The National Industry Environmental, Social and Governance (i-ESG) framework is expected to help the country tap into a US$12 trillion global market on ESG-focused opportunities, particularly the micro, small and medium enterprises (MSME) in the manufacturing sector, said the International Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Tengku Zafrul’s speech was read by Deputy Investment, Trade and Industry Minister Liew Chin Tong at i-ESG Phase 1.0 launch on Monday (Oct 2).
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Tengku Zafrul’s speech was read by Deputy Investment, Trade and Industry Minister Liew Chin Tong at i-ESG Phase 1.0 launch on Monday (Oct 2).
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NewsTranscript
00:00 I would like to present the IESG framework to Yang Hoon Wan, Deputy Minister.
00:07 A study titled "Better Businesses, Better World" has estimated that sustainability as a new source of growth
00:16 that could generate at least US$12 trillion worth of market opportunity and 380 million jobs by 2030,
00:26 almost 90% of which will be in the developing countries.
00:30 NIMP 2030 will not only create opportunities for MSMEs,
00:35 but also safeguard their inclusivity in the growth of our manufacturing sector.
00:41 So the NIMP has set out the "What" on ESG.
00:47 As I mentioned earlier, the IESG framework that we are launching today presents the "How".
00:54 Serving as a guide, a route map for businesses to integrate ESG considerations in their operations
01:01 and a tool for regulators to ensure compliance and accountability.
01:06 The IESG framework has three key missions.
01:10 First, to support manufacturing firms to learn, to be agile and to adopt ESG practices.
01:18 Second, to transform challenges into opportunity.
01:23 Third, to foster symbiotic public-private partnerships for value creation.
01:30 The framework also features four key supporting components, namely standards, financial support and incentive,
01:39 capacity building and market mechanisms.
01:43 These components are supported by six key enablers, namely stakeholder engagement,
01:49 human capital and capabilities, digitalisation, technology, financing and incentive, as well as policies and regulations.
02:00 Our businesses, particularly the MSMEs, cannot be held immediately accountable to standards
02:06 that companies in the developed market have had a head start on for at least a decade or longer.
02:13 Yes, we are playing catch-up with the developed market, but I am confident that with the IESG framework phased approach,
02:23 we can achieve our goals within seven years or less.
02:27 We will begin with the Just Transition phase of Phase 1.0 from 2024 to 2026,
02:35 followed by the Accelerate ESG Practices Phase 2.0 from 2027 to 2013.
02:44 During Phase 1.0, manufacturing companies, including MSMEs, will be supported on starting their sustainability ESG journey
02:53 through the self-readiness assessment, outreach, training and monitoring programmes and financing options.
03:03 Comprising of IESG Ready, a readiness assessment programme, and IESG Start, a practical guide with step-by-step instructions,
03:15 illustrative examples and templates, Phase 1.0 is meant to be a valuable reference
03:22 for manufacturing businesses to begin their sustainability journey.
03:26 The IESG Phase 1.0 lays the groundwork and fosters the development of a robust ecosystem
03:33 to help ensure companies' readiness to meet the more rigorous demands of Phase 2 from 2027 to 2030.
03:41 This phased, progressive approach represents the Just Transition that we need to help Malaysian companies and MSMEs
03:51 fulfil the growing demand for sustainable products and the requirement for ESG reporting in export markets.
04:00 This also reflects the Madani economy's commitment to inclusivity, ensuring that no one is left behind,
04:08 particularly in the pursuit of ESG principles.
04:12 MITI strongly believes that transition towards sustainability and meeting Malaysia's aspiration to become a net-zero nation by 2050
04:20 will bring numerous benefits for the economy in terms of sustainability growth and job creation.
04:27 The commitment to ESG principles in Malaysia's national development agenda also reflects our recognition
04:34 that embracing sustainability is not just something we must do to safeguard growth and profit,
04:40 but more importantly, it's also the right and moral thing to do for the sake of our people and planet.
04:46 [Music]
04:52 [Music]