The Secret to Winning ESG Social Scores
Strong Stakeholder Engagement:
ESG reporting is no longer a “nice to have.” For companies across Malaysia and globally, it has become a business necessity. Investors, regulators, and customers now expect transparency not just on environmental performance, but also on how organizations treat their people, communities, and supply chains.
Importantly, this approach aligns directly with Bursa Malaysia’s Sustainability Reporting requirements. Bursa’s Sustainability Statement explicitly requires listed companies to disclose social aspects of ESG when identified as material through stakeholder engagement. This includes reporting on employees, communities, and human rights. In other words, the social pillar is not optional—it is a mandatory part of ESG reporting for all listed companies.
Malaysia offers both positive and negative lessons on the importance of addressing social impacts. On the positive side, Sime Darby Plantation has made significant efforts to improve labour rights in its operations after facing scrutiny over forced labour allegations. By strengthening worker engagement programs, enhancing grievance mechanisms, and collaborating with NGOs, the company began rebuilding trust with international buyers and investors. This demonstrates how proactive stakeholder engagement and corrective action can directly protect market access and brand reputation.
On the other hand, the East Klang Valley Expressway (EKVE) project faced years of delay and public resistance. While environmental issues dominated headlines, local communities also raised concerns around land rights, safety, and loss of livelihoods. The absence of early, structured stakeholder engagement amplified opposition, led to reputational damage, and drove up project costs. It is a stark reminder that neglecting the social pillar of ESG can undermine even well-financed infrastructure projects.
The social dimension of ESG—diversity, workplace safety, community relations, and human rights. These areas are notoriously hard to measure. Policies and commitments on paper alone don’t translate into stronger ESG scores. What makes the difference is structured stakeholder engagement that ensures social initiatives are not only designed but also delivered and tracked as measurable outcomes.
The social dimension of ESG—diversity, workplace safety, community relations, and human rights. These areas are notoriously hard to measure. Policies and commitments on paper alone don’t translate into stronger ESG scores. What makes the difference is structured stakeholder engagement that ensures social initiatives are not only designed but also delivered and tracked as measurable outcomes.
The P5 Impact Analysis framework—covering People, Planet, Prosperity, Processes, and Products—provides the structure to avoid such pitfalls. It ensures that stakeholder concerns are systematically captured, integrated into project execution, and reported with credibility. Under “People,” companies address labour practices and community well-being; under “Processes,” they embed workplace safety and inclusion into daily operations.
By embedding stakeholder engagement into sustainability project management and validating outcomes through P5 Impact Analysis, companies can move beyond compliance and create reports that are both credible and compelling. They not only meet Bursa’s requirements but also build the trust and confidence needed to stand out with investors, regulators, and communities alike.
