05/11/2025

ESG WEDNESDAY | NOV 5, 2025

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ESG principles must move beyond boardrooms

How design and build sector can advance sustainability KUALA LUMPUR: Across Malaysia’s built environment, firms in the architecture, engineering, and construction space are under growing pressure to demonstrate how they are addressing Environmental, Social, and Governance (ESG) issues. Investors, regulators, and clients are no longer satisfied with broad commitments – they now expect clear policies, transparent reporting, and measurable outcomes. For many small and mid-sized firms, however, moving from intention to implementation can feel daunting. The challenge lies not only in understanding global frameworks but also in translating them into practical actions that make sense for daily business operations and project delivery. “ESG has become part of staying competitive, especially when it comes to tender requirements,” said Knight Frank Malaysia (KFM) managing director Keith Ooi. “But it doesn’t have to be overwhelming – the key is to start small, identify gaps, and build step by step.” One of the most common hurdles for design-and-build firms is figuring out how to apply ESG principles beyond theory. Questions often arise around where to begin: drafting policies, tracking carbon emissions, engaging stakeholders, or preparing reports. Instead of applying generic checklists, KFM works with businesses to design tailored strategies aligned with both local realities and global standards such as ISSB and GRI. These strategies often include establishing baseline assessments and risk reviews; drafting ESG and governance-related policies and communicating them internally; supporting compliance with clients’ ESG tender requirements and building dashboards and simple tools to track progress. KFM’s in-house ESG team also collaborates with other business units such as project management and occupier strategy and solutions, while extending expertise to external projects across areas like sustainable interior design, corporate ESG within supply chains, heritage restoration, renewable energy, green leasing, waste management, and building electrification. One mid-sized architecture firm in the Klang Valley recently turned to KFM for guidance as ESG criteria began playing a decisive role in project bids. Without formal policies in place, the firm engaged KFM to conduct a gap analysis, draft a corporate ESG strategy, and build internal capabilities through training and a performance dashboard. The collaboration has since expanded – KFM is now assisting the firm with drafting a sustainability report for one of its projects and providing sustainability support for another. The outcome is not only stronger reporting but also a clearer narrative the firm can present to potential investors and clients, boosting its credibility in a competitive market. In addition, KFM’s project management team is working on a biomass steam plant project in Gebeng, Pahang. The plant will use empty fruit bunches as biomass fuel, reducing greenhouse gas emissions while supplying green steam to Kaneka Malaysia’s operations – lowering reliance on natural gas-generated steam. “Projects like this highlight how sustainability and business goals can align,” said KFM senior executive director Teh Young Khean.

in shaping the entire ecosystem, raising their awareness must be a priority. Regulators and supporting agencies need to ensure policies, training and digital tools reach them, especially women-led enterprises,” she said. She added that the concept of social enterprise should not be treated as an alternative model, but rather that its values, fairness, inclusivity and community responsibility should already be embedded in every SME. “ESG is not just about compliance. It’s about the narrative of how a brand sources, treats people, manages its footprint, and governs itself. Success must be measured not only in profit, but also in impact and responsibility,” she said. Citing Malaysia’s diverse heritage as an asset, Saraswati said local businesses have the opportunity to build globally competitive brands rooted in identity while embracing sustainability. “Malaysia’s diversity is a gift. Whether in fashion, agro-business, heritage crafts or tech for good, our traditions and values can shape brands that are sustainable, inclusive and trusted worldwide.” The second edition of EBF 2025, presented by BitQuest Sdn Bhd, was anchored on the theme “Smart Growth: Inclusive and Sustainable Branding”.

