Category: Governance

Control Union Malaysia will proudly host the second edition of the Sustainable
Action Conference (SAC 2024) on 21 st November 2024 at Sunway Resort Hotel.
The event is dedicated to transforming sustainability pledges into concrete action.
This event provides a platform for industry leaders from a wide range of
sectors—including government, state governments, municipal councils, finance,
manufacturing, plantations, forestry, energy, and construction—to come together,
share knowledge, and tackle pressing sustainability challenges.

At SAC 2024, attendees will have the opportunity to explore innovative solutions,
hear inspiring success stories, and foster meaningful collaborations. The conference
is designed to drive action by supporting the funding of sustainable projects and
raising awareness about the latest trends in sustainability. Whether youre looking to
elevate your brand, connect with industry leaders, or contribute to impactful projects,
SAC 2024 offers a unique opportunity to make a lasting difference in shaping a
sustainable future.

By sponsoring SAC 2024, you align your brand with sustainability and support Non-
Profit Organizations (NGOs) actively working on impactful projects. Sponsors not
only gain visibility but also have a direct hand in enabling sustainable
initiatives—as project pitches will be presented and voted on by the audience
during the event.

SAC 2024 is a non-profit event dedicated to driving sustainable transformation
across industries. With growing regulatory and social expectations, your participation
highlights your organization’s commitment to sustainability while positioning you as a
leader in this critical space.

The Sustainable Action Conference has proven to be a vital platform for connecting
sustainability experts, government officials, and company executives. It fosters
discussions and collaborations that lead to real, actionable solutions for companies
looking to make meaningful contributions to sustainability goals.

We are currently seeking sponsors to help bring this important event to life. If your
organization is interested in raising awareness, contributing to impactful projects,
and being part of a sustainable future, we invite you to join us.

We will be happy to customize a sponsorship proposal based on your company’s
objectives and budget.

Become a sponsor and join the movement toward a sustainable future today!

For collaboration opportunities, please contact us at
bdcumalaysia@controlunion.com

Kuala Lumpur, Malaysia, October 21, 2024 – A significant 80% of businesses surveyed across Asia, Europe and the Middle East have established sustainability targets. However, more than half (53%) of those businesses continue to rely on manual methods for measuring their progress, with Malaysia mirroring this trend with 56% of Malaysian businesses continue to use manual processes according to a survey report titled “Tech-Driven Sustainability Trends and Index 2024” commissioned by Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group. 

The report reveals that among businesses with sustainability targets, 92% have set emission reduction targets. However, only one-third of these organisations have committed to net-zero commitments with science-based targets (SBTs). The highest adoption of SBTs is in emerging Asian markets at 39%, followed by Europe at 35%, developed Asian markets at 30%, and the Middle East at 22%

Around half of the businesses with sustainability targets cite driving growth (56%), compliance with regulations (54%), and a strong corporate purpose (49%) as their key motivations for establishing targets. Notably, among all markets, Indonesia tops the list with 70% of businesses prioritising growth, Saudi Arabia leads with 73% emphasising compliance, and the UAE excels with 61% prioritising a strong corporate purpose.

A significant 78% of businesses agree that technology is crucial for achieving global sustainability goals, with top markets including Malaysia (89%), Saudi Arabia (87%), Singapore (86%) and France (86%). Regionally, this belief is strongest in the Middle East (86%) with emerging Asian markets a close second (83%). Similarly, 78% believe that adopting digital technologies such as cloud computing and AI will accelerate progress toward meeting sustainability goals, with Saudi Arabia leading at 90%, followed by the UAE (84%) and Singapore (81%). 

Market Commitment Levels and Challenges

When assessing market commitment levels, Singapore ranks highest with an impressive sustainability index of 91%, followed closely by Germany at 89% and Indonesia at 86%. Malaysia, in fifth place, has 83% of businesses setting sustainability targets. The sustainability index refers to the percentage of businesses that have established sustainability targets in the 13 markets. 

