Malaysia’s largest construction group and the Malaysian arm of a commercial banking company have entered into a partnership aimed at achieving net zero carbon emissions by 2050. The Memorandum of Understanding (MoU) was signed by the group’s Executive Director and the banking company’s Country Head of Corporate Banking with witnesses including the group’s CFO and the Malaysia arm’s CEO.
Through this collaboration, the two will leverage each other’s strengths and expertise to integrate sustainable financing solutions, infrastructure, and technologies across various business divisions within the group’s ecosystem. These divisions include retail, hospitality, healthcare, property, construction, and building materials.
The partnership will involve joint capacity-building programs and workshops to facilitate and scale sustainability initiatives for tenants, lessees, and suppliers. This includes providing sustainability financing solutions to encourage investments in more sustainable infrastructure and addressing Scope 3 emissions.
Additionally, the two companies will share research on developments and the latest sustainability practices and apply them where relevant.
The group’s Executive Director expressed the significance of the MoU, stating that it represents a significant step forward for both parties in their shared journey towards a low-carbon future. She emphasised the role that private sector players can play in advancing the sustainability agenda together.
The group has been committed to the United Nations Sustainable Development Goals (UN-SDGs) since 2015 and further solidified its commitment to sustainability last year by introducing an internal carbon pricing framework. It is the first corporation in Malaysia and among the first in Asia to implement such a robust carbon reduction strategy.
Meanwhile, the banking company, as an early adopter of Environmental, Social, and Governance (ESG) practices, has developed comprehensive sustainable finance frameworks and solutions to help companies in ASEAN transition to a low-carbon economy.
The deliverables outlined in the MoU will be implemented progressively over the next few years. The group’s partners, tenants, and suppliers will have access to the Malaysian arm of the banking firm online sustainability tool in the coming months to develop actionable plans and kick-start their sustainability journey.
The Twelfth Malaysia Plan (12MP) encompasses three main themes: reconfiguring the economy, enhancing security, well-being, and inclusivity, and promoting sustainability. It also emphasises four key policy enablers: nurturing and developing talent for the future, driving technological adoption and innovation, improving connectivity and transportation infrastructure, and enhancing the capabilities of the public service.
Additionally, the plan includes 14 game changers, which are transformative initiatives aimed at shifting mindsets and revolutionising the approach to national development.
As mentioned above, the third theme of 12MP focuses on promoting green growth, enhancing energy sustainability, and transforming the water sector. Over the next five years, there will be a nationwide shift towards more sustainable economic practices and lifestyles that prioritise natural resources and environmental well-being.
This shift aims to address challenges such as climate change, unsustainable consumption and production, biodiversity loss, policy implementation gaps, and inefficient water resource management.
In the Twelfth Plan, green growth will be emphasised to achieve sustainability and resilience. The importance of shared responsibility in transitioning to a low-carbon nation will be highlighted, along with promoting equitable benefit sharing from natural resource utilisation.
The energy sector will address the energy trilemma, and the water sector will focus on ensuring water security for all, considering both supply and demand.
The MoU signed between the group and the banking company complements the goals of the Twelfth Malaysia Plan (12MP) by promoting sustainability and the transition to a low-carbon economy. It aligns with the 12MP’s focus on advancing green growth and sustainable practices.
The collaboration aims to integrate sustainable financing, infrastructure, and technologies across various sectors. Together, they will work towards achieving net zero carbon emissions by 2050 and contribute to the implementation of the 12MP’s sustainable development agenda.
