KOTA SAMARAHAN, July 30: There is widespread misconception that the principles of Environmental, Social, and Governance (ESG) apply only to prominent companies, but in reality, everyone should embrace and practice them.
Head of Research Fellow (Energy & Sustainability Division) Institute of Sustainable and Renewable Energy University Malaysia of Sarawak (UNIMAS), Dr Florianna Lendai Michael Mulok said the high demand for ESG standards, like those set by Bursa Malaysia, is also starting to influence other companies.
“Malaysia refers to Bursa Malaysia, and Bursa Malaysia also refers to international standards, so we have two types of reporting: mandatory and voluntary reporting.
“Mandatory reporting is for corporate companies because they have a social and environmental impact, and these larger corporations should be at the forefront of industry reporting.
“For example, you can see Petronas, Shell, Khazanah even Media Prima have their self-reporting. The publicly listed company is a must because they often have a regulatory subject requirement,” she explained in an exclusive interview with TVS at UNIMAS on Wednesday.
According to Dr Florianna, other than government entities, financial institutions such as banks, firms, and money lending agencies should lead by example in implementing ESG principles, as they can gauge how ESG can support sustainable business practices through their investment strateges.
“By implementing the practices, they can access the organisation in reporting what is necessary to establish the security or confidence level of investors towards them,” she added.
She also pointed out that the understanding and perception of the Sarawak community in ESG is still at a low level, but nonetheless is developing through initiatives undertaken by government and private entities including courses and business forums.
“However, there is still a gap that needs to be closed and we are lagging behind. We are still focusing on awareness when we should be executing action plans,” said Dr Florianna.- TVS
