Sustainability Leadership: Ushering a Paradigm Shift in Finance and Collective Actions
Nooryusazli Y.
Chief Sustainability and Strategy Officer | Energy, Climate Change, ESG | x-Aramco, PETRONAS, Mubadala | Chevening U.K. Scholar | MBA, MSc, BSc, CRM | HRDC Accredited Trainer | Board Advisors (Climate, ESG, Risks)
The United Nations Global Compact (UNGC) Malaysia and Brunei convened a momentous gathering on November 24, 2023, at Parliament Malaysia in Kuala Lumpur, focusing on "Collective Actions for Inclusive Sustainable Finance." This assembly marked a crucial step toward galvanizing corporate involvement in achieving the Sustainable Development Goals (SDGs) outlined in the 2030 Agenda. The assembly catalyzed fostering cross-sectoral partnerships, encouraging collaboration among businesses, governments, and civil society to drive collective actions for a more sustainable future.
In 2023, the Earth experienced its hottest year ever recorded. We struggle to find words and convincing narratives to convey the urgent action needed to address climate change and its impacts on the 8.0+ billion population. With COP28 soon approaching, it is crucial for the world -- governments, businesses, societies, and others -- to come together and develop a realistic plan to accelerate the transition to clean energy and reduce emissions before 2030.
The urgency of sustainable practices has gained substantial traction among companies worldwide. However, despite the heightened discourse, progress still needs to be improved to align with the ambitious objectives set for 2030. Recognizing this critical juncture, the UNGC launched the "Forward Faster" initiative, signaling a pivotal shift in the approach towards sustainability. The initiative aims to steer companies in identifying impactful strategies that propel substantive progress aligned with the 2030 Agenda.
Amidst the halfway mark of the 2030 Agenda, the resounding call for heightened ambition reverberated throughout the gathering. The imperative for accelerated and substantive action underscored the discussions at the UNGC assembly. Speakers highlighted the situation's urgency and emphasized the need for increased corporate responsibility and engagement to bridge the gap between rhetoric and tangible progress toward sustainable development.
The event fostered a robust exchange of insights and strategies, encapsulating the essence of collective action required to steer global corporations toward sustainable practices. Key stakeholders from various sectors converged to deliberate on the multifaceted facets of inclusive, sustainable finance, underscoring the imperative of collaborative efforts in reshaping corporate frameworks.
Speakers and panelists at the UNGC assembly collectively echoed the sentiment that embracing sustainability goes beyond mere compliance; it necessitates an intrinsic transformation in corporate ethos. The imperative for companies to act as catalysts for change emerged as a recurrent theme, emphasizing the pivotal role of businesses in driving societal and environmental progress.
The "Forward Faster" initiative unveiled at the UNGC assembly serves as a beacon, guiding companies towards impactful actions that effectuate tangible change. It encapsulates a paradigm shift in the corporate mindset, urging businesses to proactively identify avenues to effectuate rapid, substantial impact aligned with the SDGs.
Learn more - UNGC video: Forward Faster - YouTube
Key Salient Points:
1. Energy Transition Importance: Highlighted the critical significance of energy transition, acknowledging its impact as a fraction of global emissions while emphasizing its relevance even for upper middle-income countries like Malaysia, which receive minimal official development assistance.
2. Financial Instruments and Sustainable Finance: Recognized the challenge posed by the lack of financial aid and the necessity for financial instruments, especially in Malaysia, and emphasized the emergence of sustainable finance and investments globally, with Malaysia boasting solid financial institutions and initiatives.
3. Malaysia's Position in Sustainable Finance: Addressed the need for Malaysia to assert itself as a leader in sustainable finance, given the regional competition, particularly with countries like Singapore. One of the speakers stressed the importance of leveraging Malaysia's solid financial institutions and existing sustainable finance initiatives to establish leadership within the region.
4. Sustainability Framework and Malaysia's Role: Discussion surrounding the three pillars of sustainable development - social, economic, and environmental - highlighted the importance of balancing these components for positive progress. They emphasized Malaysia's commitment as a member of the United Nations, aligning with the Paris Agreement and introducing critical policies like the National Energy Transition roadmap and national energy policy to guide the transition to sustainability.
5. Corporate Commitment and Alliances: Highlighted the corporation's support for the government's sustainability agenda, aiming for a net-zero emission nation by 2050 and aligning with the UN Sustainable Development Goals. It emphasized the importance of broadening the perspective on social protection beyond income levels and vulnerability, acknowledging its contextual relevance to anyone.
6. Collaboration and Solutions: Emphasized the significance of dialogues like the ESG 22 symposium, fostering collaboration between policymakers and corporate leaders to address challenges and offer tailored solutions in sustainable finance. Recognized the pivotal role of SMEs in Malaysia's economy and outlined efforts to understand their unique challenges through joint reports and collaborations with UN Global Compact Malaysia and other partners.
7. Supporting SMEs in Sustainability Transition: Acknowledged the critical role of SMEs in the local economy and identified their need for tailored support in transitioning towards ESG-centric practices. Emphasized the initiative taken by Alliance Bank to understand SME challenges through joint ESG reports and highlighted the crucial need for resources, incentives, talent, and frameworks specific to SMEs to enable their personalized roadmap towards sustainability.
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8. Financial Support and Understanding SME Needs: Recognized the challenges SMEs face in their sustainability journey, including the lack of resources and tailored frameworks. They highlighted the need to understand SMEs' needs beyond mere financing, emphasizing the importance of crafting solutions based on their specific challenges and journey towards sustainability.
In conclusion, the UNGC assembly on November 24, 2023, epitomized a pivotal moment in the global pursuit of inclusive sustainable finance. With the launch of the "Forward Faster" initiative, the imperative for accelerated, impactful actions reverberated across the corporate sphere, emphasizing the need for heightened ambition and collective commitment to steer companies towards effectuating substantive progress aligned with the 2030 Agenda.
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Learn more about the UNGC's "Collective Actions for Inclusive Sustainable Finance" event: Go to YouTube:
#GOESG2023 ?Sustainable Finance Symposium
UN Global Compact Malaysia and Brunei
Absolutely inspiring initiative by UNGC Malaysia & Brunei. Remember, as Nelson Mandela once said - It always seems impossible until it's done. Let's all contribute to making sustainable finance a universal reality! ????? #ChangeMakers #InclusiveGrowth #TogetherForBetter