July 19, 2024
Yesterday’s ‘My ESG Forum’, held at KL Wellness City Gallery in Bukit Jalil, Kuala Lumpur, provided a wealth of insights into enhancing corporate governance within the ESG implementation. The forum focused on two main areas: strengthening governance through transparency, accountability, and diversity, and leveraging governance for sustainable value creation.
In the first session, Mr. Zhariff Desa, Head of Corporate Governance at Andorra Women & Children Hospital, highlighted the collective accountability that is in charge of strengthening corporate governance in an organization.
- Configuration (Board of Directors, C-Suite, Sustainability Steering Committee (if any), Legal)
- Awareness/Enforcement (Human Resources, Marketing, Public Relations, Head of Department, Vendors, Stakeholders and others)
- Application (Board of Directors, C-Suite, Head of Department, Employees)
- Measurement (Board of Directors, C-Suite, Head of Department, Employees
- Improvements (all parties)
Ms. Grace Yap Mei Wan, Independent Director at Sungei Bagan Rubber Co (Malaya) Bhd, championed the benefits of board diversity. She discussed the importance of board diversity, types of diversity, recruitment strategies, diversity metrics, transparency in corporate governance, best practices in diversity, regulatory requirements, challenges and solution.
- Business case to adopt Diversity, Equity and Inclusion (“DEI”) as part of Corporate Governance
- Transparency in DEI
- Challenges and mindset change for Solutions
- MCCG Principles and other Guidelines remain as mere best practices
The second session focused on going beyond mere compliance to create sustainable value. Ms. Amira Abd Rahaman, Compliance and Corporate Sustainability Manager at Puncak Niaga Holdings Berhad discussed transforming compliance into long-term value through proactive strategies, stakeholder engagement, and innovation. She highlighted the importance of integrating sustainability into decision-making to achieve future-oriented goals.
- Compliance vs. Value Creation
- Characteristics of Beyond Compliance (Proactive Approach, Regulatory Readiness, Long-term Value Creation, Stakeholder Engagement, Innovation and Competitive Advantage)
- Core principles of a Long-term perspective (Holistic decision-making, sustainability integration, future-oriented goals)
Ms. Ernie Idayu Kamal, Section Head of Audit-Corporate Services & ESG Assurance at UEM Edgenta Berhad, reviewed the latest updates to the Malaysian Code of Corporate Governance (MCCG) and their implications for governance practices.
- MCCG 2021: What’s new – Board responsibilities
- Proactive governance practice (Anticipating regulatory changes, developing robust policy and procedures, enhancing transparency and accountability, strengthening board oversight)
- Internal auditor’s role in sustainable value creation
- Audit procedures
These discussions underscored the positive nature of corporate governance and the need for a proactive, inclusive approach to drive sustainable growth and value creation. The forum highlighted that effective governance is not just about compliance but about fostering an environment where long-term strategic goals and stakeholder engagement are at the forefront.