Environmental Social Governance

THE STAR, FRidAy 29 ApRil 2022 sTouwstaaridnsabale,
responsible
ENVIRONMENTAL SOCIAL GOVERNANCE future

With the global
focus tuned in
to ESG, how is
Malaysia faring on
the sustainability
scale?

2 News STARESG, Friday 29 april 2022

Getting on the ESG bandwagon

Compiled by JOY LEE stakeholders are increasingly US$53 trillion (RM225.13 trillion) their employers are driving has also pledged to be a carbon
SUSTAINABILITY has become an asking for more transparency on by 2025. greater equality, empowerment, neutral country by 2050 and
agenda that is front and centre ESG information. better working conditions and increase conservation of natural
for many over the past year. Consumers, on the other hand, safer and more sustainable areas to maintain at least 50%
Investors want better ESG want to understand the impact communities. forest cover over total land area.
Governments, investors, disclosures to help them that their choices are having on
businesses and consumers are understand more about how a the world. More consumers want Companies, meanwhile, are Various initiatives concerning
placing more importance on company performs, makes to buy sustainably and are willing responding to such demands by carbon pricing, renewable energy,
environmental, social and decisions and creates value. This to pay a premium for sustainable reshaping their strategies and electric vehicles and low-carbon
governance (ESG) issues in their will help them understand the products and services. The latest aligning their objectives to the mobility will be rolled out under
decision making processes in light external impact of a company’s edition of the EY Future United Nations’ Sustainable the 12th Malaysia Plan.
of greater awareness of their actions, both in absolute terms Consumer Index suggests that Development Goals (SDG).
impact on the planet and society. and in comparison to other 43% of global consumers want to With a better understanding of
companies, and guide where they buy more from organisations that Corporations are increasingly ESG and greater commitment,
This growing interest in ESG put their money. benefit society and expect more positioning themselves for a more individuals, corporates,
can be seen in many ways. For ESG information from producers sustainable future, bolstered by entrepreneurs, non-governmental
example, the number of Google According to analysis by to help them make better choices. initiatives like the Securities organisations, investors,
searches of the term “ESG” has Bloomberg, ESG assets soared to Commission Malaysia’s regulators and the government
grown exponentially in the last an unprecedented US$37.8 trillion Likewise, employees or Sustainable and Responsible can collectively play a part in
couple of years and various (RM160.57 trillion) by the end of potential employees are making Investment (SRI) Roadmap. developing and building a better
2021 and are projected to grow to an effort to understand whether and more sustainable Malaysia.
In Malaysia, the government

Malaysia aspires to achieve net zero emissions target with the following measures

31% of renewable energy Increase resilience to climate 40% recycling rate by 2025 by 50% forest cover
generation capacity by change through the National adopting Zero Waste through the maintained at the
2025 and 40% by 2035
Adaptation Plan waste to Energy programme minimum

Implement a carbon All government vehicles to 100 million trees to be Transform cities towards a
pricing policy be non-ICE (internal planted as part of low carbon pathway as

combustion engine) by natural-based solutions to outlined in the National Law
2030 lower GHG Carbon Cities Masterplan

Google searches for the term "ESG" globally Examples of ESG considerations

100 Environment
80
60 Resources and energy
40 use, waste management
20 and carbon emissions
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Social
Note: Numbers represent search interest relative to the highest point on the chart for the given region and time. A value of 100 is the peak
popularity for the term. A value of 50 means that the term is half as popular. A score of 0 means there was not enough data for this term. Human rights, fair labour
standards in the supply chain,
Consumers' perception on sustainability exposure to child labour, fair
wages, workplace health and
82% agree that companies 48% say local 28% are willing to pay a safety
must be tranparent sourcing has premium for more
about their environ- become more sustainable goods Governance
mental impact important and services
Corporate duties and
responsibilities, decision
making process, transparency
and diclosure, accountability

"Planet first" make up the largest Institutional investors plan to stop Number of companies adopting climate
percentage of consumer segments (%) investing in non-ESG products by policies in selected Asean countries
2022
June July Nov Feb May Oct Feb Top 20 PLCs Top 20 Science
2020 2020 2020 2021 2021 2021 2022 (23% ) adopting net PLCs adopting based targets
35 Country zero policies TCFD initiative
Do you intend Indonesia
30 to stop investing in Malaysia 11 3
non-ESG products
within the next 24
months? (Institution-

al investors)

Yes (7
25 Planet first No 58 9
Affordability first 7 %)
Philippines 2 82
20 Experience first Singapore 7 10 14
Health first

15 Thailand 7 9 8
Society first
Vietnam 0 0 4
10

5

Source: Schroders, PwC & EY graphics

STARESG, Friday 29 april 2022 Feature 3

HocwoUEmM mSunurisne biutilides s The hUb app
series
The community developer’s sustainability blueprint focuses on signifies UEM
liveability, affordability, Sustainability and resilience Sunrise’s
commitment
in creating a
more
digitalised
and
customer-
centric
experience.

By CHOW ZHI EN located in Kl’s premier international enclave, Solaris parq marries successful and forward- environmental sustainability, namely energy
[email protected] thinking sustainable businesses in a people-centric environment with lifestyle spaces that efficiency, water efficiency, environment
enhance the office experience. protection and indoor environmental
WHETHER or not to incorporate sustainabil- quality.
ity into a business strategy nowadays is no UEM Sunrise’s vision of accessibility and urban amenities, but also
longer an option. ‘Building Communities of the “software” and “heartware” where the The challenge for property developers
the Future with You and for “life” in these spaces will be built. then is to ensure that the comfort of the resi-
A values-driven approach that focuses on You’ is grounded in creative dents and communities is preserved without
environment, social and governance (ESG) placemaking. This comes in Building a community means creating damaging the surrounding environment.
values is vital to long-term competitive suc- the form of master planning opportunities for those who live in that
cess whilst protecting the environment and that not only includes the neighbourhood. Sustainability features are assessed
relevant communities. ‘hardware’ like landmarks, throughout a project’s lifecycle including the
streetscape, safety and Recently, UEM Sunrise kick-started design, tender, construction and mainte-
While large corporations have historically security, accessibility and K’Artulistiwa at KAIA Heights, in Equine nance stages to ensure that they are being
been the biggest contributors to climate urban amenities, but also Park, Seri Kembangan, Selangor – a develop- implemented as planned.
change, they are now making significant the ‘software’ and ‘heartware’ ment surrounded by a 2.4ha nature reserve.
changes in their operations and strategies where the ‘life’ in these spaces Walking the talk, five of their projects in
that reduce their carbon footprint. will be built. K’Artulistiwa is an art initiative to engage, the Klang Valley achieved Green Building
educate and raise public awareness on topics certifications in 2020:
For instance, businesses have moved to means a range of options for everyone, lead- such as conservation, preservation, biodiver-
using ethically sourced materials, cutting ing to a diverse and inclusive neighbourhood sity and threatened habitats. > Solaris Parq The Suites (Green RE Bronze)
down on energy consumption, and stream- within the developments. > Solaris Parq The Office (Green RE Bronze)
lining shipping practices as steps in the right Affordability: Compact homes, > Solaris Parq Retail (Green RE Bronze)
direction. But, a neighbourhood is only as good as its attainable living > Residensi Solaris Parq (Green RE Bronze)
community. > KAIA Heights, Equine Park (Green RE Silver)
That said, ESG values cover a broad spec- The community developer is also address- > Allevia Mont’Kiara (Green RE Gold)
trum and every single business decision can UEM Sunrise’s vision of ‘Building ing homeownership gaps by incorporating
be traced back to how it can impact these val- Communities of the Future with You and for units of 300-450sqft into urban develop- Resilience: Pandemic ready
ues. It is essential for organisations to break You’ is grounded in creative placemaking. ments, supported by good connectivity and
down these macro-level visions and ambition transportation networks. In pursuit of resiliency, UEM Sunrise has
into something that can be embedded into This comes in the form of master planning introduced features in their products that
their daily operations and processes. that not only includes the “hardware” like This strategy will fill the gap, particularly are adapted to this new normal including
landmarks, streetscape, safety and security, for the next generation who cannot afford the provision of disinfection and sanitisation
Sustainability Blueprint 1.0 open market property prices or are ineligible zones at the main entrance of each unit prior
for the affordable housing schemes. to entering the living area and a dedicated
Charted in UEM Sunrise’s Sustainability collection area to minimise physical contact.
Blueprint 1.0 is their path towards building a Owning a property in a central business
low carbon future by 2030 with the eventual district for this burgeoning group will no As the work from home (WFH) arrange-
goal of reaching carbon neutrality by 2050. longer be a dream. ment continues, UEM Sunrise is also provid-
ing co-working spaces in most of their strati-
To achieve a low carbon future by 2030 Alongside a renewed look at their automa- fied developments as an alternative where
means UEM Sunrise will better manage its tion and offsite construction, UEM Sunrise residents can enjoy working in a conducive
carbon and water footprint and increase will also be able to address ongoing shortag- working environment, easily accessible from
energy efficiency across all operations. es of skilled labour and rising wages while their homes.
minimising waste of expensive construction
The community developer will also create materials. Additionally, the developer has created
positive social impacts in the communities two hUb-themed applications: hUb Home
where they are present while providing a safe This translates into cost savings and offers and hUb Mall.
and healthy workplace for their workforce. prospective homeowners more affordably
priced units for purchase. The hUb Home app serves as a market-
A number of their developments are already place that provides residents with a wide
piloting this approach outlined by their blue- Sustainability: Green range of services by professionals to assist
print which will also lead UEM Sunrise to development with their daily chores and errands.
rethink how they look at property develop-
ment. For UEM Sunrise, The hUb Mall app is a multi-service plat-
building with sus- form whereby users can get news, upcoming
Notably, in UEM Sunrise’s Sustainability tainability in mind announcements as well as promotions from
Blueprint 1.0 are four guiding principles that starts with the various stores at UEM Sunrise’s creative
serve as pillars – Liveability, Affordability, product’s design retail space, Publika Shopping Gallery. Not
Sustainability and Resilience. and intent. only that, users can also earn hUb Mall
points for every purchase and redeem them
Liveability: Building for everyone There are four for attractive rewards.
elements the
Clearly, real estate and infrastructure are community Driving investment value
closely related. The real estate industry is a developer is
major consumer of energy. Therefore, the planning to address Investors nowadays are increasingly
construction of sustainable buildings, aware and proactive in investing their capi-
equipped with new eco-friendly materials or Suzi Chua’s ‘The Malayan tiger’ is currently on display at the Kaia tal in businesses that govern and operate in
smart technologies will not only help the Heights sales gallery under the K’artulistiwa initiative. part of the pro- an ethical and sustainable manner.
environment but also boost the return of the ceeds will directly go into supporting conservation efforts for the Malayan
respective real estate investment over time. tiger and Bornean sun bear. The slow initial pick-up in adopting ESG
standards was due to the misguided concep-
This is perhaps the most crucial pillar for tion that focusing on positive (or sustainable)
any property developer in the market, that is initiatives would reduce financial return.
creating liveable cities and communities.
Covid-19 turned that misconception on its
Most of UEM Sunrise’s developments are head.
universally designed with age-friendly ele-
ments. These include roads, pedestrian net- UEM Sunrise’s Sustainability Blueprint sets
work, proximity to amenities, connectivity the framework to operationalise
quality and access to services.
sustainability – ensuring its
These new adaptive homes for agile and entrenchment throughout the
flexi-living come after the effects of Covid-19 organisation, as well as aligning
and how it changed the way we live and with global movements and
work. Homes now need to account for mod- the government’s plan to
ern life that is easily configured to its occu- advance green growth for
pants’ changing needs and lifestyles. sustainability and
resilience as detailed in
Flexibility becomes an important design the 12th Malaysia Plan.
consideration. As one of the
handful of property
UEM Sunrise addresses this through design developers who are
elements like removable partitions and “plus constituents of the
one” spaces for occupants to change and FTSE4 Good Bursa
enhance their living spaces as they wish. Malaysia Index
(F4GBM), UEM Sunrise is
Unique to our culture on this side of the looking at the long-term
world is multigenerational living. success that meets the
needs of their stakeholders
Understanding this, the community devel- while honouring the
oper will cater to the needs of different age principles of sustainability.
groups, from young millennials to families
and the silver-liner population.

