01/04/2026

ESG WEDNESDAY | APR 1, 2026

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AI and digital platforms help bridge ESG talent gap

Platinum certification for data centre JOHOR BAHRU: Malaysia has reached a new milestone in sustainable digital infrastructure with the country’s first hyperscale data centre to receive provisional GreenRE Platinum certification for water, energy and sustainability design. The AI-capable hyperscale facility by ZDATA Group Co. Ltd, located in Gelang Patah, Johor, sets a new benchmark for environmentally responsible digital infrastructure in the country. This Platinum rating is the highest sustainability rating under the GreenRE scheme, established by the Real Estate and Housing Developers’ Association (Rehda). The ZDATA facility is currently the only data centre in the country with this accomplishment. This adds to its Malaysia Green Data Centre Recycled Water Certification, received in August 2025, acknowledging its pioneering use of reclaimed water in a large-scale digital infrastructure. Engineered to Tier 3+ standards, ZDATA’s data centre development forms part of a RM8 billion project on a 38-acre site. To date, approximately 18 acres of this have been developed, covering Phase 1 and Phase 2 of the project. Phase 1 of the facility has been completed and is scheduled to commence operations in March 2026. Construction for Phase 2 is currently underway, with operations expected to begin in the second quarter of 2026. The remaining phases of development are scheduled for completion by the end of 2027. One of the most distinctive sustainability features of ZDATA’s facility is its design to run on 100% reclaimed water, treated through two dedicated water treatment plants located in close proximity to the data centre. While cooling operations inherently require water, using reclaimed sources ensures the state’s domestic (potable) water supply will not be used for cooling, therefore minimising impact on local freshwater resources. ZDATA was also among the earliest signatories to the Johor Special Water Projectm a regional initiative by the state government aimed at promoting sustainable water use among high-impact industries, particularly the rapidly expanding data centre sector. reliance on municipal water for its cooling systems. Key benefits of the water initiative include establishing a self-sustaining cooling loop independent of the public water grid; significantly alleviating pressure on Johor’s municipal water resources and resolving previous third-party infrastructure challenges through direct investment in proprietary recycling technology. Together, the renewable energy alliance and the move toward water circularity position CTDC and its partners at the forefront of responsible development. These initiatives are designed to meet the rigorous demands of the modern digital economy while ensuring a minimal environmental footprint. With the signing of the Green Energy Alliance, all parties now enter the primary implementation phase to ensure project delivery ahead of the 2028 operational target.

where technology can standardise reporting processes and internal controls, while humans focus on the nuanced application of principles to local business contexts. For Malaysian SMEs, the benefit is even more pronounced. Many lack the resources to hire dedicated ESG specialists. Digital platforms level the playing field by providing institutional grade tools at accessible costs, enabling smaller companies to meet rising regulatory and buyer expectations without prohibitive overheads. Early adopters are already reporting improved data quality, reduced compliance risk, and stronger positioning when seeking green financing from banks. Of course, technology is not a complete solution. The most successful organisations are those that treat digital tools as part of a dual track strategy: using automation for immediate capability while simultaneously investing in long-term talent development. This includes sponsoring employee certifications, creating internal ESG communities of practice, and partnering with universities for applied learning programmes. Looking ahead, Malaysia has an opportunity to differentiate itself in the region. While many countries are still debating approaches to ESG implementation, we can combine our strong policy direction with pragmatic technological adoption. Government support for digital infrastructure and incentives for companies investing in both technology and human capital will be critical. The expanding ESG talent gap is real and urgent. However, it is not insurmountable. By intelligently deploying AI and digital platforms today, Malaysian companies can maintain momentum on their sustainability journey while the harder work of building deep, home grown expertise continues. The coming years will separate organisations - and indeed nations - that merely talk about sustainability from those that successfully embed it into their operations and culture. Malaysia has the ambition. With the smart integration of technology and sustained investment in people, we also have the means to lead. This article is contributed by ESGpedia vice-president Jozsef Acabo.

o Malaysian businesses do not have the luxury of waiting several years for perfect talent pipeline to materialise

