To create a sustainable business ecosystem, it's crucial for business leaders to comprehend how the government's sustainability objectives impact their operations. The 12th Malaysia Plan emphasizes 'Advancing Sustainability,' highlighting the government's unwavering commitment to achieving economic growth while prioritizing environmental preservation.
To aid this effort, the government will provide RM2 billion in funding via Bank Negara for sustainable technology start-ups and help small and medium enterprises implement low-carbon practices. The provided funding is part of the government's measures to encourage green practices among local businesses. This is an excellent opportunity for companies to tap into sustainable technologies and practices, positioning themselves as responsible corporate citizens while reducing costs and increasing efficiency.
However, sustainability is not just a buzzword or a regulatory compliance checkbox. It's becoming an integral part of business operations and a critical factor in stakeholder decision-making. Customers, investors, and suppliers are increasingly scrutinizing companies' environmental, social, and governance (ESG) efforts and holding them accountable for demonstrable actions.
To stay ahead of the curve, companies must prioritize ESG considerations, adopt circular economy models, and embrace sustainable marketing strategies. Let's visit some ways and measures that companies can adopt to move toward sustainability.
Effective implementation of SDG Goals
As business leaders, it's critical to recognize the importance of the United Nations' Sustainable Development Goals (SDGs) and understand the details of all 17 goals, not just the headlines. Shockingly, a mere 21% of respondents to a 2019 Accenture-UN Global Compact survey believed that businesses significantly contribute to the SDGs. This lack of awareness can hinder progress toward achieving these goals and undermine the credibility of businesses as responsible corporate citizens.
To bridge this gap, companies must prioritize educating management and employees on the details of the SDGs while keeping the bigger picture in mind. For instance, in the context of climate action (SDG 13), businesses can collaborate with other industry players and advocate for higher regulations to drive collective progress toward achieving the SDGs. Or opt for something far easier, to reduce their carbon footprint by installing solar rooftops and transitioning from coal. This will also help companies achieve affordable and clean energy (SDG 7). We at Sunview can help companies achieve the latter effortlessly with our solar solutions.
By embracing the SDGs, companies can enhance their business models, foster innovation, and build brand reputation. Taking Kimberly-Clark for example, a global manufacturer of personal care and consumer tissue products, is committed to reducing its carbon footprint and mitigating the impacts of climate change. Through its 2021 Sustainability Report, the company highlights its efforts in reducing its carbon footprint through energy efficiency. Its investment in renewable energy for their manufacturing facilities has shown signs of promising result:
- Their facility in Paris, Texas mill sourced all its electricity needs from renewable sources provided by the local utility.
- In Western Spain, they have reduced their natural gas consumption by 40% through a biomass boiler installation.
- The new warehouse in Pune, India, is equipped with solar panels that generated 12% of the site’s total electricity demand in just 6 months of operation.
If you’d like to know what your company can achieve by embracing solar solutions, follow our LinkedIn page or visit our site.
Make That Change
Malaysia Madani Budget 2023 includes green initiatives that encourage companies to adopt eco-friendly practices. The government is providing more funds and incentives, such as the Green Technology Financing Scheme, Green Investment Tax Allowance (GITA), and Green Income Tax Exemption (GITE) for qualifying green technology service providers listed under the MyHIJAU Directory.. Banks and financial institutions also offer financing support for companies to go green.
These initiatives are primed to promote sustainable development, combat climate change, and achieve net-zero emissions by 2050. This is an opportune time for companies to go green and benefit from cost savings and competitive advantages. Additionally, financial institutions are integrating sustainability into their operations and financing decisions as per Strategic Thrust 4 in the Financial Sector Blueprint 2022 - 2026.
The Natural Resources, Environment, and Climate Change Ministry (NRECC) has allocated more than RM6.53 billion under Budget 2023 for the development of environmental sustainability, according to its minister, Nik Nazmi Nik Ahmad. This allocation is an increase of 8.4% compared to the previous year and will support initiatives to promote green practices, protect natural resources, and create a more efficient and comprehensive disaster management system.
With the government's commitment and funding, companies have more opportunities to go green and contribute to a sustainable future. Additionally, this investment in environmental sustainability is crucial in addressing climate change and ensuring a livable planet for future generations.
Malaysia’s RE potential
Continuing with Malaysia's RE potential, solar energy has the highest potential in the market, with a potential of 42 GW for solar rooftops, making up 15% of the available solar PV market. This presents a significant opportunity for companies to tap into clean energy through the solar PV system and reduce their carbon footprint.
Even though Malaysia's contribution to global greenhouse gas emissions is only 0.69%, the government is committed to reducing it. Sunview's solar solutions offer businesses the chance to switch to solar energy, save on monthly utility expenses, and become ESG-compliant without any initial investment. With SunValue, companies can start their journey toward sustainability and contribute to Malaysia's goal of achieving net-zero emissions by 2050.
Incorporating green initiatives can benefit companies in several ways. Apart from being environmentally responsible, going green can also build a company's ESG credentials for better investor opportunities and business relationships, as suppliers, customers, and investors are increasingly basing their purchasing or investment decisions on companies' ESG commitments.
Towards an ESG-compliant future
To encourage more businesses to embrace ESG, it is important to view it as an investment rather than just a cost for regulatory compliance. This shift in perspective can lead to long-term benefits, including cost savings on electricity and carbon offsets.
As the solar industry continues to grow and sustainable initiatives are implemented, companies can benefit from aligning with ESG goals. Building ESG credentials can lead to better investment opportunities and business relationships, as investors are increasingly basing their decisions on a company's ESG commitments.
At Sunview, we are committed to creating a brighter future by helping companies manage their solar energy systems conveniently. It is our mission to help companies achieve their goal of reducing carbon emissions, as outlined in the Malaysia Renewable Energy Roadmap.
With effort and commitment, small changes can lead to a big impact on a sustainable future.
To discover how you can act and set your company on an ESG-compliant path, visit our website https://sunview.com.my/ or connect with us on LinkedIn.