A range of options for one customer

4 News STARESG, Friday 29 april 2022

By YAP LENG KUEN A mindset shift is “Better speed of implementation is need- and Capital Markets Malaysia.
MALAYSIA may be in the infant stage of important to move ed to transition to a low-carbon energy sys- Malaysia accounts for 28 companies with-
adopting environmental, social and govern- corporate Malaysia to tem through solar, hydro, bioenergy and
ance (ESG) practices, but we are flourishing self-regulation and new sources,’’ said Ernst & Young in this index, while Thailand leads with 29
among our Asean counterparts. better internalisation of Consulting Sdn Bhd Malaysia Climate companies.
Change and Sustainability Leader and
The nation’s ambition to achieve carbon ESG principles. Partner, Arina Kok. In the Science-Based Targets Initiative
neutrality by 2050 highlights a progressive – Michele Kythe Lim (SBTI), nine Malaysian companies are com-
position relative to other Asean countries. Malaysia also plans to introduce a hydro- mitted to emission reduction targets
How gen economy and technology roadmap, grounded in climate science; Malaysia
This ambition is supported by five pillars which will widen the sources of green ener- comes in after Singapore (14).
in deploying renewable energy (RE) manag- sMcaolaryesias gy.
ing carbon emissions, water and waste; At Bursa Malaysia, a consultation paper is
driving the development of sustainable cit- on the Carbon neutrality underway, to improve the quality of sustain-
ies; and accelerating the green economy. ESG chart ability disclosures and meet the information
A key theme of the 12th Malaysia Plan is needs of capital market stakeholders.
Companies are also actively pursuing Government ‘advancing sustainability’, which outlines its
their ESG programmes. Multinational cor- policies are pivotal aspirations to become a carbon neutral Currently, the FTSE4Good Bursa Index
porations have set energy consumption as a in the drive to be a country by 2050, and puts Malaysia as highlights companies with a leading
key area in their ESG commitment. among the earliest in Asean to support this approach to address ESG risks. The
leading asean climate action. FTSE4Good Bursa Malaysia Shariah Index
Green energy nation in embracing caters to investor demand for ESG and sha-
Malaysia is the only Asean country to riah-compliant solutions, while ESG scores
Large local companies, at the launch of ESG practices introduce a voluntary carbon market in its are made available through the FTSE
the Green Electricity Tariff in November Budget 2022, setting a platform for carbon Russell ESG ratings.
2021, are opting for electricity supply from credit trading between green asset owners
RE sources generated from solar and hydro and other entities transitioning towards The Corporate Governance (CG) Watch
power. low-carbon practices. 2020 has found that the Malaysian CG code
is more aligned on sustainability than that
A dedicated category for the commercial The national policy on climate change, of most Asian countries, said Institute of
and industrial sector allocation of 300MW initiated in January 2022, covers three stra- Corporate Directors Malaysia (ICDM) presi-
of solar quota under the Net Energy tegic thrusts to align collective action to dent and CEO, Michele Kythe Lim.
Metering (NEM) Nova programme was fully deliver Malaysia’s nationally determined
taken up, only after three months of its contributions towards achieving the aims of The code recommends that Malaysian
inception in April, 2021. the Paris Agreement – an international trea- boards “anticipate and address material
ty on climate change that aims to limit glob- ESG risks and opportunities” as an integral
NEM Nova is a programme for commer- al warming. part of their fiduciary duty.
cial and industrial users of electricity to
install solar photovoltaic systems for Sustainable sukuk Later this year, the second International
self-consumption and allows excess electric- Directors Summit organised by ICDM will
ity to be exported to the national grid at sys- In terms of green financing, address four key areas – networked think-
tem marginal price. Malaysia issued the world’s first ing risk mindset; digital culture; stakeholder
sovereign US-denominated sus- co-creation’ and long-term innovation.
Government-linked companies are tainability sukuk in 2021,
exploring the green energy option with through US$800mil 10-year trust Securities Commission (SC) Malaysia will
major real estate developers. certificates. introduce a new sustainability-focused
As of November 2021, Malaysia onboarding programme – the Leading For
To achieve sustainable city status, the low accounts for US$3.9bil of issuance Impact Programme – for directors of listed
carbon city framework under the 12th value or 56% of the total Asean sustain- companies.
Malaysia Plan targets to decarbonise over able and responsible investing (SRI) sukuk
30 cities first, followed by another 120. issuance. The SC has also developed a public con-
In Budget 2022, the government sultation paper on the Principles-Based SRI
Electric vehicle (EV) incentives were pro- Taxonomy in 2021, that enables capital
posed under Budget 2022 to support the proposed the issuance of up market participants to identify economic
implementation of the low carbon mobility to RM10bil of sustainable activities that are aligned with ESG objec-
blueprint, including the full exemption of sukuk for eligible social tives, and make informed decisions for
import and excise duties and sales tax for fund-raising and investments.
EVs. or environment-friendly pro-
jects. Malaysia is at an advanced stage on poli-
Malaysia aims to deliver 31% of RE in the cy and regulatory actions in sustainability
national capacity mix by 2025, and 40% by Malaysia Boleh risk management and disclosures, develop-
2035. ment of the sustainability index and deploy-
Public-listed companies in Malaysia are ment of sustainability finance, said a recent
Policy developments to doing well compared to Asean countries, report by Ernst & Young.
mainstream sustainability coming in second highest on the MSCI All
themes augur well for the Country Index (ACWI) ESG Leaders Index, “These policy developments to main-
advancement of ESG in which consists of large and midcap compa- stream sustainability themes augur well for
Malaysia. – Arina Kok nies across developed and emerging mar- the advancement of ESG in Malaysia,’’ said
kets, according to a report by PwC Malaysia Kok.

For the long haul

While Malaysia is doing relatively well
compared to our peers in the region, sus-
tainability is not a destination but a journey.

“Malaysia’s regulatory framework is
strong but a mindset shift is important to
move corporate Malaysia to self-regulation
and better internalisation of sustainability
and ESG principles,’’ said Lim.

To address the current ESG skill gaps
among Malaysian boards, it is important to
build ESG-competent boards and directors,
as well as a pipeline of ESG-competent
director talents.

The work ahead is heavy especially to
stay in the forefront of ESG developments,
but these are the upcoming trends that gov-
ernments and consumers internationally
are looking to.

a key theme of the 12th Malaysia plan is ‘advancing sustainability’, which outlines our aspiration to become a carbon neutral country by 2050.

