National Energy Transition Roadmap (NETR) and Hydrogen Economy and Technology Roadmap (HETR): Launched in Malaysia to achieve long-term energy security while considering environmental and economic sustainability.

NETR's Strategy and Initiatives: Outlines a comprehensive strategy and impactful initiatives.

Hydrogen Economy and Technology Roadmap (HETR): Complements NETR by facilitating environmentally sustainable, long-term energy security through technological innovation.

Climate Targets and NDC: Malaysia has revised its Nationally Determined Contribution (NDC) to reduce greenhouse gas emissions intensity by 45% by 2030 compared to 2005.

Electricity Interconnection and Integration: Interconnected electricity systems and renewable energy sharing are vital for meeting ASEAN's climate goals and sustainable development.

Clean Energy Investment Challenges: Developing economies face higher capital costs for clean energy projects due to perceived macroeconomic risks and limited capital markets. 

Malaysia's Role: Malaysia aims to collaborate with neighbouring countries to strengthen interconnection and facilitate renewable energy sharing.

People's Republic of China (coal and cement only) (government-owned company): 8.683 ppm 

Former Soviet Union (government-owned company): 7.053 ppm 

Saudi Aramco, Saudi Arabia: 3.191 ppm

Chevron Corp., United States: 2.932 ppm 

ExxonMobil Corp., USA: 2.747 ppm 

BP, United Kingdom: 2.161 ppm 

Gazprom, Russia: 2.13 ppm 

National Iranian Oil Co., (NIOC), Iran: 1.897 ppm

Royal Dutch Shell, PLC, The Netherlands: 1.85 ppm

Poland (government-owned company): 1.568 ppm 

Pemex (Petróleos Mexicanos), Mexico: 1.353 ppm

Petróleos de Venezuela SA, Venezuela: 1.107 ppm

Coal India Ltd., India: 1.095 ppm

ConocoPhillips, United States: 1.018

British Coal Corp., United Kingdom: 1.01 ppm 

Peabody Energy, United States: 0.847 ppm 

Russian Federation (excluding the Former Soviet Union) (government-owned company): 0.837 ppm 

PetroChina, China: 0.783 ppm

Total SA, France: 0.78 ppm 

Kuwait Petroleum Corp., Kuwait: 0.717 ppm

Sunway Construction Group Bhd (SunCon)'s projected earnings growth driven by ongoing and new projects, especially in the sustainable energy sector, and the potential impact of critical projects like the data centre and power plant developments.

Sustainable Energy Segment: About 7% of SunCon's total order book (RM420 million) is related to projects in the sustainable energy segment, including a 50MW solar power plant construction in Perak for Gopeng Bhd. 

Song Hau 2 Power Plant Project: The project in Vietnam, worth RM6 billion, is awaiting financial close, which could contribute to a substantial earnings increase of 30-35% for SunCon in the financial years 2024 to 2025.

New Industrial Master Plan 2030 (NIMP 2030) emphasises productivity multipliers and enablers like improving ease of doing business, technology adoption, and talent development.

Malaysia Productivity Corporation (MPC) aims to boost investment, industry, and export productivity to support GDP growth, aligned with ESG and sustainability. It focuses on talent, technology, and regulations to enhance productivity comprehensively. It launched the Productivity Report 2023 (PR2023), which details Malaysia's productivity agenda and highlights achievements in competitiveness.

Malaysia's 12th Malaysia Plan (RMK12) targets 3.6% annual productivity growth and RM106,060 value added per employment by 2025.

Madani Economy Framework - aiming to be in the top 12 of the World Competitiveness Ranking, indicating the need for more transformative productivity growth to escape the middle-income trap. Malaysia improved to 27th in the World Competitiveness Ranking 2023 due to solid GDP growth and productivity recovery in 2022. 

Prioritising employee well-being and standard of living can enhance productivity, employee performance, and profits.

Colorado pioneered clean energy policies, limiting methane pollution, setting clean hydrogen standards, and expanding geothermal energy generation through regulations, grants, and consumer education.

It is introducing GEMM 2 rules (Greenhouse Gas Emissions and Energy Management for Manufacturing Phase 2) to regulate GHG emissions from major industrial facilities, aiming to set a new policy precedent.

GEMM 2 aims to reduce emissions of 18 industrial facilities, including Suncor Energy, Molson Coors, and Microchip Technology, by 20% by 2030.

The GHG Protocol conducted public input on standards and guidance documents, reviewing key themes from stakeholders on the Scope 2 Guidance.

The GHG Protocol, co-convened by World Resources Institute (WRI) and World Business Center for Sustainable Development (WBCSD), is set to release revised text in 2024 and final standards and guidance in 2025.

Stakeholders have submitted critical points that they have requested to be shared publicly, including:

1. Update terminology used in the Corporate Standard to align with widely applied accounting frameworks.

2. Entities must report an entire Scope 3 category or select activities within the category when optionally reporting GHG emissions under the Corporate Standard.

