Onboarding Suppliers to Accelerate Responsible Supply Chain Management

Carlsberg Malaysia encourages key suppliers to embark on responsible sourcing practices and human rights compliance

Carlsberg Malaysia hosted its inaugural Supplier Day, focusing on the environment and social governance of responsible supply chain management in pursuit of the brewer’s net zero carbon emissions commitments. Sixty-four upstream and manpower suppliers were briefed on the company’s stance on responsible sourcing practices and human rights compliance. They also learned about key issues shared by invited speakers from UN Global Compact Network Malaysia and Brunei (UNGCMYB), Capital Markets Malaysia (an affiliate of Securities Commission Malaysia) and Sedex Asia.

In addition to strict compliance with the Carlsberg’s Supplier and Licensee Code of Conduct, the brewer also urged suppliers to keep abreast of the latest developments on labour and environmental regulations in both local and international fronts. Additionally, a strong emphasis was placed on human rights principles which include ensuring fair labour practices, preventing discrimination, and safeguarding the rights of employees and contractual workers.

As a member of Sedex, Carlsberg Malaysia encouraged its suppliers to join the platform to help them manage and improve their environmental, social, and governance (ESG) performance, thereby meeting their supply chain sustainability goals. Sedex focuses on four fundamentals of responsible sourcing – human rights and labour standards, health and safety, environment, and business integrity. Carlsberg Malaysia is also an early adopter of the Simplified ESG Disclosure Guide (SEDG), a framework designed by CMM to streamline ESG reporting, particularly for SMEs. These reporting platforms reinforce the brewer’s commitment to supporting its suppliers in adopting responsible sourcing practices and reporting.

“Since the launch of our Together towards ZERO and Beyond ESG programme two years ago, we have made positive strides in delivering our ESG priorities in pursuit of our purpose of ‘Brewing for a Better Today and Tomorrow,” said Stefano Clini, Managing Director of Carlsberg Malaysia. “We have an ambitious goal to achieve zero carbon emissions in our brewery by 2030. However, we cannot do this alone; we invite our suppliers to collaborate and support us as we strive towards a mutually beneficial green transition journey.”

The event featured presentations from industry experts, including Sudarsan Chandra Sekharan, Lead Trainer at UN Global Compact Network Academy, who shared case studies on practical applications of sustainable business practices, such as reducing carbon emissions and improving resource efficiency. The case studies highlighted collaborative efforts between companies and their supply chains to achieve sustainability goals, as well as innovations in overcoming challenges faced by SMEs in various industries.

“The partnership between Carlsberg Malaysia and its suppliers showcases a genuine commitment to raising awareness throughout its supply chain,” said Sekharan. “Through this collaboration, we aim to foster innovation and resource sharing, helping organisations meet the UN SDGs.”

Additional insights came from Janna Dietrich, Senior Manager of Responsible Sourcing at Carlsberg Group Procurement, and Clare Lam, Strategic Account Manager of Sedex Asia and Navina Balasingam, General Manager of Capital Markets Malaysia, who discussed responsible sourcing mechanisms and ESG disclosure standards.

Dietrich commented, “Carlsberg Malaysia is the first in the Carlsberg Group to conduct a Supplier Day in our efforts to collaborate with our suppliers in driving our Responsible Sourcing ambitions. I’m proud that this has allowed us to engage with key upstream suppliers to enrol in Sedex in order to comply with responsible sourcing standards and meet external due diligence requirements.”

As Carlsberg Malaysia continues to lead by example, it focuses on encouraging its suppliers to adopt solutions such as Sedex and SEDG, to enhance both business resilience and environmental sustainability. This is its continuous effort to ensure that every aspect of the value chain reflects the brewer’s values and commitment towards achieving a net zero carbon emissions target by 2040.