95% of Malaysian companies have established sustainability goals but only half have implemented plans: Survey44% of them are driven by an increase in business opportunitiesAlthough 95% of companies in Malaysia have established sustainability goals or targets, only half have implemented or are currently practising a comprehensive sustainability strategy.
In Malaysia, the Green Action Gap – the metric used to estimate the rift between the perceived importance of sustainable goals and the tangible actions to implement sustainable development by companies - lies at 46%, highlighting the difference between companies who have established sustainability goals and those who have implemented or are currently practising a comprehensive sustainability strategy .
Unsurprisingly, most business leaders in Malaysia believe that providing more incentives is more effective than enforcing penalties to encourage private sector compliance with government sustainability goals. The top reasons reported for pursuing corporate sustainability were increasing business opportunities as well as innovation and competitiveness . Risk management, reputation and opportunity for cost-saving were also among the top five motivations for companies.
The survey also revealed that despite the vast majority of companies having sustainable goals in place, 74% of these goals are short-term, spanning the next four years or less. The findings suggest that companies may be more confident in setting detailed targets for the near future but struggle to turn broad sustainability plans into concrete actions until they approach the"deadline" for achieving these goals.
“As we navigate the urgent need for sustainability, it is imperative for businesses to take a leadership role in driving change, collaborating with governments, and leveraging innovative solutions to create a more sustainable future for our country and the planet,” he added.