06/05/2026

ESG WEDNESDAY | MAY 6, 2026

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Addressing investor demand for reliable sustainability data

SHAH ALAM: Carlsberg Brewery Malaysia Bhd recently released its Integrated Annual Report (IAR) for the financial year 2025, reaffirming its commitment to sustainable shareholder value creation and strong corporate governance. The group said the alignment with National Sustainability Reporting Framework (NSRF) and adoption of International Sustainability Standards Board (ISSB) reflects their intent to move beyond disclosure for compliance to addressing investors growing demand for consistent and reliable sustainability data. The IAR 2025 reported on the Group’s approach in leveraging data driven sustainability and climate insights into identification of key material risks from its annual materiality review. The brewer is guided by its sustainability ambition to safeguard its licence to operate and achieve zero carbon emission within the brewery operations by 2032, amid rising energy costs, increasing regulatory scrutiny and more frequent extreme weather events. Three material matters were prioritised: Responsible Drinking & Marketing and Energy Management under the IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information), and its efforts to improve Climate Resilience under IFRS S2 (Climate-related Disclosures). The group said it is a step change

Banking & Finance customary lands, particularly along the borders. In response, LPHA The initiative is led by Anita Tasriah, a resident of Penyandingan Village who actively organises local women to help guard the Ghimbe Pramunan Customary Forest. Drawing from her daily connection to the forest as a source of food and livelihood, Anita has become a key figure linking traditional indigenous knowledge with collective female action to support environmental sustainability. The Ghimbe Pramunan Customary Forest covers 43.7 hectares and preserves the community. It contains rivers, waterfalls, indigenous trees, rattan, bamboo, coffee and wild bananas. The ecosystem remains protected through the Semende customary system, including the concept of tunggu tubang, under which family inheritance is entrusted to the eldest child, who is responsible for protecting it from over exploitation. “This forest has been guarded by our ancestors since long ago. There are boundaries, there are rules. It must not be damaged,” says Anita Tasriah, who serves as the Chairperson of the Anak Belai Women’s Social Forestry Business Group (KUPS) and Secretary of the Ghimbe Pramunan Customary Forest Management Institution (LPHA). That sense of vigilance was shaped by experience. In areas surrounding Penyandingan Village, illegal logging has often encroached upon o Carlsberg elevates annual report with National Sustainability Reporting Framework and International Sustainability Standards Board in how they mitigate risks and optimises opportunities, strengthening operational resilience and future-proofing the business. Under IFRS S2, climate risk assessments identified exposure to energy price volatility, carbon-related transition risks and physical risks linked to increased rainfall intensity and water availability. These assessments guided operational actions during the year, including higher energy efficiency management, the transition to

performance, continuing its six-year track record of profitability through disciplined execution of our Accelerate SAIL strategy and our sustained focus on premiumisation, innovation and operational efficiency.” “In 2025, the adoption of IFRS S1 and S2 marked an important step in how we integrate sustainability risks and opportunities with everyday business decision-making. By strengthening climate, energy and governance disciplines, we are better positioned to manage uncertainties and remain focused on creating sustainable value while strengthening climate resilience,” Clini added. In March this year, Carlsberg Malaysia launched its refreshed sustainability strategy – Brewing Tomorrow, focusing on four pillars: Cutting Carbon, Protecting Nature, Empowering People and Inspiring Choice. Brewing Tomorrow reflects a renewed, science-backed ambition to reduce the group’s impact on people and the planet.

consumer-facing events and strategic partnerships, to mitigate every possible reputational risk of non compliance. On the governance front, Carlsberg Malaysia became the first Carlsberg market globally and the first local beverage manufacturing company certified by SIRIM QAS International to attain ISO 37001:2025 Anti-Bribery Management System certification. The Group’s efforts in overall sustainability performance were recognised through multiple awards and external benchmarks during the year, including being named the Highest Return on Equity at The Edge Billion Ringgit Club Awards for the sixth consecutive year, and achieving an improved FTSE4Good Bursa Malaysia score of 3.8. Another notable achievement is Carlsberg Malaysia’s improved MSCI ESG rating, moving from AA to AAA. Managing director of Carlsberg Malaysia Stefano Clini said: “Despite a challenging operating environment in 2025, we delivered a resilient

