Holistic approach in ESG journey

KUALA LUMPUR: Malaysia is taking firm strides towards becoming a green investment hub as it aims to drive sustainable development through new initiatives, says Nik Nazmi Nik Ahmad.

The Natural Resources and Environmental Sustainability Minister said these efforts aim to safeguard the environment, support people and strengthen governance as the country pursues its Environmental, Social and Governance (ESG) goals.

Nik Nazmi said achieving these ambitions is essential for Malaysia’s future as a competitive and resilient economy.

“ESG is not just about the environment. It is also about the people and fairness.

“We must balance economic growth with equity, ensuring that our journey towards sustainability uplifts everyone,” he said in his speech at the inaugural ESG Summit 2024 held at Kuala Lumpur Convention Centre yesterday.

Highlighting that ESG goes beyond filling scorecards, Nik Nazmi spoke on the importance of robust governance to ensure the country’s sustainability efforts are both impactful and inclusive.

He said effective governance, especially within ESG frameworks, can help protect the environment and support the well-being of Malaysians across all sectors.

Reaching out: SMG group chief executive officer Chan Seng Fatt (right) presenting a token of appreciation to Nik Nazmi after the launch of the summit at Kuala Lumpur Convention Centre.
Looking on is Sime Darby Property chief marketing & sales officer Datuk Lai Shu Wei. — YAP CHEE HONG/‘The Star

The ESG agenda, he said, includes introducing a carbon tax by 2026 in high-emission sectors such as iron, steel and energy, alongside a RM6.4bil financing initiative by Bank Pembangunan Malaysia Berhad to bolster infrastructure development, digitalisation and the energy transition.

The Minister also highlighted that the government is establishing a RM3.8bil loan fund to support small and medium enterprises (SMEs) in implementing sustainable practices.

However, Nik Nazmi acknowledged the rising “anti-ESG sentiments” in some sectors abroad, with certain companies moving away from sustainable commitments due to political pressures.

“These sentiments are fundamentally wrong and ultimately self-defeating,” he said, stressing that businesses cannot thrive if their actions undermine societal welfare.

“The ultimate bottom line for all businesses is the survival of their respective societies on this planet.”

Nik Nazmi called on corporations to view ESG as a way to safeguard both the environment and Malaysia’s socio-economic stability.

He also warned against “greenwashing” and urged companies to adopt authentic ESG practices, which include governance measures that prioritise transparency, accountability, and ethical standards.

With Malaysia set to chair Asean in 2025, he said the nation aims to lead by example in promoting sustainable practices across the region.

Nik Nazmi highlighted the government’s recent launch of the National Climate Change Policy 2.0 and ongoing efforts to finalise the Nationally Determined Contributions (NDC) Roadmap, alongside the Climate Change Bill currently under public consultation.

Media organisations have a critical role to play, he said.

“By championing actionable ideas and pushing Malaysians to think bigger about sustainable practices, the media can drive home the importance of ESG to a wider audience,” he added.

At the summit, Star Media Group (SMG) was recognised for its commitment to sustainability and raising awareness on ESG issues, reflecting the influence of media in shaping public discourse on the matter.

“The role of the media in inculcating ESG in societies is crucial. SMG has chosen the more responsible course and for that, I thank you.

“SMG consistently pushes the boundaries in sustainability by working tirelessly to bridge the gap between industry experts, academics, practitioners, scientists and governments from across the world to make this conference a reality,” he added.Nik Nazmi said the government’s latest frameworks offer businesses and SMEs a pathway to transform themselves into sustainable entities, ensuring their practices contribute to a low-carbon, climate-resilient economy.

“For businesses that proactively embrace and leverage these initiatives, the rewards will be transformative, providing competitive advantages, enhanced stakeholder engagement, and access to sustainable financing,” he said.

He said the summit underscored Malaysia’s commitment to long-term environmental, social, and economic goals, with ESG frameworks positioned at the core of its strategy.

“Malaysia can and will be the future,” Nik Nazmi added.

The ESG Summit is organised by Star Media Group Bhd, with Sime Darby Property Bhd as the Urban Biodiversity Partner. Saxon Renewables and Zurich Malaysia are silver sponsors.
Heineken Malaysia as a business development sponsor.