In a world where the ocean levels are rising and many species are slowly dying out, large companies have been urged to become more aware of their environmental impact and take action towards a more sustainable future.
Unfortunately for us, a recent report by Refinitiv analyzing Environmental, Social, Governance (ESG) data across Asia’s largest companies revealed that out of eight markets studied, Malaysia ranked third lowest in the region overall for environmental sustainability.
The fault as the report laid down is mainly due to gap between intention and action. While most companies in Malaysia do set policies on emissions, waste management and water efficiency, many do not have actual target for improvement. The largest disparity is seen with waste reduction policies with 87% of Malaysian companies adopting waste reduction policies but only 20% of those companies having specific reduction targets to back up their policies.
Hong Kong companies rank highest in Asia for overall environmental sustainability with an average score of 70.06, followed by South Korea (64.57) and India (63.12). Overall, Asia performed better with regional average score of 62.34, slightly higher than the global average of 59.6.
With all this talk about sustainability, why should large companies adopt and invest in ESG policies and measures?
Elena Philipova, Global Head of ESG at Refinitiv, said, “With Asia set to lead global economic growth in the coming decade, the region’s companies and business leaders will play a prominent role in the sustainable development agenda. As many of the world’s most pressing environmental and social concerns, such as climate change and social inequality, reach critical junctures, it is important that companies take their responsibilities seriously. ESG data and transparency play an important role to drive and influence the changes required to sustain future economic and social growth.”
To put it simply, a focus on sustainability on all aspects by all players and especially by large companies will not only ensure a long-term growth of these companies but also pave the way for a better world where all of us are responsible for our actions to each other and to mother earth.
By: Siti Farhana Sheikh Yahya
