ARE we prepared for the rise of the Environmental, Social and Governance (ESG) model?
The Institute of Strategic and International Studies (Isis) Malaysia chief executive Herizal Hazri said the world is moving towards ESG and it would be a huge thing in a few years.
“The ESG framework is going to impact developing countries, especially advanced middle-income countries like Malaysia. Hence, we need to prepare ourselves.
“If we want to attract more investments in the future, we need to move in that direction.
“It is no longer about what we are doing today, but what we are doing for tomorrow.
“Moving forward, we feel that a good policy on ESG, even at a certification level, will help attract foreign direct investment (FDI) in the future.
“If Penang has an ESG policy and sets a standard on it, Penang will be the first state in the country to move in that direction,” Herizal said when paying a courtesy call on Chief Minister Chow Kon Yeow at his office in Komtar today.
Chow said that some factories and small and medium-sized enterprises (SMEs) were already stepping up their ESG efforts to remain relevant.
“The Penang government is looking at the ESG framework seriously. As you rightly pointed out, we need to package it and have a state policy on ESG,” he agreed with Herizal.
Chow said he would get Penang Institute to engage with Isis Malaysia to further discuss the matters on ESG.
The meeting also highlighted issues such as land readiness for industries, human talents and water supply and demand.
“The Sungai Muda raw water issue which occurred recently may happen again if this issue is not handled properly.
“The Penang government and the Penang Water Supply Corporation (PBAPP) have been constantly highlighting the need for water security for many years. However, the Federal Government and the Ministry of Environment and Water do not seem to take it seriously,” he said.
Also present were PBAPP chief executive officer Datuk Jaseni Maidinsa, Isis Malaysia senior director of research Alizan Mahadi, and Isis Malaysia public sector engagement manager Jamil A. Ghani.
Story by Christopher Tan
Pix by Noor Siti Nabilah Noorazis