News

News

Government direction on ESG firm

The government has set a series of credible commitments towards attaining environmental, social and governance (ESG) goals. Over the next three years, the government aims to deliver on renewable energy (RE) capacity of 31%, and 40% by 2035 in line with the Malaysia Renewable Energy Roadmap. By 2030, the government has also pledged various initiatives to be implemented on the three pillars of ESG, which are environmental, social and governance, reflecting its major commitment to achieve the national aspiration goals. From the environmental perspective, Malaysia has vowed to reduce 45% of its economy-wide carbon intensity against its gross domestic product (GDP) in the next eight years. Considering the social and governance factors of ESG, another key target the government has set is to eliminate forced labour practices. It is worthy to note that its target to eradicate forced labour practices is not limited to the operations of local companies but also across the global supply chain. For labour practice improvements, Malaysia became the second country in Asean to formally ratify the International Labour Organisation (ILO) Protocol 29, a protocol that looks at forced labour convention. In November last year, Malaysia also become a pathfinder country under the UN Sustainable Development Goals (SDG) Alliance 8.7- a global alliance to accelerate efforts to eradicate forced labour, modern slavery and child labour around the world. These efforts signifies the government’s commitment towards combating and eliminating all forms of forced labour in the country. Furthermore, the country also plans to formulate the ‘National Energy Policy’ under the 12th Malaysia plan, in addition to conducting feasibility studies on carbon pricing, carbon tax and an emissions trading scheme. This is also aligned with one of the key highlights of Budget 2022, whereby the formation of Malaysia’s first voluntary carbon market (VCM) will be developed by Bursa Malaysia. In the long run, Malaysia is also aiming to achieve net zero GHG (greenhouse gas) emissions by 2050. It can be seen that with all these serious commitments, the government has played a key role to spearheading the ESG journey from a policy making perspective which then sets the right tone for the industry. However, the outcome of these commitments remains to be seen as some implementation requirements are still being developed. According to PwC Malaysia partner Nik Shahrizal Sulaiman, the crucial role the government plays will also have a knock-on effect on the whole industry, particularly to the government-linked companies (GLCs). “GLCs play a significant role in the economic supply chain. Therefore if our largest companies adopt ESG, these requirements will eventually shape and impact the whole industry as well,” he says. Nik Shahrizal stresses that it is crucial for Malaysia to be aligned in its ESG commitments and keep the pace with its major trading partners including China, Japan, South Korea and the European Union that have net zero targets. However, he says that the private sector, regulators and consumers also need to play their role in addressing ESG, pointing out that it is not just the responsibility of the government or GLCs. That said, Ernst & Young Consulting Sdn Bhd Malaysia climate change and sustainability services leader and partner Arina Kok says there is a need for wider collaboration between the government and community stakeholders, including the “private sector, education and health institutions, NGOs and, the people” in the design and implementation of the green economy initiatives. She recommends state governments to also be engaged in policy design from the outset to deliver green initiatives in their respective areas. “For example, local state governments can be involved in housing retrofits, creating electric vehicle (EV) infrastructure and delivering pilot projects before scaling up nationally,” she suggests. There should also be government-industry collaborations that can set out specific policy measures and initiatives, desired outcomes, timelines and necessary resources, Kok says. “By publishing these plans, governments can broadcast how they are working towards environmental goals and set out the roles of the main players,” she explains. To avoid the risk of failure, Kok proposes the government to set out careful consideration of the design and implementation of green initiatives. Meanwhile, she says governments can also do more to educate people on the impact of their lifestyle choices, nudging them towards more sustainable consumption and behaviours. Citing an example, she says the government can inform the community to make ethical investments, gradually switching to “clean energy” from energy-efficient electronics and vehicles to mindful household consumption of food and durables. But for a start, KPMG Malaysia head of sustainability advisory Phang Oy Cheng believes it is only logical for GLCs to get onboard and set a trend for ESG performance management. “In fact, GLCs should be encouraged to lead the way in ESG performance management and reporting. “For example, majority of government-owned organisations in Thailand lead the way in ESG performance and reporting, many of which are among the top three performers in their sectors in the Dow Jones Sustainability Indices (DJSI),”she says. As such, Phang adds companies must move beyond the idea that ESG is only for compliance reporting requirements, as per the Bursa Malaysia’s listing requirements. “ESG serves a fundamental role in data collection or corporate review by investors and stakeholders such as customers, potential partners and governmental agencies internationally. “Having good ESG performance, reporting standards and demonstration of ESG risk management is no longer just a nice to have but is instead now an integral part of business risk management. “Business owners and professional managers need to understand and ensure their organisations are up to speed with regards to ESG requirements,” explains Phang. Internally, companies must also move beyond the idea of compartmentalising job scopes and begin collaborating with other departments because ESG cuts across all business functions and is beyond the purview of a single department, she opines. Most importantly, Phang says the government needs to ensure that policies, programmes and initiatives touted are well-supported both financially and institutionally. Should GLC’s play their role effectively in addressing ESG, Deloitte Malaysia sustainability and climate leader Kamarul Baharin