MALAYSIA’S sustainability transition risks stalling even before it truly begins. Technologies can be purchased and regulations can be written, but without skilled professionals who can interpret climate data, assess social risks and implement robust governance frameworks, our net-zero ambitions will remain on paper. This warning is strongly supported by new evidence. The Malaysia ESG Skills Readiness Report 2026 , based on a survey of 347 industry leaders, paints a concerning picture: an average 15-point national skills gap across 30 core sustainability competencies. Governance stands out as the area of greatest weakness, followed by challenges in operationalising social principles and mastering environmental metrics such as carbon accounting and climate scenario analysis. The implications are significant. With Bursa Malaysia rolling out enhanced sustainability reporting requirements, companies now face increasing pressure to produce credible, investor-grade disclosures. Those unable to meet these standards risk not only regulatory scrutiny but also losing access to capital, as global investors increasingly direct funds toward markets demonstrating strong ESG capabilities. For Malaysia, this talent shortfall is not merely an HR issue - it is a competitiveness and economic resilience challenge. The root causes of this gap are well understood and deeply structural. According to the report, universities account for 43% of the shortfall, largely due to outdated curricula, limited faculty expertise in emerging ESG standards, and a shortage of Malaysia-specific case studies. Students themselves contribute 29% through narrow career perceptions and insufficient real-world exposure. Industry bears 28% of the responsibility, often demanding ESG-ready talent while investing too little in structured training and mentorship programmes. Closing these systemic gaps will take time. Curriculum reform, faculty development, Technology (Malaysia) Sdn Bhd (CTDC), BGMC Energy Holdings Sdn Bhd (BGMC), and reNIKOLA signed a strategic term sheet for a large-scale, long-term green energy supply programme. Under the agreement, CTDC, a fully-owned subsidiary of ZDATA, will utilise the renewable energy generated by BGMC’s solar farm assets to power ZDATA’s first AI-data centre at Gelang Patah. Scheduled to commence in 2028, the programme is projected to deliver approximately 630,000 MWh of renewable energy annually. This partnership represents a significant milestone in decarbonising industrial infrastructure and directly supports Malaysia’s national energy transition goals. The collaboration underscores a collective commitment to embedding ESG

industry-academia partnerships, and the creation of practical training pathways are all essential, yet they are multi-year endeavours. Malaysian businesses, particularly small and medium enterprises that form the backbone of our economy, do not have the luxury of waiting several years for the perfect talent pipeline to materialise. This is where artificial intelligence (AI) and digital platforms can play a transformative bridging role. Advanced ESG technology solutions, including AI-driven tools, are already helping companies overcome immediate capability constraints by automating labour-intensive aspects of sustainability work. These platforms streamline data collection across complex supply chains, perform accurate carbon accounting aligned with Malaysian and international standards, conduct materiality assessments, and generate sustainability reports that comply with Bursa Malaysia and global frameworks. What once required teams of specialised analysts can now be achieved with greater speed and consistency, allowing existing staff to focus on higher-value strategic activities such as stakeholder engagement, transition planning, and value creation. The use of AI in ESG is expanding rapidly, giving digital tools the intelligence needed to automate tasks, streamline processes, and enhance data-driven decision-making. That said, organisations should be cautious about relying on AI to take over sustainability initiatives entirely; AI works best as an enabler. When combined with the right talent and expertise, AI can significantly enhance and accelerate sustainability transformation efforts. Importantly, these tools do not replace human expertise - they amplify it. By reducing time spent on repetitive data gathering and manual calculations, professionals can invest more energy in interpretation, judgment, and innovation. This is particularly valuable in governance, the area showing the widest gap,

CTDC, BGMC and reNIKOLA form Green Energy Alliance JOHOR BHARU: A major leap forward for Malaysia’s sustainable infrastructure was recently formalised as Computility

(From left) BGMC Energy Holdings Sdn Bhd directors Datuk Teh Kok Lee and Ee Kian Yiaw, Computility Technology (Malaysia) Sdn Bhd director Yeo Yong Hwang, reNikola Holdings Sdn Bhd directors Lim Beng Guan and Khong Ho Ming.

(Environmental, Social, and Governance) principles into the heart of large-scale digital and industrial ecosystems.

In a simultaneous breakthrough for environmental stewardship, CTDC announced it has officially eliminated its

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