ESG | JULY-AUGUST , 2023

BY PROFESSOR DATO DR AHMAD IBRAHIM ( FMM ) Founding Member Malaysian Association of Public Advocacy for Nature ( MAPAN )

WORLD Environment Day was on June 5 . It was a day for all to undertake a self-audit on the actions taken to resolve the worsening state of the environment .

That the environment is in poor shape is no understatement . There is still no clear sign that we are winning the fight against the climate crisis . Oceanic pollution by plastics is not showing any sign of improvement . This is despite the increasing report of microplastics entering our food chain .

The GHG level in the atmosphere continues to rise . The root cause of the emissions remains unaddressed . Instead of fighting climate change , countries are busy fighting each other . The conflict in Ukraine has yet to see signs of abatement .

The war has taken a heavy toll

BY ILDAR USMANOV ( FMM ) Founding Member , GHG Cluster Malaysian Association of Public Advocacy for Nature ( MAPAN )

ABSTRACT

The diverse range of practices related to environmental , social and governance ( ESG ) presents numerous opportunities to create a more sustainable and equitable future .

But for an organisation at the early stage of sustainability engagement , to attempt addressing all ESG aspects could lead to confusion and thinning of resources .

Therefore , prioritising carbon emissions management becomes crucial in building a credible ESG strategy that SMEs can confidently communicate to internal and external stakeholders .

INTRODUCTION

Climate change , once viewed as a distant issue , has now become an imminent and existential threat that poses the most significant challenge . The conversation around sustainability topics increased dramatically . And sustainability professionals , once considered niche area experts , are now highly sought-after specialists globally .

To act on the new reality , Malaysia has committed to becoming a carbon-neutral nation , fostering on the energy transition plan of countries in the EU . They have limited energy choice options , dependent on supplies from warring Russia . Some have even reverted to burning coal for much-needed energy to run their economy .

All the promises made at past COP meetings have evaporated into thin air . All the pledges on climate financing for the less developed economies prove to be empty rhetoric .

Instead of helping countries to reduce emissions and at least achieve the net zero targets , some developed economies are dishing out punitive trade barriers .

Such non-tariff barriers in the name of sustainability are not helping nations build that muchneeded financial capacity to adapt to climate change .

Not to mention how such unilateral actions negatively impact poor farmers , as shown in the case of the EU hounding the palm oil industry . Mitigation is , of course , a far-off dream for such underprivileged countries .

In the meantime , water has

a strong interest in measuring , reporting , and reducing greenhouse gas ( GHG ) emissions .

As a result , leading organisations have integrated greenhouse gas management into their holistic business strategies to communicate various benefits , such as positioning advantage , more enduring revenue streams ; less employee turnover ; lower regulatory risk ; tax incentives , and investors ’ interest .

GHG STANDS NOT ONLY FOR E IN THE ESG FRAMEWORK

Today , one of the CEO ’ s concerns is not when to engage in sustainable development but where to start now . Focusing on GHG management is a good starting point if a company is unsure where to begin with its ESG strategy .

Even though GHG management directly addresses the environmental aspect by focusing on the accounting of greenhouse gas emissions , it also intersects with the social and government part of the ESG framework .

By involving employees in GHG management through employee training programmes , awareness campaigns , and promoting a culture of sustainability , companies foster a sense of social responsibility , raise awareness about the importance of carbon emissions management , and empower employees to contribute to sustainability efforts not only within the company but also at the household level .

The governance aspect of the developed into another issue of conflict among nations and within countries . The ongoing conflict in Sudan may worsen the watersharing problem in the Nile region .

In Malaysia , we are also not short of water-related conflicts . For example , poorly managed water systems in Kelantan and Sabah are becoming political football . The recent bruising between Kedah and Penang also has its root in water .

The world is such that the UN may have lost confidence in delivering its 17 sustainable development goals , SDGs . Global inequity has increased the percentage of world poverty , and global instability has also exacerbated the No 2 goal to reduce world hunger .

All the conflicts have escalated the number of refugees looking for shelter . Many have perished crossing the Mediterranean , not to mention the massive disruption in the global food supply chain and logistics .

It would not be far-fetched to suggest that the current global phenomenon of high food prices

ESG framework is closely tied to GHG management as it involves establishing policies , procedures , and accountability mechanisms to ensure the effective management of emissions .

Integrating GHG management into governance involves setting emission reduction targets , establishing clear roles and responsibilities , conducting regular monitoring , and reporting , and aligning management practices with environmental regulations and best practices .

GHG STRAIGHTENS THE COMPLEXITY OF ESG

Greenhouse gas emissions management , due to its standardised methodology and prospect for thirdparty verification , which external stakeholders value , tremendously enhances the credibility of the organisational carbon footprint .

It also builds organisational confidence in communicating its sustainability efforts . It is also a starting point for various directions in sustainable management development of the organisation .

Implementing GHG management practices enables organisations to identify emission sources , analyse , and develop strategies to reduce emissions .

By setting emission reduction targets , adopting energy-efficient practices , implementing renewable energy solutions , and optimising processes , organisations can effectively mitigate their is , in many ways , attributed to such conflicts among nations . Even the recent stalemate over the US debt ceiling has hurt some economies .

It is unfortunate that the constant calling by civil societies to stabilize the world seems to have fallen on deaf ears .

We sometimes wonder whether world leaders are genuinely interested in championing sustainability for the sake of the world , especially for the sustained livelihood of future generations .

It is unfortunate that most world leaders are more concerned about their selfish short-term goals . Most of their actions cater to their quest to remain in power for as long as possible .

Some even succumb to the temptation of changing the constitution to keep their position . Many resort to popular rhetoric to show they care for stability and the well-being of the people . We see this flourishing at home as well .

When will we see world leaders like Nelson Mandela or Mahatma Gandhi , to name a few , who show the global statesmanship we crave ?

These are the sort of leaders we should support if we are to have any chance of pushing the sustainability agenda . Not to the many fake leaders who appear good on the outside but rotting on the inside . We need more leaders to show and practice global statesmanship . – @ ESG

environmental impact . GHG emissions management encourages organisations to adopt practices that minimise waste generation , promote recycling and reuse , and implement effective waste management strategies .

Additionally , GHG management practices often encourage organisations to evaluate water usage patterns and implement water conservation measures , leading to more sustainable water management practices .

In assessing and managing carbon emissions associated with transportation , organisations can identify opportunities to reduce emissions and optimise logistics . It may include using more fuelefficient vehicles and promoting alternative supply chain methods .

Organisations can collaborate to measure , report , and reduce emissions throughout the value chain by engaging with suppliers , customers , and partners . This holistic approach allows organisations to address a significant portion of their total emissions and extend their sustainability impact beyond their immediate operations . Moreover , GHG management allows organisations to participate in carbon markets . These markets enable trading emission allowances and carbon credits , allowing organisations to offset their emissions by investing in emission reduction projects .

CONCLUSION

As we can see , a well-designed and maintained organisational greenhouse gas management system is often the first and essential step in the corporate sustainability journey . It is a foundation for other strategies . – @ ESG