The Malaysian Ministry of Investment, Trade, and Industry (MITI) has introduced the National Industry Environmental, Social, and Governance Framework (i-ESG Framework) Phase 1.0: Just Transition for the manufacturing sector. The i-ESG framework is designed to prepare the manufacturing sector in adopting ESG principles.
The structure encompasses four essential elements—standards, financial aid and rewards, skill development, and market mechanisms. The goal of this initiative is to provide explicit directives and assistance to enterprises, nurturing the adoption of environmentally friendly manufacturing methods. It is aligned with Malaysia’s commitment to reducing greenhouse gases by 45% by 2030 and achieving carbon neutrality by 2050. The phased approach includes a ‘Just Transition’ phase (Phase 1.0) from 2024 to 2026 and an ‘Accelerate ESG Practices’ phase (Phase 2.0) from 2027 to 2030.
MITI’s strategy involves collaboration with financial institutions to strengthen ESG financing and investments, with a specific focus on supporting SMEs in manufacturing, investments, and trade value chains. Additionally, the i-ESG framework will be seamlessly integrated into both the National Industrial MasterPlan 2030 and the New Industrial Master Plan (NIMP) 2023. MITI further anticipates the introduction of National Carbon Policy soon which includes gradual introduction of a carbon tax.
(Sources: The Edge Malaysia; New Straits Times)
