ESG is traced to #sdg, an ethical global endorsement most countries subscribed, to maintain worldwide #sustainability.
SINCE the 17 SDG goals have no specific quantitative #esg metrics other than the 169 qualitative targets, it is per se, open to arbitrary interpretations causing confusions most of the time.
ENVIRONMENTAL, social and governance when applied, incurred cost. Just like any other expenses in business, #roi becomes relevant for voluntary adoption.
THIS is where #kpi is used to justify practice of ESG because a firm exists literally to return profit to its promoters and shareholders.
HOWEVER, ESG does not operate in vacuum and size of enterprise means a world of difference. Larger entities can afford to comply with more metrics through KPI calculation (a cost by itself due to the needs to track analytical data).
FOR #smes or #msmes (Note: As of 2023, 96.9% of business establishments in #Malaysia fell under #msmes, where 69.7% of them were micro-enterprises, according to Dept of Statistics Malaysia), it is pertinent to first identify the #material areas before adopting ESG as a culture.
TO ascertain #materiality, companies must always refer to their financial statements. Nothing demands attention in ESG unless it is classified as major revenue or cost items in the yearly accounts.
RECOGNISING the necessity to reconcile annual report against #sustainability disclosure (a non-financial reporting required by law soon even in Malaysia under the #nsrf regime) is the key to removing #greenwashing for corporations and #greenhushing among #msmes.
ADHERING to generally accepted accounting principles advances integrity, transparency and comparability of #esgreporting, making non-financial reports as reliable as the audited statements.
THEREFORE, sustainability team members should include accounting personnel and ESG activities shall be company-wide to encompass every strategic business unit.
FROM pure commercial standpoint, #globalwarming and the corresponding #climateaction will only contribute to #ndc, if the KPIs of exercising ESG go beyond reporting to benefit #humanity by widespread #decarbonization.
WHEN ESG is grounded on profit increment with high productivity and economic growth aligning to firms mission, vision and quality objectives, corporate will be motivated to willingly apply sustainability as a strategic tool for future resilience.
FOR all these reasons, Malaysian Association of Public Advocacy for Nature (MAPAN) offered 2 days #hrdfclaimable ESG Champion Workshop and 1/2 day crash classes on ESG 101.
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