06/08/2025

ESG WEDNESDAY | AUG 6, 2025

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ClientEarth launches climate guide o Critical for corporate boards to incorporate environmental considerations into decision-making processes

Ű BY MAHADHIR MONIHULDIN sunbiz@thesundaily.com

considerations into national policies reflect an urgent call for businesses to adapt swiftly. This guide provides corporate directors with a comprehensive framework for climate governance. It gives guidance on emerging legal risks, including litigation risk directors and corporations face regarding greenwashing and other climate-related liabilities, whilst outlining key regulatory and market shifts in Southeast Asia’s net zero transition. Companies that do not adequately consider and manage foreseeable climate risks, and those that cause harm through carbon-intensive operations that exacerbate the climate crisis, are increasingly facing legal action. At the same time, to the extent that a corporation is found liable in a climate lawsuit, directors may also face personal liability for failing to act reasonably in steering the corporation to manage foreseeable climate risks. Drawing from off-the-record stakeholder interviews, the guide offers actionable steps, including: embedding sustainability across board-level committees, establishing dedicated governance structures, assessing climate risks and opportunities, setting science-based climate ambitions, and ensuring alignment throughout the company’s value chain. With the growing adoption in Southeast Asia of international reporting standards like those from the Task Force on Climate-Related Financial Disclosures and the International Sustainability Standards Board, as well as the emergence of foreign regulations such as the EU’s Corporate Sustainability Reporting Directive and Corporate Sustainability Due Diligence Directive, companies are urged to improve transparency and develop comprehensive decarbonisation transition plans to meet their net zero objectives. In response to these evolving reporting requirements and standards, corporate boards in

KUALA LUMPUR: Riding high on its recent win as Company of the Year (Energy Solutions) at the CSR Malaysia Awards 2025, Wasco Berhad is looking to scale up its global sustainability efforts, with a strong focus on deepening community engagement and driving forward Malaysia’s energy transition goals. The group is expected to accelerate initiatives aligned with its net-zero target by 2026 while building long-term regional partnerships that strengthen green value chains across its operating markets. The award comes on the back of a milestone year for Wasco. In 2024, the group invested nearly RM800,000 in social and environmental programmes that collectively reached approximately 12,000 lives across Malaysia, Tanzania, Qatar, the United Arab Emirates, Singapore and Indonesia. These efforts, anchored on healthcare, humanity and environmental protection, were not just CSR gestures, but integral to Wasco’s broader decarbonisation and sustainability strategy. Among the 55 initiatives implemented were free health screenings, vaccination drives, food and disaster relief, school infrastructure upgrades and environmental awareness campaigns promoting circular economy practices. These community-driven projects were matched by strong internal participation, with Wasco employees collectively contributing more than 11,800 hours of volunteer time. KUALA LUMPUR: non governmental organisation focused on climate justice and clean energy transition, has launched Guide on Climate Action for Boards in Southeast Asia . The guide, co-published by Climate Governance Malaysia and Earth on Board, aims to provide corporate directors with insights to address the increasing complexity of climate-related legal risks, regulations, and governance requirements within the region. As Southeast Asia faces increasing vulnerability to both physical climate impacts and transition risks, such as evolving regulations and shifting market preferences and behaviours, it is critical for corporate boards to incorporate climate considerations into their decision-making processes. Home to over 685 million people (8.5% of the world’s population), Southeast Asia is projected to account for 6.5% of CO2 emissions by 2040. The region faces threats of (and some areas have already witnessed) rising sea levels, increased heat waves, strengthened typhoons, extreme floods and droughts, and unprecedented weather events. In addition, Asia could lose 14.9% of its GDP by 2050, significantly affecting livelihoods, with Indonesia, Malaysia, the Philippines, Singapore, and Thailand potentially losing seven times their total economic output without ambitious climate action. Conversely, achieving net-zero emissions by 2050 could boost the Asia-Pacific’s GDP by 6.3% above projections and create up to 36.5 million additional jobs by the 2030s. In light of this, the need for corporate boards to take decisive climate action has never been more critical. Recent commitments by countries in the Southeast Asian region to achieve net-zero emissions and the growing integration of climate ClientEarth, a Ű BY DEEPALAKSHMI MANICKAM newsdesk@thesundaily.com

