Ensure equal weightage in ESG standards: Economist
Too heavily tilted towards climate change at present, says Bank Islam’s Afzanizam
PETALING JAYA: Equal emphasis in environment, social and governance (ESG) standards will translate into greater catalysts towards economic inclusivity, according to Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid (pix).
He observed that, at the moment, such standards lean heavily towards the environmental aspect, particularly with climate change.
Afzanizam laid out that conviction among institutional investors at global level is rising exponentially, and those looking to tap into funds from these big institutions need to ensure they are ESG-compliant.
“It is a matter of how a business crafts its ESG strategy. At the moment, it is focused too much on climate change,” he said during Shopee’s virtual forum “Marketplaces: Towards a More Inclusive and Participative Economy” yesterday.
“ESG itself can be a great kickstarter for businesses to be more inclusive but there needs to be a strong conviction,” he added.
When asked about his expectations for e-commerce, the chief economist said he foresees good sales figures coming from the traders and businesses.
“People are so psyched up to celebrate Raya after two years, it’s going to be more lively, there are a number of other factors that will contribute to this, such as bonuses, as well as the EPF withdrawal schemes which will make this Ramadan livelier,” said Afzanizam.
And with that, he said, the second quarter gross domestic product figures should be better this year.
On the subject of inclusivity, the embracing of e-commerce during the pandemic has been a boon for people with disabilities (OKU), providing an opportunity for them to make a living as well as offering a more level playing field.
Shopee Malaysia head of marketing Kenneth Soh believes technology is the best way to serve the underserved communities. The e-commerce platform did a survey of 1,600 of their sellers and found that roughly 10% were from the OKU community.
“From there we have taken a few things into consideration, we want to make sure our platform is accessible to everyone, all demographics and location regardless of their situation,” he said.
Soh pointed out the app design itself strives to be friendly towards all segments of the community. “For us to get OKU sellers to join the digital economy, we have to make sure the listing process works for them.”
OKU Sentral president and Dewan Negara Senator Datuk Ras Adiba explained that online business is vital for the disabled community, as it empowers them and allows them to help generate the country’s economy just like everyone else.
“When there’s an opportunity for online business like what Shopee is doing, it gives an opportunity to be economically resourceful and see ourselves just as any other business person,” she said.
On this, Ras praised the government’s initiative towards digital inclusion which ensures telco providers offer the OKU community good subscription packages. To complement this, she opined that the government should give out grants and loans to the disabled so they can participate in business online.