We are involved in an early phase of a pilot project on Dual Condensing System for our air conditioning units . It is to improve energy efficiency and reduce CO2 at the same time .” |
He revealed the pilot project started in 2020 as part of their efforts to manage its plastic waste better .
“ This initiative is undergoing constant evaluation regarding the efficiency of the project ,” he explained .
“ Moreover , we have a three per cent annual reduction target for our scheduled waste intensity , which we achieved by efficiently using our materials to minimise waste . We also fully monitor the volume of non-scheduled waste produced and recycled at our sites .
“ As one of the biggest pharmaceutical manufacturers in Malaysia , it is vital to ensure our products are available and accessible to patients . Thus , our products are distributed to more than 4,000 government healthcare facilities nationwide via the government-appointed logistics and distribution concession holder and delivered to more than 600 relevant purchasing points .
“ As for the private sector , our sales team visits these customers and takes orders from them . In addition to in-person visits and engagement , our newly-formed telesales team communicates and keeps in touch with customers over the phone and online . These efforts contributed to our penetration rate of 85 per cent for the private sector .”
He highlighted the telesales initiative , which was initiated to reduce the company ’ s mileages and carbon footprints , which was helpful during the movement control order ( MCO ).
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Ensuring optimal use of energy and resources
“ To ensure we use our energy optimally , we implemented several energy-saving initiatives . We switched to LEDs and solar panel-powered streetlighting at our manufacturing sites .
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“ We also upgraded and replaced inefficient machinery such as chillers and installed motion detectors to turn off lights ,” explained Leonard Ariff .
He said , in 2020 , the company also installed an energy monitoring device ( EMD ) at its Bangi-based plant to monitor energy usage . He revealed in 2021 , Duopharma Biotech planned to carry out energy and water audits at its manufacturing sites to develop effective carbon footprint strategies .
It included the implementation strategy for solar photovoltaic systems . He said these energy and water audits would be aligned with Sustainable Development Goals ( SDGs ).
“ Furthermore , we are involved in an early phase of a pilot project on Dual Condensing System for our air conditioning units . It is to improve energy efficiency and reduce CO2 at the same time .
“ The data from this pilot study will be used for the full implementation of this Dual Condensing System at our manufacturing sites in 2021 .
“ This is very much aligned with indicators for SDG 7 , which is ‘ Affordable and Clean Energy ’. Lastly , we recognise that we cannot take water for granted . Thus , various recycling initiatives are implemented to minimise water waste such as rainwater harvesting .”
On the issue of waste management
Wastes from Duopharma Biotech ’ s manufacturing activities are classified into scheduled and non-scheduled waste , whereby the recycling of non-scheduled waste such as paper , plastics and aluminium is promoted .
“ Any non-scheduled waste that cannot be recycled will be disposed of in municipal landfills according to the Department of Environment ( DOE ) regulations . As for scheduled waste , we cannot recycle them as DOE regulations do not permit this . Thus , the scheduled wastes such as unused and expired products , lights and many more are either disposed of in landfills , recovered or incinerated .
“ Our objective is to reduce all waste produced group-wide and to dispose of our scheduled waste responsibly , according to the relevant regulations and guidelines such as DOE regulations and requirements of the Environmental Quality ( Industrial Effluent ) Regulations 2009 .
“ Moreover , we have been encouraging recycling practices among our employees for several years , and there is a strong
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culture of recycling within the group .”
Since the waste is managed legally , Leonard Ariff argued that there ’ s still room for improvement for the company ’ s sustainability journey as the legal and permissible way does not guarantee that it is sustainable .
He said : “ The issue for us is sustainable does not equate to being legal . Being legal doesn ’ t mean that you ’ re sustainable . So , that ’ s where we have to improve our performance to make sure that we look at our carbon footprints in a way that is more sustainable , which may mean that it has to be higher than the legal requirements imposed on us .”
Minimising wastage of medicines
To reduce the wastage of medicines in its production and vendors , he highlighted Duopharma Biotech ’ s CI activities which cover its entire supply chain , from the manufacturing plants to warehouses and up to its customers ’ premises , used LEAN methodology .
