KUALA LUMPUR, Nov 29: Local construction companies are increasingly adopting and practising the implementation of a framework based on environmental, social and governance (ESG) practises in the construction industry.
Construction Industry Development Board (CIDB) Malaysia Contractors and Levies Sector senior general manager, Suhaimi Mansor said the ESG adaptation is a sustainable construction practice that can boost market confidence in local contractors.
“ESG is an important element in the economy and is the focus of the world,” he told Bernama after opening the Pioneer Transformation Convention organised by CIDB here.
Suhaimi, however, said that small and medium enterprises (SMEs) operating in the construction sector need to be given more exposure and guidance of ESG to give them more understanding about the practice.
“SMEs still need to learn how to engage in ESG themselves and CIDB has started to produce ESG information for the construction industry that will enable them to engage.
“The CIDB will provide them with a platform to engage with ESG together and find out what is E, what is S and G, respectively, mean in the management of their respective companies,” he said.
Earlier, in his speech, Suhaimi emphasised that the ESG practices can also reduce the risk of project failure and enhance sustainable practises in business.
He said that ESG is not merely a concept but a crucial factor in building a sustainable future, ensuring a safe environment, cleaner community living, and transparent governance.
The two-day convention, which kicked-off today, is organised by CIDB Malaysia with the support of Akademi Binaan Malaysia, CIDB e-Construct Service Sdn Bhd, UAC Berhad, VKI Marketing Sdn Bhd, Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank), targets contractors from grades G1 to G7 as well as those who want to become successful contractors.
Over 100 participants attended the event held in conjunction with International Construction Week (ICW) 2023.
ICW2023 was launched by Works Minister, Datuk Seri Alexandar Nanta Linggi at the Malaysian International Trade and Exhibition Centre (MITEC) on Nov 16.
— BERNAMA