PETALING JAYA, 30 June 2020 – As the world begins to emerge into a new reality and move steadily towards economic recovery, KPMG International has launched KPMG IMPACT, a global initiative which brings together the Firm’s deep expertise and knowledge from around the world to help businesses, governments, and other organizations address pressing environmental, societal and governance (ESG) issues.
“The ESG and Sustainability agenda has never been more important, and COVID-19 has only dialed up the urgency for ESG issues to be taken seriously. What this global pandemic has done is show us the value of resilience over efficiency and the need to embed a real ‘purpose’ in the company’s blueprint,” said Datuk Johan Idris, Managing Partner of KPMG in Malaysia.
“Business leaders are now challenged to reset and face the new reality with a greater focus on restructuring their businesses for a resilient and sustainable future. The time to act is now, and KPMG IMPACT presents an opportunity for us to answer this challenge and support companies in embedding this agenda within the heart of their business,” he added.
The Malaysian arm of this initiative will be led by Kasturi Nathan, KPMG’s Head of Governance & Sustainability in Malaysia.
“I’m thrilled to be leading KPMG IMPACT for the country at such a pivotal time. COVID-19 has certainly been a wakeup call for corporations because it has demonstrated that skin deep ESG reporting is no longer fit for purpose. Investors, bankers and their customers are now demanding businesses to improve their ESG practices and will increasingly be asking for companies to be accountable for their business practices. Hence, it is essential that the Board and its management team take concrete steps to integrate ESG into their decision-making process and their business models,” said Kasturi.
KPMG IMPACT will provide organizations with tools and methodologies to measure and implement appropriate actions to mitigate critical issues and to work towards real and lasting positive impact. It will bring together the skills and acumen of KPMG practitioners from across the globe, with a focus on five priorities to help achieve the United Nations Sustainable Development Goals (SDGs):
1. Environmental, social, governance
Developing responsible and sustainable strategies, business models, operations and investments to help businesses understand and adapt to new and emerging changes to the business landscape.
2. Economic and social development
Supporting public sector delivery (mobility / infrastructure, health and human services, etc.), policy prioritisation and logistics programmes (supply chain asset tracing, emergency response plan).
3. Sustainable finance
Integration of ESG in investment, financing, insurance and corporate finance strategies and processes.
4. Climate change and decarbonization
Driving business models, products and services that address climate change and to help clients reduce carbon emissions.
5. Impact measurement, assurance and reporting
Improved methods, tools and frameworks to better track and measure performance through Assurance Reporting, True Value and Integrated Reporting.
According to Kasturi, having ESG firmly entrenched in the company’s strategies can make a difference between long-term survival or foreclosure, adding: “As countries and companies slowly make their way towards recovery, investors are ever more determined today to only channel their funds towards companies that can demonstrate resilience and growth. If that’s not enough to convince companies to take ESG seriously, then nothing will. And the repercussions of underestimating these risks will most certainly be enduring.”
For more details, visit www.kpmg.com.my/IMPACT
© 2021 KPMG PLT, a limited liability partnership established under Malaysian law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.