STARESG, Friday 29 april 2022 News 5

By ZUNAIRA SAIEED Government
[email protected] firm on ESG direction
The government has set a series of credi-
ble commitments towards attaining envi- GlCs need to lead the way in driving the nation’s commitments
ronmental, social and governance (eSG)
goals. “For example, local state governments lead the way in eSG performance manage- government needs to ensure that policies,
can be involved in housing retrofits, creat- ment and reporting. programmes and initiatives touted are
Over the next three years, the govern- ing electric vehicle (eV) infrastructure and well-supported both financially and institu-
ment aims to deliver on renewable energy delivering pilot projects before scaling up “For example, majority of govern- tionally.
(Re) capacity of 31%, and 40% by 2035 in nationally,” she suggests. ment-owned organisations in Thailand lead
line with the Malaysia Renewable energy the way in eSG performance and reporting, Should GLC’s play their role effectively in
Roadmap. There should also be government-indus- many of which are among the top three addressing eSG, Deloitte Malaysia sustaina-
try collaborations that can set out specific performers in their sectors in the Dow bility and climate leader Kamarul Baharin
By 2030, the government has also policy measures and initiatives, desired Jones Sustainability Indices (DJSI),”she says. says it will likely accelerate the adoption of
pledged various initiatives to be imple- outcomes, timelines and necessary resourc- the eSG practices in the corporate world.
mented on the three pillars of eSG, which es, Kok says. As such, Phang adds companies must
are environmental, social and governance, move beyond the idea that eSG is only for “Stakeholders or investors of GLCs could
reflecting its major commitment to achieve “By publishing these plans, governments compliance reporting requirements, as per keep pushing for GLCs to consider eSG in
the national aspiration goals. can broadcast how they are working the Bursa Malaysia’s listing requirements. their decision making and embed eSG into
towards environmental goals and set out their governance and strategies in order to
From the environmental perspective, the roles of the main players,” she explains. “eSG serves a fundamental role in data accelerate the eSG agenda,” he adds.
Malaysia has vowed to reduce 45% of its collection or corporate review by investors
economy-wide carbon intensity against its To avoid the risk of failure, Kok proposes and stakeholders such as customers, poten- however, Kamarul says pushing the eSG
gross domestic product (GDP) in the next the government to set out careful consider- tial partners and governmental agencies agenda could be an uphill task with con-
eight years. ation of the design and implementation of internationally. flicting demand for the government to
green initiatives. press more urgent issues than eSG.
Considering the social and governance “having good eSG performance, report-
factors of eSG, another key target the gov- Meanwhile, she says governments can ing standards and demonstration of eSG “As we grow our economy post-pandem-
ernment has set is to eliminate forced also do more to educate people on the risk management is no longer just a nice to ic, there could be other urgent needs for the
labour practices. impact of their lifestyle choices, nudging have but is instead now an integral part of allocation of funds and resources.
them towards more sustainable consump- business risk management.
It is worthy to note that its target to erad- tion and behaviours. “The eSG agenda is a long-term commit-
icate forced labour practices is not limited “Business owners and professional man- ment that may not give short-term outcome
to the operations of local companies but Citing an example, she says the govern- agers need to understand and ensure their – it may take a back seat to give way to
also across the global supply chain. ment can inform the community to make organisations are up to speed with regards more pressing issues facing the country,” he
ethical investments, gradually switching to to eSG requirements,” explains Phang. explains.
For labour practice improvements, “clean energy” from energy-efficient elec-
Malaysia became the second country in tronics and vehicles to mindful household Internally, companies must also move Nonetheless, Kamarul highlights that the
Asean to formally ratify the International consumption of food and durables. beyond the idea of compartmentalising job government should continuously promote
Labour Organisation (ILO) Protocol 29, a scopes and begin collaborating with other and demonstrate its commitment towards
protocol that looks at forced labour conven- But for a start, KPMG Malaysia head of departments because eSG cuts across all eSG values through its policies, regulations,
tion. sustainability advisory Phang Oy Cheng business functions and is beyond the pur- and decision making.
believes it is only logical for GLCs to get view of a single depart-
In November last year, Malaysia also onboard and set a trend for eSG perfor- ment, she opines. “They should lead the way more vigor-
become a pathfinder country under the UN mance management. ously by adopting eSG goals within its oper-
Sustainable Development Goals (SDG) Most importantly,
Alliance 8.7 – a global alliance to accelerate “In fact, GLCs should be encouraged to Phang says the ations and public services,” he
efforts to eradicate forced labour, modern says.
slavery and child labour around the world.
Nik Shahrizal: ‘Government’s role will Kamarul: ‘The ESG agenda
These efforts signifies the government’s have a knock-on effect on the whole is a long-term commitment.’
commitment towards combating and elimi- industry, particularly GlCs.’
nating all forms of forced labour in the
country. phang: ‘GlCs should lead the
way in ESG performance
Furthermore, the country also plans to management and reporting.’
formulate the ‘National energy Policy’
under the 12th Malaysia plan, in addition to
conducting feasibility studies on carbon
pricing, carbon tax and an emissions trad-
ing scheme.

This is also aligned with one of the key
highlights of Budget 2022, whereby the for-
mation of Malaysia’s first voluntary carbon
market (VCM) will be developed by Bursa
Malaysia.

In the long run, Malaysia is also aiming
to achieve net zero GhG (greenhouse gas)
emissions by 2050.

It can be seen that with all these serious
commitments, the government has played a
key role to spearheading the eSG journey
from a policy making perspective which
then sets the right tone for the industry.

however, the outcome of these commit-
ments remains to be seen as some imple-
mentation requirements are still being
developed.

According to PwC Malaysia partner Nik
Shahrizal Sulaiman, the crucial role the
government plays will also have a knock-on
effect on the whole industry, particularly to
the government-linked companies (GLCs).

“GLCs play a significant role in the eco-
nomic supply chain. Therefore if our larg-
est companies adopt eSG, these require-
ments will eventually shape and impact the
whole industry as well,” he says.

Nik Shahrizal stresses that it is crucial for
Malaysia to be aligned in its eSG commit-
ments and keep pace with its major trading
partners including China, Japan, South
Korea and the european Union that have
net zero targets.

however, he says that the private sector,
regulators and consumers also need to play
their role in addressing eSG, pointing out
that it is not just the responsibility of the
government or GLCs.

That said, ernst & Young Consulting Sdn
Bhd Malaysia climate change and sustaina-
bility services leader and partner Arina
Kok says there is a need for wider collabo-
ration between the government and com-
munity stakeholders, including the “private
sector, education and health institutions,
NGOs and, the people” in the design and
implementation of the green economy ini-
tiatives.

She recommends state governments
to also be engaged in policy design
from the outset to deliver green initi-
atives in their respective areas.

6 Feature STARESG, Friday 29 aPril 2022

greenerPowering ahead to a

world

Future proofing of TNB business through
Sustainability Pathway 2050

Blyth Offshore Demonstrator Ltd (BODL) – TNB’s first foray into off-shore wind assets with a
strong partner – is an offshore wind farm company in the UK with EDF Renewables (EDFR)
with installed capacity of 41.5MW and further development rights of up to 58.4MW.

IN recent years, Tenaga Expanding these opportu- As part of helping installation of a 373.86kWp
Nasional Bhd (TNB) is proud to nities beyond Malaysian customers to lead a solar photovoltaic (PV) system at
have contributed to the environ- shores, TNB’s interna- the Dermaga Tanjung Lembung
mental agenda – enabling ener- tional subsidiary more sustainable Complex.
gy transition as well as uplifting Vantage RE Ltd has a lifestyle, TNB’s
society. 49% equity investment retail business sub- “We are also increasingly
in Blyth Offshore interacting with our customers
The element of sustainability Demonstrator Ltd sidiaries will be digitally, whereby TNB now has
has been embodied in the elec- (BODL), an offshore focused on more than 5.7 million myTNB
tric utility company’s mission wind farm company in “beyond electrici- app users.
statement: “Together we bright- the UK with EDF ty” solutions such
en lives through innovative and Renewables To help as rooftop solar “In tandem, we have rolled
sustainable solutions towards a (EDFR), with customers lead a solutions, energy out more than two million
better world.” installed capaci- more sustainable audits, and digital smart meters to help consumers
ty of 41.5MW marketplace for to better manage their energy
This is a clear testament of and further lifestyle, TNB’s retail renewable energy consumption and implement
TNB’s quest and strategic direc- development business subsidiaries will certificates. energy efficiency initiatives.
tion to enhance its sustainability rights of up to By doing so, TNB is
standings. 58.4MW. be focused on ‘beyond empowering consumers “We recently also launched
electricity’ initiatives to have the choice to opt the TNBtemujanji online
Sustainability Pathway This is TNB’s such as rooftop solar for renewable energy, appointment booking for TNB
2050 first foray into off- through offering rooftop solar services at the nearest Kedai
solutions. solutions from TNB subsidiary Tenaga outlet, in view of cus-
TNB’s Sustainability Pathway GSPARX Sdn Bhd and the Green tomers’ convenience and in sup-
2050 reflects the company’s Electricity Tariff (GET) pro- porting the new normal post
aspiration to achieve net zero gramme which is a government Covid-19 pandemic,” said TNB.
emissions by 2050. initiative backed by mREC.
The response has been Support for government’s
This objective is underpinned encouraging. By early 2022, climate change agenda
by a commitment to reduce 35% GSPARX with its zero upfront
of its emissions intensity as well cost option has helped TNB cus- Malaysia recently declared its
as 50% of its coal generation tomers to install a total of target of becoming a car-
capacity by 2035. 120MW of rooftop solar while bon-neutral nation by as early
the GET annual quota of as 2050.
TNB had earlier committed to 4,500,000MWh has been fully
no longer investing in greenfield subscribed. This reinforces Malaysia’s
coal plants after Jimah East GSPARX is also collaborating Nationally Determined
Power which was commissioned with the Langkawi Development Contributions (NDCs) to reduce
in 2019, while honouring the Authority (LADA) to reduce its greenhouse gas emissions inten-
power purchase agreement carbon emissions through the sity by 45% by 2030 relative to
(PPA) of existing plants. 2005 levels.

At the core of this pathway is “TNB’s Sustainability Pathway
future proofing of TNB’s busi- signifies our commitment to the
ness, as it is critical to balance nation’s RE plan to increase the
this transition with the compa- share of Malaysia’s RE capacity
ny’s financial sustainability and to 31% by 2025 and 40% by
ensuring that shareholder value 2035.
continues to be well-protected.
“Sustainability is a long-term
TNB plans to expand its journey and we believe that col-
renewables portfolio, and to laboration and the concerted
date, has 3576.46MW domestic effort among governments, reg-
and international renewable ulators, industry players and
energy (RE) capacity and is tar- consumers are key to this goal.”
geting to have 8,300MW by
2025. shore wind assets
with a strong partner, Under the Incentive-Based
In Peninsular Malaysia, TNB building on TNB’s technological Regulatory framework, TNB has
is developing the Nenggiri expertise. planned to invest RM6.9bil a
hydroelectric dam in Gua The focus of TNB’s interna- year from 2022 to 2024 to devel-
Musang, Kelantan. tional business will be to further op the grid as one of the key
grow its overall RE portfolio and enablers of energy transition.
Aside from supplying 300MW serve as the pathfinder for This is with the aim of becoming
of green energy and contribut- green technologies which it can a smart utility with a 85% score
ing to flood management, the eventually adopt in Malaysia. on the Smart Grid Index (SGI).
main reservoir will supply clean “As we move to adoption of The adoption of new technolo-
water that can be used for irri- new technologies, it is important gies such as the energy storage
gation, while creating new to be prudent and find the right system to enhance grid’s flexibil-
employment and economic timing on green tech invest- ity and address the intermitten-
opportunities. ments, carbon capture, etc, to cy issue in RE is one of the initi-
ensure economic feasibility,” atives that TNB is holistically
TNB also secured a new TNB said in a statement. looking at.
50MW large scale solar (LSS)
plant at Kuala Muda, Kedah,
which is scheduled to com-
mence operations at the end of
2023.