3. Perform a risk assessment to assess the impact of double-claiming Scope 3 emissions among value chain entities, and if found a material risk, a cross-sector expert group is convened.

4. Clarify the Corporate Standard definition of “operational control” to encourage greater consistency in reporting climate goals and targets.

5. Provide more precise guidance in the Corporate Standard on selecting a base year and base-year emissions profile.

6. Require robust disclosures about material changes between current and prior year periods to ensure that companies provide meaningful information about emissions over time.

Bhutan, a landlocked country in the Eastern Himalayas bordered by China to the north and India to the south, prioritises sustainable organic farming and forestry practices, accentuated by the reliance on hydropower and the prudent management of its main economic driver, tourism. 

Bhutan charges tourists a $200 (RM928) sustainable development fee per day, underscoring the value placed on eco-tourism and environmental protection.

Maybank's Sustainability Initiative: Maybank introduced the "myimpact" credit card to empower customers to make more sustainable life choices. The credit card is made from bio-sourced polylactic acid and includes unique features to promote sustainability.

Carbon Footprint Tracking: The myimpact credit card allows cardholders to track their carbon footprints and understand the environmental impact of their spending. 

Rewards for Sustainable Choices: Cardholders are rewarded for making sustainable lifestyle choices and eco-purchases. Thus, it encourages customers to opt for environmentally friendly options in their spending habits.

Carbon Offsets: The credit card allows cardholders to offset their carbon footprints by contributing to various regional reforestation activities, hence supporting environmental preservation.

The New Industrial Manufacturing Plan (NIMP) 2030, released on Sep 1, enhances ESG practices in Malaysia’s manufacturing sector. 

The NIMP 2030 identifies ten action plans and three mission-based projects to accelerate sustainable practices, particularly in sectors like cement, metal, chemical, and petroleum, aiming to reduce emissions.

The document outlines three action plans for the electric vehicle ecosystem: launching locally manufactured EVs and implementing large-scale carbon capture, utilisation, and storage solutions. 

NIMP 2030 aims to transform industrial estates into eco-industrial parks, reducing greenhouse gas emissions, waste, and natural resource usage.

PETRONAS and Tenaga Nasional Berhad (TNB) recently showcased their continuous collaborative commitment to supporting Malaysia's National Energy Transition Roadmap (NETR) at the Energy Transition Conference in Kuala Lumpur.

PETRONAS President, Tan Sri Tengku Muhammad Taufik, and TNB President, Dato' Indera Ir. Baharin Din held a document exchange of the Memorandum of Understanding (MoU) to explore carbon capture and storage technology for gas-fired power plants. 

Carbon Capture, Utilisation, and Storage (CCUS) is identified as the 6th Energy Transition Lever in NETR. 

PETRONAS and TNB will continue to leverage on each other's expertise towards decarbonisation and achieving Malaysia's net zero carbon emissions ambition by 2050.

NETR Phase 2 was also launched at the event by the Prime Minister, which entails the nation's energy transition initiatives following NETR Phase 1.

PETRONAS needs regulatory support to mandate emissions reporting across its value chain, following criticism for not disclosing Scope 3 emissions as part of its net-zero pledge. Chief Financial Officer Liza Mustapha explains that PETRONAS is paying attention to Scope 3 but face challenges measuring product usage.

Reporting challenges: 

1. PETRONAS seeks assistance obtaining precise emissions data for Scope 3 reporting, requiring extensive consumer product use and disposal data.

2. Organisations should report third-party emissions from suppliers and vendors, gradually expanding to include client and consumer emissions. Options include primary data from suppliers or secondary data from published sources.

3. Reporting emissions of multinational corporations presents a geographic challenge, as over 70% of Petronas' revenue in 2022 came from outside Malaysia, with Singapore being the largest single-country buyer.

Greenwashing allegations:

1. PETRONAS' CO2 sequestration project, Kasarawri, aims to sequester 3.3 million tonnes of emissions, but Rimbawatch argues it only accounts for 0.9% of total 2022 emissions.

2. Despite establishing Gentari, a renewable energy arm, PETRONAS is still in its "investing stage" and has not generated enough earnings to attract potential partners.

3. PETRONAS focuses on decarbonisation through low-hanging fruit measures like methane emissions reduction and energy efficiency improvement, with carbon credits and offsets being seen as a last resort.

PETRONAS, Gentari Sdn Bhd, Amazon, and Amazon Web Services (AWS) are partnering to promote sustainability and decarbonisation initiatives, including supporting Amazon's India transportation network's electrification through third-party delivery service partners.

Amazon plans to deploy 10,000 electric vehicles (EVs) in its India delivery fleet by 2025, with Gentari providing fleet management services for third-party delivery service partners. It also intends to assess Petronas' low-carbon and alternative fuel solutions for potential integration in mobility, stationary power applications, and carbon management.

