Kossan Rubber rolls out Greening Value Chain Programme with fintech partner, Pantas
By Sustainability Matters March 8, 2023
- Free access to software allowing SMEs to measure their GHG emissions
- Access to LCTF, training and consultation services part of programme
Bursa Malaysia listed Kossan Rubber Industries Bhd has begun rolling out its Greening Value Chain Programme (GVC) - originally announced at Cop-27 in Egypt as an initiative by Bank Negara Malaysia (BNM) and GVC strategic partners.
Kossan, one of the world's largest rubber gloves manufacturers with 2021 annual capacity of 33.5 billion pieces, introduced Pantas Software Sdn Bhd as its climate solutions partner at an event in Kuala Lumpur yesterday. The programme aims to assist and incentivise carbon emission management among Kossan’s small medium enterprise (SME) suppliers, making them the strategic SME suppliers of Kossan.
A fintech launched in 2021, Pantas is the first software company in Southeast Asia to pledge and get validated by Science Based Targets initiative (SBTi).
Using Pantas’ solution, SMEs will be able to start measuring their Greenhouse Gas (GHG) emissions. Access to the solution will be provided for free. Other GVC service provider partners will contribute to training and consultation services. These include Malaysia Green Technology and Climate Change Corporation (MGTC), Credit Guarantee Corporation Malaysia Bhd (CGC), British Standards Institution (BSI), and AmBank Bhd (AmBank). The programme is supported by the Joint Committee of Climate Change (JC3) which is co-chaired by BNM and Securities Commission Malaysia.
Under Bursa Malaysia's enhanced sustainability reporting requirements, all public listed companies will start adopting common reporting standards in line with Bursa's requirements. The challenge of incorporating GHG emission measurements along the value chain of a public listed company operations requires that their vendors in turn begin capturing their data, which continues to be an issue for SMEs due to resource limitations.
Regulators have been rolling out several programmes to assist SMEs with this, including the Low Carbon Transition Facility (LCTF) announced by BNM in 2021. In a press release, Kossan adds that this programme will enable their suppliers to access the LCTF facility to fund working capital or capital expenditures related to low-carbon practices at an affordable rate.
[Ed note: Read DNA’s piece on the low take-up rate of the LCTF and the missed opportunity in Budget 2023 to address a key contributor of the country’s GHG emissions]
Lim Kuang Sia (pic), Group Managing Director and CEO of Kossan believes that the company will succeed in its sustainability journey by strengthening its partnerships and collaboration. “This programme is a win-win-win relationship for our suppliers and Kossan, which also benefits the environment. This is one example of our commitment to creating shared values with our partners because we believe that our sustainability journey is a path to take together.”
Following the GVC programme rollout, Pantas and other selected service provider partners will hold regional training sessions to equip SME suppliers with valuable insights into climate change, including the importance and methods of carbon management and reporting. The first training session will be held on March 21st, 2023 in Kuala Lumpur.
“We believe that an integrated software solution, relevant training and awareness are essential to get SMEs onboard Kossan’s sustainability efforts to ensure a just transition” added Max Lee, CEO and co-founder of Pantas.
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