Malaysia Energy Certificates (M-RECs) from I-REC, which resulted in savings of RM0.18 million, exploration on biomass energy as an alternate source to natural gas, and the feasibility study of Solar Power Purchase Agreements. Together, these initiatives supported the group’s decarbonisation pathway while helping to reduce exposure to long term energy cost volatility. The group also strengthened climate-resilience measures at its brewery to mitigate potential disruption risks arising from heavier rainfall patterns, reinforcing asset protection and business continuity planning. The Group also highlighted the importance of responsible drinking and marketing as IFRS S1 to address integrity and compliance risks associated with operating in a tightly regulated industry. A total of RM6.73 million was spent on responsible drinking, sales and marketing efforts, through packaging, point-of-sales materials, Renewable

How bananas are helping to protect forests, one community at a time PETALING JAYA: In Malaysia, bananas are ubiquitous in food culture, from kuih and cakes to chips and street side snacks. But beyond their familiar place in the daily diet, bananas may also hold an unexpected role in Southeast Asia’s environmental story. That link is becoming more relevant as pressure grows on food systems and smallholder farming across the region. Globally, banana production and consumption reached approximately 135 to 139 million tonnes between 2022 and 2024, and are projected to grow by 1.4% annually, reaching 166 million tonnes by 2034. protect forests, strengthen women’s livelihoods and sustain local commodities. Women, bananas and forest protection cultural heritage and identity. PINUS also supported institutional strengthening, administrative set-up and legal permits, while emphasising the role of women in governance and decision-making over natural resources in Penyandingan Village. “We do not just help residents make a finished product; we accompany the process so that women gain confidence, hold positions in decision-making, and ensure their businesses are sustainable,” says Yunita Sari, director of PINUS South Sumatra.

The impact is already being felt. The group has recorded a 4 per cent increase in local community income, with 24 direct beneficiaries involved in production, packaging and marketing. At the same time, the women of KUPS Anak Belai have planted approximately 100 banana trees across a 1-hectare agroforestry plot, creating both a sustainable raw material source and a contribution to environmental restoration. This shows that a restorative economy approach can both have a tangible environment impact and increase welfare of the communities. For Anita, the goal remains clear: “I want to see more village women become confident, earn an income, and remain active guardians of the forest. If the forest is destroyed, we lose everything.” The story of Anita Tasriah and the women of Penyandingan Village offers a timely reminder that a familiar fruit can carry a wider meaning. In Penyandingan Village, bananas are not just a snack or commodity, but a bridge between women’s livelihoods, local enterprise and the long-term protection of forests.

In Asia, however, the supply chain faces growing pressure from climate change, crop disease and land conversion, affecting both availability and price. Malaysia produced around 313.9 thousand metric tonnes of bananas in 2024, with forecasts showing a further decline to 305.1 thousand metric tonnes by 2028. Bananas remain an important fruit crop for smallholders, with varieties such as pisang berangan, pisang tanduk, and pisang awak widely grown for both domestic consumption and processing into flour, chips, and fiber-based products. To preserve banana farming, the government has integrated bananas into the National Agrofood Policy, promoted tissue culture for disease resistant varieties, and supported smallholder sustainability programmes that emphasise energy efficiency, reduced carbon footprint, and diversified cultivation. Across the region, one such story comes from Penyandingan Village in South Sumatra, where bananas have become part of a larger effort to

Banana is widely grown for processing into flour, chips and fiber-based products.

Ghimbe Pramunan was established as a pillar of sustainable forest management, with women taking a central role in forest monitoring. “When heavy rain falls and the river suddenly turns murky, it is a sign that there is trouble upstream. Usually, the women are the first to notice,” Anita explains. The women carry out scheduled monitoring along specific trails, recording changes in water flow and signs of logging. They also monitor resources such as bamboo, rattan and banana plants to ensure harvesting remains within sustainable limits. These findings are discussed in monthly meetings to determine preventive action or customary sanctions. From banana chips to bigger purpose In 2023, that conservation effort expanded into an economic initiative

with the formation of KUPS Perempuan Anak Belai, a group comprising 24 housewives and 10 elderly women skilled in food processing and bamboo weaving. Under the guidance of the LPHA, bananas were chosen as a strategic focus because they are quick to harvest, versatile in use and can be cultivated without harming the forest. “Initially, we made banana chips only for our own needs or to serve village guests. The process was very simple, using traditional knives we call kuduk,“ Anita recalls. The creation of the Love Bana brand marked an important shift. With support from PINUS South Sumatra, a civil society organisation focusing on community-based natural resource management, which helped Anita and her team to improve production efficiency and quality consistency while retaining the traditional kuduk and anak belati knives as part of their

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