Businesses encounter various barriers in meeting their sustainability targets. Budget constraints emerge as the most significant obstacle, affecting 29% of organisations, particularly pronounced in the Middle East (41%) and Europe (31%). Complex supply chains further complicate efforts, impacting 28% of businesses, especially in the Middle East (35%) and Europe (29%). Additionally, technology limitations hinder 23% of companies, with the Middle East facing a slightly higher rate at 26%. Time constraints also present significant challenges across all regions, affecting 23% of organisations. For those yet to set sustainability targets, budget constraints (32%) and technology limitations (29%) remain the primary barriers to meeting sustainability targets.

Reliance on Manual Measurement

As businesses strive to enhance their sustainability efforts, the necessity for effective digital tools is evident. The survey emphasises the necessity for businesses to improve their understanding of digital tools, as 59% of respondents acknowledge a gap in their knowledge regarding how technology can help achieve sustainability goals. This sentiment is particularly evident in Singapore (83%),  Hong Kong (75%) and Thailand (70%).

The report also shows a general reliance on traditional practices among businesses, which may present challenges in effectively achieving sustainability goals. In Malaysia particularly, the study indicated that 56% of businesses depend on manual processes to measure sustainability performance using spreadsheets, emails, and similar methods. All markets, except for Hong Kong (29%), South Korea (43%) and France (49%), exceeded the 50% threshold, with the highest percentages in the UAE (68%), Saudi Arabia (61%), and the UK (60%). Meanwhile, only around a third of businesses use digital software tools including cloud platforms for the sustainability progress and measurement. Indonesia (59%), Singapore (48%) and Japan (43%) demonstrate a higher adoption of cloud-based solutions, while the average usage is at 38%.

“The survey findings underscore the urgent need for organisations to reassess their sustainability measurement methodologies and embrace advanced technological solutions like cloud-based platforms and AI services. These digital tools not only streamline the measurement process but also provide actionable insights that can drive meaningful progress for sustainability,” said Selina Yuan, President of International Business, Alibaba Cloud Intelligence.

“As a dedicated cloud service provider, we are committed to providing innovative and AI-powered solutions such as Energy Expert to enable enterprises to effectively measure and analyse carbon emission and energy consumptions to advance their sustainability goals. By addressing existing barriers and investing in such advancements, organisations can better align their sustainability initiatives with established targets,” she added. 

“Tech-Driven Sustainability Trends and Index 2024” aims to provide valuable insights into the evolving landscape of corporate sustainability while highlighting how technology can be applied to drive impactful change.

About the Survey

Alibaba Cloud’s “Tech-Driven Sustainability Trends and Index 2024” was independently conducted by Yonder Consulting, a UK-based consulting firm, with advisory, design and analytical support from The Purpose Business, an Asia-based sustainability consultancy with offices in Hong Kong and Singapore. The survey collected feedback from May 10 to June 19, 2024, involving 1,300 business leaders and senior management from various industries, including technology and communications, finance, infrastructure, renewable resources, healthcare, transportation, retail, and manufacturing.

Respondents were located across 13 markets in Asia (Malaysia, Indonesia, the Philippines, Thailand, Hong Kong SAR, Japan, Singapore and South Korea), Europe (France, Germany, and United Kingdom), and the Middle East (Saudi Arabia and UAE). In this survey, developed Asian markets refer to Hong Kong SAR, Japan, Singapore, and South Korea, while emerging Asian markets include Indonesia, Malaysia, the Philippines, and Thailand.

About Alibaba Cloud

Established in 2009, Alibaba Cloud (www.alibabacloud.com) is the digital technology and intelligence backbone of Alibaba Group. It offers a complete suite of cloud services to customers worldwide, including elastic computing, database, storage, network virtualization services, large-scale computing, security, big data analytics, machine learning and artificial intelligence (AI) services. Alibaba has been named the leading IaaS provider in Asia Pacific by revenue in U.S. dollars since 2018, according to Gartner. It has also maintained its position as one of the world’s leading public cloud IaaS service providers since 2018, according to IDC.

Appendix: Key survey findings

Technology’s Role in Sustainability:

• 78% of businesses agree that technology plays a pivotal role in achieving global sustainability goals, and the adoption of digital technologies can accelerate progress. 
• 89% of Malaysian businesses agree that technology plays a pivotal role in achieving global sustainability goals. This highlights a strong recognition of the importance of digital solutions in driving sustainability efforts in the country.