Joubert, Wu and Sunita.

carbon sequestration, forming part of the group’s broader goal of achieving net-zero Scope 1 and Scope 2 emissions by 2026. These efforts are bolstered by Wasco’s strong presence on ESG benchmarks, including the FTSE4Good Bursa Malaysia Index and the FTSE4Good Bursa Malaysia Syariah Index. Receiving the award on behalf of the group was Lily Rozita Mohamad Khairi, a board member and chairman of the board sustainability committee. She expressed that the recognition serves not only as validation of Wasco’s ongoing work, but as motivation to push further. “As we transition towards a low-carbon economy, the private sector must step up, not just to reduce emissions, but to build social resilience and empower local communities,” she said. “Wasco believes in growing together with the communities we serve and this award reflects that shared journey.” Established in 1999, Wasco Berhad is a main market-listed company with a presence in 14 countries. Its operations are anchored in two core divisions: the energy services division, which specialises in advanced pipe coating, corrosion protection and engineering; and the bioenergy services division, which delivers biomass energy solutions to plantation, petrochemical and industrial clients. The group remains steadfast in its commitment to the United Nations global compact principles, particularly in areas concerning human rights, labour standards, environmental protection and anti-corruption. “As interest in climate-related resolutions and litigations grows in Southeast Asia, corporate boards must step up to drive change, to ensure a positive impact on the communities they serve.” ClientEarth’s Energy Systems, Asia team legal consultant Elizabeth Wu said: “In view of the urgency of the planetary crisis, this guide seeks to encourage robust climate leadership by directors when navigating climate challenges in Southeast Asia. “By showcasing diverse regional examples, we aim to help directors translate climate ambitions into concrete action. Whether it’s establishing effective governance structures, grappling with legal and litigation risks or developing transition plans, the guide provides boards with practical insights adaptable to their unique industry contexts to drive meaningful climate action within their organisation.” To find out more about the guide, you can visit ClientEarth’s website at clientearth.asi a. “The guide highlights how climate leadership goes beyond regulatory compliance, it requires boards to set bold climate ambitions, engage meaningfully with stakeholders, and integrate sustainability into core business strategies.

Southeast Asia play a pivotal role in navigating corporations via the challenges of climate change. Earth on Board Founder and CEO Philippe Joubert said “At Earth on Board we defend the idea that 2015, with the adoption of the SDGs and the Paris Agreement, must be seen as a pivotal year in the area of Boards’ duties. “The fact that the world recognised climate change as a reality and of human origin and has elaborated the main lines of a necessary evolution of the behaviour of economic agents toward all their stakeholders changes dramatically the way we should consider the duties of a board of directors, adding urgency to their actions and deepening the legal responsibilities of this body toward society. “Duties of care and diligence and responsibility toward the way and the content of what is reported externally by the company are now subject to a different scrutiny by society, and it is urgent that boards understand that this will challenge the way they must fulfil these duties. This guide is a tool to help the boards navigate these fundamental matters.” Climate Governance Malaysia founder and chairperson Datin Seri Sunita Rajakumar said:

Wasco scales up global sustainability efforts

Wasco named as Company of the Year (Energy Solutions) for Sustainability Leadership at the Sustainability and CSR Malaysia Awards 2025.

initiatives reflect Malaysia’s 12th Malaysia plan and the National Energy Transition Roadmap, while aligning with several United Nations sustainable development goals (SDGs), including good health and well-being (SDG 3), responsible consumption and production (SDG 12), climate action (SDG 13) and life on land (SDG 15). Beyond short-term outreach, Wasco has also committed to longer-term environmental restoration through its Wasco Forest initiative, launched in 2021. This project supports forest protection and

“Corporate responsibility is embedded in our DNA. It is part of our promise to deliver meaningful, measurable value for people, planet and progress,” said Wasco Berhad chief strategy officer Ariesza Noor. “This award affirms our belief that sustainability is most powerful when it is people-powered. We will continue to elevate our efforts in line with our broader environmental, social and governance (ESG) ambitions.” Wasco’s impact efforts are also closely tied to national and global frameworks. The group’s

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