Penang govt urges SMEs to embrace ESG

GEORGE TOWN: Local small and medium enterprises (SMEs) are urged to embrace environmental, social, and governance (ESG), aligned with Penang’s Unity Manifesto 2023, due to its increasing significance within the operations of an enterprise.

Penang Chief Minister Chow Kon Yeow (pix) said that if more companies embrace ESG, this would also contribute to the state’s economy through the encouragement of high-impact investments and development.

“Adopting ESG principles by companies proves favourable for both investors and customers due to their perceived social and environmental responsibility.

“Consequently, this would allow them to become comparatively better in the market as well as improve their prospects for long-term financial growth,” he said while officiating at the Opening of Penang ESG Conference and Exhibition 2023 at a hotel here today.

This conference serves as a crucial platform to share insights, exchange ideas and collectively chart the course for a more sustainable and responsible future for Penang and the nation.

Chow who is also the chairman of Penang Green Council said ESG principles play a pivotal role within supply chains, enabling the creation of a positive environmental impact and contributing significantly to the manufacturing sector.

Nevertheless, SMEs would still need all the support and guidance they could get from the government as well as the private sector.

“In today’s climate, it is imperative that all businesses and corporations acknowledge the pertinence of ESG and work collectively towards a common goal.

“Malaysia has taken significant strides to promote ESG and sustainable development through diverse efforts in terms of policies and initiatives,” he added.

As governments and regulators progressively usher in policies and regulations that promote sustainability, SMEs must adapt to these requirements to ensure long-term sustainability and continuity, Chow said. -Bernama