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OCBC Bank (Malaysia) Berhad [SGX: O39]
Incorporating the power of recognition into our vendors sustainability journey
Cynthia Khoo, Head
Cynthia Khoo is the Executive Director and Head of the Central Procurement Office at OCBC Bank (Malaysia) Berhad, where she drives transformation toward a data-driven, sustainable procurement culture. With over 20 years at OCBC and a Lean Six Sigma Black Belt, she champions efficiency, innovation and ESG-driven value creation.
Through this interview, Khoo highlights the importance of recognising and rewarding vendors’ sustainability efforts as a catalyst for deeper engagement, stronger partnerships and lasting progress toward shared ESG goals.
Beyond the instructions that well-meaning corporates dish out liberally to their vendors to promote the sustainability agenda lies a much-neglected dimension to moving the wheels of ESG-driven procurement. At OCBC Malaysia, we recently rediscovered the power of recognition in the journey toward a more sustainable vendor force.
The story of this successful venture to single out vendors who did well by doing good began early 2024 when the OCBC Malaysia Central Procurement Office collaborated with its COO Sustainability Task Force to initiate and organise the Bank’s very first Vendor Decarbonisation Competition (VDC).
As part of the VDC, we encouraged our vendors to participate by showcasing how they were offsetting carbon emissions and implementing sustainability programmes. We requested that they provide us with detailed reports of their progress for our judges – members of OCBC Malaysia’s Sustainability Steering Committee, which included certified experts in sustainable practices – to evaluate. We selected two winning vendors and welcomed representatives from both companies as guests-of-honour to our headquarters, where we then presented the awards and invited them to share about their sustainability journey – before an audience comprising OCBC Malaysia staff from various disciplines.
This case study, featured in OCBC Malaysia’s 2025 Sustainability Report, shows how a simple initiative can strengthen relationships and inspire pride through meaningful recognition. It reflected our commitment to walking the sustainability journey together while openly acknowledging and rewarding deserving business partners, in alignment with the UN Sustainable Development Goal on Partnership for the Goals.
Leading up to the VDC, we had been engaging our vendors on their ESG performance over the past several years. So, implementation of the competition did not come across as something forced, but rather, very natural. At the heart of the competition was the quest to drive home the importance of our vendor engagement efforts, focusing primarily on decarbonisation and net zero emissions (among other important sustainability aspects).
We developed the all-important vendor roadmap in ESG maturity, and the competition fitted in seamlessly.
As a panellist at the Industry Procurement Conference about two years ago, I noticed then that there was a gap in how we ran sustainability in procurement. We at the Bank realised we needed to influence and manage the supply chain as procurement specialists, but we initially had no defined action plans. So, we developed the all-important vendor roadmap in ESG maturity, and the competition fitted in seamlessly.
We view our vendors as strategic allies rather than simply suppliers. So, we don’t see them as entities to be ordered around, but as prime movers to collaborate with. To do that, we promote trust, transparency, open communication and joint planning. We depend on our vendors, as much as our internal support units, to function well, which is why we provide constructive feedback to them and even recognise their achievements publicly, as through the VDC.
Our winning vendors commented to us that the competition was a valuable platform to reaffirm both their dedication to a zero-carbon future and their commitment to aligning with global sustainability standards, which is crucial as environmental expectations continue to evolve. They even said that the VDC pushed them to take a closer look at how they could innovate their processes and enhance the eco-friendly features of their products. One even remarked that the competition strengthened their commitment to conduct their business responsibly and sustainably, while learning from our leadership. And, of course, there was the benefit of using the recognition as a selling tool for their own marketing purposes.
The VDC was part of OCBC Malaysia’s ongoing vendor engagement programme, which also includes talks and a monthly email series titled “Partnering in the Sustainability Journey” to encourage working towards the 17 UNSDGs, adopting sustainable best practices and adhering to our OCBC Supplier Code of Conduct.
We’re striving to be even more forward-looking and sustainable ourselves by seeing lasting value in our partnerships with our vendors, and we’re striving to build and nurture those partnerships towards a sustainable future for us all. And we plan to collaborate further with them in their carbon management journey.
Through the VDC, we were making a statement that ESG is the future of responsible business. We aim to carry this momentum forward, towards helping our vendors be listed as green companies. All the time ensuring that every decision we make aligns with our shared vision of a sustainable and equitable world and driving meaningful change as procurer and vendors.
On that note, the ultimate purpose of penning this piece is to send out a rallying call to my fellow procurement industry mates to consider implementing meaningful competitions among their own vendors as well – to draw out the best from them. By allowing these vendors to pit themselves against each other in a closed setting, more of them have a chance to win and be recognised. Having more winners out there is never a bad idea, especially when the future of our planet is at stake.
