Strengthening capacity of Non-Executive Directors (NEDs) in developing climate change risk management strategies
KUALA LUMPUR May 16, 2019 – The Climate Governance Initiative (CGI) – Malaysian Chapter was launched at the Securities Commission today by YB Yeo Bee Yin, Minister of Energy, Technology, Science, Climate Change, and Environment.
The Climate Governance Initiative (CGI), a project hosted by the World Economic Forum (WEF), aims to inform, engage with and encourage non-executive directors (NEDs) of listed company boards to provide oversight and inform board conversations to assist businesses address the longer term risks of climate change.
The CGI Principles, established by the World Economic Forum, are consistent with the aims of the Task Force on Climate-Related Financial Disclosure (TCFD, led by Michael Bloomberg), which sets out a comprehensive and ambitious standard for directors to address what the 1,000 top global experts from business, academia and civil society have now rated as the top risk facing society for 2019.
YB Yeo congratulated the founding members of the CGI – Malaysian Chapter for their initiative in being the first country chapter in the Asian region to be launched.
“This year, the World Economic Forum identified climate change as one of the top financial risks facing organisations, putting it ahead of data fraud and theft, and cyber-attacks. It is therefore imperative that the government and corporations take heed of the financial risks facing businesses, and which will impact the government, before it is too late”, added YB Yeo.
“Tackling climate change is a major personal and ministerial priority. While internally we are working hard to institutionalise efforts to reduce the impact of climate change, initiatives such as climate governance led by directors with the close support and collaboration of other key stakeholders are crucial if we are collectively to succeed. As such, I warmly welcome these efforts and my Ministry is also at your service”, continued the Honourable Minister.
Speaking at the launch, Nick Bridge, the UK’s Special Representative on Climate Change stated “I welcome the launch of the Climate Governance Initiative (CGI)’s Malaysia chapter. Malaysia is working hard to address the risks of climate change in this particularly vulnerable region, and informing and engaging with businesses is a vital component for all countries in finding solutions towards a more sustainable global economy”.
Also at the launch was Datin Seri Sunita Rajakumar, the main force and initiator of the Malaysian Chapter. “It is important that Non-Executive Directors (NEDs) on the boards of listed companies are equipped with sufficient knowledge and information to contribute meaningfully to the dialogue on the financial risks of climate change”, she said.
“The Malaysia Chapter has been constituted, with the aim of bringing NEDs together with subject matter experts to cover strategic planning, risk management, human capital planning, remuneration, as well as legal and governance models”, Datin Seri Sunita added.
“I am pleased to have been able to collaborate with other like-minded NEDs, as well as the Securities Commission of Malaysia, Bursa Malaysia and the Institute of Corporate Directors Malaysia, all of whom have been instrumental in enabling the setting of the Malaysian Chapter. We look forward to more NEDs joining us as we build capacity through workshops, conferences and the sharing of written materials”, she concluded.
The Climate Governance Initiative (CGI) is an effort to reach out specifically to non- executive directors (NEDs) to inform, engage with, and develop responses on how businesses might address longer term risks of climate change, including a more sustainable allocation of capital.
For additional information, please email climategm@icdm.com.my or contact:
Datin Seri Sunita Rajakumar sunita.rajakumar@gmail.com
Sharmila Sekaran sharmila.sekaran@gmail.com / +6019 233 0087
Dr. Kala Nesaretnam at kalanithi.nesaretnam@gmail.com (for support and funding).
