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FACULTY OPINION PIECE Issue no. 4 | 2022
FACULTY OPINION PIECE
Achieving the sustainability targets through

Environmental, Social and
Governance (ESG) disclosure

of businesses in Malaysia

By Dr. Tengku Adeline Hamzah
Department of Geography
of life. Hence, the initiation of the UN’s latest sustainability
agenda - the Sustainable Development Goals (SDGs) in
2015. SDGs consist of 17 goals and 169 targets – which
are expected to be achieved by 2030. This latest
centerpiece was the result of intensive negotiations and
rigorous consultative processes involving the
governments and the non-governmental stakeholders.

Compared to the MDGs, SDGs represent a larger agenda
and are more universal in nature, making them appropriate
The tensions between economic progress and socio- to be adopted by countries in the Global South as well as
ecological health have been shaping the development of the Global North in planning the future course of
strategies and policies in many nations across the globe. economic and social development. In short, the SDGs call
The ravenousness of the economy is often held for socially inclusive and environmentally sustainable
responsible for the degradation of the natural ecosystems. economic growth for all nations (Sachs, 2015). To achieve
One possible solution to overcome this problem is the objectives of the SDGs, Sachs (2015) suggested the
sustainable development - a term which was popularized inclusion of another paramount element besides
by the Brundtland Commission (though it is believed to economic, social and environmental factors, that is, good
have been coined much earlier) in their 1987 report titled governance. Actors of governance in today’s world are not
‘Our Common Future.’ limited to the state governments.

In short, sustainable development implies that it is possible Private sector actors such as Multinational companies are
to achieve sound economic progress without sacrificing powerful governance actors, and in certain circumstances,
the ecosystems and social improvement. It is an appealing can be more powerful than the governments. The way
concept as it holds out the promise of reconciling these powerful companies operate – whether they obey
divergent views about the relationship between economic the law and regulations, show responsibility for the natural
development and environmental protection. resources they consume, show concern for the gaseous
and particulate matter they emit and effluent discharged
The definitions and interpretations of sustainable to the water bodies, and help the communities to
development have evolved over time. In the first few eradicate extreme poverty – all this directly or indirectly
decades of its introduction, the emphasis was on affects the societal wellbeing.
sustainability. Hence the focus on preservation and "The focus has now
conservation of living and non-living things; development
mostly targeted changes in technology as a way to shifted towards
enhance economic growth; and intergenerational equity
asserted that sustainable development is the integration of economic
“development that meets the needs of the present without growth, conservation of
compromising the ability of the future generations to meet
their own needs”. These interpretations of sustainable natural ecosystems, and
development are the pillars of UN’s Agenda 21 (1992) and
the Millennium Development Goals (MDGs) (2000). social development in

The focus has now shifted towards integration of building a truly
economic growth, conservation of natural ecosystems, sustainable way of life."
and social development in building a truly sustainable way

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