Friday 29 Mar 2024
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This article first appeared in City & Country, The Edge Malaysia Weekly on March 21, 2022 - March 27, 2022

Environmental, social and governance (ESG) standards are gaining attention from companies, their investors and other stakeholders. But what does it really mean?

As the name suggests, ESG refers to a set of standards for a company’s operations that are being used by socially-conscious investors to determine and evaluate potential investments.

The environmental criteria consider how a company plays a part in maintaining the environment in which it operates; the social criteria examine how it manages relationships with employees, suppliers, customers and the communities where it operates; while the governance criteria deal with a company’s leadership and shareholders’ rights.

Zerin Properties Sdn Bhd CEO Previndran Singhe reckons that ESG efforts are important as they provide an avenue to make a lasting impact, not just on the lives of employees but also the lives of Malaysians in general. Amid the growing concerns over climate change, social injustices and financial mismanagement, the importance for companies to emphasise/focus on ESG is apparent.

“We aim to make a difference to Malaysians and adopt sustainable strategies towards improving the lives of citizens and leading by example in the industry. ESG is as important to us as the internet was to businesses in the late 1990s. It is a question of adaptability, and businesses that failed to adapt to the shifting tide of the World Wide Web were lost to time,” he says.

Previndran adds that the shifting tide is coming and the way people do business will change from the archaic “profit first” doctrine to the more sustainable future mentality. This is due to the European Union Sustainable Finance Disclosure Regulation coming into place, imposing ESG disclosure obligations on asset managers and other financial players.

Previndran: People no longer want to merely work for a company for a pay cheque but want to do meaningful and impactful work that contributes towards something bigger than the bottom line (Photo by Zerin Properties)

The company has always adapted to change and Previndran foresees the potential and importance of ESG in the coming years. “People no longer want to merely work for a company for a pay cheque but want to do meaningful and impactful work that contributes towards something bigger than the bottom line.”

Zerin Properties chief operating officer Timothy Dawson says the company’s ESG strategies are threefold. “In terms of the environment, we have committed to planting one tree a day, and we have planted more than 90 trees to date. We advocate paperless practices and are heavily reliant on technology for daily operations. Our employees are encouraged to take public transport, with the fares subsidised by the company.”

“Social-wise, we have provided a wide array of benefits to our employees, including insurance coverage. Mental health professionals are also engaged to provide free counselling for employees, at the cost of the company, should any employee require support, especially during the Movement Control Order period. We will also build strong relationships with employees and provide equal opportunities across the board regardless of race, religion or gender,” says Dawson.

As for governance, he notes that the company has engaged and adopted HaloCheck.xyz — the country’s first instant background check mobile web application — in compliance with Bank Negara Malaysia’s AML/CFT requirements for anti-money laundering and countering the financing of terrorism.

“We also ensure compliance with the Malaysian Anti-Corruption Act 2009, which came into force in June 2020, the Personal Data Protection Act 2010 as well as the Board of Valuers, Appraisers, Estate Agents and Property Managers’ rulings and directions,” adds Dawson.

Dawson: We are committed to developing our people in their talent and skills to achieve our goals (Photo by Zerin Properties)

To improve the company’s ESG performance for the next three to five years, Dawson notes that ESG has to be embedded into the culture. Senior management must not be the only driving force for this important endeavour.

“In this regard, it is vital that education and employee empowerment become part of our journey towards sustainability. This is akin to our planet’s sustainability as a whole and we must not merely depend on those in power to bring about change, but we ourselves must make the change.

“It is our intention to deliver on our vision of ESG. It is here that change is inevitable and crucial. We are committed to developing our people in their talent and skills to achieve our goals,” he adds.

Going forward, Dawson reckons that the path towards a sustainable future will not be an easy one, but it is a necessary journey that the company is committed to venturing on. “Our goals in the short to medium term would include further energy saving and waste management initiatives, and we are looking to small and measurable goals that will build over time.”

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