AWS Asean is enhancing its partnership with PETRONAS and Gentari to promote sustainable development by fostering expertise and technology.

The National OGSE Sustainability Roadmap is in progress and will be launched by the MPRC soon – it plays a vital role in guiding our OGSE industry towards compliance with sustainability requirements.

Two national documents on accelerating the energy transition in Malaysia: National Energy Policy and National Energy Transition Roadmap (NETR).

BNM issued Climate Change and Principle-based Taxonomy (CCPT) in 2021 - used by financial sector stakeholders such as capital market players and intermediaries and analysts to guide investment and asset selection decisions and rating agencies in rating decisions. For the public sector, the document may serve as a guide for policy formulation and prioritisation alongside funds allocation. 

Issues highlighted by the stakeholders during the Q&A session:

1. There's a gap in sustainability reporting assurance and audit processes for sustainability plans - not covered in and by MPRC - MPRC needs to consider what assurance should be added - who will approve the sustainability reporting in Malaysia?

2. Enquiry on bank/green financing requirements - FTSE Malaysia Index - what do banks need (financiers' requirements) from the PLCs and SMEs to fund/approve green initiatives? - different banks require different conditions from the PLCs and SMEs, thus making it hard for them to ask for loans from the banks - MPRC is currently engaging with the banks to meet the financial requirements. 

3. What kind of data is needed to disclose carbon emissions?

The challenges and state of the Malaysian OGSE industry: 

1. The Malaysian OGSE industry is highly fragmented, with 95% of the industry comprising SMEs. 

2. The volume of local OGSE technology development could be higher, indicating limited R&D activity relative to the industry's size.

3. Only 36 OGSE patent families with local inventors were filed in the last five years, indicating relatively low innovation and patent activity.

4. The quality of local OGSE technology developed needs to be more widely regarded, suggesting room for improvement in technology and innovation.

5. There is a need for talent and technology development within the industry to enhance its competitiveness.

6. Trade promotion and export capacity building are areas where the industry can improve.

7. Improving financial strength, particularly in terms of working capital, is crucial for the sustainability and growth of OGSE businesses.

The Taskforce on Nature-Related Financial Disclosures (TNFD) harnesses framework design and stakeholder engagement synergies to avoid repetition and maximize the prospects of achieving integrated climate-nature disclosures. 

When we compare the most recent version of the two frameworks, much of the Task Force on Climate-Related Financial Disclosures (TCFD)'s framing has been left intact.

Bursa Malaysia Securities Berhad unveiled the Illustrative Sustainability Report (ISR) to enhance the commitment of listed issuers to sustainability practices and disclosures. 

Bursa Malaysia had previously introduced sustainability reporting requirements within the Main Market Listing Requirements (Main LR) and the ACE Market Listing Requirements (ACE LR).

The ISR visually presents enhanced sustainability disclosure criteria, covering critical disclosures in each Sustainability Statement or report section, cross-referencing requirements and recommendations from international sustainability reporting frameworks.

The ISR assists listed issuers in preparing for the phased implementation of the Enhanced Sustainability Reporting Framework starting from the end of the financial year 2023.

Bursa is developing a Sustainability Explainer Video to simplify the reporting process for listed issuers, ensuring a smoother transition and increased accessibility.

The capital market is now accessible to micro, small, and medium enterprises (MSMEs), accounting for 38% of Malaysia's GDP. 

With 48% employment, capital-ready smaller firms mean a plus to the Malaysian ESG Movement. 

SME Corporation Malaysia (SME Corp) has a database of MSMEs. When bundled with the regulatory expertise of the Securities Commission Malaysia, sustainable development will be easier for non-PLCs.

Malaysia has launched the Industry Environmental, Social, and Governance (iESG) Framework to help achieve sustainability and net-zero goals within seven years.

It will be implemented in two phases: Phase 1.0 from 2024 to 2026 and Phase 2.0 from 2027 to 2030.

Phase 1.0 focuses on the "Just Transition" principle, considering local businesses, especially MSMEs, need time to meet ESG standards.

Growing Resistance to Green Agenda: Europe is facing a "greenlash," driven by concerns about the cost of living crisis as policymakers implement measures beyond power generation, affecting areas like buildings and transport.

Challenges in Passing Green Laws: It is getting harder to pass green laws as politicians tap into concerns about the expense of green policies. Some EU governments are resisting emissions limits for cars, seeking to weaken pollution controls for livestock farms, and opposing energy efficiency measures for buildings.

UK's Changing Green Policies: The UK is criticised for not doing enough to meet its net-zero target 2050. Rule changes have hampered progress in onshore and offshore wind projects, causing some developers to express concerns about investing in the sector.

Political Challenges: Green policy disputes have boosted right-wing populist parties in Dutch and German polls, highlighting the need for politicians to show that the green transition is and offers support to those in need.