News

Appointment of occupational safety and health coordinator – OSHA Amendment 2022

For places of work that are not included in any class or description of place of work as published in the Gazette requiring a safety and health officer, a new provision requires an employer to appoint one of its employees to act as an occupational safety and health coordinator (“OSH Coordinator”) if he employs five or more employees at the workplace. The OSH Coordinator’s role is to coordinate occupational safety and health issues at the place of work; as opposed to the role of a safety and health officer (“SHO”) in inter alia ensuring the observance of the provisions of the Amended OSHA and any regulation made thereunder, at the place of work. The penalty for contravention of the requirement to appoint an OSH Coordinator, or a SHO (where applicable) is a fine not exceeding RM50,000.00 or imprisonment for a term not exceeding six months or both. Lead Source : Skrine | February 2022

News

Mental illness a big issue in Malaysia says expert

PETALING JAYA: Despite a 2015 Health Ministry report that said one in three Malaysians, or 29% of the population, suffered from mental health issues, the figures remain the same as of now, said certified mental health and awareness practitioner Dr Praveena Rajendra. A Malaysian Mental Health Association report released in October 2020 also stated the incidence of mental illness among Malaysians increased “two-fold” during the Covid-19 lockdown, resulting in more Malaysians seeking counselling, mostly for stress related issues. “It is shocking to know that mental illness is the leading cause of disability in Malaysia, with approximately 2.3 million people being affected at some point in their lives. “It is a major issue that needs to be urgently addressed,” Praveena said. To help bring attention to the matter and in conjunction with World Mental Health Day, which fell on Oct 10, Alliance for Safe Communiy (Ikatan) will organise a mental health awareness programme and public forum on Oct 15 at Cheras Leisure Mall. The forum is titled “Mental well-being for all: Make it a reality”. World Mental Health Day is an international day for global mental health education, awareness and advocacy against the social stigma of having mental health issues. Praveena said mental health forums are important for Malaysians, especially now, to spread awareness and understanding of mental illness, its challenges and the assistance that is available and provided by various bodies. “For a long time, the stigmatisation of mental illness has caused it to be a taboo subject among Malaysians. Now, the time is apt to demystify the truth behind it. “This will be a platform for many to realise that dealing with mental health issues is not abnormal and there is nothing to be ashamed of. “It is hoped that our forum will encourage those with mental health issues to come forward.” On panellists at the public forum, she said: “We have invited psychiatrist Assoc Prof Dr Muhsin Ahmad Zahari, Health Ministry public health physician Dr Nurashikin Ibrahim, Befrienders Kuala Lumpur counsellor Leow Yew Chong and Mala Davi, a caregiver aiding those with mental issues. “They will share their knowledge, expertise and experiences on issues of mental health. “Moderated by me, the public can expect to gain eye-opening insights on ways to deal with mental health triggers in their day-to-day lives, the assistance and support provided by various parties in Malaysia and how to access help. “The public can also find answers to their mental health concerns during the question-and-answer session. “The overall objective is to raise awareness of mental health issues around the world and mobilise efforts in support of mental health. “The theme for this year is to “make mental health and well-being for all a global priority”. Apart from the forum, there will be a whole-day mental well-being exhibition at the mall concourse by organisations such as UCSI University, Taylor’s University, SAPOT (a social care platform), Laurent Bleu Clinic and V Flower Enterprise. The event will be launched by Alliance for Safe Communiy (Ikatan) chairman Tan Sri Lee Lam Thye. Lead Source : The Sun | October 2022

