REPORT
What Others Say About Environmental , Social , Governance
By Samniang Saenram
The Malaysian Budget 2024 reflects the Government ’ s recognition towards ESG as a “ need ” today , and a whole-of-nation approach to make Malaysia an investment destination and achieve carbon neutrality by 2050 . Budget 2024 also demonstrates Malaysia ’ s commitment to embracing ESG principles and its potential to attract sustainable investments while highlighting the need for broader and more comprehensive ESG strategies for the future .
About ESG ( World Economic Forum )
The critical thing to understand about ESG is that it is a strategic concern of businesses , not just a nice-to-have activity that occasionally pops up on a C-suite agenda . A business ’ long-term survivability depends on a broad range of factors , just as it depends on the business ’ s ability to master the digital economy . In fact , a company ’ s medium-term ( and even short-term ) success in our fast-paced environment depends on making good decisions around environmental and social considerations . For this reason , focus has shifted from just doing good — what we call corporate social responsibility ( CSR )— to setting up governance processes to build these activities into the fabric of the corporation ’ s activities . ESG is CSR raised to a strategic priority , bringing transparency and accountability into the company ’ s environmental and social impacts .
Why ESG Is an Important Board Concern According to a Fortune 500 company board member , “ companies are recognisng that taking care of broader stakeholders in the business over the mid- to long-term is a good thing for the longterm sustainability of the business .” Some 45 % of board directors now say that ESG is a regular part of the board ’ s agenda ( up from 34 % in 2019 ). In addition , 82 % rank being a fair employer and good corporate citizen as “ extremely ” or “ very ” important . Environmental and social governance directly affects business performance : companies on the S & P 500 ESG Index outperformed , suffered fewer losses , and recovered faster than the S & P 500 during the pandemic .
Environmental and Social Standards ( World Bank )
The ten Environmental and Social Standards ( ESSs ) are part of the Environmental and Social Framework ( ESF ) that supports green , resilient and inclusive development by strengthening protection for people and the environment ; and making important advances in areas such as labour , inclusion and non-discrimination , gender , climate change , biodiversity , community health and safety , and stakeholder engagement .
ESS1 : Assessment and Management of Environmental and Social Risks and Impacts sets out the Borrower ’ s responsibilities for assessing , managing and monitoring environmental , social risks and impacts associated with each stage of a project .
ESS2 : Labour and Working Conditions recognises the importance of employment creation and income generation in the pursuit of poverty reduction and inclusive economic growth .
ESS3 : Resource Efficiency and Pollution Prevention and Management recognises that
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