The i-ESG Framework is a crucial enabler for the Push for Net Zero mission, one of four missions of the recently launched New Industrial Master Plan 2030 (NIMP 2030).

The i-ESG’s overarching objective is accelerating the transition towards sustainable practices among manufacturing companies.

There are four pillars - standards, financing, capacity building, and market mechanism - as well as 17 strategies, 50 deliverables and six key enablers. 

The framework aims to provide guidance and drive the manufacturing sector, especially for micro, small, and medium enterprises (MSMEs), towards ESG compliance.

The iESG Framework is set to help Malaysia achieve its sustainability and net zero aspiration goals within seven years or less. 

It will also potentially lead the way to tap into a US$ 12 trillion (RM56.5 trillion) ESG-focused global market.

VCM Handbook Launch: Bursa Malaysia introduced a national voluntary carbon market (VCM) handbook to guide local stakeholders in generating carbon credits.

Role Definition: The handbook defines the roles and functions of critical entities in Malaysia's carbon market, serving as a reference for market participants.

Global Significance: Bursa Malaysia's CEO emphasised Malaysia's need to develop its VCM ecosystem and implement high-quality carbon projects.

Nature-Based Solutions (NbS): The article highlights the significance of NbS in mitigating climate change and mobilising public sector finance for NbS.

Policy Developments: The National Carbon Policy is expected to be implemented soon, guiding carbon trading at the state level, and state governments are in discussions to align carbon policies related to forest carbon assets.

Malaysian Investment Development Authority (MIDA) has launched new funding facilitation initiatives to stimulate Malaysia's industrial growth and promote economic development.

The initiatives include the Domestic Investment Accelerator Fund (DIAF), the MADANI Smart Automation Grant (SAG MADANI), and the Foreign Investment Accelerator Fund (FIAF).

DIAF and SAG MADANI are strategically designed to provide tailored solutions for local manufacturers and service providers.

FIAF is designed for Malaysian multinational companies to facilitate R&D and training transfer in the high-technology sector.

World Mental Health Day is celebrated on October 10th, but chronic stress, burnout, and workplace anxiety remain prevalent occupational hazards.

Atticus surveyed 1,000 employees using data from OSHA, BLS, and Google Trends to investigate the decline in mental health among professionals. Here are some of the key findings:

One in 10 workers experience mental health issues due to their work.

The highest number of workplace injuries (52%) are related to stress and anxiety.

Mental health issues are 10 times more common work-related injuries than chemical exposure and 8.6 times more common than head injuries.

Perfectionistic burnout results from traits workers impose on themselves throughout the workday or workweek. 

A self-care plan can help you know your limits, set realistic expectations, avoid burnout and communicate feelings of being overwhelmed or fatigued to bosses and coworkers.

Practice mindfulness, exercise, microbreaks, hobbies, and eating habits regularly and throw people-pleasing out the window if it conflicts with your mental health.

Stockholm will ban petrol and diesel cars in a central 20-block area of the city with many pedestrians and cyclists on Dec 31, 2024, to improve air quality.

This is mainly due to the air in Stockholm causing babies to have sick lungs and the elderly to die prematurely.

Exceptions will be made for police cars, ambulances, and other security services.

The Securities Commission Malaysia (SC) is collaborating with relevant agencies to develop an ESG toolkit tailored for MSMEs.

Capital Markets Malaysia (CMM), an affiliate of the SC, will issue a Simplified ESG Disclosure Guide specifically for SMEs.

This effort is driven by the recognition that SMEs need support and guidance to manage risks from supply chain vulnerabilities and disruptions. 

Malaysia's corporate governance guidelines align with the updated G20/OECD Principles of Corporate Governance, emphasising the importance of board governance and management diversity.

In June 2023, Bursa Malaysia made it mandatory for listed companies to have at least one woman on their board of directors, in line with the recommendation that women directors comprise at least 30% of all board members. 

The SC is actively promoting sustainability in governance through initiatives like the Leading for Impact Programme, a mandatory onboarding training for directors of listed firms, with over 1,000 directors participating.

Malaysia's Pioneering Initiative: Capital Markets Malaysia (CMM) and the Securities Commission Malaysia (SC) have introduced the Simplified ESG Disclosure Guide (SEDG), making Malaysia a global pioneer in providing MSMEs within supply chains with a simplified ESG disclosure framework.

Simplifying ESG Frameworks: The SEDG simplifies and consolidates complex ESG frameworks, ensuring MSMEs have greater access to ESG data. Extensive consultations were conducted with stakeholders, including large corporations, MSMEs, and regulatory bodies, during the crafting of the guide.

Global ESG Requirements: The initiative aims to help large and small companies meet global ESG requirements. MSMEs are particularly vulnerable to supply chain vulnerabilities, hence the SEDG is a critical tool to empower them.

Alignment with Sustainability Policies: The release of the SEDG aligns with Malaysia's national policies focused on fostering business sustainability as the country advances its net-zero commitments.

