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Embracing ESG helps businesses face uncertainties

Embracing ESG helps businesses face uncertainties

19 Jul 2022

This is as the natural ecosystem is a key contributor toward growth and failure to do so will defeat businesses, MDEC says

COMPANIES must prioritise the environmental, social and governance (ESG) as well as sustainability aspect as it is becoming central for future development.

Malaysia Digital Economy Corp (MDEC) CEO Mahadhir Aziz said there is clear evidence that the natural ecosystem is a key contributor toward growth and failure to do so will defeat businesses.

“ESG standards will also help reduce cost and help businesses better prepare for any uncertainty,” he said at the memorandum of understanding (MoU) signing ceremony between MDEC and United Nations Global Compact Network Malaysia and Brunei (UNGCMYB) today.

The MoU is a joint effort to further raise awareness, build capacity and increase the adoption of sustainability and climate action across the digital economy in Malaysia. 

UNGCMYB ED Faroze Nadar said adopting ESG is especially critical for businesses to become trade and export companies as well as helping small and medium enterprises (SMEs) to scale globally.

“Although these targets can appear to be beyond their grasp, particularly among SMEs, we are committed to push the sustainability agenda and believe this is a resilience issue and key catalyst for sustainable nation building.

“The goal is to create a set of understanding, so they feel the urgent need to take action and later propagate the agenda to the whole ecosystem,” he added.

As for smaller corporations, they can leverage by moving their activities into the online platform and implementing cloud technology.

Mahadhir said convincing is always a challenge but they are optimistic, as evidenced during the lockdown, that many businesses were quick to adopt changes.

MDEC and UNGCMYB will work together to heighten awareness, provide resources, encourage digital economy efficiency and develop more collaborations.

This two-year collaboration is targeted to benefit between 75 and 100 companies by the end of 2022, across various industries.

As outlined in the 12th Malaysian Plan, Malaysia is aiming for a 45% reduction in greenhouse gas emissions intensity by 2030, and to achieve a 31% renewable energy mix by 2025.

“We look forward to integrating all the businesses, agencies, NGOs and industries to work together to realise the shared benefits without adversely impacting the environment,” he concluded.

Source: The Malaysian Reserve

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