Driving Sustainability: Environmental, Social, and Governance (ESG) Practices at HHG

Abstract

This case examines the Environmental, Social, and Governance (ESG) practices of Hong Heng Group (HHG), a leading logistics company in Ipoh, Perak, Malaysia. Under the leadership of Shanee Heng, HHG has integrated ESG principles into its long-term strategy, aligning with national sustainability goals and meeting stakeholder expectations. Adopting a phased approach, HHG has addressed resource constraints by investing in Euro 5 engine trucks to lower emissions and introducing a route optimisation system to improve fuel efficiency. Although electric truck adoption remains limited due to infrastructure and cost barriers, the company continues to explore sustainable alternatives. HHG’s ESG initiatives extend beyond environmental measures. The Boss-Driver Program empowers committed drivers to become truck owners, while a “yin-yang” staffing strategy places female administrative staff in key roles to improve interactions with male drivers. Governance and safety practices include GPS tracking, defensive driver training, and progress toward ISO 9001 certification. Through these initiatives, HHG demonstrates how a mid-sized logistics company can strategically integrate ESG to enhance efficiency, strengthen relationships, and position itself as a responsible industry leader in sustainable logistics.