Structured Disclosure Categories: The SEDG comprises 35 priority disclosures categorised into Basic, Intermediate, and Advanced levels, allowing SMEs to align with their specific sustainability maturity.

Broad Support: The SEDG initiative has gained support from major players in supply chains, financial institutions, government bodies, and NGOs. An associated programme, the SEDG Adopter Programme, provides training and workshops to facilitate ESG reporting for SMEs.

Global and Local Compliance: The guide adheres to various global and local reporting standards, and sector-specific guidance is expected to be introduced in early 2024.

MPRC will review its National OGSE Industry Blueprint (NOB) in 2024 and will present the review outcome in 2025. 

NETR involves 10 flagship projects, 50 key initiatives and enablers and 6 Energy Transition Levers (Energy efficiency, Renewable Energy, Hydrogen, Bioenergy, Green Mobility and CCUS). Natural gas will become the primary transition energy source in the future.

Within NETR, there are various opportunities for OGSE players in Hydrogen and CCUS: Hydrogen: One (1) hydrogen hub by 2030, two (2) more by 2050. CCUS: 40-80 MTPA CO2e storage capacity by 2050, with three (3) CCUS hubs (2 in Peninsular Malaysia, 1 in Sarawak).

NETR is anticipated to create >300k green jobs by 2050.

National Energy Transition Facility (NETF) is an initiative within the enabler “Financing & Investment”. It will involve an initial seed fund worth RM 2 billion. It will explore the catalytic blended finance platform aimed at expediting the mobilisation and deployment of capital to enhance the accessibility of funds, streamline investment processes, and ensure a seamless flow of financial resources towards energy transition projects.

Re-positioning OGSE players to support green projects, e.g., Hydrogen and CCUS, is imperative, especially for adjacent categories that are relevant to both O&G and green projects (e.g., Hook-Up and commissioning) through capability-building.

The OGSE industry supplier landscape has many suppliers and is fragmented. Industry consolidation (via M&A) should be considered to ensure pace and economic viability to achieve NETR targets.

OGSE players are highly encouraged to take advantage of the existing financial incentives provided by the government for the transition towards sustainability.

Transition financing is scarce in the market as FIs view change in business models, even to shift towards sustainability, as high risk.

The energy transition is a complex matter, which differs by market landscape and geographical factors. Industry ecosystem players must be onboarded together to assist the OGSE industry’s transition towards sustainability, especially FIs that are reluctant to provide funding related to O&G.

Southeast Asia O&G industry outlook: Deep-water and sour service projects will be crucial to the investment renaissance in the SEA region; 40% of projects are CO2-impacted.

Floater-based projects will remain strong in the SEA region (e.g., FPSO projects).

Malaysian exploration activities doubled in 2022, and a further 40% growth is anticipated by 2024.

An active M&A market for upstream assets will be up for grabs by 2024, worth up to USD 5 billion.

Malaysian Industrial Development Finance Berhad (MIDF) offers 11 scheme financing (soft loans) and up to RM20 million in financing facilities at a fixed interest rate of as low as 2% per annum on monthly payments for SMEs and above 4% for non-SMEs.

Syarikat Jaminan Pembiayaan Perniagaan (SJPP) administers and manages the Government’s Guarantee Schemes. It can guarantee up to RM20 billion in SME loans, focusing on agriculture, healthcare, manufacturing, and green technology sectors. However, the OGSE sector is not included.

SJPP does not provide financing or credit facilities, so SMEs should apply for financing facilities from participating FIs.

Agensi Kaunseling dan Pengurusan Kredit (AKPK)’s Small Debt Resolution Scheme (SDRS) allows SMEs to obtain help and advice on debt restructuring, rescheduling, and refinement. 

Bank Islam Malaysia Berhad collaborated with PETRONAS and SJPP to support PETRONAS vendors’ growth by offering structured financing facilities (up to RM10 million). 

Agencies responsible for incentive and infrastructure services include MATRADE, MIDA, MOGSC, and MRANTI. In contrast, agencies that have and can give access to financial services are MATRADE, MIDF, MIMOS, MOSTI, MPRC, MTDC, SME Bank, and SME Corp.

There are around 40 commercial capture facilities in operation globally, with a total annual capture capacity of more than 45 Mt CO2. While more than 50 new capture facilities targeting operation by 2030 have been announced since January 2022, the pipeline of current projects is only just around a third of the Net Zero Emissions Scenario requirement in 2030. 

The Science Based Targets Initiative (SBTi) has updated its definition of SMEs to direct more companies to the standard route for corporate target validation, helping scale the impact of science-based targets globally.

As part of its ongoing effort to strengthen compliance and increase ambition from the private sector, the new SME definition includes considerations beyond the number of employees, including (1) size of emissions inventory, (2) ownership and/or operation of specific assets, and (3) subsidiary status and financial turnover (refer to the image attached). 

