Resident Coordinator's speech: GO ESG ASEAN Summit and Exhibition 2022

His Royal Highness Sultan Nazrin Muizzuddin Shah Ibni Almarhum Sultan Azlan Muhibbuddin Shah Al-Maghfur-Lah

Mr. Faroze Nadar, Executive Director, Global Compact Malaysia, and Brunei;

Distinguished speakers and panelists;

Ladies and gentlemen; a very good morning to you all.

I thank the UN Global Compact for the opportunity to speak at the GO ESG ASEAN Summit 2022 and commend their efforts to enhance the contribution of the private sector to environmental, social, and governance outcomes. 

I am well-aware that ASEAN companies, and especially in the countries I cover, Malaysia, Singapore, and Brunei, have long accepted their ESG responsibilities.  

However, I want today, to advocate for still greater alignment with the SDGs and the mainstreaming of ESG practices within regular business activities.

This is both a route to boosting the competitiveness of businesses and a means of addressing SDG priorities.

Referring also to this summit theme, data lie at the heart of these efforts. Data, including official sources and ESR datasets collected by businesses themselves, are the lifeblood of decision-making. 

With technological changes, the demand and the supply of data have grown exponentially.  These trends will continue to accelerate, with unconventional data sources gaining more relevance as big data and data analytics become an integral part of how we understand the world and connect things.

Ladies and gentlemen,

Two primary challenges dominate the 2030 agenda and provide overriding priorities.  

The first is the pandemic and the slow and imbalanced recovery. COVID-19 has caused lasting deficits, including reversals in hard-won development gains and disruptions in SDG progress.  

The conflict in Ukraine has triggered severe cost of living pressures, followed by rapid rises in interest rates and the premises of a global liquidity crisis.

Progress is severely lagging, and neither Asia-Pacific nor ASEAN is on track to achieve the 17 SDGs by 2030.

Nevertheless, ASEAN member states are better placed than others. They are home to some of the World’s most vibrant and inclusive economies and have solid track records of developmental progress.

The strength of ASEAN’s private sector, including here in Malaysia, is a key ingredient of this resilience, and the role of business has never been more important in delivering a full recovery.  

Climate change presents a second, equally pressing set of imperatives, and we have all witnessed tangible impacts, in every part of the world, including in Malaysia.

The deliberations at COP27 were guided by two overarching themes: justice for poorer nations on the front line; and ambition to keep the 1.5-degree limit alive. 

COP27 made progress towards equity, with important decisions on loss and damage and commitments to finance.  Yet it also fell somewhat short, most notably on the required reductions in emissions. 

A major leap forward is needed if run-away rises in temperature are to be avoided. 

Again, the private sector must play a central role. Consumers and producers in most economies will need to live with considerably lower carbon emissions.

This will have to be achieved through efficiencies, behavioural change, and the take up of new and greener technologies.

The UN Secretary General has called for a Climate Solidarity Pact between all member states to combine their capacities and resources to deliver a just energy transition, drawing on all other partners, including business and financial Institutions.

Ladies and gentlemen,

Businesses in the region face significant ESG challenges. There also are invaluable opportunities.

Delivering sustainability and promoting inclusion is increasingly integral to corporate strategy.

A recent survey by the IT services firm Kyndryl, found that some 77% of ASEAN enterprises are actively focused on becoming more sustainable.  

More and more businesses are taking the further step to ensure investments and plans are fully aligned with the SDGs.  To reiterate, this is not merely to meet the requirements of good corporate citizenship, but crucially, to add value and boost the bottom line.

For some sectors, the incentives are clear.  For example, fossil fuels, where investments are in danger of becoming stranded assets. 

Yet, for all businesses, greener production methods are inherently more efficient: inclusive hiring and sourcing practices have clear long-term productivity gains; investors are progressively favouring ESG compliant projects; and mainstreaming ESG requirements can deliver an edge in markets increasingly dominated by savvy consumers.

Combating the threats and seizing the opportunities, however, requires effective planning and implementation.  

The same survey I quoted also suggests that ASEAN businesses are still grappling with how to integrate ESG considerations and lack a strategic approach.  They tend therefore to lag-behind their global competitors.

Recognizing these challenges, the UN stands ready to partner with the private sector to enable firms to contribute to SDG progress, while also benefiting business performance.

I see four potential pathways we might explore together.

First, on SDG data.  As the custodian of the global goals, the UN can offer a reliable source of officially reported high quality data. 

Although data gaps remain on many SDG indicators, we are ready to share our knowledge and facilitate access to the SDG Global Database, country profiles, SDG analytics, and other resources.

The UN’s Data Collaboration Initiative seeks to bring together governments, academic and private sector partners to design and co-develop SDG data innovations.

Second, we are keen to support enterprises own ESG data and evidence bases.  One such initiative is our work in Malaysia with the UN Global Compact to build an information and data sharing platform under the banner Together for the SDGs. 

This will enable companies to share information on ESG activities and foster interactions with civil society and academia. 

Third, UN agencies are increasingly reaching out to businesses on several SDG mandates; these efforts offer possibilities for tailored firm-level partnerships.  

Key areas include human rights and business practices, SDG financing, social protection, women’s empowerment, climate action, digital transformation, and trade promotion.

Fourth, as a key partner of national governments, the UN is often able to act as a key interlocutor and advocate on policy and regulatory issues, in areas often relevant to ESG objectives. 

Let us now work together to enable businesses to become still more active partners in putting the SDGs back on track.

I will close there. I thank our partners at the Global Compact Malaysia chapter and wish you well in your conference discussions.