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ESG is important for Sarawak because it helps address issues such as climate change, resource scarcity and social inequality that are impacting its ability to function effectively. Thus, the Premier’s vision for Sarawak since taking office in 2017 has focused on incorporating innovation into the execution of development projects and programmes in order to transform Sarawak into a developed state in 2030 through a successful ESG approach.
ESG interconnects with government’s mandate to protect people, social and institutional structures, and the environment. As governments approve or change legislation, regulations and policies that govern emissions, water use, waste management, health and safety, gender equity or corporate governance, there are indirect effects for companies’ ESG performance, and for the ESG “story” for the jurisdiction itself.
A large and increasing quantity of global investors use ESG factors to direct where they place their money. To the extent that governments support clear ESG disclosure and strong ESG performance, it boosts investment competitiveness – and procurement competitiveness – among businesses in that jurisdiction. It also helps investment attraction agencies tell a better story when they attempt to draw foreign direct investment (FDI) to the jurisdiction.
Over the last few years, major credit rating and investment research agencies such as Moody’s, S&P, Fitch and MCSI have begun to apply ESG factors in their risk assessments of governments at municipal, regional and national levels. Their ESG ratings directly affect the government’s credit rating, ability to secure financing and borrowing costs.
ESG is core development agenda of Premier YAB Datuk Patinggi Abang Johari’s government: key to achieving Sarawak’s transformation into a high-income economy by 2030
- Digital economy transformation: technology and data drives success of ESG goals
- Blue economy
- Green economy
ESG is key to securing the bright future of Sarawakians for generations.