The SBTi increases the validation fees for SMEs from $1,000 to $1,250. SMEs with less than $10 million in revenue based in developing countries and economies in transition (as defined by the United Nations Department of Economic and Social Affairs) will be eligible for a fee waiver. 

The updated SME definition, validation fee, and waiver threshold will take effect on January 1, 2024. 

Budget 2024 aims to integrate sustainability into economic policies, prioritising investment-intensive sectors and initiatives to drive sustainable growth and protect Malaysian welfare. 

Budget 2024 allocates RM2 billion for the NETR and RM200 million for the NIMP, promoting low-carbon economy transition through FIs.

SMEs can receive RM900 million in loan funds to boost productivity through automation and digitalisation, aiming for higher sustainability performance, resource optimisation, waste reduction, supply chain streamlining, and workplace safety. 

SME entrepreneurs focusing on green economy, technology, and halal fields will receive up to RM20 billion in guarantee funds.

Putrajaya aims to become Malaysia's low-carbon city, promoting sustainability through solar panels and electric vehicles, boosting investor confidence and transforming ESG into a mainstream strategy.

Budget 2024 focuses on attracting domestic direct investments and venture capital for high-innovation startups and climate resilience—allocation of RM2 billion for NETF and encouragement for financial institutions to provide up to RM200 billion.

The government is investing in green investments, aiming to boost corporate Green Power programmes and drive a low-carbon economy through the Third-Party Access System model. 

The government is offering tax exemptions and deductions up to 2027 to encourage local companies to invest in sustainable economic instruments and drive long-term ESG programmes.

Increased funding for Ecological Fiscal Transfer for Biodiversity Conservation, proposed issuance of biodiversity sukuk, and tax deductions for tree-planting activities and environmental preservation projects certified by FRIM are encouraging.

The proposed development of a port in Carey Island, a risk due to rising sea levels, highlights a significant oversight in Malaysia's legal infrastructural needs.

Budget 2024 does not fully address ESG aspects like managing migrant workers and meeting ILO requirements.

Budget 2024 aims to achieve ESG goals, unlike neighbouring countries like Australia and Singapore. 

1. Australia's initiatives include A$2bil for Hydrogen Headstart, A$4bil for renewable energy superpower, and A$20bn for electricity grid modernisation. 

2. Singapore plans to gradually increase the carbon tax, transition to cleaner energy sources like hydrogen, and collaborate with neighbouring countries to develop regional power grids.

Malaysia can learn from OECD members' waste management practices, industry regulation, and community education programmes to enhance its ESG efforts, focusing on cohesive waste management, community education, and industry regulation.

The Economy Ministry collaborates with banks and FIs to discuss transition financing plans under the National Energy Transition Roadmap (NETR).

The government has allocated RM2bil and is assessing the available financing and project allocation.

The government has introduced transition financing as a new funding stream to support projects like solar and hydrogen.

The government has significantly impacted fiscal and monetary paradigms globally and locally through digital banking.

Central banks implemented significant interest rate increases to combat inflation.

Despite facing economic stagnation for nearly two years, the banking and finance industry has seen record highs in net interest income (NII) and robust loan growth due to higher interest rates.

The cyclical nature of markets has led to peaks in NIIs and troughs in non-interest income, mainly advisory and fee-based businesses.

Malaysia's financial industry can seize a unique opportunity to capture large segments of the transition value chain by capitalising on the transition towards RE.

PETRONAS, Cahya Mata Sarawak Bhd (CMS), and Gamuda Bhd are strong contenders for Sarawak's green energy expansion.

Sarawak aims to generate 7,000 megawatts of power by 2026.

Sarawak's government plans to build hydroelectric dams in Kapit and Baram. They will use a cascading design like in Tasmania, the Nordic countries, and Europe's River Danube.

Sarawak Energy Bhd (SEB) is requested to assess the feasibility of building cascading hydropower dams on the Trusan River in Limbang. The 275 MW Trusan Dam will provide electricity and water.

PETRONAS agreed to take equity in the Trusan Dam. 

Gentari Sdn Bhd has signed two strategic collaboration agreements with SEB and SEDC Energy Sdn Bhd to develop and deploy clean energy solutions in Sarawak.

CMS, Sarawak's sole cement manufacturer, is vital to Sarawak's construction and quarrying businesses as its subsidiary was involved in the Bakun hydroelectric dam project - they provided galvanised structural steel and subcontract work from the Malaysia-China Hydro (MCH) JV.

Gamuda could be a contender for the RM4 billion Ulu Padas Hydroelectric project in Tenom, Sabah, to meet its Gamuda Green Plan 2025.

Malaysia recorded 2,305 COVID-19 cases from Nov 12 to Nov 18, demonstrating a 28% uptick from the previous week. 

MOH reported 21 new Omicron variant cases, consisting of 20 Variant of Concern (VOC) cases and one Variant of Interest (VOI) case. 

