02/10/2024

ESG WEDNESDAY | OCT 2, 2024

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Development that covers SDG goals

o Deputy economy minister says government needs to look far ahead

“These are some of the key priorities that must be addressed, not only by the Ministry of Economy but also by other ministries,” she said. Hanifah expressed her optimism stating that the country understands what needs to be achieved and make improvements in terms of climate change. She said that we need to see that climate change and the disasters we are experiencing are signs that our world is in a state that requires us to change our way of life by reducing the toxic elements that damage and pollute nature. “And overall, as mentioned by the Prime Minister, we need to have a compassionate mindset that considers human life and the natural world,” she said. Hanifah hopes Malaysia will successfully implement the strategy. “Alhamdulillah, with the SDG framework, we can identify what we can achieve, what is lacking, and, InshaAllah, make progress. That is my hope,” she said.

per year, in 10 years that would be 35mm. Sea levels will continue to rise. “We also can’t predict how our weather might intensify with increased rainfall or stronger winds.” Additionally, she highlighted the need to reduce water wastage and expressed concern that water availability could decrease in the future. “If we don’t want this to become a serious issue, we need to save water and reduce wastage now,” she said. Hanifah also stated the need to consider related factors such as pollution in rivers and oceans. “How do we view its impact? The more pollution we have, the more it affects our marine food supply, as plastics are being consumed. “But that’s not food, it’s not food for humans, and it’s not food for animals. We need to ensure cleanliness by reducing pollution as much as possible,” she said. Hanifah warned that failing to act would lead to even greater problems with food security.

“Looking ahead, after raising awareness about the importance of the SDGs, we are working to shift mindsets towards more sustainable and forward-thinking approaches,” she said. Regarding natural disasters, such as the floods, she stressed the need for faster action.

far ahead in terms of how we modify development, for example, in how we live in the coming years with climate change. And we want to ensure that development remains strong for the long term,” she said in a media interview at the SDG Summit 2024 recently. Hanifah pointed out that

Ű BY HAYATUN RAZAK sunbiz@thesundaily.com

However, Hanifah believes that all corridors (government agencies) understand the importance of sustainable development. “With their cooperation and once we fully understand what is most suitable for our geographical location, capabilities, and available technology, we can advance as quickly as possible in fulfilling our responsibility to the planet,” she said. Hanifah also pointed to several examples, such as the estimated increase in temperature due to global warming and predictions that sea levels may rise by 3 mm per year. “If we think long term, at 3.5mm

the prime minister has stated that each SDG goal is led by a specific ministry. “For example, climate-related issues are handled by the Ministry of Natural Resources, while the Ministry of Economy oversees issues like poverty. “Our goal is to enhance the effectiveness of implementing these goals through our government agencies. Nearly every ministry is aligned with the framework.” She highlighted that an important initiative by the Ministry of Economy is to provide comprehensive knowledge on the implementation of the SDG framework.

KUALA LUMPUR: The government seeks to adopt a long-term and sustainable development strategy that covers all Sustainable Development Goals (SDG) goals, said Deputy Economy Minister Datuk Hanifah Hajar Taib (pic) , explaining the importance of adopting a long-term perspective to approach development with the goal of improving community life, whether in urban or rural areas. “Ideally, we should aim to address as many goals as possible including also related aspects. We need to look

Be proactive on issues, company directors urged KUALA LUMPUR: Climate governance experts are urging boards of directors in Southeast Asia to take a more proactive approach in addressing ESG (environmental, social and governance) issues to prevent legal consequences in the future. ClientEarth’s Energy Systems, Asia team, legal consultant Elizabeth Wu said directors in Southeast Asia are facing increasing legal risks related to climate change, ranging from fiduciary duties and regulatory compliance to greenwashing. “The understanding of what directors need to do with respect to nature and environmental protection is in a stage of maybe becoming more clear as the focus is including not just climate issues but also nature issues,” she said in a media interview at National Climate Governance Summit 2024 recently. Climate Governance Initiative founder Karina Utvack said that many boards never address these issues, often taking the view that they do not need to act until regulations specifically require them to. “There isn’t any burning need to consider these things. There is an extraordinary degree of complacency on the part of many directors. And that’s the first thing that we have to break.” Meanwhile, Earth on Board founder and CEO Philippe Joubert stressed the importance of resilience planning and stated that 99% of boards fail to address it. “That’s a big mistake for two reasons. First, the board’s primary responsibility is to ensure the company’s long-term interests are safeguarded and that it can thrive. “If the company isn’t resilient, it won’t survive the short term, let alone the long term,” he said. Secondly, he said the board also has a duty of care, diligence, and the obligation to inform. “I often say that while a board can make mistakes, it cannot be reckless or negligent. “If you don’t examine the company’s resilience plan, both responsibilities are compromised. “Then comes the legal responsibility, which has been clearly highlighted,” Joubert concluded. – by Hayatun Razak

