ESG from Fringe to Mainstream

Published on 12.09.22
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A lot has happened in the field of environmental, social and governance (ESG) over the past few years and many would agree that the momentum behind sustainability reporting is increasing rapidly. ESG has gone from fringe to mainstream, having risen rapidly to the top of the corporate agenda.

In part, this is due to increasing requirements around regulations and reporting, and growing public and shareholder pressure, encouraging organisations to increase their sustainability efforts. It wouldn’t be an understatement to claim that ESG is now an increasing priority for many organisations across Malaysia's digital economy ecosystem.

The world is now more interconnected than ever - economically, socially, and culturally - and the importance of ESG in shaping our future is more evident than ever. Social issues, which tended historically to lag environmental action, have come increasingly to the forefront of public opinion due to COVID-19.

In such a rapidly evolving landscape, keeping up-to-date on the latest developments is vital for any organisation wanting to stay on the front foot. ESG ratings help to provide valuable investment information and to assess progress towards addressing challenges like climate change.

What will the future bring? Many believe that 2022 will prove to be a pivotal year for ESG reporting. The need for a robust ESG strategy is being recognised as a critical business imperative as organisations are being increasingly scrutinised by boards, customers, and a new generation of workers.

In response to this demand, MDEC will become an enabler, by advocating the adoption of ESG principles across Malaysia's digital economy ecosystem, from multinational businesses to MSMEs. We will also develop collaborations with key external bodies in the field.

As we lead our nation's digital economy forward, it is critical that we ensure it is inclusive and rewarding for all. ESG principles and reporting will play an important role in helping us to achieve this. I would urge you to join this debate and welcome your ideas and opinions on how best to take this crucial agenda forward.

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