785 cases are circulating VOI (XBB.1.16, XBB.1.5, and EG.5), with 783 local cases and two imported cases.

Top 10 states with highest reported cases:

1. Sarawak (143), 

2. Selangor (136), 

3. Kuala Lumpur (119), 

4. Melaka (117), 

5. Johor (59), 

6. Kedah (52), 

7. Penang (37), 

8. Terengganu (24), 

9. Sabah (23), 

10. Kelantan (21).

As of Nov 11, the results of surveillance activities for COVID-19 at sentinel locations found 61 Influenza-Like Illness (ILI) samples (7% positive rate) and 69 Severe Acute Respiratory Infections (SARI) samples (3% positive rate) tested positive for COVID-19.

The ministry predicts a slight rise in COVID-19 cases due to celebrations.

Recommendations include regular handwashing, mask-wearing, testing, seeking antiviral treatment for positive cases, and getting vaccinated to reduce infection risks, especially for high-risk groups.

What: Climate Change and Principal-Based Taxonomy (CCPT) is prepared by the BNM in collaboration with the Risk Management sub-committee of the Joint Committee on Climate Change (JC3). It covers:

1. The climate change impact and opportunities.

2. Assessment of economic activities (5 Guiding Principles). 

3. Classification of economic activities (classification system).

4. Use cases (5 cases).

Who: CCPT applies to the licensed banks, investment banks, international Islamic banks, Islamic banks, insurers, reinsurers, takaful operators, retakaful operators, and development financial institutions (FIs).

When: It is effective on 30/04/2021.

Why is CCPT important: In simpler words, it prevents GREENWASHING. 

1. It provides an overview of climate change and its impact on businesses, households, and the economy.

2. It assists FIs in assessing and categorising the economic activities according to the activities' climate objectives and promotes the transition to a low-carbon economy. 

3. It facilitates standardised classification and reporting of climate-related exposures to support risk assessments at the institution and systemic levels, strengthens accountability and market transparency, and encourages financial flows towards supporting climate objectives.

How: 

1. CCPT considers broader environmental outcomes through the principle of no significant harm, with specific regard to how business operations affect pollution, biodiversity and resource efficiency. 

2. CCPT recognises remediation measures and introduces a progressive system of transition categories to acknowledge concrete efforts and commitments by businesses to adopt sustainable practices.

Battery manufacturer INV New Material Technology (M) Sdn Bhd plans to invest RM6.4 billion in its first-ever manufacturing plant in Penang.

Shenzhen Senior Technology Material Co Ltd, renowned for its lithium battery separators, will oversee the project at Penang Technology Park@Bertam in Kepala Batas.

INV New Material Technology chairman Chen Xiufeng announced the completion of the first lithium separator factory in the ASEAN region, expected in 2026 and 2028.

Upon operationalisation, the plant will produce four billion square meters of coated and wet-type separators annually.

China supports the G20 countries' ambition to triple global RE capacity by 2030. 

The transition from fossil fuels to clean, efficient renewables is a global goal to tackle the climate crisis, but it will be challenging. 

Countries face diverse national conditions, requiring effective management of energy, food security, and climate actions to ensure a smooth transition and economic security.

COP 28 parties are reportedly in disagreement over a potential agreement to phase out fossil fuels, with some countries strongly opposing and others unwaveringly supporting it.

During the global transition, mutual understanding and cooperation are crucial for finding the best solutions.

For instance, China's significant contributions to RE development have led to a significant decrease in wind power generation costs and photovoltaic solar energy costs globally by 80% and 90%, respectively.

Maybank launched its Transition Finance Framework (TFF) at COP 28 in Dubai to fund the greening of brown, emission-intensive sectors/assets, reduce emissions, and avoid severe climate change outcomes.

Objectives of TFF: 

1. To provide the funding for selected brown sectors with credible transition pathways and solutions such as hydrogen, bioenergy, and CCUS.

2. To outline Maybank's approach to classifying and recognising financing solutions offered as credible transition finance.

3. To guide the development of credible transition finance solutions within Maybank based on internationally accepted guidelines and principles.

TFF's principled-pragmatic approach demonstrates Maybank's commitment to supporting net zero economies and promoting a just transition plan based on its Humanising Financial Services mission.

Maybank Group TFF aligns with 12 international principles and standards, complementing the Maybank Group Sustainable Product Framework, launched in August 2022.

The International Capital Market Association (ICMA) has published a new, globally consistent, voluntary Code of Conduct for ESG ratings and data products providers. 

In line with the International Organization of Securities Commissions (IOSCO) recommendations, it promotes transparency, good governance, managing conflicts of interest, and strengthening systems and controls in the sector. 

It is intended to be internationally interoperable and could be used by jurisdictions with no local Code or regulation.

