In line with the energy transition agenda set forth by the Malaysian Government, sustainability remains an important focus area within the OGSE landscape, as stakeholders demand greater ESG accountability and environmental stewardship. MPRC is committed to supporting the OGSE sector as it navigates new opportunities in energy transition, while seeking to ensure the development of holistic, effective stewardship and strategies for growth.
Launched in April 2021, the OGSE Blueprint envisions the development of a robust, resilient and competitive Malaysian OGSE sector with a strong focus on sustainability. Centred on four key thrusts—competitiveness, resilience, development, and sustainability—the OGSE Blueprint has identified selected goals to be achieved by 2030, including the inclusion of five OGSE companies on reputable sustainability and OGSE sector GDP contribution of RM50 billion.
The OGSE Blueprint also aims to ensure the sector is equipped with the 60,000 skilled talents needed to meet its growth needs and achieve 50% foreign revenue, driving sustainable growth and global leadership in the OGSE sector. To further reinforce these goals, MPRC has embarked on initiatives to promote sustainability practices and reporting among OGSE companies through the National OGSE Sustainability (NOS) programme, underscored by the development of a trilogy of NOS documents: the NOS-Plans, NOS-Roadmap and NOS-Framework Guide.
The NOS-P disclose challenges that OGSE companies face in understanding, implementing, and reporting sustainability with recommendations to assist them
SMEs are generally still at the awareness stage
SMEs look to regulators and customers for direction
Survivability is a priority for OGSE SMEs
International standards are too complex for SMEs
There are too many international standards to choose from
Each reporting standard has specific perceived issues
There is a lack of business incentives to deploy sustainability initiatives
SMEs lack an ESG focal point/person responsible for sustainability
Data quality and availability is a challenge
Climate-related risk and potential pathway identification
OGSE-focused sustainability knowledge and training hub
Subsidies for SME training
Grants/Soft loans for decarbonisation initiatives
Framework on material sustainability topics
Baseline ESG assessment
OGSE sector sustainability targets
Simplified ESG reporting standards for OGSE SMEs
OGSE tiered sustainability certification and award
Digital ESG tool for OGSE companies
Stakeholder engagement and communication
The NOS-R is geared towards achieving net zero emissions through sustainability practices and reporting based on a simplified reporting framework
Net-zero GHG emissions as early as 2050
45% carbon intensity reduction against GDP by 2030
32% GHG emissions reduction by 2050 (Energy)
Environmental
Social
Governance
Accelerating Low-carbon Operation and Supply Chain
Supporting Climate Risk Management
Strengthening Sustainability Practices
Fostering Talent Pool and Communication
Human capital, mindset and ways of working
Technology, innovation and infrastructure
Market regulation and Bumiputera participation
Domestic and international market access
Funding and investments
The NOS-F Guide is developed based on the five key reporting phases drawn from widely adopted sustainability standards and frameworks
1. Develop a sustainability policy to reflect the organisational commitment to sustainable business conduct
2. Include sustainability in the meeting agenda at the Management and Board levels
3. Appoint a sustainability champion
4. Provide reasonable and adequate training on sustainability to employees and Board members
1. Identify key business activities and map them against the sustainability topics
2. Assess the impact of each business activity
3. Prioritise measuring sustainability in impact assessment
4. Select key topics for reporting
5. Choose key indicators for each key topic
1. Assess overall sustainability implementation using available online tool(s)
2. Collect data for baselining of each topic indicator
3. Set target(s) for each topic indicator
1. Track and analyse the performance of each topic indicator
2. Adopt a digital tool for performance tracking
3. Propose any improvements if applicable
1. State the scope of the reporting and reporting framework(s)/ standards(s) applied
2. Compile and analyse performance data to assess progress on the implementation of each respective section addressing Governance, Materiality Assessment, Baseline Assessment & Target Setting and Performance Monitoring
3. Publish results in a sustainability report.
