This article first appeared in The Edge Financial Daily on May 17, 2019

KUALA LUMPUR: The Malaysia chapter of the Climate Governance Initiative (CGI), a project hosted by the World Economic Forum, was launched here yesterday.

This is the first Asian chapter of CGI, which is an effort to reach out specifically to non-executive directors (NEDs) of listed companies’ boards to inform, engage with, and develop responses on how businesses might address longer-term risks of climate change, including a more sustainable allocation of capital.

Datin Seri Sunita Rajakumar, founding member of the Malaysian chapter, said the aim of the initiative is to bring NEDs together with subject matter experts to cover areas such as strategic planning, risk management, human capital planning, remuneration, as well as legal and governance models.

“It is important that non-executive directors on the boards of listed companies are equipped with sufficient knowledge and information to contribute meaningfully to the dialogue on the financial risks of climate change,” she said at the launch, adding that so far five listed companies have shown interest to participate.

Minister of Energy, Science, Technology, Environment and Climate Change, Yeo Bee Yin, who  officiated the launch, said her ministry continues to promote the use of green energy through various incentives such as the green investment tax allowance for the purchase of green technology equipment.

“Malaysia also signed the Paris Agreement in 2015 of which our national commitment is to reduce 45% of carbon emission intensity by 2030.

“From this, 35% is our com mitment and 10% is conditional on international support and financing available. We are on track to meeting our Paris Agreement commitment but we will want to do more,” Yeo told reporters.

She said her ministry will be announcing the framework for RE100 in a few months’ time. RE100 is a global corporate leadership initiative bringing together influential businesses committed to 100% use of renewable electricity.

“We are at the final step of planning that and have talked to some companies on RE100. Some of them have come to explore the land in Malaysia and find the mechanisms needed to make the transition.

“This initiative will give Malaysia a competitive edge regionally and attractive especially for companies thinking of setting up their headquarters here” she said.