The forum gathered over 150 participants, including senior decision-makers, regulators, investors and ESG professionals. Among the highlights was the launch of the Handbook on Mindful Marketing in Southeast Asia by Saraswati, underscoring government alignment with sustainable economic and brand growth. Shikha Kedia Bharadwaj, Organising Chairperson of EBF 2025, said the strong turnout reinforced momentum for inclusive and sustainable branding in Malaysia. “The success of this year’s forum reaffirms the growing momentum for inclusive and sustainable branding. By bringing together diverse perspectives, we are shaping a future where brands not only deliver value but also drive positive impact for society and the environment,” she said. Saraswati concluded by urging companies to view ESG not as a burden but as a beacon for long term growth. “Let ESG not be a report prepared once a year, but values lived daily. Let your brand reflect not only excellence, but also empathy towards workers, communities and the environment. Let prosperity be shared, not just counted in numbers,” she said.

o Corporate governance need to become part of everyday business practice, says deputy minister

KUALA Environ mental, Social and Governance (ESG) principles must move beyond discussion and reporting to become part of everyday business practice if Malaysian brands are to remain competitive and trusted globally, National Unity Deputy Minister Saraswati Kandasami said. Speaking at the opening of the ESG and Brands Forum (EBF) 2025 recently, held in conjunction with the G100 Brand Leadership Summit, she said governance has been at the heart of academic and policy debates for over two decades, yet implementation remains slow. “More than 22 years ago when I was doing my Master’s in Law, corporate governance was already a major topic of study. At that time, we examined case studies of global corporations that collapsed despite showing healthy accounts. Transparency and accountability were already central issues then.” Ű BY DEEPALAKSHMI MANICKAM sunbiz@thesundaily.com LUMPUR: SurplusLoop, an Antler-backed startup transforming surplus asset management through artificial intelligence and automation. By adopting a structured approach to managing surplus machinery, equipment, and materials, the group is able to recover value from idle assets while minimising waste and reducing environmental impact; reflecting Advancecon’s broader ESG agenda. Since the pilot in early 2025, SurplusLoop has enabled Advancecon to re-circulate 42 assets and resell RM2.5 million worth of surplus machinery, equipment, and spare parts. The initiative has diverted over 840 tonnes of waste from landfills and avoided an estimated 4,200 tonnes of CO ĸ emissions – equivalent to the carbon absorbed by 210,000 trees annually – underscoring Advancecon’s commitment to environmental stewardship and sustainable value creation.

Banking & Finance Group CEO Datuk Phum Ang Kia. “By unlocking hidden value from idle assets and reducing environmental impact, we are aligning our business practices with global sustainability goals while contributing to long-term positive change for communities and the environment.” SurplusLoop CEO Sereen Teoh said: “Advancecon’s bold commitment exemplifies how true industry leaders harness technology to embrace sustainable development and create lasting environmental impact. “Together, we’re setting a new gold standard for industrial surplus asset management in Asia – proving that technology can be the driving force in accelerating our region’s transition to a thriving circular economy.” This partnership underscores Advancecon’s broader transformation agenda, reinforcing its commitment to sustainability and operational excellence. At the same time, it positions “Quarter of a century later, we are still having discussions and building tools, but on the implementation side, progress has been slow. ESG cannot just remain a boardroom conversation or a forum topic. It has to be translated into our day-to-day life.” Saraswati stressed that while the “E” in ESG often dominates corporate agendas, governance and social responsibility must be given equal weight. She noted that trust, once lost, is “painfully hard to rebuild,” not only for businesses but also for institutions and nations. “A brand that ignores ESG may see short-term gains, but risks long-term erosion of trust,” she said, adding that today’s consumers, especially younger generations, are quick to detect disingenuous ESG claims. On the challenges faced by smaller businesses, Saraswati pointed out that SMEs face a triple disadvantage, limited resources, low ESG literacy and weaker market leverage. “SME ESG literacy is still very low. Since SMEs play a major role

Advancecon partners SurplusLoop to boost value recovery KUALA LUMPUR: Advancecon Holdings Berhad, an established provider of earthworks and civil engineering services in Malaysia, recently announced a long-term strategic partnership with “This partnership reinforces our commitment to operational efficiency, sustainable development and the circular economy,” said Advancecon

Teoh and Phum.

SurplusLoop as a pioneer in autonomous industrial surplus asset management, setting a new

benchmark for how technology can accelerate the shift towards a circular economy.

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