A company’s adherence to environmental, social, and governance standards and regulations, which guarantees ethical and sustainable business operations, is referred to as ESG compliance.
ESG compliance would raise listed companies’ profile which would attract more investors, aside from being a guideline for conscientios investors in managing their investment portfolio.
ESG assesses a company’s impact on the environment, society, and governance, guiding stakeholders to evaluate sustainability.
Focuses on an organisation’s environmental impact, taking into account its energy use, waste management, carbon footprint, and dedication to sustainable practices.
Taking into account the ways in which a business handles its interactions with its workers, clients, vendors, and the local communities in which it conducts business; these relationships may include topics like human rights, diversity and inclusion, labour practices, and community involvement.
A company’s decision-making is governed by its structures and procedures. Shareholder rights, executive salaries, board makeup, and ethical business practices are among the topics it covers.
There are many ways to derive financial ROI by complying with ESG frameworks. Learn more about how you can do that with our solutions or contact us for more information.
A firm’s operations, energy use, and the larger value chain all contribute to greenhouse gas (GHG) emissions, which are classified into three categories: scope1, scope2, and scope 3. Along with the framework for tracking and reporting corporate greenhouse gas emissions, this classification was initially included in the Greenhouse Gas Protocol.
ESG governance in Malaysia is overseen by a committee, JC3 (Joint Committee for Climate Change), comprising Bank Negara, Securities Commission, and Bursa Saham. This collaboration includes major local banks, PWC, and RAM, reflecting the growing influence of global index investment firms like Blackrock and Vanguard in shaping ESG policies. As ESG compliance gains prominence, future involvement of government bodies, NGOs, or consultancies in policy-making and assessment is anticipated.
