THE ROLE OF CARBON TRADING IN ENHANCING SUSTAINABILITY METRICS AMONG MALAYSIAN MANUFACTURING FIRMS

This study conceptualised a framework for the effective integration of carbon trading mechanisms (CTM) in the manufacturing industry. The imminent implementation of the CTM presented a pivotal opportunity for the manufacturing sector to significantly enhance sustainability performance. The framework enabled manufacturing industries to systematically identify, measure, and reduce their carbon emissions, thereby contributing directly to the country’s carbon reduction goals and global efforts to combat climate change. This study proposed to examine the impact of the carbon trading framework on the sustainability performance of Malaysian manufacturing companies. To develop the framework of CTM and to examine the impact of the CTM framework on sustainability performance, this study employed both qualitative and quantitative approaches. The qualitative approach involved thematic analysis and in-depth interviews, while the quantitative approach utilised a structured questionnaire survey. The top management and policymakers of manufacturing companies could leverage data-driven insights from this study to make effective decisions about the design and implementation of carbon trading policies and improve sustainability performance.