Environmental, Social and Governance (ESG)

Why ESG is important

As awareness about climate change, social and governance has grown tremendously on a global scale over the past decade, public authorities and governmental agencies in Malaysia have already begun looking into developing regulations and policies relating to the Environment, Social and Governance (or more commonly referred to as ESG). At the same time, entities in the private sector, on their own initiative or otherwise, are increasingly taking into account ESG factors when identifying material risks and growth opportunities for their business. Looking ahead, we will see a progressive and conscientious trend in seeking out and evaluating investments which prioritise ESG factors and principles (more commonly referred to as “ESG Investing”). 

Our Experience

Being a full-service legal firm, we are committed to grow and transform in line with the demands and expectations of our clients. To this end, we offer strong legal support to our clients in the major aspects of ESG to assist them in fulfilling their ESG agenda. This may range from developing and reviewing existing company policies, identifying risk factors and offering mitigating solutions by conducting tailored ESG due diligence on our clients, advising on business opportunities and project development in the renewable energy sector, to navigating the legal and regulatory requirements. Further, with the support of external experts, where appropriate, we can advise on relevant standards with regard to the environment, social and corporate governance. 

The various practice groups in RDL have a track record of guiding clients on related legal and regulatory requirements surrounding environmental, social and governance issues, including performing due diligence whenever necessary. We regularly advise on and draft policies dealing with corporate governance, anti-bribery and corruption, anti-money laundering and whistleblowing policies and processes. Through regular requests from clients, we have supported and/or conducted due diligence/audits and awareness trainings on anti-bribery and corruption; anti competition law (including dawn raid training and policies) and whistleblowing principles, to name a few examples. 

On the social front, our experience includes: 

• advising on potential collaborations involving ESG initiatives; 
• opining on local labour law conditions in comparison to the standards set by the International Labour Organisation (ILO), in particular, in relation to child labour and modern slavery;
• participating as a member of a panel of inquiry on workplace/work environment related issues and preparing a report on recommendations for improvement; 
• advising on occupational safety and health obligations to ensure compliance with local law requirements, including the drafting and review of occupational safety and health policies; 
• advisory support on issues surrounding the legality of the retention of travel documents of foreign workers, retention of a deposit sum as collateral for home leave of foreign workers as well as the collection of administration fees by local agents; 
• conducting employee training on workplace sexual harassment as part of a client’s compliance week. 

Our strength lies in our various specialist practice groups who work seamlessly to provide robust support to our clients seeking to improve their ESG footprint.