MPC launched an Environmental, Social and Governance (ESG) Corporate Strategy on January 27, 2023 to help MPC effectively implement ESG. This initiative is not limited to MPC, but also extends to the industries in the 11 Productivity Nexus to ensure that all 17 Sustainable Development Goals (SDGs) proposed by the government are achieved.

THE DEFINITION OF ESG MPC

E- Focus on environmental protection by reducing pollution, waste, and carbon footprint. Carbon footprint reduction can be accelerated using digital technologies in process management and information gathering.

S - Focus on the social to ensure respect for human rights and labour rights and help citizens earn better wages and escape poverty. In addition to providing jobs, the sharing of wealth between employers and employees through the final products is also crucial.

G-Focusing to Governance to strengthen the law in the public and private sectors from any misconduct. This initiative will prevent the reference to bribery in transactions. Drafting laws and regulations (including amendments) through Behavioural Insights is one of the ways governances can reduce the cost of non-compliance.

Approach of the MPC ESG Initiative

The MPC's ESG initiative is based on the government's planned objectives under the Twelfth Malaysia Plan and is tailored to Malaysia's Productive Action Plan.

Each initiative introduced by the MPC is focused on the following:

• Future Talent Development;

• Technology Adoption;

• Favourable business regulation;

• Productive incentives through the industry structure; and

• Productive Mind of Malaysians.

These initiatives for the 11 Productivity Nexus will thus measure all ESG elements.

11 Productivity Nexus:

i. Agro-food;

ii. Digital;

iii. Electrical and Electronics;

iv. Machinery and Equipment;

v. Chemical and Chemical Product;

vi. Logistic;

vii. Tourism;

viii. Construction and Built Environment;

ix. Private Healthcare;

x. Professional Service; and

xi. Retail and F&B.

ESG MPC logo expresses the 17 Sustainable Development Goals (SDGs) that must be achieved to ensure Malaysia's increased sustainable productivity and peaceful and secure population.

The ESG MPC framework is based on four key drivers to enhance productivity performance, better known as Enhancing ESG For Productivity.

The 4 factors to enhance productivity performance are:

i. ESG laws and regulations that promote sustainable and inclusive growth;

ii. ESG as a productivity catalyst for the nexus;

iii. Corporate cultivation of ESG; and

iv. Benchmarking ESG implementers.

In other words, the MPC is leading the implementation of ESG in all ministries and government agencies as well as in industry, especially the productivity nexus and the local community. All MPC staff are accountable for implementing ESG and being a role model.

ESG MPC FRAMEWORK

Any ESG initiative introduced and implemented by MPC should:

3.1 Be logical, implementable at every level, and consistently executed;

3.2 Be implemented according to capability and based on skill progression;

3.3 Be based on real-world data and information; and

3.4 Disseminated through digital technology.

The MPC is open to collaborating with any interested organizations, locally or internationally, to implement ESG projects that address the 11 Productivity Nexus.

Strategic partners:

i. Energy efficiency audit in MPC complexes.

ii. Solar installation in MPC's southern and northern regions.

iii. Internal system integration and contracting services from start to finish on a digital basis.

vii. Transition from internal servers to cloud servers to reduce the use of staff and equipment.

v. Implement data and MPC information sharing vi. One Drive and Google Dashboard for all staff to share MPC information and documents.

vii. Enabling access to virtual training materials for MPC staff and their clients at www.mylatihanmaya.my.

i. e-Shared Prosperity Organisation (eSPO) programme to share prosperity between companies and their employees.

ii. Adoption of the Internet of Things (IoT) for manufacturing and manufacturing-related service companies through MyReskill IoT and Artificial Intelligence for University (AI4U)

iii. Professional Services Productivity Programme (PSPP) for Multidisciplinary Professional Services.

iv. Professional Services Productivity Programme (PSPP) model for Growing Malaysian Sustainable Engineering Consultancy Firms. 

v. Professional Services Productivity Nexus Virtual Advisory Clinic (ProVAC).

vi.. National Movement on Contract Farming for Chilies Cluster Farmers.

vii. Identifying Issue and Challenges in Road Freight Transport.