My ESG Forums Emphasize the Vital Role of the Social Pillar in ESG Integration

Shah Alam, 26 June 2024 – As Malaysia accelerates its adoption of Environmental, Social, and Governance (ESG) principles, a critical emphasis is being placed on the often-overlooked ‘social’ component. At the second series of the ‘My ESG Forums,’ experts underscored the importance of the social dimension within the ESG framework, highlighting its complexity and necessity.

Held at the Faculty of Business and Management, UiTM Shah Alam, the half-day forum featured two pivotal sessions: ‘Building Equitable Societies: Social Justice and ESG Integration’ and ‘Empowering Communities: Stakeholder Engagement and Social Impact.’

In the first session, a distinguished panel consisting of Professor Dato’ Dr. Rahmat bin Mohamad, former chairman of the Human Rights Commission of Malaysia (SUHAKAM), Ms. Anja Juliah binti Abu Bakar from Athenna Holdings Sdn Bhd, and Ms. Sarah Adibah Hamzah from SUHAKAM, explored the understanding and strategies of social justice. They discussed how to integrate these principles into ESG frameworks, emphasizing the need for equitable access to services and addressing social inequalities.

Professor Rahmat also highlighted, “While environmental indicators cover areas such as sustainable resources, carbon footprint, and pollution prevention, and governance indicators include leadership, transparency, and ethical practices, the social pillar encompasses more nuanced and intricate elements. This complexity requires dedicated focus to effectively integrate social responsibility into ESG frameworks.”

The second session highlighted contributions from Mr. Terence Ang from Hartalega Sdn Bhd and Dr. Nik Faizah Nik Mahmood from Sime Darby Property Berhad. They shared their organizations’ initiatives aimed at fostering social responsibility and community empowerment. Moderated by Ms. Kamini Visvananthan from Insaight Consultancy, the session provided practical insights into successful social impact strategies and stakeholder engagement.

Dr. Nik Faizah also emphasized on the Social Return on Investment (SROI), stating, “Social factors are gaining importance, particularly with SROI in organizations. We are still learning and try to get hired experts to measure it social programme.”

The My ESG Forums have proven to be a significant platform for fostering dialogue and collaboration among industry leaders, policymakers, and academics. This series continues to drive forward-thinking discussions and actionable insights aimed at achieving sustainable development and social equity.

Building on the success of the inaugural series at the University of Malaya (UM), which attracted diverse stakeholders from various sectors, the My ESG Forums continue to advance comprehensive ESG understanding. Organized by CIC Capital Consultancy (CIC) in collaboration with the University of Malaya, these forums are dedicated to promoting sustainable practices and fostering ESG integration dialogue.