 

Understanding of Digital Technology:

• 63% of businesses from Asia acknowledge a gap in understanding how digital technology can aid in achieving sustainability goals. This suggests that while there is recognition of the importance of technology, there may be a need for more education and resources to bridge this gap. 
• 56% of Malaysian businesses still use manual processes to measure and track sustainability performance and only a third use cloud and/or non-cloud tracking software/application platforms.

These findings indicate that while there is a strong belief in the role of technology for sustainability in Malaysia, there are also challenges related to understanding and adoption that need to be addressed to fully leverage these digital tools.

The Sustainable Action Conference (SAC) 2024 and The SmartInvestor (TSI) magazine are partnering up towards a more sustainable future!

Control Union Malaysia is proud to announce the second edition of the Sustainable Action Conference 2024 (SAC 2.0) and is excited to welcome TSI as its primary official media partner! The event will take place on 21st November 2024 at the Sunway Resort Hotel, Malaysia, with the support of the Embassy of the Kingdom of the Netherlands and the Malaysia Green Technology and Climate Change Corporation (MGTC).

The SAC 2024, with the overarching theme “Transforming Pledges into Action: Realizing a Sustainable Future,” aims to provide a platform to showcase industry case studies, demonstrating successful sustainability initiatives and delivering actionable solutions that can be implemented across various industries – including Manufacturing, Plantations, Forestry, Energy, Oil & Gas, Tourism, Construction, Finance, and others – to effectively address sustainability efforts.

The media partnership underscores a shared commitment of both parties that brings diverse people together, sparking the action needed for real change. Online platforms will feature detailed interviews with speakers, organisations, and attendees, while also keeping you updated on the programme and offering behind-the-scenes insights into the event. Through these efforts, we aim to broaden the event’s reach and provide you with comprehensive information on the key topics discussed. After all, sustainability is a matter that affects us all!

The Sustainable Action Conference is hosted with the generous support of sponsors with remaining proceeds being donated to a charitable organisation selected by the audience during the conference. Participation is by invitation only and should you be interested to attend, kindly register on our website at www.sustainableactionconference.com.

 

 

 

The Securities Commission Malaysia (SC) and the World Bank have launched a joint
report, “ESG Disclosure Assessment of Malaysia’s Listed Companies and
Recommendations for Policy Development” at the SC-World Bank Conference 2024 today.

This report provides a baseline on ESG reporting practice in Malaysia, offering key insights
for companies and investors to enhance sustainability reporting to align with international
best practices and remain competitive.

It aims to analyse the current state of ESG disclosure amongst listed companies and
institutional investors, given the growing prominence of ESG and sustainability
investments globally.

It also provides reflections and recommendations for policymakers in the Malaysian
capital market to foster improved ESG reporting, ensuring relevance and consistency
globally.

Speaking at the conference, SC Executive Director of Islamic Capital Market Sharifatul
Hanizah Said Ali emphasised the importance of strengthening ESG disclosures amid
growing global demand for sustainable investments.

“This joint report reflects our ongoing commitment to fostering a more sustainable capital
market. Improved ESG disclosure practices are expected to strengthen investor
confidence and ensure that our market remains competitive and future-ready,” she said.

The report was based on an in-depth assessment, conducted between August and
December 2023, examining ESG disclosure practices of a representative sample of 90
companies listed on Bursa Malaysia, as well as processes among some of Malaysia’s
largest asset owners.

It highlights that most Malaysian listed companies had demonstrated good corporate
disclosures and solid overall approach to managing governance and social issues.
However, the report also points out gaps in specific environmental indicators, especially
those related to climate change and biodiversity.

Other findings from the report include:
1. Larger companies1 had significantly better ESG disclosure rates than smaller ones.
2. Regulatory compliance was the primary driver of corporate ESG reporting in
Malaysia.
3. On ESG disclosure practices among four large Malaysian asset owners, the
assessment indicated relatively low levels of ESG disclosure. However, interviews
suggested greater efforts to strengthen ESG practices and processes other than
currently publicly disclosed.

