KUCHING: Businessmen must embrace environmental, social, and governance (ESG) standards to fulfil their corporate and social responsibilities, and attract more investment, said Dr Hazland Abang Hipni
The Sarawak Deputy Minister for Energy and Environmental Sustainability said the rising interest among investors in ESG highlights the key elements that contribute to a successful company environmental protection, community engagement, and transparent governance.
“Regarding environmental sustainability, companies will be evaluated based on their management of renewable energy sources, waste control and water resource management.
“Strong relationships with employees and the community is important from the social aspect while governance is vital for robust leadership and transparent processes,” he said at the Senari Synergy Group ESG Day 2023 at the IOT Management Sdn Bhd premises here recently.
He said that ESG practices significantly impact a company’s reputation and the country, as they have demonstrated stronger financial performance, higher employee productivity, reduced regulatory interventions, cost reduction, and sustainable growth.
“The increasing number of external investors focusing on ESG as a benchmark for investment decisions makes it crucial for companies to adopt ESG-based operations.
“Neglecting ESG practices exposes companies to the risk of being disconnected from the investment chain or losing support from major investors,” he said.
He commended Senari Synergy Group, led by Jefri Ahmad Tambi, and its employees for their dedication in realising ESG objectives.
“Their initiatives, including low energy use, biogas utilisation, collaboration in renewable energy, e-waste management, community activities, and adherence to integrity through the anti-bribery system (ABMS), deserve praise and serve as a positive direction for other agencies.
“The ministry will continue to support companies like Senari Synergy in developing action plans for sustainable ESG practices, aiming to achieve Sarawak Net Zero Carbon by 2050,” he added.