STARESG, Friday 29 april 2022 7

8 News STARESG, Frida

By CALYN YAP trial levels, was further reinforced after the Acceleratin
[email protected] 2021 United Nations Climate Change better v
Conference (COP26) in Glasgow, Scotland,
EMERGING from the aftermath of the Covid- with higher expectations for COP27 to be Global focus drives rapid development in ESG approach
19 pandemic which has imparted harsh les- held in Egypt in November this year.
sons to people all over the world, global senti- advisory Phang Oy Cheng said that impor- Companies must take action
ments on bringing about a sustainable, “The focus of ESG worldwide has shifted to tantly, the TNFD does not intend to create a to incorporate ESG into their
responsible future are stronger than ever. climate change, which is viewed as an even new standard, but will instead align with and organisations. It is one thing to
bigger existential threat to humanity than the draw from existing initiatives, standards and recognise the gaps in a com-
Rapidly developing in tandem is the pandemic,” said Prof Yeah. metrics relevant to nature-related risks and pany’s practices and another
approach towards environmental, social and opportunities. to formalise ambitions via
governance (ESG), leading to the emergence Rising importance of biodiversity commitments, said Ho.
of new trends driving the ESG space in 2022. “To be ready to adapt to the new TNFD
Closely tied to climate change is an standards of disclosure, financial institutions,
“Over the last two years, market commen- increased focus on protecting biodiversity asset managers and corporates in Malaysia
tators’ concerns about the Covid-19 pandemic and natural capital from ecosystem collapse. should proactively start identifying their
derailing the global ESG momentum turned short, medium and long-term exposure to
out to be misplaced as the pandemic’s wide- Biodiversity loss is among the most severe nature-related risks in their current value
spread disruption to the global economic and risks on a global scale, according to the IPCC chains and portfolios.
social fabric has affirmed the need to priori- report and the World Economic Forum
tise sustainable, inclusive and green growth,” (WEF) Global Risks Perception Survey 2021- “Then, they should begin to consider
said Sunway University economics professor 2022, while the WEF’s Nature Risk Rising appropriate metrics, targets and internal
Prof Dr Yeah Kim Leng, who is also a senior report revealed that more than half of the reporting mechanisms and be particularly
fellow at the Jeffrey Sachs Centre on Sus­ world’s total gross domestic product is mod- wary of assets that are at risk of becoming
tainable Development. erately or highly dependent on nature and its ‘stranded’ during the transition towards
services. nature-positive economies,” she advised.
“The pandemic has focused attention on
the ‘social’ dimension not only in national “We expect increasing scrutiny on indus- The net zero imperative
recovery and rebuilding strategies, but also tries whose core activities are dependent on
among institutional investors and the corpo- nature. This includes oil and gas, power and Chief among efforts to decrease GHG emis-
rate community, thereby placing the ESG utilities and construction and property sec- sions is the race towards net zero, with gov-
mandate firmly centre-stage in complemen- tors, as well as the financial services indus- ernments and organisations worldwide
tary national development and business poli- try,” said PwC Malaysia chief strategic opera- pledging to reach net zero emissions by 2050.
cies and strategies. tions officer and net zero lead partner
Pauline Ho. According to S&P Global, however, these
“Overall adoption of ESG-driven approach- commitments lack interim emission reduc-
es in investment, financing, business reengi- Heeding the risks, the upcoming second tion targets or plans to curb indirect emis-
neering, supply chain reconfiguration and phase of the UN Biodiversity Conference
organisational cultural change will continue (COP 15) in Kunming, China, is aimed at cre- The pandemic’s widespread
to intensify along with the development of ating a global biodiversity framework, which disruption to the global
global standards.” would outline a roadmap for global action to
maintain and protect biodiversity. economic and social fabric
Focus on climate change has affirmed the need to
This comes on the back of the 2021 launch prioritise sustainable, inclusive
Of core importance is climate change, of the Task Force on Nature-related Financial
which has emerged as the top concern within Disclosures (TNFD), which is expected to take and green growth.
the ESG agenda. the same course as the 2015 Task Force on — Prof Dr Yeah Kim Leng
Climate-Related Financial Disclosures (TCFD)
The 2022 United Nations Inter­ for financial institutions and corporations.
governmental Panel on Climate Change
(IPCC) report paints a troubling picture of cli- The goal of the TNFD is to develop a risk
mate change as a threat to human well-being management and disclosure framework for
and health of the planet, as it declared the organisations to report and act on evolving
need to drastically reduce greenhouse gas nature-related risks, with the objective of ulti-
(GHG) emissions within the next three years mately supporting the shift of global financial
to avoid the worst impacts of climate change. flows towards nature-positive outcomes.

The world faces unavoidable multiple cli- Ho pointed to a 2019 National Capital
mate hazards over the next two decades with Finance Alliance report that highlights the
global warming of 1.5°C. need for financial institutions to integrate
natural capital risk management into wider
Exceeding this warming level would result enterprise risk management frameworks at
in additional severe impacts that can be irre- asset, client and portfolio levels.
versible. These include the quick escalation
of risks in areas such as biodiversity loss, “Investing in rapid natural capital risk
drought and floods, as well as food security, assessments will enable banks to improve
among others. their foresight by uncovering risks they were
previously unaware of, such as systemic risk
The goal set out in the 2015 Paris
Agreement to limit global in bank portfolios,” she said.
warming to 1.5°C, com- Meanwhile, KPMG
pared to pre-indus- Malaysia head of
sustainability

Disruptions to the global supply chain as a resu
the height of the Covid-19 pandemic have throw
supply chains.

sions that occur along the supply chain.
Hence, the challenge would be “to develop
concrete, near-term plans and begin to act to
address emissions across the full value
chain.”

PwC Global CEO Survey 2022, for one,
shows that although 47% of Malaysian chief
executive officers believe that climate change
is a risk impacting their company in the next
12 months, only 39% included environmental
and social incomes in their long-term corpo-
rate strategy.

“Extreme weather events such as the
recent once-in-100 years’ flood and new
and updated commitments made
globally at COP26 reinforced the
need for nations to move faster in
achieving decarbonisation goals,”
said Ho.
She stressed that while there
is awareness of climate change
as an issue among Malaysian
companies, it has not been suf-
ficiently operationalised or
embedded in the business
strategy.
“Organisations will firstly
need to engage their key

Closely tied to climate change, biodiversity loss is among the biggest threats
to human well-being and health of the planet.

ay 29 April 2022 News 9

ng the adoption of
values

h and trends

stakeholders to define their material issues Adopting circular economy should also be considered,” she said. expand beyond the country to establish a
before embarking on any major shifts in thinking with a view towards Concurring with her view, Ho said that global footprint and become a part of the
their businesses. Some immediate actions restoring and regenerating the global supply chain.
that can be taken include recognising what investing in a just transition is crucial in sup-
this commitment means for the business, environment will help porting all participants in the company value A recent development is the creation of the
developing a roadmap with short-term and organisations ensure that chain. International Sustainability Standards Board
longer-term actions together with progress environmental and social (ISSB), established at COP26, to enable the
reporting and monitoring,” she added. sustainability are embedded in “The pandemic made it clear that there are harmonisation of various reporting and dis-
all stages along the supply also some structural issues to be addressed by closure standards – a welcome move.
Phang said that although some companies chain in the production of certain sectors such as health and pay condi-
have made good progress, the majority that tions of plantation and manufacturing work- Via ISSB, the International Financial
have net zero commitments have yet to pub- goods. ers,” she added. Reporting Standards Foundation has begun
lish their progress to date. to introduce the concept of ESG financial
ply chain risks in their strategic plans, but There will also be more focus in the areas reporting, meaning that Malaysia will be
She opined: “Malaysian companies face the smaller firms that are part of the regional of diversity, equity and inclusion (DE&I) as required to localise these requirements in
obstacles such as the inability to tie their net value chains or production networks will be diversity has also been included in the 2021 future.
zero initiatives to their GHG emissions; ina- subject to the decisions of global players that update to the Malaysian Code on Corporate
bility to demonstrate their investment plans control the supply chains,” said Yeah. Governance (MCCG), which provides that all Locally, Bursa Malaysia is currently
for net zero; inability to understand the vari- boards should comprise at least 30% women enhancing its Sustainability Reporting
ous new technologies available and how to He added that while a more distributed directors in three years or less. Framework and Sustainability Reporting
plan for adoption of these new technologies and fragmented supply will likely increase Guide, having released a consultation paper
in relation to net zero and how carbon emis- relocation costs, the higher costs could be off- Besides gender, Ho said that global data on the proposed changes in March.
sions can be reduced in the long term. set by lower transport and storage costs, as from the PwC Hopes and Fear Survey 2021
well as reduced risks of supply chain disrup- shows that there are other issues surrounding Apart from that, there is MCCG’s 2021
“Companies embarking on net zero have tions in the longer term. equity and inclusion that the pandemic has update and the introduction of taxonomies
not considered the impact of an internal car- made more apparent. The report reveals that such as Bank Negara’s Climate Change and
bon price to demonstrate financial viabilities To protect against supply chain disruptions, 50% of workers say that they have faced dis- Principle-based Taxonomy and the Securities
of the various reduction options considered.” Ho said that there is a need to dive into the crimination at work, 22% were passed over Commission’s upcoming Sustainable and
operations and perform extensive analyses. because of their age, 14% have experienced Responsible Investment Taxonomy.
gender discrimination, 13% report missing
“Adopting circular economy thinking with out on opportunities as a result of ethnicity The Joint Committee on Climate Change
a view towards restoring and regenerating and 13% report discrimination on the basis of has also supported the proposal for financial
the environment will help organisations social class or background. institutions to make mandatory TCFD-aligned
ensure that environmental and social sus- climate-related financial risk disclosures
tainability are embedded in all stages along “Whilst the data is not for Malaysia specifi- from 2024.
the supply chain in the production of goods.” cally, it does show that there’s a real need to
open up genuine, fully inclusive conversa- As the ESG space continues to grow, there
This, she said, can be done – within the tions on how to build more diverse and pur- is an emerging shift from disclosure and
organisation and across the supply chain – pose-led workplaces,” she said. transparency towards accountability, with
through risk assessments incorporating best new emphasis on impact measurement that
practices, defining the characteristics that are “Organisations need to hold a mirror to will foster greater accountability.
required of suppliers, monitoring and man- themselves and consider if they are doing the
aging ESG risks, measuring the financial cost right thing, which is also good for business. A Yeah believes the move is a global trend
and potential impact of energy consumption, conscious effort needs to be taken to move the motivated in part by studies that reported
as well as understanding and responding to dial in this space.” minimal impact of ESG initiatives on address-
any exposure to human rights risks. ing global concerns and meeting sustainabili-
For Phang, implementing a robust DE&I ty goals, alongside greenwashing claims.
ult of movement restrictions and lockdowns at Increased social focus strategy is essential to drive the future success
wn into stark relief the necessity for resilient of any organisation, as ESG considerations In addition, data on increasing investor
Social issues in the supply chain are fast have become more critical to business success pressure on boards reinforces the need for
Sustainable supply chains gaining visibility, especially when it comes to across all sectors. ESG issues to be managed effectively at the
efforts to curb human rights abuse and highest levels of an organisation, said Ho.
Biodiversity loss and climate change poses improve labour conditions. With inclusion and diversity being key pil-
significant risks to supply chains, businesses lars within ESG frameworks, she noted that “I believe there will be increasing account-
and by extension, the global economy. Phang stressed that sustainable supply investors, shareholders, employees and cus- ability with the update to the MCCG, making
chains are based on understanding ESG risks tomers are looking at how organisations are it very clear on the need for embedding ESG
Disruptions to the global supply chain as a and opportunities within the supply chain. implementing DE&I strategies when making into business strategies and aligning them
result of movement restrictions and lock- decisions. with the performance measures of boards
downs at the height of the Covid-19 pan- “Companies that take the time to under- and senior management,” she said.
demic have thrown into stark relief stand these risks and opportunities will be “Gender and ethnic diversity will continue
the necessity for resilient supply to be embraced, while the emphasis on inclu- Ho also noted a rise in new ESG growth
chains. able to work with their supply sive growth in the government’s post-pan- areas – for instance mergers and acquisitions
chain to ensure sustainability, demic economic recovery and rebuilding pro- activities involving ESG sectors, new entrants
“[It has] elevated industry for example, on decarbon- grammes are expected to have spillover such as renewable energy operators, increas-
leaders’ concerns over isation efforts or effects on private firms and govern- ing investments into the waste sector, as well
other potential shocks human rights risk ment-linked companies,” Yeah added. as the emergence of new circular economy
such as extreme weather mitigation. opportunities in the commodities sector and
and global warming that “Companies Greater clarity, shift to accountability nature-based solutions.
could have a more should also put
severe systematic and in the effort to At the same time, the progression of global Moving forward, it is certain that the onus
disruptive impact on embed ESG standards will continue to intensify and will be on how leaders and companies can
production and logistics. principles such mpact Malaysian organisations as they evolve their strategies to keep pace with the
as ethical and rapidly changing ESG space to achieve a
“A reconfiguration of sustainable more sustainable, responsible future.
supply chains could thinking princi-
mean that production ples within
centres will be located clos- their supply
er to the markets. The large chain. Efforts on
Malaysian multinationals in supplier diversity
plantation and manufacturing programmes and
activities will likely incorporate sup- the development of a
management frame-
work to monitor progress

