ESG is an ever-evolving process and although great in theory, it is very hard to implement in practice. We need to develop and put in place a strong and knowledgeable employee culture, clear policies and systems, as well as adapt to stakeholders’ expectations, create ESG knowledge in-house and embed ESG in existing practices, among other things,” says Tay.

“Unfortunately, there is no shortcut to a successful sustainability development journey. We took one baby step at a time over the last few years to achieve what we have today.”

The company is a leading service provider to the semiconductor industry and has a footprint in seven countries. The global tech industry is highly competitive. Having a focus on ESG and sustainability gives the company a competitive edge, which enables it to thrive in the rapidly changing environment, says Tay.

There is no shortcut to a successful sustainability development journey. We took one baby step at a time over the last few years to achieve what we have today. - Tay

That’s why the company embedded sustainability principles into the core of its business operations and services. “We aligned our processes, products, services and experiences with customers’ aspirations, requirements and expectations, which translated into greater demand [for our services] and stronger brand loyalty,” he adds.

Frontken’s goal is to reduce greenhouse gas (GHG) emissions intensity, which is the amount of GHG emitted per dollar of revenue, by 50% by 2050. It has short- and medium-term goals to reduce emissions intensity by 10% and 25% by 2025 and 2035 respectively. The company hopes to achieve net zero emissions by 2060.

Apart from its annual sustainability report, Frontken published a climate change report in October this year, highlighting the company’s financial impact and physical risks from climate change.

In terms of implementation, the company uses data analytics to manage its resources and operations more efficiently, which also results in cost optimisation and savings. Additionally, it empowers employees to share its vision for sustainability, so they become more inspired and productive.

To make ESG adoption more widespread among companies in Malaysia, Tay believes that it should be a voluntary effort by companies and not enforced by the government. “It would be good if some tax incentives or rebates were given to companies that adopt ESG voluntarily. In addition, customers should indicate some level of preference for companies that adopt ESG voluntarily.”

Going forward, he plans to focus on the integration and digitisation of the data collection process and use advanced technologies, such as the Internet of Things, artificial intelligence and blockchain technology to analyse sustainability data.

The company will also continue to invest time and resources to become more sustainable and digital. It aims to provide sustainable products and services that last longer and perform better, while identifying new business opportunities. For instance, it has expanded its production capacity and reengineered its water usage and conservation systems as well as its waste treatment and discharge systems.