Establishing a Strong ESG Reporting for Fai Wong Restaurant: Approaches to Strengthening Sustainability and Transparency

Koong, Zhi Ying (2025) Establishing a Strong ESG Reporting for Fai Wong Restaurant: Approaches to Strengthening Sustainability and Transparency. Masters thesis, Tunku Abdul Rahman University of Management and Technology.

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Abstract

This ESG report presents a comprehensive analysis of the sustainability practises implemented at Fai Wong Restaurant, a Malaysian SME operating in the food and beverage industry. The objective of the study is to evaluate the restaurant's performance across three key pillars—Environmental, Social, and Governance (ESG)—for the financial year ending 31 December 2024. Through a mixed-methods approach combining primary data collection, structured interviews, stakeholder surveys, and emissions calculations, the report assesses the material sustainability issues most relevant to the business and its stakeholders. Environmental analysis focuses on measuring greenhouse gas (GHG) emissions from LPG usage, electricity, fuel, and employee commuting, using internationally recognised standards such as the UK Government GHG Conversion Factors and Malaysia’s Grid Emission Factor (GEF). The total calculated emissions amounted to 135.44 tonnes of CO₂ equivalent across Scope 1, 2, and 3 categories. The report also examines water usage and waste management, highlighting initiatives to reduce food waste and promote recycling. Social performance is evaluated through employee satisfaction surveys and workplace data. Results demonstrate high employee retention, fair labour practises, and strong welfare support including EPF, SOCSO, bonuses, and regular training. The restaurant also complies with Malaysian food safety laws, conducts regular inspections, and ensures staff receive typhoid vaccinations, reinforcing its dedication to customer health and hygiene. Governance practises at Fai Wong Restaurant are gradually being formalised. Key areas such as policy implementation, risk management, and stakeholder engagement have been identified as opportunities for improvement. A materiality matrix was developed to align ESG priorities with internal and stakeholder concerns, guiding the restaurant toward effective strategy implementation. In conclusion, the report confirms Fai Wong Restaurant’s commitment to sustainable growth. While environmental and social aspects are progressing well, stronger governance will enhance long-term performance and stakeholder trust.