30/07/2025

ESG WEDNESDAY | JULY 30, 2025

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Keeping deliveries fresh without melting margins

partnered through the signing of a memorandum of understanding (MoU), aimed at expanding the accessibility of syariah-compliant investment solutions to a broader segment of Malaysian investors. Through this collaboration, AHAM Capital’s suite of syariah-compliant funds will now be available through Bank Islam’s extensive distribution network, spanning over 100 branches across the country as well as its digital banking platforms. The partnership is a timely response given the rising demand for value-based investment in thecountry. As of end-2024, the Islamic capital market accounted for over 63% of the total capital market,with total Islamic assets under management (AUM) reaching RM246 billion. These figures underscore the sustained growth and resilience of Malaysia’s capital market as an Islamic finance hub in the region. AHAM Capital chief operating officer Chong Lee Choo said: “This partnership reflects our shared commitment to expanding access to syariah-compliant and values-based investing across Malaysia. Bank Islam’s robust distribution network makes THE cold chain logistics industry is no longer a niche vertical; it is a backbone of modern supply chains. In Malaysia, the market was valued at RM2.5 billion in 2023, reflecting the country’s growing reliance on temperature-controlled logistics. Beyond urban centres, cold chain logistics plays a vital role in transporting temperature-sensitive items, such as food, pharmaceuticals, and vaccines, to rural and hard-to-reach communities, helping bridge infrastructure gaps while preserving product quality. Regionally, the sector is projected to reach US$15.23 billion by 2030, fueled by surging demand from the food, pharma ceutical, and retail industries across Asean. But as more chilled and frozen goods move across the country, so does the environmental burden. Transportation already accounts for 28.8% of Malaysia’s fossil fuel-related carbon emissions, a share that exceeds the global average. How do we keep things cold, with out heating up the planet? Cost of cold chain logistics Cold chain logistics is indispensable for many sectors, from delivering fresh seafood to life-saving vaccines, but it is also one of the most energy intensive parts of the supply chain. Maintaining strict temperature control during transport relies heavily on diesel-powered refrigerated trucks, dry ice, and insulation materials that are difficult to recycle or reuse. Fuel consumption is a major cost driver and environmental burden. Refrigerated vehicles consume more fuel than regular trucks, and the refrigeration units themselves often run on diesel engines, contributing significantly to air pollution and greenhouse gas emissions. Furthermore, traditional cold chain

o Addressing issue requires rethinking cold chain logistics

waste. Yet less than 15% of this plastic packaging is collected for recycling, with huge amounts leaking into the environment, posing a long-term challenge for sustainability in logis tics. Addressing these issues requires rethinking cold chain logistics through the dual lenses of opera tional cost and environmental impact. Optimise what already exists Instead of building entirely new infrastructure, a more sustainable and accessible approach is to optimise what already exists. This approach reduces the need for additional vehicles on the road and makes better use of current resources. For example, by using specially designed insulated boxes, cold-chain items can be delivered alongside e commerce parcels during last-mile delivery without compromising tem perature control. This approach to multi-temperature reduces the need for separate trips, lowers fuel con sumption, and enhances overall operational efficiency while helping to cut carbon emissions. Another promising development is the use of reusable insulated pack

Banking & Finance “As the alignment between syariah principles and environmental, social and governance (ESG) considerations gain greater recognition, we believe this partnership is well-positioned to support the next wave of growth in values-based investing. Both framew orks emphasise ethical conduct, social responsibility, and long-term sus tainability which are concerns increasingly prioritised by investors.” Bank Islam wealth management director Datin Zaharah Abd Muttalib said: “At Bank Islam,we take pride in logistics tend to operate on point-to point trips, requiring more vehicles on the road and higher emissions compared to hub-and-spoke distri bution models. Dry ice, widely used as a cooling agent in food and pharmaceutical deliveries, is essentially frozen car bon dioxide that sublimates and releases greenhouse gases. It also demands additional insulation materials, which are non-biodegrad able and usually end up in landfills or waterways. In 2021, the Malaysian Civil Aviation Authority has issued specific guidelines for the transpor tation of vaccines using dry ice, underscoring the potential hazards of CO Œ buildup in enclosed environ ments like aircraft cabins. This high lights not only the operational com plexities but also the environmental and safety risks associated with con ventional cold chain practices. Packaging practices often follow a “more is better” approach to ensure product integrity, leading to exces sive use of polystyrene (styrofoam) and gel packs. This not only drives up costs but also contributes to environ mental waste. In fact, packaging accounts for more than 40% of over all plastic consumption and com prises over 55% of total global plastic them a strategic partner in reaching a broader segment of investors, enabling more Malaysians to access professionally managed solutions that align with their values. Through this collaboration, we aim to provide greater access to our diverse range of syariah-compliant offerings spanning equities, sukuk, and multi-asset strategies to meet long-term investment goals.” “At the same time, he added they are seeing strong demand for syariah compliant and sustainable invest ments, not only from traditional investors, but also from a younger generation who are actively seeking to align their financial decisions with their values. Many are drawn to investments grounded in ethics, sustainability, and social purpose.

supply chain, from logistics providers and manufacturers to retailers and regulators. By sharing best practices, investing in sustainable technologies, and adopting data driven approaches, the industry can accelerate the shift towards greener, more efficient cold chain solutions. As stakeholders, we all have a role to play in rethinking how cold deliv eries are made. Together, we can build a cold chain ecosystem that not only meets growing demand but does so in a way that protects both the environment and business viability. This article is contributed by Ninja Van Malaysia, Ninja Cold deputy head Zhen Wei Yeow ( pic ).

aging that can maintain required temperatures for extended periods, sometimes up to 24 hours, without relying on disposable materials like styrofoam. Advances in technology further support these efforts. Data-driven route planning and load optimisa tion can reduce travel distances and idle times, helping to protect product integrity while cutting emissions. These tech-enabled efficiencies are especially important in fast-paced, high-volume logistics networks. Collaboration and innovation Addressing the challenges of cold chain logistics requires more than individual effort. It calls for collaboration across the entire

AHAM Capital and Bank Islam expand access to syariah-compliant funds KUALA LUMPUR: AHAM Asset Management Bhd (AHAM Capital) and Bank Islam Malaysia Bhd have

From left: Chong, AIIMAN Asset Management managing director and executive director Akmal Hassan, Bank Islam SME banking director Rizal Mohd Yusof and Zaharah.

for all Malaysians. It reinforces our commitment to building a future where faith, sustainability and financial resilience come together, and strengthens our position as a purpose led Islamic bank that empowers customers to make informed and meaningful investment decisions.”

gold-backed funds. “As more investors seek to align their financial choices with their values, Bank Islam is proud to be at the forefront of this shift. More than just a new offering, this partnership reflects our belief in creating a more inclusive and purposeful investment landscape

offering syariah-compliant financial solutions that help Malaysians grow their finances in ways that are meaningful and aligned with their values. This collaboration with AHAM Capital strengthens our commitment to ethical investing by expanding access to thematic, ESG, and

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