VulcanPost
Ignoring Environmental, Social, and Governance (ESG) factors is not just a missed opportunity in today’s business world—it’s a risk.
ESG is a framework used when assessing an organisation’s practices and performances regarding sustainability and ethical issues.
With Malaysia’s ambitious goal to achieve carbon neutrality by 2050, the urgency for companies to adopt sustainable practices is clear.
Speakers from BEYOND Expo 2024 at Macao shed light on why ESG is now a critical driver for startups in Malaysia and beyond.
Impact investing is about more than just green startups
April Ong Vano, head of ESG from Quest Ventures, clarified a common misconception: impact investing isn’t limited to just “green” startups. It’s about identifying companies across all sectors that create a positive social and environmental impact, alongside financial returns.
This opens doors for a wider range of Malaysian startups to contribute to a sustainable future.
Whether it’s a social enterprise empowering local communities or a tech startup developing innovative solutions for renewable energy, companies that weave positive impact into their core business models become attractive investment opportunities.
Both venture capitalists (VCs) agree that strong ESG practices provide a significant competitive edge.
Companies with a demonstrably positive ESG performance attract more investors and gain access to international markets.
“Quest Ventures, for instance, leverages its involvement in early-stage investments to help founders build a culture of good governance from the ground up.”
“This integrates ESG seamlessly into the startup’s DNA, making it a natural part of their business model rather than an afterthought,” she said.