Details of the Code can be found here: https://www.icmagroup.org/sustainable-finance/code-of-conduct-for-esg-ratings-and-data-products-providers/  

The Corporate Sustainability Practitioner Competency Framework is a collaboration between Bursa Malaysia and the UN Global Compact Network Malaysia and Brunei (UNGCNMYB).

It is an aspirational reference to guide practitioners on the skills and competencies required to navigate the corporate sustainability ecosystem and drive sustainable outcomes.

The competency framework defines the competencies across three levels of positions in the organisation as follows:

1. Executive Position: Sustainability Executive

2. Middle Management: Sustainability Manager

3. Senior Management: Chief Sustainability Officer

The job purposes, number of competencies and their subs, and competencies for each position are tabulated on https://bursasustain.bursamalaysia.com/competency-framework.

The educational material describes how companies can approach the nature and social aspects of their climate-related risks and opportunities. 

The publication comes as the COP28 Joint Statement on Climate, Nature, and People indicates the relations between nature and climate, noting that nature's persisted loss and degradation raise climate vulnerability. It also mentions the need for the 'scaling of finance and investments for climate and nature from all sources.'

The report provides a detailed analysis of the progress heavy industrial and transport sectors are making worldwide to achieve net-zero emissions by 2050.

The report highlights that sectors like steel, cement, aluminium, ammonia, energy (oil and gas), and transport (aviation, shipping, and trucking) contribute over 40% of global greenhouse gas emissions, surpassing individual countries.

The analysis shows that emission-intensive sectors are not aligned with the trajectory to reach net zero by 2050 – as determined by the International Energy Agency (IEA) and industry-specific scenarios and targets. 

The SBTi currently has 1.5C-aligned sector-specific guidance for many of the industries assessed in the report, including steel and cement, with guidelines for aviation, aluminium, oil and gas, and transport in development. They are tailored to the unique nature of the industry to enable them to develop ambitious and achievable science-based targets. 

The SBTi urges all companies to take ambitious climate action and set science-based carbon reduction targets today. Click here to learn more about the SBTi’s sector-specific guidance: Sector Guidance - Science Based Targets.

Transportation had the most significant impact on carbon emissions in the country.

The previous government mooted the idea of congestion charges. Hence, the Cabinet Committee to Address Traffic Congestion was formed earlier this year. It aims to find immediate and comprehensive solutions to address traffic congestion.

Kuala Lumpur City Hall, under the Traffic Master Plan 2040 (PITKL2040), proposes Road Usage Charges (RUC) or congestion fees on vehicles entering the city centre in 2040 to reduce traffic volume in the city centre and encourage public transportation usage.

Prasarana unveils its Sustainability Blueprint 2023-2050, aiming for low-carbon mobility, safety, productivity, community enrichment, and ethical business conduct in the nation's transportation system.

Malaysian cities prioritise vehicle-centric development, requiring time for public transportation shifts. However, EV adoption by companies like Prasarana can significantly reduce carbon emissions.

Prasarana plans to increase its fleet of EV buses from 15 to 100 by 2026 and 481 by 2030, with a final goal of 100% electric by 2037.

Pos Malaysia hosted Beyond the Boardroom: ESG Strategies for Tomorrow's Leaders, a collaboration with Accenture and UN Global Compact Network Malaysia and Brunei, attracting various Malaysian corporations and organisations.

With Accenture's support, Pos Malaysia aims to achieve net-zero carbon emissions by 2050, focusing on workforce skills, waste reduction, and aligning with UNSDGs.

Pos Malaysia has launched its Sustainability Roadmap, which includes six initiatives focusing on alternative delivery methods, fleet optimisation, green buildings, waste management, sustainable packaging, and digital learning.

Pos Malaysia plans to increase its EV fleet to 1,300 by 2030, with 200 two-wheel EVs and 143 four-wheel EVs on the road by 2023. It aims for a 100% electric fleet by 2030.

Pos Malaysia is expanding its solar-powered buildings from three to 17 next year. The company is enhancing driver safety and reducing emissions through telematics while implementing waste reduction measures like recycling and adopting packaging made from 80% recycled materials.

Pos Malaysia is seeking partners to achieve a sustainable future. Contact them at https://bit.ly/3Ttp84L to explore collaboration opportunities.

Drones are crucial for scientists to comprehend forests and their role in combating climate change. 

Drones in Chiang Mai, Thailand, transmit photos to create 3D models, revealing woodland health and carbon absorption. Estimating carbon stores is crucial for emissions reduction, combining satellite imagery and ground surveys.

The woodland surveyed is part of a decades-long project to reforest 100ha by planting critical species, developing best practices, encouraging animal return, and collaborating with local communities.

Researchers will use drone-mounted LiDAR to survey five forest types and analyze soil microbes and fungi, overcoming the limitations of drones in observing below the canopy.

European Space Agency's Biomass satellite is set to monitor forest carbon stocks next year, prompting rapid developments to estimate Thailand's carbon storage capacity per hectare.