KUALA LUMPUR – The government will soon launch the National Energy Policy as a guide for the development of Malaysia’s energy sector, particularly as the industry transitions to a low-carbon future, said Datuk Seri Mustapa Mohamed today.
The minister in the Prime Minister’s Department in charge of the economy said the Covid-19 pandemic, despite its challenges, has given the energy industry an opportunity to implement major changes and embrace sustainability by adopting environmental, social and governance (ESG) criteria in the oil and gas services and equipment (OGSE) sector.
“Globally, demand for ESG funds rose 29% to nearly US$1.7 trillion (RM7.13 trillion) in the last quarter of 2020,” he said in his keynote address during the first series of the National OGSE Sustainability Forum held virtually today.
In addition to the recently launched National OGSE Industry Blueprint 2021-2030, the National Energy Policy is key to allow OGSE businesses to make decisions that will help shape a cleaner and more sustainable future for generations to come.
At present, there are only 32 local OGSE firms that have adopted sustainability reporting.
Of this number, only one company, Dialog Group Bhd, is on the Dow Jones Sustainability Indices.
Mustapa said the low adoption suggests that ESG awareness remains uneven among OGSE players, including public-listed companies.
To prepare the OGSE industry for the ESG journey, he said, these players must equip themselves with the right skills and knowledge to navigate the path ahead.
The industry has to keep pace with the changing rules of the game, and today, that means integrating ESG into business practices to stay relevant and competitive, he said.
“We are faced with the reality that those who refuse to evolve, or evolve too slowly, may be left behind, or swallowed by the competition.” – Bernama, July 15, 2021