Countries and organisations are facing challenges in turning net zero pledges
into short-term action.

10 Feature STARESG, Friday 29 April 2022

IOI Kickstart is an accelerator and collaboration programme
that aims to offer a springboard for inspiring start-ups in Malaysia.

Driving

through action

IOI Properties Group takes the lead in
creating a better future

IOIPG’s By CALYN YAP This ties in with IOIPG’s vision to be Trusted,
vision to be [email protected] a brand that is trusted not only by its custom-
ers, but also by all its other stakeholders,
Trusted, a ALTHOUGH environmental, social and govern- including employees, business partners, share-
brand that is ance (ESG) considerations is currently taking holders and the communities in which it oper-
centre stage, IOI Properties Group (IOIPG) ates.
trusted not embarked on its journey much earlier on.
only by its Doing its part
customers, Taking the lead to incorporate sustainable
but also by living and seamless connectivity in its vibrant Under the sustainability goal of caring for
all its other integrated developments — such as IOI Resort the environment and the urban green theme,
stakeholders. City in Putrajaya and the next-gen smart city IOIPG has set five to eight-year targets in the
IOI Rio in Bandar Puteri Puchong — the group areas of biodiversity, water, energy, waste man-
has been upholding ESG principles aligned to agement and carbon emission reduction to
pave its path forward.
the United Nations Sustainable Development
Goals since 2017. To improve energy efficiency, IOIPG has
This is evident in its Sustainability established a group-wide energy policy target-
Strategic Framework, which builds upon ed at reducing operational costs and GHG emis-
its vision of ‘Trusted’, mission and core sions, which includes measures such as regular
values. There is also the Sustainability maintenance of energy management systems
Policy that serves as a business operat- in its managed buildings and periodic audits.
ing guideline to mitigate adverse risks
and enhance its positive impact on the A key area of concern is greenhouse emis-
economy, environment and society. sions (GHG).

Purpose-driven for the future In this, the group seeks to mitigate its impact
on climate change by reducing its GHG emis-
Bound by a common aspiration to sions, including intensifying initiatives such as
achieve its core purpose of creating a using solar energy to reduce energy consump-
sustainable future, the group’s four sus- tion from the grid; as well as ensuring that its
tainability goals are: office buildings and high-rise developments in
> Delivering excellence: Achieve promi- its investment portfolio are green building-cer-
nence in product and service excellence tified, done as of 2014.
and deeply embed reliability, quality and
sustainable growth into all aspects of the busi- Moving forward, IOIPG is adopting Task
ness. Force on Climate-Related Financial Disclosures
> Caring for the environment: Uphold envi- (TCFD) recommendations.
ronmental ethics through green efforts, includ-
ing energy management, water conservation, The IOI Central Boulevard Towers in
emissions and waste reduction, as well as Singapore is also designed to achieve the Green
urban biodiversity conservation; and care for Mark platinum certification, while its develop-
the environment towards sustainability for ments in Xiamen achieved a Green Building
future generations. Certified 1-Star for both its commercial and res-
> Creating value for employees: Maintain a idential projects.
healthy, safe and fair work culture with empha-
sis on employee engagement and encourage IOIPG has also been tracking its energy and
employee participation in the organisation’s water consumption for the past three years,
transformational journey of sustainability. with a five-year intensity reduction target at
> Developing sustainable communities: locations other than construction sites, be it at
Enhance social well-being via community initi- hotels, malls, golf clubs or managed offices.
atives such as social responsibility commit-
ments, community investments, employee vol- It targets 10% reduction in energy consump-
unteerism and community development pro- tion intensity by its financial year (FY) ending
grammes for positive long-term impacts to soci- June 30, 2028, while 10% intensity reduction for
ety. water consumption is targeted by FY2025.
To achieve the sustainability core purpose
and goals, IOIPG has four sustainability strate- IOIPG has made a commitment to utilise
gic themes that all programmes and initiatives renewable energy such as solar power to
are anchored on. reduce its energy consumption from the grid
The themes include mindset change, inspir- by 15% to 20% at its malls and at its Rio offices.
ing women, young urbanites and urban green. Via these efforts, it has retrofitted photovoltaic
As such, IOIPG’s efforts in driving sustainabil- panels on the rooftops with a combined capaci-
ity across all of its business segments of proper- ty of 4.2MWh of renewable energy.
ty development, property investment, as well
as hospitality and leisure have resulted in rec- Sustainable living environments
ognition via global sustainability ratings.
From 2018 to 2020, IOIPG achieved a 4-star IOIPG is committed to retaining the urban
grading band in its ESG ratings assessed by biodiversity of its developments and adjacent
FTSE Russell under the FTSE4Good Index Bursa areas through the provision of urban parks and
Malaysia, meaning that it numbers among the landscaping.
top 25% among public-listed companies on the
FTSE Bursa Malaysia EMAS Index. The group targets to preserve 5% of trees of
IOIPG also received an A rating in the MSCI every valuable species (with reference to
ESG Ratings assessments in 2022. International Union for Conservation of Nature
(IUCN)-Red List of Threatened Species or native
species) in its developments prior to project
commencement; as well as to provide a condu-
cive habitat within its development to sustain
the biodiversity over time.

Among one of the many parks that manifest
this approach to urban biodiversity conserva-

IOIPG has made a commitment to utilise renewable energy such as solar power to reduce its energy consumption from the grid by 15% to 20% at its malls
and at its Rio offices. Via these efforts, it has retrofitted photovoltaic panels on the rooftops with a combined capacity of 4.2MWh of renewable energy.

STARESG, Friday 29 April 2022 Bargain Basement is a social enterprise by Feature 11
Yayasan TSLSC that collects used items
The IOI-Active from donors and sells them for charity. IOI Rio’s
Citizens fundamental
IOIPG received an A rating concept is
Programme, in the MSCI ESG Ratings sustainable living,
including the which underpins
assessments in 2022 every aspect of
Clean Up and moving forward, it the development,
Challenge, aims will be adopting the TCFD ranging from
to raise aware- building
ness among its recommendations. construction to
resource
employees to management.
take a more

active and partic-
ipative role in cre-

ating impact on
the community.

(Right) IOIPG in 2021
introduced KITACycle, a

recycling centre with a
weigh-and-pay system
that earns cashback for

recyclables.

