The ICDM Pulse: Fostering A Climate for Sustainable Growth

The awareness and attention surrounding the catastrophic risks associated with the climate crisis have grown considerably in recent years. This has led to a global response involving various stakeholders from both the public and private sectors. To effectively and promptly achieve the desired outcomes and impacts related to climate and sustainability, a holistic approach involving the entire society is necessary.

The ASEAN climate change initiative reflects the region’s commitment to combatting the impacts of global warming such as mitigating carbon emissions, preserving biodiversity, and building resilience against climate-related challenges.

The ICDM Pulse : Diversity & Inclusivity for Sustainable Growth

In conjunction with the upcoming Merdeka Day celebrations, I would like to wish you a Selamat Hari Merdeka. We have come far as an independent nation, shedding antiquated ideologies of the past and forging ahead to progress. One such area is a resounding commitment towards ensuring diversity, equity, and inclusion (DEI) in all aspects of our lives and indeed, we are proudly recognised as a country that champions women in top leadership positions.

Embracing the values of empathy, respect, and understanding, we stand as a beacon of progress, cherishing our collective heritage while paving the way for a more sustainable future for generations to come. However, our journey toward true inclusivity and diversity is far from over. Embracing DEI principles in business is not just a moral imperative; it is an essential driver of success and sustainable growth.

A diverse and inclusive business landscape fosters innovation, creativity, and adaptability, which are vital attributes for overcoming challenges and driving progress in a rapidly changing global environment. A diverse board brings forth wider viewpoints and perspectives to the boardroom.

The ICDM Pulse : The Annual General Meeting

ICDM has made remarkable progress in advancing the professionalisation of directorship and in promoting greater diversity and inclusivity on corporate boards. In the recent AGM, we shared key milestones achieved during the financial year ending 31 December 2022 (FY2022) and for the period from January to April 2023.

Through our annual strategic initiatives, we continue to promote excellence in governance, facilitate directors’ professional development, and enhance the standard and effectiveness of directors to transform boards and directors into proactive leaders capable of leading diverse and agile entities. With significant strides made, we are certainly on track to accomplish this mission.

We have achieved significant milestones this year, including a remarkable increase in our membership base. We are pleased to announce that we have now grown to 1,168 individual members, and our corporate membership has also surged to 86, with 58% of them being PLCs. In support of the government and regulators agenda in achieving diversity, with a particular emphasis on placing women directors, as a result of our efforts, we have placed 33 women directors, several of whom are first-time female directors on boards. Impressively, 16 of these women directors were placed on the board of PLCs, illustrating a significant mindset shift towards enhanced diversity on corporate boards. Our board sourcing requests have also increased steadily, by 28%, with 87 independent sourcing requests recorded. In addition, we are proud to have delivered 84 director education programs, with 4,293 participants benefitting from these programs in 2022 alone. Our Aspiring Directors Immersion Programme (ADIP) on the other hand played a crucial role in fostering board mentorship, leading to 39 board-ready Affiliates, with 10 individuals successfully securing 15 board positions. Our Board and Director Effectiveness Evaluation (BDEE) subscriptions also grew exponentially where 76% of BDEE clients are currently publicly listed boards.

You can read our ICDM Annual Report titled The B-Factor: [Bold + Brave] Boards – The ICDM Report | Jan 2022 – Apr 2023 for further information on our achievements and activities lineup for the year ahead.

We will continue to play our part in reinforcing self-discipline among board members through enhancements of skills, knowledge and mindset to promote a sustainable leadership model, thus complementing market and regulatory disciplines. In this issue, we highlight the continued focus on the importance of conducting a Board & Directors Effectiveness Evaluation. Most companies are starting to see the value in getting an independent perspective when it comes to assessing the board performance and how they measure up to local and regional best practices. And the presence of an external facilitator provides opportunity for the organisation to solicit candid and open feedback from the board directors to help identify potential gaps and areas for enhancements. For more details, we also recommend reading the Malaysian Board Practices Review 2020.

The ICDM Pulse : Sustainability Track Accelerated

As the national institute of directors that represents directors’ interests, ICDM is mandated to professionalise directorship in Malaysia. Amongst others, ICDM carries out advocacy efforts through outreach and engagement activities within our membership network and external stakeholders, including regulators, professional associations, academic and research institutions, and industry partners.

In support of the Securities Commission Malaysia’s Strategic Priorities 2021 – 2023, ICDM has been appointed to conduct the Mandatory Accreditation Programme Part II: Leading for Impact (LIP) starting this year.

The LIP was launched on 6 June 2023 and is a mandatory onboarding programme on sustainability for directors of companies listed on Bursa Malaysia, with programme intakes set for August 2023. Amongst the first of its kind, the LIP is designed specifically to help Malaysian boards strengthen board leadership for agile and responsible business and ESG Governance fitness in order to deliver on the sustainability agenda.

LIP has been carefully curated to focus on the baseline knowledge and key considerations surrounding sustainability, including questions which boards should direct towards management in the effort to ensure a more robust and effective oversight of sustainability risks and opportunities of the company. LIP will also provide directors with a platform to engage and learn from their peers.

The ICDM Pulse : Work 3.0 Era Rising

The rapid advancement of technology, changing demographics, and evolving work arrangements are shaping the future of work where the expectations of both employees and employers have undergone significant changes, particularly in the pre-and post-pandemic era. The Work 3.0 era, which combines features of both Work 1.0 and Work 2.0, is a unique phase that many leaders underestimate.

To thrive in this new era, leaders must reimagine their approach to boost productivity, engagement, and well-being among their teams. However, creating a more human-centric, open, and adaptable culture will require new ways of working and a stronger talent strategy.

The role of the board nomination committee is now more crucial than ever as leaders navigate this new era of work as there is no turning back, and there is no one-size-fits-all solution. It is up to leaders to embrace change and develop new strategies that will enable their organisations to thrive in the Work 3.0 world.