Summary How Malaysia scores on ESG - MIDA | Malaysian Investment Development Authority www.mida.gov.my
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Malaysia aims to achieve carbon neutrality by 2050 by focusing on renewable energy, sustainable cities, and ESG programs, positioning itself as a leader in ASEAN.
Slides
Slide Presentation (8 slides)
Key Points
- Malaysia is in the infant stage of adopting environmental, social, and governance (ESG) practices, but is flourishing among its ASEAN counterparts.
- Malaysia has set an ambition to achieve carbon neutrality by 2050 and is supported by five pillars in deploying renewable energy, managing carbon emissions, water and waste, driving the development of sustainable cities, and accelerating the green economy.
- Companies in Malaysia are actively pursuing their ESG programs, with multinational corporations focusing on energy consumption as a key area.
- Malaysia aims to deliver 31% of renewable energy in the national capacity mix by 2025 and 40% by 2035.
- Malaysia is the only ASEAN country to introduce a voluntary carbon market in its Budget 2022, setting a platform for carbon credit trading.
- Malaysia issued the world's first sovereign US-denominated sustainability sukuk in 2021, accounting for a significant portion of the total ASEAN sustainable and responsible investing (SRI) sukuk issuance.
- Public-listed companies in Malaysia are performing well in terms of ESG, ranking second highest on the MSCI All Country Index (ACWI) ESG Leaders Index among ASEAN countries.
- Malaysia has a strong regulatory framework for sustainability but needs a mindset shift to move towards self-regulation and better internalization of sustainability and ESG principles.
Summaries
19 word summary
Malaysia, a leader in ASEAN, aims for carbon neutrality by 2050 through renewable energy, sustainable cities, and ESG programs.
68 word summary
Malaysia is a leader in ESG practices in ASEAN, aiming for carbon neutrality by 2050. The country focuses on renewable energy, carbon emissions management, sustainable cities, and the green economy. Malaysian companies are actively pursuing ESG programs, particularly in energy consumption. Malaysia ranks second highest on the MSCI All Country Index ESG Leaders Index. Efforts are underway to address skill gaps, develop ESG-competent directors, and strengthen regulatory framework.
159 word summary
Malaysia is emerging as a leader in ESG practices in the ASEAN region, with ambitious goals to achieve carbon neutrality by 2050. The country focuses on renewable energy deployment, carbon emissions management, sustainable city development, and the growth of the green economy. Malaysian companies are actively pursuing ESG programs, particularly in energy consumption. Green energy adoption is gaining momentum, with large local companies opting for renewable sources like solar and hydro power. Malaysia aims to decarbonize over 30 cities initially, followed by another 120. The country has proposed incentives for electric vehicles and set targets for renewable energy. Malaysia ranks second highest on the MSCI All Country Index ESG Leaders Index among ASEAN countries. Efforts are underway to address skill gaps in ESG, develop a pipeline of ESG-competent directors, and advance policy and regulatory actions in sustainability. Malaysia aims to stay at the forefront of ESG developments by strengthening its regulatory framework and embracing sustainability as a core principle.
431 word summary
Malaysia is emerging as a leader in environmental, social, and governance (ESG) practices within the ASEAN region. The country has set ambitious goals to achieve carbon neutrality by 2050, focusing on renewable energy deployment, carbon emissions management, sustainable city development, and the growth of the green economy. Malaysian companies are actively pursuing ESG programs, particularly in energy consumption.
Green energy adoption is gaining momentum in Malaysia, with large local companies opting for renewable energy sources such as solar and hydro power. The Net Energy Metering (NEM) Nova program, which allows commercial and industrial users to install solar photovoltaic systems, has been fully embraced within just three months of its launch. Government-linked companies are also collaborating with real estate developers to explore green energy options.
Malaysia aims to decarbonize over 30 cities initially, followed by another 120, in its pursuit of sustainable city status. The country has proposed incentives for electric vehicles (EVs) under Budget 2022, including exemptions of import and excise duties and sales tax for EVs. Malaysia has set targets to deliver 31% renewable energy in its national capacity mix by 2025 and 40% by 2035.
