MATRADE urges businesses to embed ESG to thrive in $13-T green economy

Companies have a challenging task to ensure both internal and external stakeholders are satisfied.

IN today’s market, where consumer expectations and a $13-trillion green economy hinge on sustainability, businesses must embed ESG principles into every facet of their operations to remain competitive and thrive.

Speaking on the subject at the Retail Asia Forum held at DoubleTree by Hilton Kuala Lumpur last 27 June, Malaysia External Trade Development Corporation’s (MATRADE) Edison Choong impressed upon attendees that whilst gaining profit is important, it is also vital for companies to ensure they consider their customers, other people, and the environment in developing their products.

“Growingly, the element of sustainability has increased and consumers are demanding that we embed ESG into products or operations,” said Choong, head of MATRADE’s Environmental, Social, and Governance (ESG) unit.

“Beyond that, leaders around the world, particularly in the private sector, employers and consumers also want companies to do more on ESG,” he added.

He said MATRADE’s market intelligence also indicates a growing demand for sustainability. Consumers and external stakeholders, such as non-government organisations, increasingly expect companies to adopt ESG practices.

Other factors, such changes in a country’s policies, are adding pressure to be more eco-friendly. For instance, mandatory reporting and environmental disclosures are becoming more common, as seen in China and Canada.

Companies must understand and adapt to these changes to remain competitive, Choong said.

Furthermore, embedding ESG principles into business operations is crucial for securing access to the green economy, which is currently valued at over $13t, he noted. ESG practices enhance transparency and sustainability credentials, vital for meeting consumer expectations and regulatory requirements, he added.

“In the ESG space, there is also a push for innovation. Innovation will help you to resolve and come up with a better solution for the market,” Choong said.

For companies, Choong emphasised that sustainability and ESG are not optional but are essential for them to succeed. These days, quality would mean also having elements of positive impact towards the environment, towards the people, as well as good governance, he said.

“Look beyond your company itself,” Choong said. “If you understand the source, you are able to ensure that at the source you have started to embed ESG and make sure that whatever has been offered on the shelf of your services and so on will be one that is of good quality.”