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Integrating ESG elements vital for project approval, national impact

11 Dec 2024, 12:00 AM
Integrating ESG elements vital for project approval, national impact

By Yasmin Ramlan

SUBANG JAYA, Dec 11 — It is essential for organisations to integrate environmental and social aspects into their projects to expedite approval processes, as these initiatives align with broader organisational goals and contribute to creating a positive social impact for the country, said PLUS Highway’s chief governance, risk, and sustainability officer Satpal Singh Dillon.

Speaking at a ‘Sustainability Leadership’ forum, he emphasised on the importance of incorporating sustainability into every business decision through a concept called ‘material matters,’ which he explained that businesses must assess whether their projects have positive or negative impacts on the main sustainability factors and identify ways to manage related risks and opportunities.

"It is very important because many of us, especially employees working on the ground, need to refer back to the organisation’s mission and vision when identifying and addressing a problem.

"It is about connecting communities to build a safe and sustainable future, with safety and sustainability being the key priorities. But how do we define sustainability? There are many ways of doing it.

"These initiatives must be environmentally conscious, socially responsible, and uphold good governance. Everything you do should reflect these principles, driving the commitment to good governance," Satpal said at the forum held at the Grand Dorsett Hotel yesterday .

He highlighted the role of corporate values in driving sustainability efforts, which are each linked to sustainable practices, and focusing on, doing things better, encourages innovation, cost-saving measures, and reducing emissions, with key performance indicators serving as critical drivers for achieving these goals.

"By incorporating sustainable elements, the project becomes more authentic and easier to approve, as it demonstrates both environmental and social impact.

"And all of us, as organizations, are in positions where we must create a positive social impact for our country," Satpal said.

Important lesson in any transformation

Meanwhile, Pos Malaysia Bhd group chief executive officer Charles Brewer shared a success story involving environmental, social, and governance (ESG) initiatives.

He recounted his experience of introducing two-wheeled electric vehicles (EV) as part of their sustainability roadmap, at a time when only two providers were available in Malaysia.

“When we (Pos Malaysia Berhad) first introduced the two-wheeled vehicles, the rollout began at a location in Taman Tun Dr Ismail — TTDI, where we had 12 postmen.

“I tell this story because it highlights an important lesson in any transformation. It is something worth remembering, even if you take nothing else away.

“The rollout took place on a Monday, but I could not go down that day because I had a board meeting. So, I drove down on Tuesday morning, excited to see how things were going,” Brewer said.

However, the introduction faced mixed reactions, reflecting a common pattern in change management.

He added that about one-third of the management were excited about the EVs, impressed by their speed and modern features. Another third remained skeptical — needing proof of their effectiveness, while the rest were resistant, particularly concerned about the vehicles’ performance on hilly routes.

However, Brewer emphasised that understanding these different reactions is key when driving sustainability initiatives, as managing change requires addressing both enthusiasm and concerns within the organisations.

The forum, officiated by state executive councillor for public health and the environment Jamaliah Jamaluddin, brought together sustainability practitioners, experts, and industry leaders to exchange insights with Menteri Besar Selangor (Incorporated) or MBI, board members, senior management, and its subsidiaries.

It also gathers experts who share their insights and explore how industry leaders can drive sustainability and enhance corporate value.

Earlier, MBI group chief executive officer Saipolyazan M Yusop delivered his opening remarks, emphasising the goal will be pursued using three main thrusts: strategic investments, capacity building, and a focus on ESG impact.

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