(Below) IOIPG
collaborated with B’dari

for a one-of-a-kind art
piece made from 1,800

used plastic mineral
bottles that was curated

by artist Artsy Daphy.

tion is Bandar Puteri Town Park, situated in tinue these efforts. Among one of the
Bandar Puteri Puchong, which the group Moreover, the group collaborated with many parks that
invested more than RM1.4mil to refurbish. manifest this
B’dari, curated by artist Artsy Daphy, for a one- approach to urban
The park’s refurbishment includes of-a-kind art piece made from 1,800 used plas- biodiversity
solar-powered lighting, an 80m boardwalk, tic mineral bottles. conservation is
canopied social spaces, hanging bridges, out- Bandar Puteri Town
door fitness stations, integrated playgrounds, a This is in addition to introducing KITACycle Park, which the
nature trail and a secret garden. in 2021, which is a recycling centre with a group invested more
weigh-and-pay system that earns cashback for than RM1.4mil to
With 55% of its land dedicated for infrastruc- recyclables. refurbish.
ture and amenities provision, IOIPG builds
water reservoirs, sewerage treatment plants, IOIPG also works closely with Yayasan Tan
roads and drainage systems, schools, communi- Sri Lee Shin Cheng’s social enterprise and retail
ty halls and sports facilities to cater for the store called Bargain Basement, in order to
communities it operates in. encourage the public to donate their pre-loved
and unused items.
This includes the group’s funding of
RM91.71mil for infrastructure upgrading and These items are then sold at minimal cost
enhancement projects at Bandar Puteri with net proceeds channelled to charity organi-
Puchong. sations.

Empowering people and communities as through the collaboration with Universiti To date, Bargain Basement has donated in
Kebangsaan Malaysia’s Faculty of Pharmacy to excess of RM500,000 from the store’s proceeds
It goes beyond practising the ‘refuse, reduce, upcycle used cooking oil into eco-friendly mul- to beneficiaries such as the Alzheimer’s Disease
reuse, repurpose and recycle’ philosophy inter- ti-purpose detergent. Foundation Malaysia, the Autism Cafe Project
nally by working with partners in educational and Dignity for Children Foundation, among
initiatives as a rallying call for the surrounding Linked to the key theme of nurturing young many others.
communities. urbanites is IOI Kickstart, a three-year accelera-
tor and collaboration programme offering a
These are specifically focused on advocating springboard for inspiring start-ups.
a circular economy to divert waste from land-
fills through waste minimisation, which it By collaborating with Arus Oil, IOIPG carried
believes is the key to reducing waste genera- out a collection drive where used cooking oil
tion. was collected from the community. In May
2022, a webinar series will be launched to con-
IOIPG initiated the IOI-Active Citizens
Programme with the British Council with the
aim of raising awareness among its employees
and communities to take more active and par-
ticipative roles in creating impact on society.

Its initiatives also tie in with its key theme on
inspiring women, combining efforts in women
empowerment with waste minimisation, such

12 News STARESG, Friday 29 april 2022

By THOMAS HUONG
[email protected]

There is an urgent need for board members competenciesIncreasing need for ESG
of Malaysian public-listed companies to in boardrooms
improve environmental, social and govern-
ance (eSG) competencies as the lack of atten- Non-compliance of around eSG, namely “sustainability-driven rM2bil and above, at the start of the compa-
tion to eSG issues is increasingly drawing the ESG issues can be governance” and addressing four key areas nies’ financial year.
ire of global corporations, asset managers, very damaging to enabling sustainable value creation, namely,
and financial institutions. companies especially networked thinking risk mindset, digital cul- Ir is the main report from which all other
those in the ture, stakeholder co-creation and long-term detailed information flows, such as annual
In the past two years, a number of listed manufacturing and innovation. financial statements, governance and sustain-
and non-listed Malaysian companies in the export sectors. ability reports.
glove manufacturing, plantation and electron- – Paul W. Chan Meanwhile, Malaysian Alliance of
ics manufacturing service (eMS) sectors have Corporate Directors (MACD) president and It is a concise communication about how a
hogged the limelight for alleged eSG issues, will be the first step to the right direction – no co-founder Paul W. Chan pointed out that the company’s strategy, performance, governance
and this has proved to be costly to their finan- matter how small. Companies can start by trending expectation of investors, and the and prospects lead to long-term sustainable
cial performance as their products suffered doing a risk-based assessment to evaluate its investee companies is in the allocation of integrated value creation.
bans in certain markets and clients cut ties. position, and gradually integrate three pillars funds into socially responsible investments.
of eSG into their corporate strategy and oper- “Ir improves the quality of information
According to research Institute of Corporate ations. Specifically, start-ups and companies he pointed out that while the eSG concerns available to investors and promotes greater
Directors Malaysia (ICDM) which conducted with smaller capitalisation may have an of specific investors vary, all need comprehen- transparency and accountability on the part
in collaboration with russell reynolds advantage as they can pivot their businesses sive information to help them make invest- of the company,” the SC noted.
Associates and Bursa Malaysia in the third faster due to their size, agility, innovation ment decisions.
quarter of 2020, eSG expertise is amongst the capability as well as speed to market,” said Meanwhile, at COP26, (November 2021
most needed but least present competencies Lim. “They want insights into the company’s pos- United Nations climate change conference),
on Malaysian boards. ture on eSG topics and the associated issues the International Sustainability Standard
She also emphasised that it is clear that eSG and risks, as well as plans and responses. Board (ISSB) was established to develop a
ICDM president and CeO Michele Kythe can no longer be an afterthought, “like how Institutional investors have, for example, comprehensive global baseline or sustainabil-
Lim said sustainability and eSG matters will corporations used to approach corporate become highly concerned with global climate ity disclosures for capital markets.
continue to gain traction, and it must be a social responsibility.” change issues,” he said.
matter of priority for boards and companies. The IFrS (International Financial reporting
“eSG must be integrated into the core busi- “As the scope of these issues continues to Standard) Foundation and VrF (Value
“If a company chooses to ignore eSG, they ness strategy, driven by the board, and expand, so do the board’s oversight duties and reporting Foundation – a merged entity of
may risk going obsolete. eSG adoption is not embedded within every unit of the organisa- fiduciary responsibilities,” said Chan, a char- International Integrated reporting Council
only an expectation of the regulators, share- tion,” said Lim. tered accountant who had served as the presi- [IIrC] and Sustainability Accounting Standard
holders and other stakeholder groups are also dent of ACCA Malaysia and Malaysian Board [SASB]) were tasked to develop the
increasingly holding companies accountable She highlighted that as the national institute Institute of Chartered Secretaries and global baseline standard.
on eSG considerations,” she told StareSG. of directors, ICDM will continue on its efforts Administrators (ICSA), and secretary-general
to professionalise board practices and culture of Malaysian Institute of Corporate “The target is to come up with a framework
Lim pointed out that having strong eSG in corporate Malaysia. Governance (MICG). and standards by June 2022. As IFrS has been
competencies on the board is crucial in a com- adopted by most of the global capital markets,
pany’s journey towards sustainability as the “It is evident that regulators are calling for “With respect to increasing responsibilities it is expected the ISSB, when formalised,
board possesses an immense influence greater emphasis on eSG awareness amongst of boards of Malaysian public-listed compa- would eventually be adopted likewise,” said
on a company’s mindset and leaders and boards within corporate nies to appropriately discharge their fiduci- Chan, who is also the Global Ambassador of
behaviours when dealing with Malaysia. We aim to support the measures ary duties, it is imperative for boards to IIrC, United Kingdom.
eSG. taken by regulators to progress the country’s embrace, enhance improve and advance their
sustainability journey and strengthening our competencies in eSG oversight,” said Chan, Chan said in the future, financial auditors
however, she noted that overall eSG performance,” said Lim. who is also vice president (1) of the Federation will need to “pull out all the stops” to go
it is not just about creat- of Public Listed Companies (FPLC). beyond financial reporting.
ing the right eSG strate- “Through our public and bespoke develop-
gies, but also building ment programmes, we aspire to strengthen Global institutional asset managers are very “What is in discussion, is potentially a new
the right culture to the director talent pipeline by developing eSG- critical and vocal on such eSG issues nowa- generation of eSG auditors that could well
ensure eSG strategies competent boards and directors, while closing days. emerge. They may not necessarily be financial
are carried out effective- the eSG skill gap found in current Malaysian professionals – they could be engineers or
ly. board members,” she added. “Non compliance of eSG issues can be very other professionals with skill sets in complex
damaging to companies especially those in the process audits.
“Boards and senior Developing eSG-competent boards and manufacturing and export sectors. As global
management must be pre- directors will be a key priority of ICDM in the market players, the earnings and stock prices “It is appropriate and timely that stakehold-
pared to make the hard yet coming years. could be adversely affected when global ers and institutions of higher learning invest
critical decision to shift their investors make negative statements against resources in research and development, in the
business model and direction – Late last year, ICDM worked with Bursa the company,” said Chan. new corporate reporting framework to serve
this needs to be internalised at all lev- Malaysia in enhancing the Mandatory the growing corporate market.”
els and integrated seamlessly into the core Accreditation Programme (MAP) to provide Chan also explained that more Malaysian
business and culture. Companies need to look directors with foundational knowledge on the businesses are moving towards adopting “There is a significant paradigm shift in cor-
at eSG and sustainability holistically and as role of eSG in value creation. Integrated reporting (Ir) as a more compre- porate reporting beyond the traditional finan-
corporate risks which need to be proactively hensive corporate reporting framework to cials to encompass the intangibles and non-fi-
addressed and managed,” explained Lim. Later this year, ICDM’s International enhance their communication with key stake- nancials, such as eSG, United Nation’s Social
Directors Summit (IDS) will return for the sec- holders and to attract capital. Development Goals (SDG) and climate change.
She highlighted that ICDM is on a mission to ond year, from Sept 26 to 28, 2022. One thing is certain, the fiduciary duties and
support board directors in broadening their In the 2017 Malaysian Code on Corporate responsibilities of the board have definitely
mindset and expanding their skill sets to effec- The key theme of this year’s IDS will centre Governance (MCCG 2017) report, the expanded,” said Chan.
tively address risks associated with eSG Securities Commission (SC) had encouraged
issues, and to find a balance between business large companies to adopt Integrated reporting regarding boardroom diversity, Chan said
growth and social sustainability and take on (Ir) based on a globally recognised frame- in an era of rapid technology changes and dig-
the role as stewards of that balance. work. ital-powered businesses, there is a need to
focus more on “digital skill sets and experi-
“As the business ecosystem continues to Large companies are (as previously defined ence diversity” in boardrooms.
evolve, it is imperative for a paradigm shift to in Sustainability reporting) those on the FTSe
a progressive, sustainability-driven govern- Bursa Malaysia with market capitalisation of “Things are changing so rapidly that tech-
ance model for a more resilient business – nology is enroaching into every space in
and setting up the right eSG policies and pro- industries,” he said.
cedures will be that first step to the right
direction,” said Lim.

regarding the key eSG targets and steps for
Malaysian boards to commit to, Lim pointed
out that eSG is more than just fulfilling regula-
tory requirements, rather it is to be driven by
company values. It should be a proactive exer-
cise done with the objective to establish and
guide long-term sustainability and success.

