Tengku Zafrul: Companies must shape up on ESG

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Tengku Zafrul said that ESG assets are set to reach US$53 trillion (US$1=RM4.56) by 2025.

He said that ESG assets are set to reach US$53 trillion by 2025, adding that institutional investors carry considerable collective influence with nearly RM2.2 trillion in assets under management and roughly RM750 billion in the local stock exchange.

"This brings about the concept of stewardship in long-term institutional investors, such as pension funds that are also effectively asset owners that could exert considerable influence on the operations and corporate behaviour of their investee companies,” he said. "These challenges should not be underestimated, because the narrow application of ESG metrics and criteria risks systematically exclude such companies from future sources of funding, undercutting their growth potential and undermining our sustainability journey as a whole,” he added.

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