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Malaysia’s ESG imperative: Local implementation, global transformation

Prof Dr Zainura Zainon Noor

LOCAL communities play a vital role in sustainable development.

As the climate crisis accelerates, and with Malaysia pledging net-zero emissions by 2050, action must start at home.

In practice, this means embracing environmental, social and governance (ESG) principles not as a compliance burden, but as a growth strategy – a way for businesses and communities alike to thrive while preserving our environment.

The upcoming Future-Ready ESG 2025 Conference (June 21, 2025 – Kuala Lumpur) will showcase how Malaysia can turn grassroots action into a force for global change.

We must seize this moment: local implementation of sustainability measures will become a catalyst for regional and even global transformation.

ESG: From compliance to opportunity

Across the world, companies are discovering that ESG is no longer an optional add-on.

Nowadays, ESG considerations have transitioned from corporate buzzwords to core strategic imperatives.

In Malaysia, this shift is increasingly evident; public listed companies are already required to report on sustainability, and investors are demanding greater accountability, transparency, and ethical governance.

While ESG reporting for small-medium enterprises (SMEs) is not yet mandatory, it is likely to become part of future regulatory expectations.

More importantly, adopting ESG practices can help SMEs enhance operational efficiency, improve access to green financing, and strengthen their position in supply chains particularly when engaging in international trade.

Early adoption can give SMEs a competitive edge and build long-term resilience in an evolving global market.

Far from stifling growth, the data show that firms integrating ESG into their strategy tend to outperform.

McKinsey’s analysis of global firms found that companies aligning growth with ESG ‘outperform their peers’ – in other words, ‘not only can you do well while doing good, you can do better’.

Thus, integrating sustainability is not just a compliance obligation, but a vital component of long-term success.

In short, businesses that see sustainability as a strategic opportunity unlock new efficiency, reputation and resilience and gain an edge in the market.

As Chair of Asean in 2025, Malaysia has explicitly made inclusivity and sustainability core priorities of the regional agenda.

This is more than rhetoric: the theme of this year’s Asean Summit is ‘Inclusivity and Sustainability’, and Malaysia has committed to push climate action and clean energy across Southeast Asia.

By aligning national development with ESG goals, Malaysia can set a powerful example.

We have already pledged a 45 per cent cut in carbon intensity by 2030 and net-zero by 2050, and we now have the opportunity to turn these ambitions into reality for the region.

The time is ripe for Malaysia to show how local implementation of sustainability whether through nature-based solutions in ecologically rich regions like Borneo, or through green financing and climate innovation in dynamic urban centres like Kuala Lumpur, Johor Bahru and Penang.

This green and community friendly initiatives can integrate with regional plans for a cleaner, more equitable future.

Bridging policy and practice

It’s one thing to set goals on paper, and another to implement them on the ground.

In Malaysia today, ESG momentum is coming from both ends: strong government roadmaps and global commitments on one side, and growing market demand on the other.

Indeed, in Malaysia, our ESG approach is guided by both top-down regulation and bottom-up market demand, aligning us with international frameworks like the United Nations (UN) Sustainable Development Goals (SDGs) and major reporting standards such as the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), and the ISSB (International Sustainability Standards Board) standards.

Compliance with these frameworks is increasingly essential for participating in international trade, particularly in key export sectors like palm oil and manufacturing where buyers now expect demonstrable ESG alignment.

As Asean Chair in 2025, Malaysia’s leadership underscores that strong ESG governance is not only a regulatory imperative, but also a trade necessity to keep our industries competitive and responsible on the world stage.

That is precisely the gap this conference addresses.

By bringing policymakers together with industry leaders, financiers and social innovators, we will translate strategy into action.

Through workshops and case studies we will spotlight real-world solutions, from renewable energy projects and sustainable supply chains to inclusive governance and green investment.

When regulation meets innovation, transformation follows.

Malaysia has the regulations; now we must build the skills, tools and collaborations to follow through.

Future-Ready ESG 2025 is designed as the forum to do exactly that.

Future-Ready ESG 2025 Conference: Local to global

The Future-Ready ESG 2025 Conference (June 21, 2025 – Sama-Sama Hotel, KLIA) is the premier platform for this endeavour.

Co-organised by Universiti Teknologi Malaysia’s (UTM) Centre for Environmental Sustainability and Water Security (IPASA), Asia e University’s School of Professional and Executive Education Development (SPEED), MAB Academy (Malaysia Aviation Group) and Intuition, the conference will convene thought leaders, business executives, investors, non-governmental organisations (NGOs) and government representatives.

The theme, ‘Local Implementation, Global Transformation’, captures the spirit of this gathering.

We are literally ‘aligning local action with regional integration for global transformation’.

In practical terms, this means each session will link Malaysia’s policies (ESG standards) with on-the-ground practice.

We will showcase Malaysian success stories and international best practices and explore how to replicate them across Asean.

Highlights include technical papers presentation and networking forum focused on actionable ESG roadmaps for different sectors.

For example, the conference sessions will explore practical ESG applications across sectors such as aviation, biotechnology, manufacturing and environmental services, ranging from carbon markets to inclusive governance.

The panel dialogues and case studies will highlight real-world approaches to issues like climate resilience, responsible innovation, and sustainable corporate strategy.

Importantly, the programme is HRD Corp-claimable, making it an excellent opportunity for companies to upskill their teams with ESG-relevant knowledge.

This is not a conference for press releases, but rather, a launchpad for partnerships, transformation, and actionable solutions.

Call to action: Join the ESG journey

The path forward is clear – ESG is not a distant trend, as it is today’s business reality and the only viable strategy for a sustainable future.

The evidence is overwhelming that organisations embedding ESG into their core will emerge stronger and more competitive.

Yet, success requires collaboration.

That is why I urge all stakeholders namely businesses, bankers and bureaucrats, entrepreneurs and educators to be part of this conversation.

Register for the Future-Ready ESG 2025 Conference on June 21, lend your voice, and take away plans to embed ESG into your own operations.

Together, we will bridge local initiatives and regional policies, turning good intentions into lasting impact.

The choices we make now, at home and at this moment of leadership, will ripple far beyond Malaysia.

Let us act decisively and take advantage of this strategic opportunity so that our local actions truly spark global transformation.

The future is being written today – let Malaysia lead the way.

* Prof Zainura is the director of the IPASA of UTM, and Chair of the Future-Ready ESG 2025 Conference.



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