“There is also recognition that greater
capacity building is needed to drive effective
internalisation of eSG principles in their com-
panies,” she said.

Lim noted that according to the 2022 Asean
Board Trends report by ICDM, as a stepping
stone, it is imperative for companies and
boards to cultivate a forward-looking mindset
and the right organisational culture to turn
risks into growth opportunities to drive long-
term sustainability through the sustainabili-
ty-driven governance model, which consists
networked-thinking risk mindset, agility and
digital culture, stakeholder co-creation and,
continual innovation.

She added that boards will need to adopt a
holistic and long-term view on its business
model and governance, talent, dynamics and
culture, including prioritising sustainability
and eSG considerations, as well as enhancing
competency in this area.

“Setting up eSG policies and procedures

STARESG, Friday 29 april 2022 a pPathatovnientgzero Feature 13
sion and debate, Abrar stressed that its emis- a 10-fold increase in ESG-integrated assets
SUPPORTING the Paris Agreement goals on sions calculations will be further refined as under management since the start of 2021. ing Malaysia’s first fast-moving consumer
climate change to prevent the worst effects standards and methodologies evolve, along- goods ESG-linked derivative transaction
of global warming, Standard Chartered side improvement in data quality and avail- Driving momentum for Etika Group of Companies in 2022, as
recently announced its ambitious new inter- ability. well as Malaysia’s first ESG-linked
im 2030 targets for the most carbon-inten- While seeking ways to help clients in their cross-currency interest rate swap with
sive sectors and its methodology for a path- “In Malaysia, we have embarked on a move to net zero, the bank also focuses on RHB Bank; the world’s first MYR denomi-
way to net zero by 2050. journey to include sustainable investing into driving innovation. nated sustainability-linked derivative
our advisory framework and solutions to transaction and Asia’s largest ESG-linked
The bank also aims to catalyse finance help clients embrace net zero and ESG (envi- He said, “The drive to innovate also mat- derivative transaction by notional value
and partnerships to scale impact, capital and ronmental, social and governance) princi- ters. We can find many ways to invest and with CIMB Bank and the bank’s first green
climate solutions to where they are needed ples. trade finance facility to support Amplus
most, including mobilising US$300bil in get clients to invest in pro- Solar, among others.
green and transition finance by 2030. “As we reduce the emissions associ- jects and mechanisms that
ated with our financing activities to have a sustainability According to Standard Chartered’s ‘The
As Standard Chartered Malaysia chief net zero, we will also tackle finan- objective.” US$50 Trillion Question’, investors are
executive officer and managing director cial barriers to the transition, Locally, Standard increasingly considering ESG issues when
Abrar Anwar said, companies that are including by making more green Chartered has already making decisions and trillions of dollars are
responsible for the bulk of the world’s emis- and transition finance available. collaborated with a expected to flow into ESG funds over the
sions are typically financed either by or This will help clients on a path number of partners next three years.
through banks. to net zero, while maximising and clients to exe-
the benefits of a just transition for cute such transac- In Malaysia, there is also rising awareness
Achieving a just transition — one where people and communities,” said tions. and interest among investors for invest-
climate objectives are met without depriving Abrar, adding that the bank has seen These include execut- ments that target climate changing, which
developing countries of the opportunity to could result in divestment from carbon-in-
grow and prosper — will require capital and tensive companies at a time when invest-
specialised support. ment is most needed.

In fact, 85% of companies claim that the “Companies that delay their transition
barriers are high levels of investment and journey are risking much more than missing
issues with returns and the commercial via- net-zero targets — the longer action is
bility of transitioning to net zero. deferred, the greater the disruption.

This is where Standard Chartered comes “This will play out in the form of the more
in, as it is uniquely placed to help by direct- obvious physical risks brought by climate
ing capital to markets with the greatest change, but also the effects of a more disor-
opportunity to adopt low-carbon technology derly transition, which could impact finan-
and some of the toughest transition financ- cial markets and the provision of capital.”
ing and climate challenges.
“It has never been more important to act
“Progress doesn’t have to cost the planet. now, as the consequences of inaction are
The need for a just transition to an inclusive, dire,” Abrar opined.
net-zero economy brings with it a huge
opportunity for innovation and growth for
our clients and our bank,” said Abrar.

Leading decarbonisation In Malaysia, Standard
Chartered has embarked
Standard Chartered’s net-zero approach is on a journey to include
to cut financed emissions, mobilise capital sustainable investing into
and accelerate solutions to support a just its advisory framework
transition in its markets. The bank will do
this by focussing on three areas, namely: and solutions to help
clients embrace net zero
> Accelerating sustainable finance:
With more than 91% of its sustainable and ESG principles,
finance assets located in emerging markets — Abrar Anwar
— where the need for funding is the greatest
and could bring the most impact — Standard Chartered is uniquely placed to Companies
Standard Chartered has committed to fund- help by directing capital to markets with the responsible for
ing and facilitating US$75bil of sustainable the bulk of the
infrastructure, clean technology and renew- greatest opportunity to adopt low-carbon world’s emissions
ables between 2020 and 2025. technology and some of the toughest are typically
It also has a Transition Finance financed either by
Framework that sets out how its transition transition financing and climate challenges. or through banks
finance will be governed and a set of and achieving a
well-defined principles to help guide its cli- just transition will
ents to a low-carbon pathway, alongside a require capital and
new dedicated Transition Acceleration Team specialised
to support clients in high-emitting sectors support.
and launch sustainable products.
> Reducing emissions:
Standard Chartered will measure, manage
and ultimately reduce the emissions related
to its operations and the financing of its cli-
ents, with the goal of reaching net zero car-
bon emissions from its operations by 2030
and from its financing by 2050.
The bank has already covered nearly two-
thirds of its in-scope financed emissions,
while targets for the remaining carbon-in-
tensive sectors will be announced before the
first quarter of 2024, in line with current
guidelines from the Net Zero Banking
Alliance.
This is in addition to targets to
reduce its energy usage and report its
yearly progress in detail, as part of
the Task Force on Climate-Related
Financial Disclosures process.
> Managing financial risks:
To better quantify the risks, such
as those associated with climate
change, Standard Chartered part-
nered with Baringa to measure,
manage and report climate-re-
lated transition risks. It also
partnered with Imperial
College London to under-
stand the science and
unlock solutions for climate
risk management to help
prepare its clients and sup-
port their transition.
With the bank sharing its
methodology transparently in a
white paper to help collective
learning and encour-
age discus-

14 News STARESG, Friday 29 April 2022

As awareness grows on the importance
of protecting the environment, more
people are mindful of the green impact
of their purchases

Cheryl Anne Low, 43,
businesswoman

“I choose companies that practise pollution of our oceans. We
sustainability. I research their policies need to be conscious of our
and practices and find out the meas- environment and our planet.”
ures undertaken as proof of their
efforts. Low refuses single-use plastic
and advocates reusable items to
“I’m ‘allergic’ to greenwashing lessen her carbon footprint. She
(misleading claims about a compa- always brings her tiffin carriers to
ny’s environmental practices). It’s not pack food.
just packaging but a company’s over-
all footprint, business practices and She opts to stay in hotels guided
promise to consumers. It boils down by their love for the environment.
to having respect for consumers and
the environment.” “I applaud hotels that have
stepped away from providing dis-
The co-founder of Petaling Jaya- posable plastic mineral water bot-
based Nude the Zero Waste Store tles. Their small step means choos-
hopes greenwashing companies will ing to stay relevant and under-
stop making misguided pledges. stand the current pulse while being
kind to the environment.
“It would be meaningful to
embrace environmental protection “I think some hotels want to
at its core. Every step and action move towards sustainability but
that we take affects the environ- don’t know how to. It boils down to
ment, and the degradation of the the guiding principles of hotel
forests, extinction of wildlife, and management and their business
practices.”

Mareena Yahya Kerschot, 49, Hung Bee Ling, 36, Khor Sue Yee, 30,
Sampah Menyampah co-founder Hara Makers co-founder Zero Waste Malaysia co-founder

“I never order takeaway food because most of them “As I’m involved in an environmental community project “I would like to see more Malaysian companies being environ-
are wrapped in multiple layers of plastics. I always (particularly in plastic waste), and through our regular mentally responsible externally and internally. In addition, I
have tiffin carriers and containers in my car for buy- activities and research, I know how harmful pollution is wish organisations would adopt a sustainability mindset for their
ing food. My two children get hand-me-down clothes, in our society. employees.
or we buy second-hand items. I also like clothes
swapping as it’s sustainable and cheap. “For me, today’s disasters result from poor law enforce- “Aside from that, I encourage companies to consider homoge-
ment, which has allowed the uncontrolled increase of neous material instead of mixed material in their brand packag-
“I refill most of my beauty products, which are pollution. It will make a massive difference if manufac- ing,” said Khor.
made using natural ingredients.” turers make sustainability a part of their design process.”
She adds that a company’s sustainability policies influence her
The mother of two is pleased more local hotels are She is well aware of the issue with fast fashion, and she decisions as a consumer.
taking extra measures towards sustainability. shops only when necessary.
“I believe our buying power can decide if companies will alter
“There are lots of hotels in Malaysia that practice “I don’t do a lot of shopping. And when I do, I usually their sustainability policies for the greater good. For instance, if I
sustainability by trying to reduce the need to use buy my clothing at thrift shops. I’m a huge DIY-er, so I support brands that provide zero-waste options, I am indirectly
plastic toiletry bottles, plastic straws and reduce food make my own soap and skincare products. I usually voicing out to other brands that I will support them if they
waste. My husband and I do consider eco-friendly source local handmade products, so that I can easily shop
hotels when travelling but we mostly book our holi- without packaging. I try to go zero waste as much as pos- offer sustainable policies too.
days using online homestay apps. At these sible.” “When making retail pur-
homestays, we can control the usage of electricity,
and we only use what we need. It’s for environmen- She hopes more companies and hotels will adopt green chases, I will try to buy
tal purposes,” said Mareena, who is a yoga instruc- practices and work together with local communities to items without packaging
tor. improve the quality of the environment. as much as possible. For
example, I prefer to buy
“Our government needs to get serious about cli- “I do see an increased number of hotels embracing sus- fresh produce from the
mate change. We need to legislate it and get serious tainable and green principles, such as the use of renewa- wet market or neighbour-
about its implementation. Go plastic bag- and plastic ble energy technologies, energy- and water-saving devic- hood with minimal
straw-free. Then move towards the key performance es, and slowly phasing out plastic bottles of toiletries. packaging.”
index for eco-sustainability programmes in offices.” She encourages con-
Hopefully, more hotels will sumers to be more
make environmentally mindful of their sus-
friendly practices their tainable practices.
priority with more “I avoid purchasing
awareness.” new outfits because fast
fashion is an issue. Instead, I
shop at second-hand stores and
participate in clothes swaps.”

