As Malaysia marches towards its 2050 net-zero target, the imperative to embrace Environmental, Social, and Governance (ESG) principles has never been clearer. ESG is no longer a question of ‘if,’ but rather ‘when’ and ‘how’.
In its endeavors to support the government in enhancing the nation's ESG standards, SIRIM QAS (a subsidiary of SIRIM Berhad) is committed to guiding industry players on the 'how.' With a wealth of expertise and knowledge in this area, SIRIM is well-equipped to meet the needs of Malaysian businesses, offering training and workshops, certifications, and technological innovations. As such, industry players are encouraged to leverage these offerings to facilitate a smoother transition toward ESG compliance.
SIRIM's ESG Management System Certification: A Pathway to Sustainability
“One of the pivotal ways organisations can navigate this complex landscape is through SIRIM's ESG Management System Certification. This certification is designed to help companies align with both national and international sustainability regulations and requirements. By offering clear and defined guidelines, it empowers organisations to establish, implement, maintain, and continuously improve their ESG obligations,” said Wan Shahima binti Mior Ahmed Shahimi, Section Head, Management System Certification Department.
But why is this so crucial?
Meeting Regulatory Expectations and Beyond
As governments and global entities enforce stricter regulations on sustainability, companies must adapt to stay compliant. SIRIM's certification provides the framework for identifying areas of improvement, tracking progress, and ensuring that ESG factors are seamlessly integrated into operations, supply chains, and investments.
Investor Confidence and Long-Term Value
Investors today are more discerning than ever, keen on companies' ESG performance. They recognise that organisations with strong ESG practices are better equipped to manage risks, seize opportunities, and generate sustainable long-term value. This isn’t just about ticking boxes; it's about building a business that thrives in the future.
Boosting Reputation and Brand Loyalty
Companies are increasingly expected to demonstrate responsible business practices in the age of conscious consumerism. A strong ESG strategy enhances reputation and brand value, leading to greater customer loyalty, employee engagement, and differentiation in a crowded marketplace. It's not just about what you produce, but how you produce it that counts.
Resilience in the Face of Disruption
Whether it’s natural disasters, regulatory shifts, or social unrest, disruptive events are an ever-present risk. Companies with a solid ESG foundation are often more resilient, able to adapt and maintain continuity during challenging times. By embedding resilience into business strategies, these organisations are better prepared to navigate uncertainties.
Addressing Systemic Challenges Through Risk Management
Finally, ESG provides a vital framework for addressing the systemic challenges our world faces, such as climate change, corrupt practices, and social injustice. By integrating sustainability into core business strategies, companies mitigate risks and contribute meaningfully to global solutions.
SIRIM 55
“SIRIM 55 is your blueprint for creating a better future by bridging the gap between business and the environment, society, and all key stakeholders. What makes SIRIM 55 particularly valuable is its tailored guidance for Mid-Tiers Companies (MTC), Micro, Small, and Medium Enterprises (MSMEs). It offers clear, practical steps to help them navigate the complexities of ESG, empowering them to adopt sustainable practices that can drive both growth and positive impact. Whether you're starting out or looking to refine your approach, SIRIM 55 has the tools and insights to support your journey toward sustainability,” said Wan Shahima.
Benefits of SIRIM 55 ESG Management System Certification
Enhance business profile and brand impact through sustainable efforts.
Amplify access to capital and green funding opportunities.
Showcase the organisation’s commitment to comprehensive ESG practices.
Enhance the confidence of stakeholders by meeting their sustainability expectations.
Avoid accusations of greenwashing by ensuring transparency and credibility in your sustainability claims.
Gain a competitive advantage over industry competitors through sustainable operations.
Facilitates Access To Green Funding And Investments
“ESG-committed companies demonstrate ethical behaviour in environmental and social practices, alongside good governance. Prior to investment, investors are looking on convincing factor and consideration on ESG can help investors to identify companies with strong risk management and long-term growth potential, potentially leading to positive financial returns”
“Sustainable companies are often better equipped for future challenges like resource limitations, regulatory changes, and shifting consumer preferences. Investing in these companies can help them gain a competitive edge and secure long-term success. Additionally, many people may not realize that there are funding schemes available to support and incentivize the green economy.” said Wan Shahima.
To catalyze ESG initiatives, companies can access a suite of financial incentives including investment tax allowances, green loans, income tax exemptions or certification grants. These tools support efforts in climate action, environmental conservation, carbon credit programs and reforestation projects. This interconnected support system not only facilitates access to essential capital but also aligns with the broader goal of advancing a sustainable economy.
Emerging trends in certification and compliance in terms of ESG
Wan Shahima highlighted that ESG is becoming increasingly significant, extending beyond publicly listed companies to include the MTCs and SMEs. Publicly listed firms are constantly striving to meet and surpass ESG standards and reporting goals. In contrast, others are seeking gradual improvements while being ready to invest and commit. To facilitate this transition, it's crucial to offer tailored solutions that simplify the process. Companies can address their specific needs by choosing services such as ESG Disclosure Report Verification Services, SIRIM 55:2023 ESG Management System, and SIRIM 56:2024 ESG Reporting.
Looking ahead, SIRIM is set to energize its ESG initiatives with a dynamic array of enhancements. Expect a vibrant engagement with industry influencers, crafting compelling ESG packages that capture attention. Networking with key stakeholders will create a rich tapestry of collaboration, while a series of workshops and working groups will foster hands-on learning and innovation. These exciting developments promise to propel ESG efforts forward, making sustainability not just a goal, but an engaging journey for all involved.
The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.
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