Malaysia is committed to becoming a carbon-neutral country by 2050, and it has introduced a voluntary carbon market in its Budget 2022 to facilitate carbon credit trading. The country has also issued the world's first sovereign US-denominated sustainability sukuk, contributing significantly to the total ASEAN sustainable and responsible investing (SRI) sukuk issuance.
Malaysia's public-listed companies rank second highest on the MSCI All Country Index (ACWI) ESG Leaders Index among ASEAN countries. The country has a robust regulatory framework and is working to improve sustainability disclosures and meet the information needs of capital market stakeholders. The Malaysian CG code emphasizes the importance of addressing material ESG risks and opportunities as part of boards' fiduciary duty.
To further progress in ESG, Malaysia aims to shift its corporate mindset towards self-regulation and better internalization of sustainability and ESG principles. Efforts are underway to address skill gaps in ESG among Malaysian boards and develop a pipeline of ESG-competent directors. The country is also advancing policy and regulatory actions in sustainability risk management and disclosures, sustainability index development, and sustainability finance deployment.
While Malaysia is performing well compared to its regional peers, it recognizes that sustainability is an ongoing journey. The country aims to stay at the forefront of ESG developments by strengthening its regulatory framework, building ESG competency among boards and directors, and embracing sustainability as a core principle. Through these efforts, Malaysia is poised to continue its progress in ESG and contribute to a more sustainable future.
553 word summary
Malaysia is making strides in adopting environmental, social, and governance (ESG) practices, positioning itself as a leader among its ASEAN counterparts. The country has set ambitious goals to achieve carbon neutrality by 2050, supported by pillars such as renewable energy deployment, carbon emissions management, sustainable city development, and the growth of the green economy. Companies in Malaysia are actively pursuing ESG programs, with multinational corporations focusing on energy consumption as a key area of commitment.
The adoption of green energy is gaining momentum in Malaysia, with large local companies opting for electricity supply from renewable sources like solar and hydro power. The Net Energy Metering (NEM) Nova program, which allows commercial and industrial users to install solar photovoltaic systems for self-consumption and export excess electricity to the national grid, has seen full uptake within just three months of its launch. Government-linked companies are also exploring green energy options in collaboration with major real estate developers.
To achieve sustainable city status, Malaysia is targeting the decarbonization of over 30 cities followed by another 120. The country has proposed incentives for electric vehicles (EVs) under Budget 2022, including the full exemption of import and excise duties and sales tax for EVs. Malaysia aims to deliver 31% of renewable energy in its national capacity mix by 2025 and 40% by 2035. However, Ernst & Young Consulting emphasizes the need for better speed of implementation to transition to a low-carbon energy system through various sources like solar, hydro, bioenergy, and new technologies.
Malaysia is committed to becoming a carbon-neutral country by 2050, making it one of the earliest ASEAN countries to support this climate action. It has introduced a voluntary carbon market in its Budget 2022, providing a platform for carbon credit trading between green asset owners and other entities transitioning towards low-carbon practices. The country has also issued the world's first sovereign US-denominated sustainability sukuk, accounting for the majority of the total ASEAN sustainable and responsible investing (SRI) sukuk issuance.
Malaysia's public-listed companies are performing well in terms of ESG, ranking second highest on the MSCI All Country Index (ACWI) ESG Leaders Index among ASEAN countries. The country also has a strong regulatory framework, with efforts underway to improve the quality of sustainability disclosures and meet the information needs of capital market stakeholders. The Malaysian CG code is more aligned with sustainability than most Asian countries, emphasizing the importance of addressing material ESG risks and opportunities as part of boards' fiduciary duty.
To continue progressing in ESG, Malaysia needs to shift its corporate mindset towards self-regulation and better internalization of sustainability and ESG principles. Efforts are underway to address ESG skill gaps among Malaysian boards and build a pipeline of ESG-competent director talents. The country is also advancing policy and regulatory actions in sustainability risk management and disclosures, sustainability index development, and sustainability finance deployment.
While Malaysia is performing relatively well compared to its regional peers, it recognizes that sustainability is an ongoing journey rather than a destination. The country aims to stay at the forefront of ESG developments, aligning with global trends that governments and consumers are increasingly focusing on. By strengthening its regulatory framework, building ESG competency among boards and directors, and embracing sustainability as a core principle, Malaysia is poised to continue its progress in ESG and contribute to a more sustainable future.