News

ESG a bigger priority for corporate Malaysia

PETALING JAYA: Sime Darby Plantation Bhd (SDP) plans to review its near-term 2030 targets and longer-term 2050 targets that were submitted to Science Based Targets initiative (SBTi) on Nov 10, 2022, by the second quarter of this year for a full validation. During SDP’s net-zero webinar yesterday, its chief financial officer Renaka Ramachandran said the company had completed scope one and scope two baselining way back in 2011, proving its commitment to environmental, social and governance (ESG). However, looking back at it, the group realised the need to consider the importance of scope three, leading it to re-baselining using the latest available feature as of 2020. “During the process of doing that, we will look at issues like the footprints for non-forest, land and agriculture guidelines (Flag),” Renaka said during her opening remarks at the webinar, moderated by SDP head of downstream sustainability Mark Wong.“Hence, we had to review and revisit our baselining and make it ready for submission to SBTi, which we are proud to say that we have actually done,” she added. Scope one and two are emissions that are owned or controlled by a company, whereas scope three emissions are a consequence of the activities of the company but occur from sources not owned or controlled by it. Sharing his opinion during the webinar, Nestle head of climate and sustainable sourcing, ESG strategy and deployment, Benjamin Ware, said companies should look at carbon offset, or referred to as soft assets, as a new stream of revenue, in addition to revenue from their physical assets. “The future is about still having the physical asset on the left part of your balance sheet, and having a soft asset on the right part of your balance sheet,” he said. He believes companies should be able to capitalise on the soft asset to bring more value to their companies. “So, it is not only a fantastic opportunity to do good to the planet, but also to generate an additional revenue stream,” he added. However, Ware believes the first two or three years for the journey of carbon offsetting is going to be a difficult one, regardless of the companies. He said companies would need to implement practices which are most likely going to slightly drop their respective yields, fuelled by investments into infrastructure, along their journey of carbon offset. “However, this is where you need to have investors or banks, the government and clients, helping you for this ecological transition quickly,” Ware said. CDP South-East Asia and Oceania science-based targets engagement manager Dedy Mahardika said about 4,300 companies around the world have joined the SBTi, with 20% or almost 450 companies from Asia.According to him, there are 17 Malaysian companies who have tagged along the initiative. The SBTi is a global body enabling businesses and financial institutions to set ambitious emissions reductions targets, in line with the latest climate science. “We see, of course, a lot of uptick from Asia and hopefully by the release of Flag guidance, we can see more companies joining the initiative,” Dedy said at the webinar. According to Dedy, the group is developing a new monitoring and reporting platform, including verification, where companies would be able to showcase their progress towards SBTi. “With scope three being a deep problem, we are also developing a toolkit, which will help companies to also align with their suppliers and reach the net-zero target,” he added. Concluding the webinar, SDP’s chief sustainability officer, Rashyid Redza Anwarudin, said among the key actions for the palm oil industry to significantly reduce emissions is through the elimination of deforestation throughout the supply chain and ensuring no new development on peat land. Additionally, he sees a need to enhance the approach to land use by looking into reforestation of unproductive areas, and ensuring effective solutions to manage emissions from peat would be the way to go as well. Lead source : The Star | January 2023

News

Malaysian Anti-Corruption Commission (MACC) : 3 directors arrested for alleged bribery

The three accused are escorted by MACC officers at the Putrajaya Magistrate’s Court.- Pic courtesy of PDRM KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) detained three individuals suspected to have given out bribes to secure a procurement of an advertising contract worth more than RM90 million from a government agency last year. The three company directors are aged between 31 and 48 and were apprehended at the MACC headquarters yesterday evening. “MACC has identified the officers from the government agency which were involved and would be making a series of arrests involving those who conspired with the three company directors,” said the MACC in a statement on the operations dubbed Ops Panorama. According to sources, the company was alleged to have submitted false documents as well as furnished false information to secure the bid. The company which was allegedly unqualified, also failed the technical and financial assessments that followed. “But because bribes had been given all the basic conditions were dismissed to enable them to get the contract,” the source claimed. The investigation is conducted under Section 17(A) and 18 of the Malaysian Anti-Corruption Act 2019. MACC deputy chief commissioner (operations) Datuk Seri Ahmad Khusairi Yahaya confirmed the arrests. All three of them would be taken to the Putrajaya Magistrate’s Court today to be remanded. Lead Source: New Straits Times | 11 June 2020

