ESG in Focus: Key Takeaways from VLAN Asia’s Tribal Monthly Session

Environmental, Social, and Governance (ESG) has surged to the forefront of business strategy as companies recognize its impact. VLAN Asia's Tribal Monthly session gathered a panel of speakers to explore ESG’s growing influence, from regulatory demands to digital tools driving change.

ESG Gains Momentum

Professor Cheah, president of ESG Association Malaysia opened with a striking statistic—over 80 speaking invitations in 2023 alone—indicating the rapid rise of ESG interest in both academic and business circles. ESG is now widely regarded as a serious business priority, largely due to regulatory pressures and global challenges.

The European Union’s Carbon Border Adjustment Mechanism (CBAM) is driving changes in how companies approach ESG. The message is clear: businesses that adapt stand a better chance of remaining competitive. Small and Medium Enterprises (SMEs) are especially impacted, as they need to keep up despite limited resources. At VLAN Asia’s session, speakers discussed how understanding ESG is essential for smaller companies wanting to stay relevant.

Disorganized Efforts Pose Hurdles

We observed that ESG initiatives often lack coordination. Different standards and initiatives make it tough for companies, particularly SMEs, to know where to focus. Prof. Chan Kok Long from iPay88 likened it to "a battle where everyone’s scattered, with no unified direction," a reminder of the urgent need for more streamlined approaches.

Tengku Azrul Tengku Azhar from the Malaysia Digital Economy Corporation (MDEC) emphasized how digital solutions are crucial in ESG strategies. From carbon tracking to supply chain improvements and reporting, technology makes it easier for companies to measure and manage their environmental impact.

Cybersecurity’s Role in ESG

One unexpected focus was cybersecurity. Datuk Alan See, a cybersecurity specialist and CEO from FIRMUS stressed that data security is a vital part of ESG. As businesses go digital, safeguarding information isn’t just about IT; it’s about building trust and resilience. For any ESG strategy to succeed, companies need strong protections in place.

Prof Angela Lee Siew Hoong from Sunway University described how universities are incorporating ESG into various programs. By embedding sustainability projects and data analysis in their curricula, schools are preparing future leaders to handle business responsibly. The session highlighted how companies are grappling with around 2,400 ESG-related regulations worldwide. This maze of rules demands that businesses be flexible, stay informed, and adapt as standards continue to change.

Practical Steps for Companies

Businesses that want to navigate ESG more effectively might consider these ideas from the session:

• Approach ESG as a Long-Term Goal
  Rather than just aiming to meet regulations, think of ESG as a way to add value over time.
• Invest in Technology
  Use digital tools to track and analyze data, making it easier to integrate ESG goals into everyday operations.
• Prioritize Learning and Adaptation
  ESG is a field that’s changing rapidly. Encourage teams to stay updated on new regulations and practices.
• Collaborate Across the Industry
  Working with others can provide valuable insights and help businesses keep pace with best practices.

VLAN Asia's session underscored ESG’s importance as a business strategy. Implementing ESG isn’t just about checking boxes; it’s a chance to innovate and make a positive impact. Businesses ready to commit to ESG are not only preparing for regulatory shifts but are also positioning themselves for long-term success.