STARESG, Friday 29 April 2022 News 15

Chris Chia, 42, Sashikala Nair, 50,
marketing manager public relations director

“I have always been recycling, saving energy and reducing Sashikala was exposed to sustainable dairy for generations.
water use from a very young age. Sustainable policies and practices from young. “For me, it is a huge deal to buy local
standards definitely play an important role in my deci-
sion-making as a consumer and even as a professional. “My late grandmother and my mother for this reason alone. I encourage every-
till today, eat vegetables grown in their one to shop locally, even if it is selective-
“I would even go to the extent of making sure a company gardens and buy clothing, tools and ly, periodically or seasonally. When you
that I am working with abides by sustainable standards. other household goods handmade in our shop local, you come across fresher food,
“Why? Obviously because climate change (and its hometown in Negri Sembilan. better service, and best of all, have the
effects) is one clear sign telling us human beings satisfaction of knowing you are helping
that we are destroying Mother Nature.” “In fact, for more than 20 years, my your neighbours and local community.”
When it comes to retail purchases, Chia maternal grandparents ran a dairy farm.
says, “I have stopped getting plastic bags In a small town like ours, there was only Sashikala feels that these days, more
from any supermarkets or food stores. one way to get our vegetables and local manufacturing and electronic
“I always have my grocery fabric tote produce and that was by going to
bags or I will carry a big bag to make sure I companies are adopting and incor-
have some space to grab a thing or two. a local farm. porating concepts such as the
Even for takeaways, I will bring my own “I learnt from a United Nations Sustainable
containers. And of course, I use metal young age that Development Goals (SDGs) into
straws too. the reason their business portfolios.
Chia urges Malaysians to think green in my family “Notwithstanding institu-
their daily lives. bought local tional changes (such as Bursa
“Let’s start being sustaina- was to sup- Malaysia’s mandatory report-
ble with the necessities port our neigh- ing on ESG) that are partly driv-
such as food, water and bours because ing the local sustainability move-
energy. I hope Malaysians we got to meet ment within these sectors,
will stop wasting food. credit must be given to
Stop wasting water by let- them and players in these sectors
ting the water run while also support for working hard to
not in use and switch off and help their busi- go beyond meeting
any lights or air conditioner nesses survive, which regulatory compli-
when not using them as well. in turn helped to ance to incorporat-
All these are a good start to being feed their families ing elements of
environmentally responsible.” and pay their bills. holistic sustainabil-
Our neighbours ity into their busi-
Chan Li Jin, 52, reciprocated by loy- ness portfolios.”
urban farming advocate ally purchasing our

Chan Li Jin feels that cor- their Noraini Narodden, 42,
porations need to steer waste into architect and entrepreneur
away from greenwashing something new
practices and instead, instead of throwing them “I believe that our environment is in dire programmes for used clothing either for
implement more compre- away. need of protection. Climate change, the re-wear or donation, repurposing or
hensive campaigns that increasing heat, reducing resources, car- recycling.
better reflect what sus- “Work with zero-waste bon emissions and the frequency of nat-
tainability really means. or environmental NGOs ural disasters are just alarming. “I believe that would help to reduce
to make it happen. A few the amount of fabrics in our landfills.
In terms of sustainable years ago, for example, a “We really need companies to be Also, we are doing good by donating
packaging, she says that factory selling uphol- aware of this and put in the effort to and giving the clothes a second life and
changing from using plas- stery fabrics gave me create a bigger impact and awareness. to people who need them.
tic wrappers to paper loads of fabric samples Many are still ignorant of plastic use or
wrappers when in fact and scraps – totally new recycling but when policies are in place, “For grocery shopping, I go to this
there’s a thin layer of plas- but useless to them – the acceptance will follow suit. local shop which gives boxes for grocer-
tic embedded within is because the boss didn’t ies instead of plastics. I would some-
not advisable. want them to go to “Some companies give discounts for times return the boxes or flatten them
waste. items you bring back or when you bring for recycling. I prefer stores that use
“I can understand that your own bags. That is a form of
it’s not practical (without “I had them distribut- savings that consumers won’t paper or reusable bags.
the layer of plastic), so ed among several NGOs mind. “When it comes to buying coffee,
they might as well be dealing with refugees it’s best to use your own reusable
upfront about it and try and B40 communities. On “I try to make every pur- cup or tumbler that would also
other options. our end, my volunteers and I sewed over a chase decision a responsible give you a couple of ringgit off.
hundred cushions and distributed them to taxi one and avoid wasteful con- Another good initiative by food
“Recently though, I’m drivers and the blind community at the sumption. And I do prefer delivery providers is adding the
beginning to see a slow Brickfields/Sentral area in KL. shops and outlets that incor- ‘no cutlery required’ option
rise in packaging-free “Ultimately, it boils down to the clarion call of porate sustainability when placing our online orders.
shops. It certainly looks the 2014 People’s Climate March – to change ideas,” says Noraini, who “I usually carry a foldable
like a good attempt towards inculcating sus- everything, we need everyone. We need a top- shops from a skincare shopping bag, a collapsible
tainable practices in society. down approach and political will. It is every- store that recycles cup and reusable cutler-
one’s responsibility – manufacturers, retailers, empty bottles and ies in my handbag
”Still, it’ll take perhaps one to two genera- consumers – and not just the manufacturers.” tubes. with a container and
tions before we see it turning mainstream sometimes tiffin in
because we’ll need these kind of shops to be as “The two my car for takea-
common as the (chain grocery/retail stores clothing stores ways.
that are around).” that I frequent “Everyone has
have recycling different motiva-
Chan’s suggestion is for manufacturers or all tions, be it sav-
large companies to have a sustainability ing energy,
department dedicated to environmental reducing waste
issues. or protecting
the environ-
“The key message is someone’s trash can ment, but
sometimes be another person’s treasure. The everyone
sustainability department will look at all should contrib-
aspects of their business operations, especially ute actively towards
the preservation of
on how to recycle or repurpose the earth we live in.
“Brands have fol-
Graphics: lowings and their
Freepik green policies can
influence how we
next decide on
where to stay,
which service to
use and what to
purchase.”

16 News STARESG, Friday 29 april 2022

Sasveawvaeterlives
Compiled by RUBY LIM
[email protected]

WaTEr is essential for life.
Without water, all living things 71%
— be it humans, animals or of the earth
plants — cannot exist. iwsitchovwearetedr

although it is the most
basic necessity for us to
live, most people still take
water for granted because
of easy access with just a
turn of the tap.
after all, since 71% of the
earth is covered with water,
there seems to be an endless
supply. Why should we conserve
water at all?
But did you know that 97% of water
on the earth is salt water, which is not suitable
for consumption? Only 3% is fresh water, of which 2.5% is water
stored in glaciers, ice caps and soil, among others. That leaves
only 0.5% available for drinking.
With such a small percentage of all the water on the earth to
fulfill the needs of a steadily growing population, it is our respon-
sibility to help conserve this precious resource for generations to
come.
reflecting this need for global action on water is the United
Nations Sustainable development Goal through Goal Six: Clean
Water and Sanitation for all.
The 2020 statistics reported by the National Water Services
Commission (SpaN) showed that consumption per capita in
peninsular Malaysia and labuan has spiked to 244 litres per
capita per day (lCd), up from 230 litres lCd in 2019 and 225
lCd in 2018, which is over 45% of the 165 litres recommended
by the World Health
Organisation, up from 230
Peninsular Malaysia litres (lCd) in 2018 and 225 available for
and Labuan lCd in 2017. drinking only
(Litres per capita per day) Conserving water isn’t
244 hard. don’t think that what is water stored othfeweaatretrhoisn
225 230 you do doesn’t matter as we in glaciers, ice salt water
caps and soil,
can all make changes in our among others
lifestyles to reduce our water
usage. it’s all about the little,
everyday things. The trick is
making water conservation a
way of life, not just some-
thing we think about once in
2020 a while.
2018 2019

Here are a few tips to help you save more water at home

Turn off the tap when it’s Check for leaks Washing machine usage
not in use. One of the main To save water and energy,
always run your washing
a running tap uses causes of water machine on a full load.
up to nine liters of wastage is
water per minute. plumbing leaks.
Turn that tap off always check for
while performing the water system
your daily tasks, be and make repairs
it brushing teeth or as soon as
rinsing dishes. possible.
Cut your showers short
Collect rainwater
Speed things up in the
reuse rainwater for watering shower. Turn off the tap Recycle water
plants, car wash and cleaning when shampooing your
outdoors. hair or soaping up. Gardening tips Water can be used more than once.
Use a watering can instead For instance, water from rinsing rice
Uacsceewssaoterire-sefofircient of a water hose. Water the can be used to water plants, while
appliances garden in the morning or water from baby showers can be
late in the evening used to flush toilets.
to maximise the
amount of water Wash dishes smartly
that reaches the For greasy dishes, fill one
plant roots. basin with water and
detergent and clean the dirty
Reduce water in toilet tanks install a water thimble in dishes. in another basin, fill
Fill pebbles into a plastic bottle a tap aerator or shower-
and fill it with water. place it into head to lessen water with just water and use
the toilet tank. less water is flow by at least 15%, it to rinse after soaping
needed to fill the tank, so less reducing at least 1,000 them.

water is being flushed litres each month. Stay tuned for our next issue for more tips and tricks on how you
can do your part to protect the earth and the community.