FM Global Logistics Holdings Bhd, one of Southeast Asia’s top-tier multimodal freight providers, expects to see a 20% reduction in its greenhouse gas (GHG) emissions per annum, thanks to three strategic collaborations – with Scania Malaysia Sdn Bhd, Solarvest Energy Sdn Bhd and JAC Motors Malaysia Sdn Bhd.
Formalised recently in Kuala Lumpur, the partnerships between FM Global’s wholly-owned subsidiary, FM Global Logistics Sdn Bhd, with the three companies serve to deepen the group’s commitment to its environmental, social and governance (ESG) agenda.
To date, FM Global has purchased 20 Scania Super trucks equipped with the fuel-efficient Euro 5 engines for an estimated RM11 mil.
The group is also commissioning Solarvest for the installation of solar systems for its warehouses at a cost of around RM1.5 mil in addition to acquiring two JAC i75 electric trucks from JAC Motors for RM557,000.
“These investments in green technology will assist the group, especially with compliance to regulatory standards in the coming years,” FM Global’s group managing director Chew Chong Keat told FocusM at the sidelines of its handover and partnership inking event.
According to Scania, the Scania Super trucks offer potential fuel savings of up to 8% per vehicle, hence able to process, reduce GHG emissions from FM Group’s operations by as much as 719 metric tonnes (MT) annually.
Meanwhile, FM Global’s acquisition of JAC Motors’ electric trucks marks the start of the group’s transition away from fossil-fuel combustion engines to zero emission vehicles.
Based on JAC Motors’ assessment, each i75 light truck offers up to 6 MT of emission avoidance annually.
Apart from boosting fuel efficiency and reducing GHG emissions, FM Global’s fleet modernisation initiative is also poised to improve operational excellence and enhance long-term environmental responsibility.
“We are hopeful that the Scania Super trucks and the JAC i75 trucks will not only contribute to a better emission control but a better Scope 3 Greenhouse Gas avoidance and reporting for our customers,” projected Chew.
As for its collaboration with Solarvest, this comes in the wake of FM Global’s successful commissioning of a similar project on a single warehouse last year.
The latest undertaking involves the installation of solar PV systems for an additional 1.0-megawatt peak (MWp) at FM Global’s second and third warehouses, thus bringing the total installed capacity to almost 1.6 MWp from all three facilities.
According to Solarvest, the solar systems on the three warehouses can generate almost 2,000 megawatts hour (MWh) of clean energy annually, potentially offsetting approximately 1,300 MT of GHG emissions.
“The solar systems achieve two important objectives. The first is to reduce FM Group’s reliance on electricity from the national grid. The second and more important objective is to contribute to reducing GHG emissions from purchased electricity,” enthused Chew.
“From Malaysia, we will extend our ESG efforts to our regional offices. We intend to progressively reduce our carbon footprint by promoting sustainable practices, increasing energy efficiency and incorporating renewable energy sources.”
At 11.18am, FM Global was unchanged at 57.5 sen with 17,400 shares traded, thus valuing the company at RM321 mil. – Feb 25, 2025
