ESG Trends In Malaysia For 2024
- Nov 25, 2024
- 2 min read
Updated: Apr 14
In Malaysia, the landscape of sustainability and ESG (Environmental, Social, and Governance) practices is evolving, with various statistics and trends highlighting the current state and future direction. Here are some key insights based on the search results:
Current State of Sustainability in Malaysia
1. Climate Performance Ranking: Malaysia ranks 59th in the Climate Change Performance Index (CCPI) for 2024, indicating a very low performance in GHG emissions and energy use. The country has set a target for net-zero emissions by 2050 but faces challenges in creating a roadmap to achieve this goal.
2. Dependence on Oil and Gas: Despite efforts to transition to renewable energy, Malaysia remains heavily reliant on oil and gas industries, which are significantly subsidised. This dependency poses challenges for achieving long-term sustainability goals
3. Sustainability Reporting Trends: As of May 2024, 38% of the top 100 listed companies on Bursa Malaysia have subjected their sustainability reports to independent assurance. This indicates a growing trend towards transparency and accountability in sustainability reporting.
4. Mandatory ESG Reporting: The Malaysian government is moving towards mandatory ESG reporting for listed companies, with enhanced sustainability reporting requirements set to take effect for the fiscal year ending December 31, 2023. This shift aims to align local practices with international standards.
Key Trends Shaping Sustainability in Malaysia
1. ESG as a Strategic Advantage: Companies are increasingly viewing ESG not merely as a compliance requirement but as a strategic advantage that can drive business growth and attract environmentally conscious investors .
2. Government Support for Sustainable Growth: The Malaysian government is promoting solar energy adoption through incentives and programs aimed at reducing carbon emissions and fostering cleaner energy sources .
3. Technology-Driven Practices: There is a growing emphasis on leveraging technology and data-driven approaches to enhance ESG practices, enabling companies to track their sustainability performance more effectively .
4. Focus on SMEs: Recognizing that small and medium enterprises (SMEs) play a crucial role in the economy, initiatives like the Simplified ESG Disclosure Guide (SEDG) have been launched to assist SMEs in adopting sustainable practices.
Conclusion
The statistics surrounding sustainability strategies in Malaysia reveal both progress and challenges. While there is a clear movement towards integrating ESG principles into corporate practices, significant hurdles remain, particularly regarding dependency on fossil fuels and the need for improved reporting mechanisms. As regulatory frameworks evolve and government support increases, there is potential for Malaysian businesses to enhance their sustainability efforts and contribute positively to global climate goals.
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