MALAYSIA is emerging as a regional leader in sustainable development, driven by the government's commitment to Environmental, Social, and Governance (ESG) practices and the Sustainable Development Goals (SDGs).
According to the Sustainable Development Report 2023 by the United Nations Sustainable Development Solutions Network (UN-SDSN), Malaysia is ranked eighth among neighboring countries and 78th out of 166 countries assessed.
The SDGs are driving a prosperous, equitable and sustainable world.
To meet these goals, the World Economic Forum stresses that "the private sector must play a key role" and that company leaders must identify the SDGs that are most relevant to the strategic goals of their firm.
"Business model innovation can enable firms to foster sustainable changes by incorporating social and environmental consequences into their designs.
"The SDGs will never be achieved if we continue to do what we do, the same way we've always done it," it stated.
This is where ESG plays a central role in guiding responsible and ethical business practices in a corporate landscape.
In Malaysia, ESG reporting has been made mandatory by Bursa Malaysia for all public listed companies since 2016. To enhance the reporting requirements, the market regulator recently launched an ESG Reporting Platform to mandate disclosures in a prescribed format.
By integrating the 17 SDGs with ESG practices, businesses can better contribute to their communities and the environment.
Integrating SDGs and ESG
Sunway Group founder and chairman Tan Sri Sir Dr. Jeffrey Cheah is convinced that if the world can "achieve at least 70 per cent of the SDGs, the global Happiness Index ranking will be very high. The SDGs provide a comprehensive and holistic roadmap towards building a more sustainable world."
"At Sunway, we are firmly committed to the sustainability agenda and have wholeheartedly embraced the 17 SDGs, embedding them into the fabric of our business practices and decision-making processes.
"We have aligned the SDGs with our ESG targets as part of our corporate strategy and social responsibility towards driving the group's long-term success, deepening our commitment to nation-building and achieving net zero carbon emissions by 2050," he added.
With the aim to accelerate its groupwide decarbonisation efforts towards achieving net zero, Sunway is offering its internal business divisions an incentive to achieve carbon avoidance targets.
The group's effort to reduce carbon emissions effectively addresses SDG 13: Climate Action and the environmental component of ESG.
"The SDGs and ESG are the two most important pillars in advancing the sustainability agenda. Both serve to address sustainability-related challenges and are closely intertwined," said Sunway Group executive director of the chairman's office Ong Pang Yen.
"At Sunway, we see the ESG disclosure and compliance framework as one of the more effective tools and as a "means to an end", which is the UN-SDGs.
"More importantly, we view ESG as a data-based sustainability mechanism that facilitates disclosures and fosters transparency," he added.
Ong said through disclosures, stakeholders can see how companies are responding to pressing environmental, social and governance issues.
"We believe that transparency brings about accountability and builds trust. In other words, transparency promotes engagement with our stakeholders and helps keep the company on the right track to stay relevant in an ever-changing environment," he explained.
Ong attributes the business successes of Sunway to the company's sustainability strategy, as the group marks its 50th anniversary this year.
"Fifty years is not a short time. It is a clear indication of our leadership's preparedness in the face of an ever-changing business environment and ability to outrival many of our competitors, to be among the top in the industries in which we operate," he concluded.
An integrated approach to sustainability
Recognising the need for leadership to help effect meaningful change and transformation in advancing the sustainability agenda, Sunway believes in harnessing the collective strength of corporations, academia and every single individual.
The company actively pursues sustainability across various dimensions, focusing on creating eco-friendly and integrated urban environments, enhancing energy efficiency, and promoting responsible and sustainable practices.
Their flagship township Sunway City Kuala Lumpur emphasises a sustainable integrated transport ecosystem that includes electric buses and extensive pedestrian walkways to ease traffic congestion and significantly reduce carbon emissions.
Green township and building policies implemented groupwide ensure all new developments from 2025 onwards are to be green-certified, to facilitate healthy lifestyles and focus on the well-being of the communities.
Similar principles are applied in other townships like Sunway City Ipoh and Sunway City Iskandar Puteri, with the aim to minimise carbon footprints and promote sustainable urban living.
The group, through its Real Estate Investment Trust (REIT) arm, introduced the country's first Green Lease Partnership Programme to encourage its business partners to adopt global best practices in sustainability and work together in driving sustainable solutions.
Meanwhile, a first-of-its-kind alliance in Malaysia focusing on sustainability in the retail industry Sustainability Collaboration Alliance Network (SCAN) was established through Sunway Malls.
This five-way partnership involving the UN-SDSN, Jeffrey Sachs Center on Sustainable Development at Sunway University, Malaysia Retail Association, and Malaysia Retail Chain Association introduces programmes to drive sustainable business practices and decision-making among retail business practitioners.
Furthermore, the group places a strong emphasis on sustainable and responsible business practices, conducting Sustainability Risk Assessment to ensure business partners align with the group's Sustainable Procurement Policy.
To help business partners of small and medium-sized enterprises (SMEs) navigate ESG disclosures, the assessment follows the Simplified ESG Disclosure Guide (SEDG) by Capital Markets Malaysia (CMM) to aid SMEs in measuring and documenting their sustainability progress.
Moreover, in a partnership with UOB Malaysia in 2023, Sunway is accelerating towards a sustainable future with a shared vision of achieving net zero carbon emissions by 2050.
They spearhead initiatives to reduce carbon footprints and enhance energy efficiency through innovative projects in renewable energy and sustainable infrastructure.
Through these initiatives, Sunway ensures that its business practices, as well as its partners, are aligned with environmental and societal progress.
Global Engagement
Sunway stands at the forefront of regional sustainability efforts through strategic collaborations and solution-led initiatives.
Through a commitment of US $20 million by the Jeffrey Cheah Foundation (JCF), Sunway's philanthropic arm, the Jeffrey Sachs Center on Sustainable Development and the Asia headquarters of UN-SDSN at Sunway University are leading continent-wide sustainability initiatives.
Partnering with the United Nations Educational, Scientific and Cultural Organisation and Education MInistry, UN-SDSN and JCF recently launched a teacher professional development programme to advance education for sustainable development.
This programme will benefit teachers in Malaysian national and national-type schools, with JCF funding the expansion to 30 more schools and involving more than 2,500 teachers nationwide.
This alliance underscores a collective dedication to advancing sustainability through education, research, and community engagement.
With a holistic and multisectoral approach to sustainability, Sunway remains committed to shaping a sustainable future.
The group's corporate strategy of marrying the SDGs and ESG serves as a roadmap for companies embarking on their sustainability journey.