by LYDIA NATHAN / pic by TMR FILE 

A COMMITMENT to sustainability would help businesses find new opportunities and create economical, social and ecological value in the long-term.

United Overseas Bank (M) Bhd (UOB Malaysia) deputy CEO Ng Wei Wei said a good environmental, social and governance (ESG) strategy allows companies to make the right decision when diversifying their business portfolio, guided by the sustainability principles.

“It helps businesses and investors avoid investments that will not pay off due to long-term environmental issues.

“Another thing not to be missed is the supply chain, taking into account responsible policies,” Ng said during a virtual webinar entitled “Solar Power as a Renewable Energy Source in Malaysia” last Friday.

She said countries like the US, China and Japan are on the fast pace to moving towards zero-carbon emissions and Malaysia shall take steps so that it would not be left behind.

In South-East Asia, she said an estimated RM4.24 trillion of annual economic opportunities by 2030 is projected as the region moves to a greener economy.

The market for clean and renewable energy like solar power is expected to grow, evident by the large-scale solar 4 project with 30 bids awarded to local companies, expecting to unlock RM4 billion worth of investments and 12,000 new jobs.

Ng said there is a strong push from the government to increase renewable energy in the country’s power capacity mix to 31% by 2025 and 40% by 2035, and solar would be the main contributor.

In April this year, Bank Negara Malaysia published the Climate Change and Principle-based Taxonomy document, with the aim to help financial institutions assess and categorise economic activities according to the extent to which they meet climate objectives and promote the transition to a low-carbon economy, Ng said.

Ng said UOB Malaysia has launched the U-Solar programme, Asia’s first integrated solar energy platform providing financing solutions to solar developers, contractors, businesses and homeowners.

“It is a game changer for the solar energy ecosystem in Asia, with Malaysia being the first country to launch in October 2019, followed by Indonesia, Singapore and Thailand.

“We expect the demand for our U-Solar solutions to rise as we are seeing increasing interests in solar energy, especially coming from the commercial, industrial and residential sectors,” she said.