News

How to Develop an Energy Conservation Program for Your Agency

A Best Practice for Agencies One of the most important steps any park and recreation agency can take as part of a conservation strategy is to reduce energy consumption. Making your agency’s facilities and equipment more energy efficient and reducing the amount of energy you consume will reduce costs and reduce impacts on the environment, ultimately making your agency more sustainable. But how do you get started? Following is an outline of steps to consider when developing an energy conservation program. Developing an Energy Conservation Program for your Agency Measure and document a baseline of energy usage (ideally, a year’s worth for each facility) In order to conserve energy, you need to know how much each facility and energy cost center in your organization is using. This applies to electric, heat, oil, gas, fuel, and all types of energy consumed. First, determine who pays the utility bills and if they have access to utility usage data. Work with your energy provider as they may be able to run usage reports by account. Work with your facilities staff to determine which accounts belong to which facilities. Note that usage amounts and dollars spent are two different things to measure. The cost of utilities may fluctuate from year to year depending on your contracts. The usage of utilities may fluctuate month to month depending on weather or usage patterns. Once you have the usage data, develop a baseline for each account or facility—ideally a full year’s worth of use or at least a seasonally representative sample of several months Understand and take credit for what the organization is already doing Assess your organization’s facilities and operations for energy use. Identify where you have already implemented energy -saving practices and where you can still apply creative solutions to reduce energy use. For example, do you purchase Energy Star certified appliances or electronics? Do facilities have motion or occupancy sensors to turn lights on and off? Are fleet managers implementing anti-idling policies to reduce wasted fuel? You may be surprised by what your organization is already doing, and your effort to identify how you use and save energy will produce new ideas for more savings. Set goals and have policies for energy conservation Once you have baseline usage, you can look at how to set a goal of reducing usage by a certain percentage. Or you may look at setting a goal of saving a specific amount of actual energy used. Review facilities for reduction opportunities that can range from the simple (turning off the lights) to the complex (HVAC system retrofits). Determine if there are facilities that are slated for energy-efficient upgrades and how much potential energy savings will be available. Prioritize the steps and retrofits you can take for energy-saving strategies from the largest amount of energy saved to the lowest and then devise an implementation plan consistent with your annual budget to achieve the greatest amount of savings for the most appropriate investments in time and money Implement simple energy conservation measures in both facilities and operations Work with staff in the facilities to identify simple energy conservation measures such as turning off lights when no one is using facilities or is in a room. Identify equipment that is running when not in use, and devise ways to easily and simply turn such equipment off when it is not in use. Get surge suppressors for computers, for example, or power strips for multiple electronics. You may also be able to identify simple energy efficiency retrofits such as replacing incandescent light bulbs with compact fluorescent bulbs. No matter how much you have already done, there are almost always more ways to reduce energy use with simple solutions. Train staff and educate the public Develop a messaging campaign about the energy conservation measures that you are implementing. Provide staff with training on when daylighting can be substituted for interior lights. If your organization has similar facilities, develop an energy reduction contest between the facilities that compares energy reductions and then shares best practices among staff afterwards. Promote your campaign to the public, encouraging them to recognize your efforts to save taxpayer dollars, and to adopt similar steps in their own homes and businesses. Measure reductions both in energy units and dollar savings Work with your utility company or your billing department to track monthly utility usage. Compare year-to-year usage to see if reduction goals have been met. Compare costs but adjust for contract changes or off-peak prices. If facilities are reducing energy, let them know about it! Incentivize managers and staff to save energy, and provide tangible rewards and recognition to staff and facilities. Look for smart designs in retrofits and capital projects When considering upgrades to facilities or new facility construction, ensure that energy efficiency is part of the discussion. Consider energy-efficient lighting, high-efficiency heating and cooling systems, additional insulation, and efficient doors and windows. Look to the U.S. Green Building Council’s LEED rating system as a guide for energy efficiency goals. For larger projects, consider special training for certain staff in how to apply new technologies or design with energyefficient equipment—or consider bringing in a consultant to advise you. Often, the savings will more than pay for the up-front expense, and these savings will extend well into the future in reduced energy consumption and costs. Incorporate alternative energy sources where possible If you have the opportunity to implement integrated renewable energy systems in new construction or major retrofits, look for opportunities to utilize alternative energy sources. First, ensure that you calculate the return on investment at the beginning of your process to determine potential cost savings; and if cost-benefits ratios are favorable, consider making the choice for alternative energy. Such a choice can also serve a public education benefit if it is properly interpreted and explained to the public. Alternative energy sources are particularly suitable for educational facilities such as nature and environmental education facilities where the efficient use of alternative energy can be incorporated into learning programs. When making