“ This is how we drive optimal efficiency in all related processes to minimise wastage of medicines ,” he added .
“ Moreover , we ensure On Time in Full ( OTIF ) performance meets our 24-hour goal at least 85 per cent of the time . The target OTIF performance for our warehouses is even higher , at 97 per cent .
“ It means our warehouses cannot be responsible for more than three per cent of delivery delays . It ensures our goods arrive to our customers on time to reduce rejection from customers , thus preventing our medicines from going to waste .”
He said shared as part of Duopharma Biotech ’ s quality assurance , the company would audit its vendors or suppliers under a vendor management programme to meet the GMP standards . Under its Purchasing Vendor Management System , the company would conduct a Vendor Performance Evaluation ( VPE ) yearly for open feedback .
“ From this programme , we can help our vendors address any challenges they may face in terms of meeting Duopharma Biotech ’ s expectations on timely supply , product quality and after-sales support .
“ The evaluation also draws attention to underperforming vendors . They may be removed from our network if they are unable to rectify and improve in relevant metrics . This reduces wastage of medicines as they are made of highquality materials that do not spoil easily .” — @ green
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Joining Bursa ’ s FTSE4- Good Index |
DUOPHARMA BIOTECH BERHAD had been producing its sustainability report for the last four to five years . Group Managing Director Leonard Ariff Abdul Shatar said the report outlined everything the company had been doing to track the safety of its workers , waste management , energy management , etc .
“ There ’ s a lot that we ’ ve done , but I suppose that ’ s just us blowing our own horn .
“ But in 2019 , we were approached by Bursa Malaysia about the possibility of Duopharma Biotech being assessed for potential entrance into the FTSE4Good Index .
“ This is Bursa Malaysia ’ s initiative where you ’ re assessed , hit a specific benchmark , and go into the FTSE4Good Index . This is because there is a lot of global funding that only invests ethically or sustainably .
“ In other words , when they ’ re looking for shares , they don ’ t have to look through all the shares in the stock market and audit each one . So , Bursa Malaysia has created a sub-index , FTSE4Good , where all these companies have been assessed from an ESG perspective .
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“ So , last year Duopharma was for the first time included in the FTSE4Good Index ,” shared Leonard Ariff , adding the company ’ s performance and scoring for the FTSE4Good assessment have improved in 2021 .”
He explained the FTSE4Good Index included environmental , social , and governance aspects , covering a broader sustainability segment . This assessment showed Duopharma Biotech ’ s performance had improved in totality , and the company had remained on the FTSE4Good Index until now .
“ Early this year , we brought in Lloyd ’ s Register to audit the numbers we claimed in our sustainability report . The sustainability reports are voluntary , but we wanted to ensure that nobody could question the presented numbers .
“ So , we brought in Lloyd ’ s Register to do a third-party verification and also to evaluate where else we could improve . These are some of the activities that we ’ ve done to ensure that the numbers we ’ re presenting are credible and the action plans we ’ re doing are acceptable .
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It ’ s something that we ’ ll continue doing in the future .
“ For the second half of 2021 , we try to establish our Greenhouse gas ( GHG ) baseline plus a plan for reduction of the greenhouse impact . By the first quarter of 2022 , we want to be in a position to be able to publicly declare what our either nett-zero or carbonneutral target will be by 2035 or 2040 .”
Moving forward , Leonard Ariff shared that the group strived to be a sustainability leader in the country among its peers . This objective was one of the reasons behind the company ’ s continual improvement of its sustainability initiatives , especially in energy , water and waste management , as Duopharma Biotech is an energy and water-intensive company . “ Through our sustainability efforts , we also hope to maintain or improve our FTSE4Good Bursa Malaysia Index scoring . Moreover , we hope to be able to align all our sustainability initiatives with the SDGs and the UN ’ s 10 principles , which will propel us to be a sustainability leader in the country ,” he said .
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