Embed sustainability policies, issues in business models — Lee
KUALALUMPUR: Sustainability policies and practices should be embedded in every company’s business model, as investors are now placing greater importance on sustainability issues, said Deputy Finance Minister, Datuk Lee Chee Leong.
Lee said today’s investors would also review the non-financial aspects of an organisation, such as corporate sustainability, in addition to the financial aspects in making their investment decisions.
“The United Nations-backed Principles for Responsible Investment Initiative recorded its highest number of investor signatories, with total assets under management of over US$68.4 trillion (RM3.90 per dollar) as of April 2017, bringing responsible investment into the mainstream of global capital markets,” he said in his keynote address at the ACCA Malaysia Sustainability Reporting Awards (MaSRA) 2017 here yesterday.
Lee said there was also steady growth in sustainable investments locally, given that the Malaysian Code for Institutional Investors, introduced in 2014 by the Securities Commission of Malaysia and the Minority Shareholder Watchdog Group, had garnered 17 signatories to-date.
He said investors appreciated the positive correlation between sustainability and environment, social and governance factors as well as financial performance and how it is translated into value.
“With this in mind, the government has expanded the National Transformation 2050 initiative to support the ACCA MaSRA, which is a key platform to educate organisations on the growing importance of sustainability practices and benefits to business as a whole, whilst giving recognition to best practices,” he added.
ACCA Malaysia Advisory Committee president, Datuk Merina Abu Tahir, said the ACCA MaSRA attracted 59 submissions this year, nearly 20 per cent of which were new entrants, reflecting the better acceptance of sustainability reporting and compliance with the listing requirements among local corporations.
She said sustainable companies were seen to be better equipped at remaining competitive and profitable, due to the trust they have earned from the public.
“Sustainability practices and reporting are becoming a common practice within corporate Malaysia, with many companies benefiting from its inclusion.
“Past winners of the ACCA MaSRA are testaments to that fact. They are leading the way in demonstrating how sustainable business practices are vital as part of corporate risk management,” she said.
Sime Darby Bhd won the Best Overall Reporting award for the second consecutive year, followed by Malayan Banking Bhd and Axiata Group Bhd.
The Best Sustainability Reporting Award for Non-Public Limited Companies was awarded to Fuji Xerox Asia Pte Ltd’s Malaysian operations, while CIMB Group Holdings Bhd won the award for Best Workplace Practices.