The ESG landscapeRisks and opportunities15th July 2020
© 2020 Deloitte Risk Advisory Sdn. Bhd
2The Malaysian ESG and business landscape
With you today
Rui Figueiredo
Director Risk Advisory
Deloitte United Nations and Sustainability Team SEA/APAC
LinkedIn : www.linkedin.com/in/figrdo
• more than 6 years’ experience in Switzerland, joined Deloitte in 2016 to establish Risk Advisory in Myanmar
• now leading the Deloitte United Nations and Sustainability Team which is committed to support United Nation’s projects across Asia Pacific and to support businesses in SEA to integrate sustainability in their organisations
• BSc in Engineering, MsBA in Services Management, DAS in Risk Management; CAS in Internal Audit; currently working towards an Executive MBA at INSEAD
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3The Malaysian ESG and business landscape
ESG increasingly considered a metric for business success
Why are we talking about ESG today?
MSCI (2020)
Source: Friede, Busch, Bassen (2015), n= 402
0% 10% 20% 30% 40% 50% 60% 70%
Developed Europe
Developed Asia/AUS/NZ
Developd Markets (Total)
North America
Emerging Markets
positive negative
Relation between ESG performance and financial performance
Cumulative Index Performance – Gross Returns (USD): Sep 2007 – June 2020
Source: HSBC (2019), n= 953
Motivations for implementing sustainable practices among companies in ASEAN
Recent sustainable finance events in Malaysia
2%
16%
19%
20%
21%
21%
21%
22%
22%
24%
25%
27%
31%
Not implementing sustainability practicesCentral to reason of company existence
Gain reputational advantageWork/recruit strategic/supply chain partners
Attract and retain talentBuild resilience/mitigate risk
Meet regulatory standardsMeet buyer expectations
Improve transparency and traceabilityEssential to long-term viability
Gain competitive advantageGrow sales
Improve operational efficiency
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4The Malaysian ESG and business landscape
Indonesia has targeted a reduction in deforestation and have begun to replace coal power
Major Milestones from Other Countries: Indonesia
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5The Malaysian ESG and business landscape
Thailand has been a regional leader in sustainability-led initiatives
Major Milestones from Other Countries: Thailand
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6The Malaysian ESG and business landscape
The Philippines have implemented sustainable finance framework and green tax incentives
Major Milestones from Other Countries: Philippines
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7The Malaysian ESG and business landscape
Pressure from regulators, mainly from the EU, have left Malaysian exporters worried
Supply Chain Relations: Palm Oil Industry
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8The Malaysian ESG and business landscape
NGOs and activists have urged companies to ban the use of palm oil due to sustainability concerns
Supply Chain Relations: Palm Oil Industry
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9The Malaysian ESG and business landscape
Ministries have implemented frameworks and action plans to tackle illegal timber logging
Supply Chain Relations: Timber Industry
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10The Malaysian ESG and business landscape
Malaysian exporters need to prioritize sustainability to successfully trade internationally
Supply Chain Relations: Sustainable Trades (Malaysian perspective)
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11The Malaysian ESG and business landscape
Successful and fair international trade relies on sustainability
Supply Chain Relations: Sustainable Trades (global perspective)
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12The Malaysian ESG and business landscape
The importance of sustainability is re-emphasized during the current global pandemic
Impact of Covid-19
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13The Malaysian ESG and business landscape
Businesses have reimagined sustainability during the COVID-19 crisis
Impact of Covid-19
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14The Malaysian ESG and business landscape
COVID-19 has created a new path in the investment ESG
Impact of Covid-19
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15The Malaysian ESG and business landscape
Malaysian banks have begun to target sustainability-linked projects, mainly clean energy
Sustainable Finance Developments: Malaysia
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16The Malaysian ESG and business landscape
Malaysian ministries incentivize sustainability while COVID-19 has created new opportunities in Islamic finance
Sustainable Finance Developments: Malaysia
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17The Malaysian ESG and business landscape
Banks worldwide continue to fund sustainability-linked projects
Sustainable Finance Developments: Overseas
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18The Malaysian ESG and business landscape
Malaysian regulators plan to focus on environmental sustainability, most notably clean energy
Sustainability Regulatory Updates in Malaysia
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© 2020 Deloitte Risk Advisory Sdn. Bhd
19The Malaysian ESG and business landscape
Malaysian regulators plan to focus on environmental sustainability, most notably clean energy
Sustainability Regulatory Updates in Malaysia
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© 2020 Deloitte Risk Advisory Sdn. Bhd
20The Malaysian ESG and business landscape
Private companies, in the ASEAN region, have incorporated sustainability into their day to day business
Major Milestones from Other Countries: Private Sector
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21The Malaysian ESG and business landscape
Digi is one of the leading companies in Malaysia in terms of ESG performance
ESG Top Performers in Malaysia (1/5)
Source: MSCI (2020)
MSCI ESG Rating Highlighted ESG issues01
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22The Malaysian ESG and business landscape
MSCI ESG Rating Highlighted ESG issues
Axiata is one of the leading companies in Malaysia in terms of ESG performance
ESG Top Performers in Malaysia (2/5)
Source: MSCI (2020)
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23The Malaysian ESG and business landscape
MSCI ESG Rating Highlighted ESG issues
Petronas Dagangan is one of the leading companies in Malaysia in terms of ESG performance
ESG Top Performers in Malaysia (3/5)
Source: MSCI (2020)
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24The Malaysian ESG and business landscape
PPB is one of the leading companies in Malaysia in terms of ESG performance
ESG Top Performers in Malaysia (4/5)
Source: MSCI (2020)
MSCI ESG Rating Highlighted ESG issues01
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© 2020 Deloitte Risk Advisory Sdn. Bhd
25The Malaysian ESG and business landscape
KLK is one of the leading companies in Malaysia in terms of ESG performance
ESG Top Performers in Malaysia (5/5)
Source: MSCI (2020)
MSCI ESG Rating Highlighted ESG issues01
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26The Malaysian ESG and business landscape
Feel free to get in contact with us to learn more
Thank you for your time today
Rui FigueiredoUnited Nations and Sustainability LeaderDirector
Deloitte Malaysia | [email protected]
Contact Information
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