Carlsberg Malaysia managing director Stefano Clini
Carlsberg Malaysia reaffirmed its commitment to ethical, people-centric supply chain practices by bringing together upstream and manpower suppliers for its second Supplier Day.
With a focus on human and labour rights, the event, which was held in December last year in conjunction with International Human Rights Day, underlined the brewer’s ambition to move beyond policy and compliance towards company culture and best-in-class practices.
“We are advancing from ‘what we do’ to ‘how we do it’, placing people at the heart of our business,” said Carlsberg Malaysia managing director Stefano Clini. “Our mission is clear and deeply meaningful: to build a supply chain that is sustainable, inclusive and people centric; one where every individual, regardless of their role, is treated with dignity, fairness, respect and compassion.”
The supplier engagement event also underscored Carlsberg Malaysia’s commitment to align with the country’s National Action Plan on Business and Human Rights 2025-2030, alongside the company’s own refreshed Human Rights Global Policy.
Carlsberg introduced its Human and Labour Rights Starter Kit and Self-Assessment Framework to over 60 suppliers in attendance with an aim of equipping them with tools to identify and assess key risks, strengthen governance, and close gaps in labour and human rights management.
Carlsberg Malaysia’s people and culture director Choy Yen Li shared with StarESG that the Self-Assessment Framework is a fundamental survey to identify a supplier’s current level of readiness in implementing human rights standards within their operation. It consists of 15 questions covering key areas such as fair wages, working hours and occupational health and safety.
“Their responses will help us identify opportunities for improvement and determine where support may be needed, such as suppliers who may need a bit more guidance, resources and collaboration,” Choy said.
The starter kit, meanwhile, was developed to help suppliers kick-start their human and labour rights journey. The checklist includes accommodation inspection, training, grievance log, recruitment agency due diligence, disciplinary framework and other key human rights requirements.
Choy shared that the results from Carlsberg’s recent risk assessment has returned valuable insights into areas where suppliers face challenges, which reflect broader industry realities especially for suppliers managing local and foreign workers.
Common challenges, she added, include recruitment oversight (limited visibility on third-party recruitment agencies and practices such as recruitment fees, which can lead to debt bondage); working hours and overtime; accommodation standards; and worker awareness of grievance mechanisms.
Carlsberg works with suppliers to develop corrective action plans and follow up consistently to ensure progress. “Our approach is partnership-driven. We believe in enabling suppliers to succeed, not just enforcing compliance. Together, we aim to set the benchmark for ethical and sustainable business practices across our value chain”, said Choy.
At the Supplier Day event, sharing led by Carlsberg Malaysia’s senior management was complemented by expert perspectives from the United Nations Development Programme and KPMG Malaysia.
The team from KPMG noted that human rights practices among companies have evolved from one-off audits on suppliers to annual exercises that are part of governance risk management.
A key takeaway was that human rights are a shared responsibility, as risks travel across the value chain. Violation upstream can create consequences downstream, such as reputational damage that affect product sale.
For Carlsberg Malaysia, a remediation process will be launched when gaps or non-compliances are identified.
A corrective action plan with clear timeliness and responsibilities will be developed after an open discussion with suppliers, followed by periodic assessments to monitor improvement progress, Choy said. Suspension or termination of the suppliers is the last resort.
“Our priority is always to work with suppliers to succeed, not to exit the relationship.
“This approach reflects our commitment to building a supply chain that sets the benchmark for ethical and sustainable business practices, where every supplier feels supported in creating safe, fair and inclusive workplaces.”
