Huazong urges Chinese businesses to adopt ESG

Federation of Chinese Associations Malaysia (Huazong) President Tan Sri Goh Tian Chuan urged Chinese businesses to integrate ESG into their strategies and plans.

He said that environmental, social and government (ESG) enhances a company’s funding and image.

“ESG not only enhances a company’s funding and image, helping to secure a larger market, but under current and future trends, it could also become a critical factor for the survival of many businesses,” he said, reported Sin Chew Daily.

He said this yesterday during his opening speech at the seminar on Environmental, Social, and Governance (ESG) at the Huazong Building.

He said in the past decade, especially after the global COVID-19 pandemic, international capital markets have increasingly prioritised ESG investment principles.

He said some financial institutions have even included ESG as one of the key criteria for financing applications.

As a result, more and more companies, particularly large investors and asset management firms are incorporating ESG into their research and investment decision-making frameworks, he added.

He noted that this is something Chinese businesses should pay attention to.

In addition to adhering to existing corporate codes, ESG investment should be viewed as a sustainable long-term investment, he said.

Companies should appropriately realign themselves to align with this major trend and achieve ESG goals, he added.

Environmental, social, and governance (ESG) refers to an investing approach that focuses on environmental, social, and governance factors.

It is also known as responsible investing or impact investing when aiming for more proactive outcomes.