Prof Agamuthu Pariatamby |
organisation ’ s goals and strategies are fundamental .”
There is also the moral and ethical dilemma of ESG as well . Ong brought up the Russian-Ukraine conflict as a prime example . The dispute highlights the dilemma of pulling out support for Russia as Russia ’ s fuel exports are more efficient to use when compared to other countries .
One could also look at the potential hypocrisy of governance within organisations where upper management would seek to use corporate loopholes and turn a blind eye to internal problems to save a few pennies for themselves or to hide their backdoor shenanigans , such as the Enron and recent FTX scandals .
However , despite these criticisms , there are potential solutions for the ESG framework for organisations .
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reaches the tipping point . Passing this point of no return will result in devastating effects , such as melting permafrost around the ice caps and rising sea levels .
“ Organisations and companies needed to take the threats of climate change seriously as we are at a critical level of passing the no-return mark to ruin .”
Contributing to CO2 accumulation would be overpopulation . According to the United Nations , on Nov 15 , 2022 , the eight billionth person was born . Humanity could travel further and establish more settlements in a short timeframe . However , the economy needs to feed and sustain a burgeoning population .
Throughout the years , various countries ’ economies have followed a linear path . This path utilises the planet ’ s natural resources , processing and manufacturing necessities and products for people to use , and finally discarding
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them , which leads to waste .
Unsurprisingly , this form of linear economy is not sustainable , not to mention the effects of social inequality and poverty that threatens the social stability of populations across the globe .
CRITICISM OF ESG AND POTENTIAL SOLUTIONS
“ How prepared are we as individuals , businesses and SMEs when it comes to a great change in the world , the climate and society ?” asked Ong .
“ As ESG is a framework for organisations to consider the needs and methods to generate value for all organisational stakeholders , it is normal for parties to be cautious when investing in ESG strategies , such as how the Governor of Florida prohibits the integration of the ESG framework .
“ It is because to get all stakeholders on board with the ESG concept , transparency and disclosure of an
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Prof Saidur Rahman |
GENERATING PROFITS WITHOUT HARMING THE PLANET
Ong suggested that countries focus on a circular or doughnut economy instead of a linear one . The framework for this economy focuses on reuse , reduce and recycle philosophies .
This framework may stand a chance in healing the planet while also fulfilling the needs of the growing population . This economy would also usher in the mentality whereby ESG does not lose profit but instead generates profit without harming the planet .
Ong also noted a suggestion from the Steward Leadership in Singapore . The organisation suggested that ESG be renamed ESL ( Environment , Society , Leadership ). The justification is that the strategies for sustainability should be anchored in values and ethics .
“ Although ESG mechanisms may be flawed and the issues are real , organisations must be purpose-driven to ensure that the future of sustainability is guaranteed ,” he added .
Other speakers also made presentations during the forum on the journey towards sustainability , such as Prof Saidur Rahman , Head , Centre for Nano-Materials and Energy Technology , Sunway University . This department focuses on the application of nanotechnology . Prof Agamuthu Pariatamby from the Jeffery Sachs Centre on Sustainable Development , Sunway University , presented on microplastic waste treatment for SMEs . – @ ESG
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of the total business establishments in Malaysia . It is highly improbable for the three per cent balance of large corporate of PLCs , government-linked companies ( GLCs ) or multinational corporations ( MNCs ) to be possibly ESG-certified without the cooperation of MSMEs . Therefore , MESG indexed against global standards of Global Reporting Initiatives ( GRI ), Sustainability Accounting Standards Board ( SASB ), etc shall be ready for deployment by then . Ministry of Transport ( MoT ) to devise a ‘ National Transportation Emission Reduction Rule ’ ( NTERR ) or equivalent MoT has to champion carbon reduction on all sea , land , and air activities under its portfolio , as transportation is a huge ticket item in the overall decarbonisation process of the nation . Targets aligned with NDC and embodied in NTERR must be directed to all supply chain operators as early as 2014 . |
Ministry of Local Government Development ( KPKT ) to establish a ‘ Solid Waste , Smart Township , Sewerage Treatment Plant and Landfill Related Rule ’ ( SSSLR ) or equivalent Municipal waste , town planning , sewerage treatment and landfill operations are all critical areas of ESG that , if done rightly , will significantly reduce carbon footprint . Coupled with recycling , waste-to-resource and circular economy initiatives , KPKT holds the key to low carbon transition by households and industries . Ministry of Human Resources ( MoHR ) to formulate an ‘ ESGfriendly Human Resource Rule ’ ( EHRR ) or equivalent MoHR and its agencies , especially the Human Resource Development Corporation ( HRDC ), should tailor its policy to encourage MESG-driven capacity building and industrial training geared towards affordable ESG |
adoption , transition , implementation , reporting and disclosure to fortify sustainability resilience of MSMEs . The Ministry of Finance ( MoF ) should streamline all tax incentives and / or cash grants disbursed through all other ministries and agencies There should be a whole-of-nation and whole-of-business framework to address the funding and incentive needs of MSMEs to implement MESG systematically . It is to be centrally monitored by MoF to ensure the attainment of NDC goals committed by KeTSA . Ministry of International Trade and Industries ( MITI ) to actively promote MESG overseas ESG is a global trend , and for MSMEs to export , they are increasingly bound by international standards . It is imperative for MITI , through Malaysia External Trade Development Corporation ( MATRADE ), etc ., to positively enable acceptance of MESG |
globally . The Malaysian Investment Development Authority ( MIDA ) offices overseas must facilitate this recognition to benefit Malaysian MSMEs . Role of Bank Negara Malaysia ( BNM ) in Shaping a Green GDP BNM is Malaysia ’ s central bank , which controls all banking and financial institutions and is empowered to green the Malaysian economy through its supervision over climate lending . Being the Director-General of Insurance simultaneously , BNM greatly influences underwriting business risks . Lending and insurance are two determinants of ESG compliance .
Hence , it is clear that timely and transparent ESG data sharing between ministries , agencies and industries , as championed by Bursa Malaysia , the Department of Statistics Malaysia ( DOSM ), the Companies Commission of Malaysia ( SSM ) and other relevant agencies are the cornerstone of ESG success .
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