Government committed to national ESG development

PUTRAJAYA: The government is staying committed to national environmental, social, and governance (ESG) development despite concerns that the newly elected Trump administration in the US may dismantle ESG regulations.

Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad said “climate change is real, no matter who the American president is”.

“We recognise Malaysia is already witnessing the impact of climate change. Today, we have villages on the East Coast being swallowed by the sea. We’re seeing seawater in the drains in Klang. So it’s real, it’s out there, no matter who the American president is,“ Nik Nazmi said in his keynote speech at the launch of IOI Properties Group’s IOI Sustain Roadmap 2030 and the official unveiling of Malaysia’s largest mall solar photovoltaic system at IOI City Mall today.

He added: “We know that climate change presents a wide range of effects on the environment and society, impacting businesses as well.”

Nik Nazmi said the National Climate Change Bill is expected to be tabled in Parliament by the first quarter of 2025. “For Malaysia to thrive and maintain climate resilience, governance plays a crucial role.”
Currently, he said, the Natural Resources and Environmental Sustainability Ministry is conducting stakeholder engagement sessions as well as producing consultation papers for public comment until Nov 18. “You can go to our website and see the draft of the papers so that we can get your views from the private sector, from the public.”.

Nik Nazmi said the government views nature-based solutions as an important aspect in addressing climate change.

“Our commitment to nature-based solutions has led us to protect and restore our forests, wetlands, and coastal ecosystems, which serve as natural buffers against climate impacts,” he said.

Nik Nazmi pointed out that Malaysia is home to some of the world’s oldest rainforests, and Malaysia is determined to preserve them as crucial carbon sinks and biodiversity hotspots. “These ecosystems play an indispensable role in maintaining the delicate balance of our climate and are a cornerstone of our resilience strategy,” he said.

Nik Nazmi said that during a town hall session in July, more than 30 local universities and research institutions expressed strong support for the establishment of a biodiversity centre and natural history museum.

“We have submitted a plan of the development budget through the Ministry of Economy to construct a biodiversity centre and natural history museum costing from the government side … RM140 million.”

He added “But that, I think, is a very bare basic. And that is why we have to get the private-public partnership to get more funding and receive commitments from many big companies so that we can really have a state-of-the-art biodiversity centre, which is, I would say, in line with what we can showcase to the world with the collections that we have.”

Nik Nazmi said that almost every megadiverse country has centres of excellence for biodiversity management. However, Malaysia is one of the few countries without a national biodiversity centre. “Although Sabah, Sarawak and Pahang established state-level biodiversity centres earlier, there is an undeniable need for a national-level centre to complement the state efforts.”

Nik Nazmi said it will have several core functions, including the management of scientific collections and biodiversity databases, the coordination of scientific research for the science and policy interface, the establishment of centres for advanced training in biodiversity, the organisation of exhibitions and outreach programmes, the provision of advisory and consulting services, and as a major visitor attraction.