LOCAL small and medium enterprises (SMEs) must consider embracing environmental, social and governance (ESG) principles, says Chief Minister Chow Kon Yeow.
He highlighted the increasing significance of ESG not only in the operation of enterprises but also in contributing to the state’s economy through encouraging high-impact investments and development.
Speaking at the inaugural Penang ESG Conference and Exhibition at Olive Tree Hotel today, Chow said projects such as the Penang Silicon Island have adopted ESG principles through its designs to attract diverse investments and position Penang as an ESG-compliant centre of Malaysia.
The one-and-a-half-day event is being organised by the Penang Green Council, of which Chow is the chairman. Also present were the state executive councillor for Housing and Environment Datuk Seri Sundarajoo Somu, who is also the PGC vice-chairman, and PGC general manager Josephine Tan.
“Penang’s unwavering commitment to ESG principles does not only bolster our status as a hub for international trade but also positions us as a trailblazer in the burgeoning green economy. This, in turn, can attract more businesses and foster collaborative opportunities for sustainable economic growth and development.
“ESG principles play a pivotal role within the supply chains, enabling the creation of a positive environmental impact and contributing significantly to the manufacturing sector. Nevertheless, SMEs would still need all the support and guidance they could get from the government as well as private sectors. Most importantly, ESG also needs to be understood by SMEs as an opportunity rather than a risk,” Chow said in his speech.
Highlighting the importance of environmental sustainability, Chow said the very essence of our environment is in peril, threatened by climate change, habitat destruction, and pollution.
Adopting ESG would help reduce carbon footprint, promote renewable energy, and advance conservation efforts.
Chow urged SMEs to adapt to governmental policies and regulations requirements, acknowledging challenges such as resistance to change, financial constraints, and complex regulatory issues.
He emphasised the success of ESG initiatives depends on collaboration between the public and private sectors, civil groups, non-governmental organisations, and the global community.
Chow also urged all multinationals (MNCs), large local companies (LLCs) and publicly listed companies (PLCs) today, to work collectively with the Penang State Government on ESG-related programmes such as the Penang Green Industry Programme, spearheaded by the Penang Green Council (PGC), as well as other government initiatives.
Earlier today, PGC general manager Josephine Tan said PGC together with InvestPenang would be actively facilitating the implementation of iESG (Industrial Environmental Social Governance) in Penang.
She said PCG and InvestPenang are currently looking into the setting up of a programme that will help Penang’s public-listed companies comply with the iESG Framework, including taking on more responsibility for the integration of ESG across their supply chain.
She also thanked supporting partners – InvestPenang, Penang Skills Development Corporation, and Capital Markets Malaysia, media partner Atlantic by Motion In Style, and sponsors CIMB Bank and AGV Sustainability & ESG Services Sdn Bhd, Bacteria Free Water Engineering (M) Sdn Bhd, Shan Poornam Metals Sdn Bhd, Olive Tree Hotel, DeScale and MY CO2 Group Sdn Bhd and UOB Malaysia for supporting the inaugural Penang ESG Conference and Exhibition.
Story by K.H. Ong
Pix by Siew Chia En
Video by Adleena Rahayu Ahmad Radzi