IN September 2015, world leaders came together for a summit at the United Nations in New York to sign off one of the most significant
Plan of Action that the international community has ever undertaken: the 2030 Development Agenda.
It comprises the 17 Sustainable Development Goals (SDGs) that pledged to wipe out or at least reduce some of the most pressing challenges facing humanity such as poverty, inequality, biodiversity loss, climate change, environmental degradation, prosperity, and peace and justice. Known also as the “Global Goals”, the SDGs are the blueprint to achieve a better and more sustainable future for all.
The onus on ensuring that we meet the 2030 deadline of course falls on the respective governments. Malaysia has been incorporating the elements of the SDGs long before the concept of sustainable development was in vogue.
In fact the strive to eliminate poverty, reducing inequality and providing education for all were already being put in place when the country gained Independence in 1957 except for the caveat that in our earnestness to pursue socio-economic development, it took a toll on the environment.
Today, we are still grappling on how to achieve a good balance between socio-economic development and environmental preservation. Infringement of the environment is still loud and clear as evidenced in the recent chemical pollution fiasco at Sungai Kim Kim in Pasir Gudang, Johor, and the wanton destruction of Cameron Highlands.
Already there are milestones put in place to assess how countries fare in achieving the goals. In its 2018 survey, the World Economic Forum ranked Malaysia 25 out of 140 countries. We therefore have lots of room for improvement.
However, it will take a lot of money to implement the SDGs. Contribution from the industrialised countries to the developing countries is one big source of funding. Individual in-country government funding is a source that can be counted on too. Indeed the recent announcement by Finance Minister Lim Guan Eng on the Sustainable Development Financing Fund (SSDF) sent a strong signal of how serious this country is in implementing the SDGs.
To be administered by Bank Pembangunan Malaysia Bhd, the RM1 billion fund to be disbursed this year and next will allow Malaysian companies to obtain loans at two per cent interest to tailor their business activities along the principles and practices of the Global Goals.
This is an important incentive in light of the lack of interest on sustainable development shown by Malaysian companies. In a survey conducted by KPMG last year, only 13 per cent of the top 100 companies in Malaysia (by revenue) that reported on their corporate sustainable performance incorporated the SDGs in their corporate responsibility reporting.
According to Kasturi Nathan, KPMG’s head of governance and sustainability in Malaysia, “companies who align themselves to the SDGs stand to gain the business benefits in the long run”.
“Companies today are increasingly seen to be demonstrating their commitment towards responsible business practices. Shareholders and the society at large expect more accountability from businesses, and those who disregard this importance will likely have to contend with negative perceptions and reputational damage.”
Even at the global level, most of the world’s leading companies are not reporting the business case for taking action on the SDGs, according to KPMG.
Its survey of the world’s largest 250 companies (G250) finds that within two years of the SDGs being launched in 2015, four in 10 (40 per cent) of top companies acknowledged the global goals in their corporate reporting.
However, less than one in 10 has reported a business case for action on the SDGs (eight per cent) or has set specific and measurable (SMART) business performance targets related to the global goals (only 10 per cent).
Adrian King, a lead author of the study, said: “There are huge business opportunities inherent in tackling the world’s toughest problems, but so far only a handful of big companies have shown they understand that.
“These few leaders stand to benefit from recognising the SDGs as a powerful catalyst for the innovation, partnerships and market transformations that build businesses. They will also be at an advantage when communicating with the many investors, governments and other stakeholders who are taking an increasing interest in the contribution of business to the SDGs.”
Indeed a recent publication issued by the Business and Sustainable Development Commission, a council chaired by former UN deputy secretary-general Lord Mark Malloch-Brown and made up of stellar business figures that include Mo Ibrahim and Jack Ma, declared that “business leaders need to strike out in new directions to embrace more sustainable and inclusive economic models”.
As a global trading nation, Corporate Malaysia does not have the luxury of carrying on with business as usual. It must embrace the UN Global Goals. The unfolding unsavoury saga of our palm oil in the European Union market is a bitter pill for us to swallow.
The writer is the founding chairman of the UN Sustainable Development Solutions Network, Malaysia chapter