A sustainable business strategy that incorporates factors of environmental, social and governance (ESG) is undeniably a vital part in today’s business practices. Distinguished to its notoriety and multi-factors demand in ESG reporting, the world is moving towards ESG compliance in order to satisfy the investors, importers, consumers and other stakeholders. SIRIM is a fully-grown technical institution in the area of ESG, as most of our services and schemes are being developed more than three decades ago, while new capabilities are being introduced to meet the latest demands. Our array of ESG-related services ranging from training, consultation, project development, assessment, accounting of GHG emissions, standards development, verification and certification. Together with the Malaysian industry, government and community, we strive to realise the National ESG goals as stated in Malaysia’s Net Zero Carbon Emissions by 2050, New Industrial Master Plan 2030, National Energy Transition Roadmap and many more. Your Business Sustainability is Our Matter!
Why does ESG matter? 01 02 04 03 Stakeholder pressure - investors, associations, and buyer’s requirement Rising consumer expectations on ESG National goal - net zero carbon emission by 2050 International policies and regulations on ESG - European Union Deforestation Regulation (EUDR) & Carbon Border Adjustment Mechanism (CBAM), etc
What are E, S & G? ESG is a holistic initiative that helps businesses manage risks and opportunities related to environmental, social and governance factors or materiality topics. Companies are to identify, assess, validate and prioritise its materiality topics that have potential impacts to their businesses; be it from the perspectives of environment, investors, communities and their stakeholders. This can be conducted by engaging with internal and external stakeholders through focus group discussions and survey. Some of the common factors are: Factors, which examine how a business owner(s) uses natural resources and how its operations produce impact on the environment, that focus on: • Energy • Waste • Emissions • Biodiversity • Water & Effluents • Environmental Compliance • Material Factors, that are used to measure how well the business treats people in their operations, global supply chains, and local communities, which concentrate on: • Socioeconomic Compliance • Occupational, Health & Safety • Local Communities • Employment • Labour/Management Relations • Diversity & Equal Opportunity Factors, which examine how a corporation polices itself, i.e. how the company is governed, and it focuses on: • Reputable Leaders • Audits • Executive pay • Effective Performance • Business Ethics • Transparency & Integrity • Anti-Corruption E S G
Managing ESG in A Systematic WaySIRIM has developed SIRIM 55: ESG Management Systems - Requirements with Guidance. This industry standard shall guide organizations in ESG implementation through dedicated and systematic techniques on how to reduce the impact (risks) from their activities with continual improvement and monitoring, as well as inculcating ESG culture. It will also provide a basis for ESG reporting as required by the stakeholders. Context of the organisation • Understand the needs and compliance obligation • Materiality assessment • GHG assessment and accounting • Risk assessment Set a policy, objective, action plan and the management systems • Develop policy, objectives and action plan • Assign roles and responsibilities • Develop Standard Operating Procedures Execute the management system • Ensure staff competencies to execute tasks • Ensure communication effectiveness Monitor, analyse and evaluate • Analyse and evaluate performance in meeting the policy and objectives Audit • To assess conformance against the standard requirements Report and review • ESG/Sustainability report • Top management review
SIRIM plays a major role in the development of the Malaysian industry by developing talent in various technical competencies, ensure accreditation of labs, and comformity to international management system standards to meet the industry needs. Likewise, we focus on developing new technologies and improvements SIRIM’s Total Solutions To Facilitate The Journey Towards ESG-Compliance
in the manufacturing, technology and services sectors. SIRIM also support organisations towards implementing excellent business culture by associating quality, technology and best practices and these have enabled Malaysian products and services achieve due recognition in quality and innovation worldwide.
