Malaysian companies must emphasise ESG standards to secure global supply chain positions

Malaysian companies must emphasise ESG standards to secure global supply chain positions

11 Dec 2023

RAM Holdings Bhd has emphasised the necessity for Malaysian companies to align with environmental, social, and governance (ESG) standards to secure their positions in global supply chains.

Deputy group chief executive officer Promod Dass says Malaysian companies must not only uphold financial standards but also be prepared to meet elevated ESG compliance requirements to stay in line with global trends.

Dass highlights significant global ESG regulatory changes, such as the European Union’s Carbon Border Adjustment Mechanism, The Sustainable Finance Disclosure Regulation, the UK Sustainability Disclosure Requirements, and the German Supply Chain Due Diligence Act (German LkSG).

“Some of these regulations would enhance transparency in the sustainable investment market.

“Their purpose is to prevent misleading environmental claims, known as greenwashing, about investment products and to increase the flow of investment into sustainable products to accelerate the transition to a low-carbon economy,” he said in a statement.

Dass mentioned that Malaysia’s regulators and financial and capital market participants have been gearing up for the worldwide ESG trend since September 2019 through the Joint Committee on Climate Change.

“It has led to awareness and changes in business approaches. Now it is time for Malaysian corporations to transform and position themselves well in this ESG-centred world,” he said.

Source: NST