What is ESG Malaysia

In Malaysia, ESG considerations have become increasingly important for businesses and investors alike. The country has experienced rapid economic growth and development over the past few decades, which has resulted in environmental degradation and social inequality. As a result, there has been growing pressure on businesses to take responsibility for their environmental and social impacts.

The Malaysian government has taken steps to address ESG issues, including:

The alignment and establishment of the Sustainable Development Goals (SDGs)
Malaysia Sustainable Finance Initiative (MSFI). - The MSFI aims to promote sustainable finance practices and encourage investments in sustainable development projects. In addition to regulatory initiatives, Malaysian businesses are also taking action to improve their ESG performance.
Many companies are adopting sustainability reporting frameworks such as the Global Reporting Initiative (GRI)
Sustainability Accounting Standards Board (SASB) to report on their ESG performance to investors and other stakeholders.

As the ESG landscape continues to evolve in Malaysia, newer trends are emerging. One significant trend is the focus on renewable energy and reducing carbon emissions. Malaysia has set ambitious targets to reduce its greenhouse gas emissions, and businesses are increasingly investing in renewable energy projects such as solar and wind power. Another emerging trend is the focus on social impact and community engagement. Malaysian businesses are recognizing the importance of engaging with local communities and addressing social issues such as poverty and inequality. This includes investing in education and healthcare projects, as well as supporting local small and medium-sized enterprises (SMEs). Technology is also playing a significant role in ESG trends in Malaysia. The use of digital platforms and tools is helping companies to improve their ESG performance and engage with stakeholders. For example, digital platforms can be used to track supply chain risks, monitor environmental impacts, and engage with customers and employees.

What is ESG Malaysia

To adapt and prepare for the new ESG trends in Malaysia, businesses need to focus on several key areas. Firstly, they need to embed ESG considerations into their business strategy and operations. This requires a top-down commitment to ESG, with senior leaders taking responsibility for driving change. Secondly, companies need to invest in the right technologies and tools to manage ESG risks and opportunities effectively. This includes investing in data analytics and digital platforms to track and analyse ESG performance and identify areas for improvement. Thirdly, businesses need to engage with their stakeholders to understand their expectations and concerns around ESG sustainability issues. This includes customers, employees, investors, and local communities. By engaging with stakeholders, companies can build trust and maintain social license to operate.

Some of Malaysia’s largest companies are incorporating ESG. CIMB Group is a financial services company that has made significant efforts to integrate ESG practices into its operations. The company has established a sustainability governance framework and set targets to reduce its carbon emissions and increase its renewable energy usage. CIMB Group also provides financing solutions for sustainable projects and promotes financial inclusion and literacy among its customers. The company has received numerous awards for its sustainability efforts, including being named the Best ESG Bank in Malaysia by Euromoney in 2020. YTL Corporation is a diversified conglomerate that has been recognized for its ESG practices in various industries, including construction, utilities, and hospitality. The company has set targets to reduce its carbon emissions and improve its energy efficiency, and has implemented sustainable practices in its operations, such as using green building materials and promoting sustainable tourism. YTL Corporation is also committed to supporting the communities where it operates and promoting education and environmental conservation. The company has received numerous awards for its sustainability efforts, including being named the Top Sustainability Company in Malaysia by World Finance in 2021.

In conclusion, ESG considerations are becoming increasingly important for businesses in Malaysia. The government and businesses are taking action to address environmental, social, and governance issues, and newer trends are emerging. By embedding ESG considerations into their strategy, investing in the right technologies, and engaging with stakeholders, businesses can ensure long-term sustainability and success.

ESG Impact can help your business: