@ green | NOVEMBER-DECEMBER . 2023

National ESG framework prepares manufacturing sector to tap opportunities

The i-ESG Framework is a key enabler for the Push for Net Zero mission , one of the four ( 4 ) missions of the recently launched New Industrial Master Plan 2030 ( NIMP 2030 ). The i-ESG ’ s overarching objective is accelerating the

It consists of four pillars - standards , financing , capacity building and market mechanism – as well as 17 strategies , 50 deliverables and six key enablers aimed at providing invaluable guidance and driving ‘ Just Transition ’ towards ESG compliance for the manufacturing sector , especially for Micro , Small , and Medium Enterprises ( MSMEs ).”

transition towards sustainable practices among manufacturing companies .

It consists of four pillars - standards , financing , capacity building and market mechanism – as well as 17 strategies , 50 deliverables and six key enablers aimed at providing invaluable guidance and driving ‘ Just Transition ’ towards ESG compliance for the manufacturing sector , especially for Micro , Small , and Medium Enterprises ( MSMEs ).

Minister of Investment , Trade & Industry , Tengku Zafrul Aziz , said : “ While the New Industrial Master Plan 2030 sets out the ‘ what ’ on ESG , this i- ESG Framework presents the ‘ how ’, serving as a roadmap for businesses to integrate ESG considerations into their operations , and a tool for regulators to ensure compliance and accountability .”

The i-ESG Framework Phase 1.0 ( 2024 – 2026 ) prepares the groundwork and fosters the development of a robust ecosystem to help companies embark on their ESG journey .

More importantly , it centres around the principle of ‘ Just Transition ’ because our businesses , particularly the MSMEs , cannot be held immediately accountable to standards that companies in developed markets have had a head start on for at least a decade or longer .

This also reflects the MADANI Economy ’ s commitment to inclusivity , ensuring that no one is left behind , particularly in pursuing ESG objectives .”

The i-ESG Framework Phase 1.0 comes with an ESG Readiness Assessment ( i- ESGReady ) to assist companies in understanding and evaluating their current ESG adoption level , and the i-ESG Starter Kit ( i-ESGStart ), a clear and user-friendly , step-by-step guide with practical examples , as well as calculation methods and templates to facilitate their sustainability reporting .

In Phase 1.0 , MITI will also conduct clinic sessions to empower and guide 50 companies in producing their first sustainability report . The first clinic was at the end of October 2023 .

With the i-ESGReady and i-ESGStart , companies with no sustainability reports should be able to produce their report within a year . This will ensure their readiness to meet the more rigorous demands of Phase 2.0 “ Accelerate ESG ” ( 2027 – 2030 ).

“ The phased , progressive approach represents the ‘ Just Transition ’ that Malaysian companies and MSMEs need to fulfil the growing demand for sustainable products and the requirements for ESG reporting in export markets .

“ Through the i-ESG Framework , we also have an opportunity to get our ESG target outcomes right via our manufacturing sector . For the sake of our children and Planet Earth , let us get this right the first time , as we may not have the luxury of considering Plan B because there is no Planet B ,” added Tengku Zafrul .

MITI has also begun its “ KenalESG ” outreach programme in Kuala Lumpur ( 200 companies ), Penang ( 190 companies ), and Johor ( 130 companies ) to raise ESG awareness and introduce the i-ESG Framework to industries .

The programme will also be conducted in Sarawak , Kelantan , Terengganu , and Pahang by the end of 2023 , while other States will be covered by the first quarter of 2024 . – @ Green