The report concludes with a set of recommendations, including continuous monitoring
along with consultations, to ensure effective implementation of the ESG disclosures in
line with the recently launched National Sustainability Reporting Framework (NSRF).

Other recommendations of the report include:
1. To further support widespread implementation of Bursa Malaysia’s guidelines for
sustainability reporting
2. To actively encourage development of ESG practices among domestic investors
to increase appeal for corporate ESG disclosures

This year marks the 5th installment of the SC-World Bank Conference, which was
officiated by Deputy Minister of Investment, Trade and Industry YB Liew Chin Tong.
The conference explores synergies within the capital market and Islamic capital market
to bridge funding gaps for micro, small and medium entrepreneurs (MSMEs) and mid-tier
companies (MTCs).

It aligns with the SC’s 5-year Roadmap “Catalysing MSME and MTC Access to the Capital
Market (2024-2028)”, which aims to support MSMEs and MTCs funding through the
capital market.

“Through our knowledge-based collaboration, we aim to support effective policy design
and implementation to address the MSME and climate financing gaps, and I look forward
to further leveraging the World Bank’s global expertise to support the Malaysian
government, financial regulators, and the private sector in developing a more robust and
resilient financing ecosystem for MSMEs,” said Dr. Zafer Mustafaoğlu, World Bank Country
Director for the Philippines, Malaysia, and Brunei Darussalam.

Over 200 industry players attended the conference, including entrepreneurs, government
agencies, venture capital and private equity firms, RMOs, financial institutions, and
Government-Linked Investment Companies.

The report is available at https://www.sc.com.my/resources/publications-and-
research/esg-disclosure-assessment.

KUALA LUMPUR, 14 October 2024 – UOB Malaysia today announced the launch of its Sustainable Vendor Financing Programme (SVFP) to support Malaysia’s Oil & Gas Services and Equipment (OGSE) sector in its decarbonisation and energy transition efforts. As part of the programme’s debut, the Bank is allocating up to RM1 billion for the purpose of financing OGSE suppliers participating in PETRONAS Suppliers Support Programme (PSSP).

The SVFP comprises transition financing solutions with competitive rates tailored for OGSE companies participating in PSSP. It also includes meaningful incentives for these companies to kickstart their decarbonisation initiatives such as the adoption of renewable energy, improvement of energy efficiency, emission reduction measures and fleet electrification.

Ms Ng Wei Wei, Chief Executive Officer of UOB Malaysia, said, “The launch of the Sustainable Vendor Financing Programme reflects our commitment to helping Malaysia’s OGSE sector transition towards sustainability. As PETRONAS is our valued partner, we are pleased to extend our support to their suppliers, which are predominantly small-and-medium-sized enterprises, to help them embark on their decarbonisation journey. This will also help the country’s OGSE sector stay competitive in the global value chain, with heightened expectations on ESG-related regulations being implemented across the world.”

The SVFP also introduces measures for OGSE companies to track and demonstrate progress in their sustainable practices. This includes completing capacity-building modules, establishing baseline greenhouse gas (GHG) reporting and demonstrating annual GHG reductions.

Developing relationship with PETRONAS 

In 2019, UOB Malaysia worked closely with PETRONAS on a Vendor Financing Programme that provided financial certainty to OGSE suppliers, enabling these suppliers to focus on delivering their projects on-time and on-target.

The relationship is further strengthened with the newly launched SVFP that comes under UOB’s Transition Finance Framework (TFF). Developed by the bank’s Sector Solutions Group, a dedicated team of sector and sustainable finance specialists, UOB’s TFF offers a suite of banking solutions to companies across hard-to-abate sectors working on reducing their carbon emissions or developing low-carbon projects, such as biofuel refineries and carbon capture & storage initiatives. 

UOB’s TFF has received a second-party opinion that verifies the framework is in line with internationally recognised climate finance principles, providing assurance of its alignment with global best practices for financing hard-to-abate sectors. With this framework, companies in the energy sector can establish resilient supply chains while meeting governance requirements.