Principle-Based Sustainable and Responsible Development for Malaysian Capital Markets

In recent years, there has been increasing awareness of corporate social responsibility (“CSR“) and a global shift towards sustainable market practices– especially in light of the various climate emergencies that necessitate immediate global response. The recent pandemic has, nonetheless, hampered efforts to attain certain global goals such as the UN Sustainable Development Goals (“SDGs“)[1], with funding gaps for financing sustainable development are expected to increase exponentially[2]. It is no longer sufficient for such sustainability agendas to merely become part of national policies that rely on public financing. Greater support and commitment from private investments are required for the viable implementation of such agendas[3]. Hence, we witness the emergence of practices like Sustainable and Responsible Investment (“SRI“)– essentially encompassing any investment decision that embraces Environmental, Social and Governance (“ESG“) considerations on top of economic returns[4].

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