LEGENDARY songwriter Paul McCartney once pondered, “There must be a better way to make the things we want, a way that doesn’t spoil the sky, or the rain, or the land.”
His words resonate even more profoundly today as we confront the pressing challenges of climate change and ESG (environmental, social and governance) responsibility.
In this article, we will delve into the quest for that “better way”, exploring how businesses, governments and individuals are reimagining the path forward to ensure a sustainable and harmonious coexistence with our planet.
In the heart of Southeast Asia, Malaysia is experiencing a dynamic shift in its corporate landscape. The global call for ESG practices has become more than a mere trend; it has evolved into a fundamental driver of business success. With the United Nations’ 17 Sustainable Development Goals (SDG) at the forefront of this transformative journey, Malaysian companies are now embracing a new era of sustainability and corporate social responsibility.
The integration of UN SDG programmes into ESG initiatives represents an unparalleled opportunity for companies in Malaysia to champion sustainability while enhancing their corporate social responsibility.
In this era of digital transformation, where innovative climate technologies, sustainable tech practices, digital financial inclusion and social media for social impact have taken centre stage, businesses can find innovative ways to tailor their ESG strategies to align seamlessly with the 17 SDG. However, the achievement of these goals requires collective action, uniting citizens, public and private stakeholders in a concerted effort.
NGO and communities in the mix
To make significant strides towards the UN SDG, partnerships with non-governmental organisations (NGO), grassroots communities, and government agencies must be forged to drive meaningful change across multiple areas, including waste reduction, ethical and green sourcing, and fair labour practices. The collective power of such collaborations can drive real change on the ground and contribute to a more sustainable and equitable Malaysia.
Small and medium enterprises (SME), the backbone of Malaysia’s economy, cannot afford to be left behind in this era of sustainability. Embracing carbon transition targets and transforming employment models with a view to eliminate modern-day slavery is not just an option; it is an imperative for these businesses.
Failing to do so could result in their exclusion from the global supply chain in the near future. The sustainable supply chain and the adoption of a circular economy mindset, with a focus on resource efficiency and reutilisation, are pivotal to ensuring business resilience in Malaysia’s evolving business landscape.
Access to finance and green incentives will play a vital role in facilitating the inclusion of SME in the sustainable global supply chain. It is essential that both private and public financial institutions recognise the importance of extending support to SME on their sustainability journey.
Malaysia has a significant role to play in making this transition accessible and advantageous for its SME. Let’s delve deeper into these essential elements of Malaysia’s ESG landscape.
Embracing the United Nations SDG
Malaysia’s business leaders are increasingly recognising the value of aligning their ESG initiatives with the United Nations’ 17 SDG. These global goals serve as a comprehensive roadmap for addressing the world’s most pressing challenges, from poverty and inequality to climate change and environmental degradation. Malaysian companies can leverage these SDG to develop focused, strategic ESG initiatives that resonate with their core values and business objectives.
Digital transformation for social impact
Malaysia’s businesses have harnessed the power of digital transformation to drive sustainability. Innovative climate technologies, sustainable tech practices and digital financial inclusion are at the forefront of this transformation. Leveraging digital platforms and technologies to create social impact can result in more efficient and effective ESG initiatives.
The power of partnerships
Achieving the UN SDG requires collective action. Malaysian companies can strengthen their ESG initiatives by forming partnerships with NGO, grassroots communities and government agencies. Collaborations in areas such as waste reduction, ethical sourcing and fair labour practices can yield meaningful and lasting change.
Bobby Varanasi, chairman and CEO of Matryzel Consulting Inc, says one significant opportunity exists to build socio-economic models through B-corps (social enterprises) where purpose is inextricably embedded into for-profit models.
“Such social enterprises can significantly utilise capital through reinvestment in ESG initiatives without viewing current adoption as a cost burden.”
Varanasi is recognised by US-based Thinkers360 – the world’s largest marketplace for B2B thought leaders and influencers – as among the top 20 global thought leaders in Future of Work and Business Strategy.
SME and the carbon transition
SME form the backbone of Malaysia’s economy, and their active participation in the carbon transition is essential. Failing to embrace sustainability practices could result in their exclusion from the global supply chain. SME must recognise the importance of setting and achieving carbon transition targets to ensure their long-term competitiveness.
“An effective approach is to first calibrate current emission status through assessments, and then develop carbon-oriented projects that either bring additionality to carbon sequestration, or generally reduce emissions (re enabled operating efficiencies),” Varanasi says.
Sustainable supply chain and circular economy
Building a sustainable supply chain and embracing a circular economy mindset is key to business resilience in Malaysia. Enhancing resource efficiency, reducing waste, and reusing materials are all part of this transformative approach.
Varanasi stresses that circularity goes beyond recycle or reuse, and educating oneself with the approaches to build long-tail value are significant opportunities to create new jobs while adding to Malaysia’s economic growth and domestic resilience.
Access to finance and green incentives
To facilitate the inclusion of SME in the sustainable global supply chain, financial institutions must play their part. Access to finance and green incentives can empower SME to make sustainable investments and adapt to evolving market dynamics.
As with any endeavour of socio-economic significance, it is crucial that we do not get caught up on just the “E” part of ESG, but focus on all three elements in a concerted manner. Fundamental shifts in doing business are needed; band-aids to current operating models through discrete adoption are not going to mean anything to either businesses or the nation.
McCartney’s words, like the echo of a well-composed tune, remind us that the “better way” he spoke of is within our reach. By embracing the principles of ESG and recognising the urgency of addressing climate change, we can harmonise our aspirations with the well-being of our planet.
So, let us strive for that “better way”, ensuring our actions today don’t spoil the sky, the rain or the land, but instead compose a symphony of sustainability and hope for generations to come.
This article is contributed by Dr Sritharan Vellasamy, the founder of Wordlabs Business Network (WBN) – an integrated business network which delves into the subject of trade, globalisation, digital transformation. WBN combines content, events and training to delve into these subjects, promoting informed discussions and fostering innovation.