Value Creation Towards ESG Compliance 1. ESG Awareness Course - 1 day 2. Sustainability Reporting (based on GRI Standard) a. Understanding & Implementing - 2 days 3. Environmental related trainings: a. Organisation GHG Accounting - 1 day b. Life Cycle Analysis, LCA - 2 days c. Product Carbon Footprint - 2 days 4. Standard based management system a. ESG Management System (SIRIM 55) • Understanding & Implementing - 2 days • Internal Audit - 2 days b. Integrated Management System (ISO 9001, ISO 14001 & ISO 45001) • Introduction - 1 day • Understanding & Implementing - 2 days • Internal Auditing - 3 days c. Energy Management System (ISO 50001) • Understanding & Implementing - 2 days • Internal Audit - 2 days d. Malaysian Sustainable Palm Oil, MSPO (MS 2530) • Transition - 1 day • Understanding & Implementing - 2 days • Internal Auditing - 2 days • Bengkel Interaktif Pembangunan Dokumen Pensijilan MSPO - 3 days • Internal Lead Auditor - 3 days • MSPO SCCS Auditor - 2 days • Awareness Training for Technical Expert - 2 days e. Social Responsibility Management System (IQNet SR 10) – 2 days f. Social Accountability (SIRIM 50) – 2 days g. Social Accountability (SA 8000) – 2 days Training (In-House & Public)
h. Anti Bribery Management System, ABMS (ISO 37001) • Awareness - 1 day • Understanding & Implementing - 2 days • Documentation - 3 days • Risk Management & Assessment - 2 days • Legal & other requirement for ABMS - 2 days i. Information Security Management System, ISMS (ISO 27001) • Understanding & implementing, 2 days • Risk Assessment - 2 days • Internal Audit - 2 days j. Business Continuity Management System, BCMS (ISO 22301) • Understanding & Implementing - 2 days • Business Impact Analysis - 1 day • Internal Audit - 2 days • BCMS Transition - 1 day 1. Sustainability reporting (based on GRI standards) 2. Materiality Assessment 3. Development of sustainability framework/ roadmap 4. ESG Management System 5. Life Cycle Assessment, LCA 6. Product Carbon Footprint 7. Organisation GHG Accounting 8. Project GHG Emissions 9. Energy Efficiency 1. Sustainability Report and ESG Disclosures 2. Product Carbon Footprint 3. Organisation GHG Accounting 4. Project GHG Emissions 5. Green Diesel Engine Scheme 6. Eco-Labelling Scheme 7. Waste Characterisation and Management 8. Product Safety and Health Risk Assessment and Testing 9. Environmental Monitoring Consultancy & Advisory/Services Verification
Value Creation Towards ESG Compliance 1. Energy Management System (ISO 50001) 2. Malaysian Sustainable Palm Oil, MSPO (MS 2530) 3. Roundtable on Sustainable Palm Oil, RSPO 4. Environmental Management System, EMS (ISO 14001) 5. Forest Management & Chain of Custody (MC&I / PEFC ST) 6. Social Accountability (SIRIM 50) 7. Social Responsibility Management System (IQNET SR10) 8. Occupational Health and Safety Management Systems, OHSMS (ISO 45001) 9. Compliance Management System, CMS (ISO 37301) 10. Business Continuity Management System, BCMS (ISO 22301) 11. Anti Bribery Management System, ABMS (ISO 37001) 12. Information Security Management System, ISMS (ISO 27001) 13. ESG Management System, ESG MS (SIRIM 55) Development of SIRIM Industry Standards related to ESG for products, testing methodologies, performance & assessments, and management systems. Certification Standard Development
Value Creation Towards ESG Compliance Security Design Security design for traceability solutions to safeguard products against counterfeiting and forgery. Customisation with IOT technology to ensure the authenticity of consumer, industrial and agricultural products. Packaging Design Complete solutions of packaging design that meet environmental concern and conservation. Technology and Business Commercialisation Provide whole spectrum of commercialisation value chain, complemented with intellectual property protection services, focusing on green technology and products. Metrology Custodian of physical standards and facilitates the domestic and international trade and ensuring safety, health and environment through measurement, based on acts such as National Measurement System Act 2007 and Weights and Measures Act 1972. Services includes pattern approval, validation and verification. Calibration and Measurement Diverse range of calibration and measurement services including Electrical, Dimensional, Temperature, Force & Pressure, Mass & Volumetric, Radio Frequency for asset and machinery. Circular Design and Advisory Provides circular design and advisory for broad range of industry such as textile, automotive, electronics, furniture and others. Supporting ESG Activities
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