In today's business world, Environmental, Social, and Governance (ESG) is not just a term; it's a game-changer. It's reshaping how companies do things, from how they run their day-to-day operations to the way they invest money and build connections in society.
ESG considerations are no longer optional; they are integral to modern business practices. This shifts businesses towards a more mindful way of operating, investing, and being part of the community.
When we talk about the "E" in ESG, we're looking at how a company affects the environment. This includes areas like carbon emissions, energy efficiency, waste management, climate change, and deforestation.
When we talk about the "S" in ESG, we're uncovering how a company connects with society. This encompasses fostering diversity, ensuring fair labour practices, supporting community initiatives, and upholding human rights. The "S" reveals the social footprint or sheds light on the social impact a company leaves beyond its business activities.
Exploring the "G" of ESG means examining how a company steers its governance. This involves transparent decision-making, ethical leadership, board diversity, executive pay, and maintaining overall accountability. In essence, the "G" reveals the governance framework that shapes a company's ethical standing in the business landscape.
The Malaysian government, on April 11, 2023, announced plans to introduce an environmental, social, and corporate governance (ESG) standards framework by the end of 2023. This framework plays a pivotal role in aiding small and medium-sized enterprises by facilitating access to funding, promoting capacity building, and supporting their transition to renewable energy.
Sime Darby has been actively engaged in sustainable practices. Sime Darby Property Berhad continues to elevate the sustainable real estate space with globally recognised certificates for its efforts in environmentally friendly property development.
CIMB Group, a prominent Malaysian banking group, has adopted green financing initiatives, supporting projects that have positive environmental impacts.
Sunway Berhad has shown commitment to sustainability in its business operations. The company has engaged in various environmental initiatives, including energy-efficient construction practices, waste reduction, and renewable energy projects.
As a prominent healthcare leader in Malaysia, KPJ Healthcare remains steadfast in its commitment to sustainability. The organization, through its Klinik Waqaf An-Nur (KWAN clinics) and dialysis centers, serves as a catalyst in addressing healthcare disparities in Malaysia.
The ESG landscape in Malaysia is in a state of dynamic evolution, with positive trends taking shape. The country has big goals to lower the amount of greenhouse gases it produces, so many companies are now putting their efforts into projects that use renewable energy, like solar and wind power.
There's a growing awareness among Malaysian businesses about the importance of getting involved in their local communities and addressing crucial social issues such as poverty and inequality.
They're realising how important it is to be part of the local scene and tackle important social problems. This means they're making strategic investments in projects for education and healthcare, and also giving strong support to SME businesses in the area.
Embracing ESG principles positions Malaysia for positive growth, global competitiveness, and a responsible, impactful role on the world stage. Hence, the collaborative efforts of businesses, government, and civil society become crucial in achieving these shared objectives. The comprehensive goal is that ESG practices contribute significantly to creating a more sustainable, equitable, and resilient future for both the country and its citizens.
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