This article first appeared in The Edge Financial Daily on August 17, 2017

KUALA LUMPUR: The incorporation of environmental, social and governance (ESG) criteria in boardroom decision-making is one of the pressing issues to be addressed at the International Directors Summit 2017 (IDS 2017).

IDS 2017, which is co-organised by the Malaysian Directors Academy (Minda) and Razak School of Government (RSoG), is a two-day event to be held on Aug 21 and 22 at the Kuala Lumpur Convention Centre.

Organised for the third time, it will bring together over 500 directors across Asia and aims to address how boards can respond to periods of change to ensure business sustainability over the growing challenges from uncertainties in the political, economic and social environment.

Minda acting chief executive officer (CEO) Mazni Ahmad Norilah said the incorporation of ESG in boardroom decision-making is important as it has a positive impact on the long-term success of a company.

“The implementation of the ESG is also important for the country as it concerns sustainable investment returns.

“ESG is also an important aspect to consider as it aims to address [environmental issues] such as climate change and its potential impact on businesses and trade activities,” Mazni told The Edge Financial Daily.

The theme for this year’s IDS is “Enhancing Resilience Through Governance for Sustainability”.

“Under this theme, the IDS 2017 serves as an important avenue for discussion, exchange and networking for those who are passionate about sustainability and governance,” said Mazni.

She shared that among the new topics that will be discussed at the summit is the Internet of things (IoT).

“An in-depth discussion [will be conducted] on IoT and its impact on the risk management process of companies especially on the cybersecurity landscape as we have seen how cyberthreats can impact a company and [also] the country’s performance as this goes beyond operational disruption,” she said.

Other areas that the IDS sessions would touch on include Asean, which recently marked its 50th anniversary, and the achievements the grouping has made so far.

“There will be an overview on the progresses made so far and what is in store in order to set the tone for the next 50 years in the Asean region.

“[During the Asean session] there will be discussions centring on strengthening good governance, integrity, and cooperation in civil service especially when it comes towards prioritising good regulatory practice,” said Mazni.

The panellists for the Asean session titled “Asean at 50 — Is our Governance Ready?” include Asean-Malaysia National Secretariat, Foreign Affairs Ministry, director-general Ambassador Jojie Samuel MC Samuel, senior vice-president of Compass Lexecon Derek Ritzmann as well Institute of Strategic and International Studies chairman and chief executive officer (CEO) Tan Sri Rastam Mohd Isa.

The session will be moderated by Malaysian Industry-Government Group for High Technology senior vice-president Rushdi Abdul Rahim.

Other sessions during the IDS 2017 will touch on shareholder activism and its implications for boards, regulators, investors and auditors, championing board diversity and enhancing the value of corporate reporting and audit.

There will also be a session on stewardship codes, and whether the codes have promoted self-regulation or are merely compliance culture in overseeing the success of corporate governance.

Mazni said it is important for directors to keep abreast of any changes that may have an impact upon their organisation, as the legal and regulatory environment is constantly evolving.

Examples of such changes include the Companies Act 2016 and the introduction of the Malaysian Code of Corporate Governance 2017. Phase one of the new Companies Act came into effect on Jan 31, while the new code on corporate governance was issued by the Securities Commission Malaysia on April 26.

“It is not acceptable for directors to claim that they were not aware of their responsibilities as the onus is on all directors to know and understand their duties,” said Mazni.

Minda is an independent organisation dedicated to enhancing board effectiveness by equipping directors with world-class knowledge, skills and the mindset required to perform to a consistently high standard, while the RSoG is an educational and training institution formed at the heart of the public sector service engine of the Government Transformation Programme Malaysia.

The IDS 2017 sessions will have 40 international and local speakers. There will also be five hours of networking sessions and three streams of breakout sessions throughout the two days.

Among the key participants at the sessions during the summit include International Integrated Reporting Council-UK chief strategy officer Jonathan Labrey, Aberdeen Islamic Asset Management Sdn Bhd CEO Gerald Ambrose, Perbadanan Insurans Deposit Malaysia public sector director Datuk Dr Nik Ramlah Mahmood, Microsoft Malaysia chief marketing and operations officer Michal Golebiewski, CyberSecurity Malaysia CEO Datuk Dr Amirudin Abdul Wahab and Minority Shareholder Watchdog Group general manager Lya Rahman.

Johor Baru member of parliament (MP) Tan Sri Shahrir Abdul Samad and Bandar Tun Razak MP Tan Sri Abdul Khalid Ibrahim are also expected to attend.

Second Finance Minister Datuk Seri Johari Abdul Ghani will be officiating at the IDS 2017 and will be delivering the keynote address, while Chief Secretary to the Government Tan Sri Dr Ali Hamsa will be delivering the closing remarks.

The Edge is the official media partner for the International Directors Summit 2017.