Exploring actionable strategies for sustainable business practices KUALA LUMPUR: The Malaysian Institute of Chartered Secretaries and Administrators (MAICSA) is set to host its Annual Conference 2024, themed Sustainability Today For Tomorrow. buzzword but a business imperative. With climate change accelerating and social expectations mounting, businesses must integrate environmental, social, and and leveraging artificial intelligence for data protection and privacy KPMG’s latest statistics reflect the growing importance of sustainability reporting. A remarkable 97% of Malaysia’s top 100 companies now include sustainability data in their annual reports, showcasing a strong commitment to transparency and corporate responsibility. Regionally, Malaysia ranks among the Asia Pacific leaders, with over 90% of companies prioritising sustainability reporting. Alliance Islamic Bank partners Asia Carbonx on REC for customers KUALA LUMPUR: Alliance Islamic Bank Taking place from October 22 to 23, 2024, at the Sime Darby Convention Centre here, this hybrid event promises to bring together thought leaders from regulatory bodies, the corporate sector, and governance professionals to explore actionable strategies for sustainable business practices. MAICSA president Datuk Akbar Moidunny emphasised the growing significance of sustainability within corporate governance, stating, “In today’s rapidly evolving business environment, sustainability is no longer a governance (ESG) principles into their core strategies. This conference will serve as a platform to dissect these challenges and uncover practical, forward-thinking solutions.” The two-day conference will feature a robust lineup of keynote sessions and panel discussions designed to inspire and guide organisations on their sustainability journeys. Topics to be addressed include building sustainable business ecosystems; future directions in ESG governance; engaging younger generations in sustainability initiatives; capital gains tax and transfer pricing Attendees will also benefit from regulatory updates provided by the Malaysian Companies Commission, along with exclusive insights from industry experts on emerging global governance trends.

Berhad has partnered with Asia Carbonx Change Plt (Carbonx) to offer a purpose-built sustainability programme with green and transition financing solutions to help SME businesses in their sustainability journey. The new Islamic Sustainability Financing Programme (ISF Programme) which also encompasses Low Carbon Transition Facility-i, breaks new ground in providing businesses with comprehensive financing options to enable their sustainability agenda, reduce carbon footprint and secure Renewable Energy Certificates (RECs). Through the partnership, Carbonx acts as the intermediary to secure RECs for the bank’s eligible solar financing solutions customers. With RECs, companies can confidently assert that the electricity it consumes is derived from renewable resource, thereby significantly reducing its Scope 2 which are emissions via consumption of purchased electricity. Carbonx will facilitate the registration of these RECs in alignment with the prescribed allocation, and also offer customers the opportunity to monetise their RECs. “In line with our aim of building an ESG focused organisation, we recognise the pivotal role we play in developing sustainable financing solutions and delivering sustainable economic value for the communities we serve. In achieving

(From left) Rizal IL-Ehzan and Asia Carbonx Change CEO Nirinder Singh Johl at the MoU signing ceremony.

efficiency via the bank’s solar engineering, procurement, construction and commissioning (EPCC) partners, while those with financing exceeding RM500,000 will be entitled to complimentary RECs for up to two years. These RECs elevate Alliance Islamic Bank’s financing proposition, which offers businesses up to 100% margin of financing, zero upfront capital and the potential to monetise their renewable energy assets. The comprehensive package aims to make the transition to sustainable practices more attractive and financially rewarding.

this, we provide various avenues to support our customers in transitioning their businesses to meet the challenges of climate change. Our strategic alliance with Carbonx exemplifies our continuous efforts to innovatively empower and encourage businesses to adopt sustainable practices, reduce their carbon footprint, and enhance their competitiveness in the global market,” said Alliance Islamic Bank CEO Rizal IL Ehzan Fadil Azim. Customers qualify for RECs when they opt for solar financing solutions or energy

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