00:00 I would like to present the IESG framework to Yang Hoon Wan, Deputy Minister.
00:07 A study titled "Better Businesses, Better World" has estimated that sustainability as a new source of growth
00:16 that could generate at least US$12 trillion worth of market opportunity and 380 million jobs by 2030,
00:26 almost 90% of which will be in the developing countries.
00:30 NIMP 2030 will not only create opportunities for MSMEs,
00:35 but also safeguard their inclusivity in the growth of our manufacturing sector.
00:41 So the NIMP has set out the "What" on ESG.
00:47 As I mentioned earlier, the IESG framework that we are launching today presents the "How".
00:54 Serving as a guide, a route map for businesses to integrate ESG considerations in their operations
01:01 and a tool for regulators to ensure compliance and accountability.
01:06 The IESG framework has three key missions.
01:10 First, to support manufacturing firms to learn, to be agile and to adopt ESG practices.
01:18 Second, to transform challenges into opportunity.
01:23 Third, to foster symbiotic public-private partnerships for value creation.
01:30 The framework also features four key supporting components, namely standards, financial support and incentive,
01:39 capacity building and market mechanisms.
01:43 These components are supported by six key enablers, namely stakeholder engagement,
01:49 human capital and capabilities, digitalisation, technology, financing and incentive, as well as policies and regulations.
02:00 Our businesses, particularly the MSMEs, cannot be held immediately accountable to standards
02:06 that companies in the developed market have had a head start on for at least a decade or longer.
02:13 Yes, we are playing catch-up with the developed market, but I am confident that with the IESG framework phased approach,
02:23 we can achieve our goals within seven years or less.
02:27 We will begin with the Just Transition phase of Phase 1.0 from 2024 to 2026,
02:35 followed by the Accelerate ESG Practices Phase 2.0 from 2027 to 2013.
02:44 During Phase 1.0, manufacturing companies, including MSMEs, will be supported on starting their sustainability ESG journey
02:53 through the self-readiness assessment, outreach, training and monitoring programmes and financing options.
03:03 Comprising of IESG Ready, a readiness assessment programme, and IESG Start, a practical guide with step-by-step instructions,
03:15 illustrative examples and templates, Phase 1.0 is meant to be a valuable reference
03:22 for manufacturing businesses to begin their sustainability journey.
03:26 The IESG Phase 1.0 lays the groundwork and fosters the development of a robust ecosystem
03:33 to help ensure companies' readiness to meet the more rigorous demands of Phase 2 from 2027 to 2030.
03:41 This phased, progressive approach represents the Just Transition that we need to help Malaysian companies and MSMEs
03:51 fulfil the growing demand for sustainable products and the requirement for ESG reporting in export markets.
04:00 This also reflects the Madani economy's commitment to inclusivity, ensuring that no one is left behind,
04:08 particularly in the pursuit of ESG principles.
04:12 MITI strongly believes that transition towards sustainability and meeting Malaysia's aspiration to become a net-zero nation by 2050
04:20 will bring numerous benefits for the economy in terms of sustainability growth and job creation.
04:27 The commitment to ESG principles in Malaysia's national development agenda also reflects our recognition
04:34 that embracing sustainability is not just something we must do to safeguard growth and profit,
04:40 but more importantly, it's also the right and moral thing to do for the sake of our people and planet.
04:46 [Music]
04:52 [Music]
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