KUALA LUMPUR, Sept 5 — Malaysian companies, especially exporters, must embrace the environmental, social and governance (ESG) agenda to boost their reputational and competitive advantage in the overseas markets that are increasingly selecting suppliers aligned with stricter sustainability standards.
HSBC Amanah Malaysia Bhd chief executive officer Raja Amir Shah Raja Azwa said studies have shown that consumers are willing to pay more for products and services that are environmental-friendly and which respect human rights.
“Suffice to say, having a stronger ESG profile allows a brand to stand out among its competitors, help reduce costs through increased efficiencies, and drive product innovation,” he said in a statement today.
Raja Amir also urged companies to raise their ESG profiles, or they would be denied the access to the capital market for funds they need to expand.
He said the push on business to adopt sustainable practices is intensifying. This “push” may be in the form of growing stakeholder pressure, rising government regulations, and greater attention from investors and bankers.
Rather than seeing it as a cost to comply with, the shift towards a greener economy should be viewed as an opportunity as the benefits are far-reaching, he added.
“ESG should be seen as an opportunity allowing boards and executives to build greater trust with their employees, shareholders, and communities in which they operate, while doing good for the planet,” said Raja Amir.
Banks worldwide are increasingly stepping up to help accelerate the green transition by leveraging their role as capital provider, he said.
Raja Amir said HSBC aims to provide and facilitate between US$750 billion and US$1 trillion (RM3.3 trillion and RM4.4 trillion) of sustainable finance and investment by 2030. At country level, HSBC Malaysia has to date earmarked RM1 billion for green and sustainable financing. — Bernama
