Malaysia Venture Capital Management Bhd chairman Tunku Alizakri Alias said creating driven leaders and talent is essential to achieving goals for an organisation and in identifying sustainable metrics. ‘
KUALA LUMPUR: Companies should consider setting up a sustainable unit or department to help them better understand the elements of sustainable and responsible investment as well as environmental, social and governance.
Malaysia Venture Capital Management Bhd chairman Tunku Alizakri Alias said creating driven leaders and talent is essential to achieving goals for an organisation and in identifying sustainable metrics.
‘’The younger generation are driven by solutions, and by giving them a purpose, which links back to profits which do not harm the planet and also the people, we will see the impact in our children’s time,’’ he said at the SRI virtual conference 2022 entitled “Preserving the climate through sustainable business and living” yesterday.
He said a meaningful key performance indicator (KPI) is also crucial to drive value and the best interest of the company.
“When you set KPIs for your chief executive officer (CEO), break it down into two – the first thing is revenue. Show me the revenue that comes from sustainable practices and new business. So, it forces your CEO and your team to start thinking about how to generate revenue from this.
“Then from the cost perspective, how do we reduce costs by reusing or recycling – putting a dollar value to it, which is directly linked to sustainability,’’ Tunku Alizakri said.
He said companies also should keep in mind that the government has set a target of becoming a zero carbon nation by 2050 and they should find solutions.
‘’To achieve the target, it is extremely likely that the government will be imposing a carbon tax, so you’d better know how much carbon and or greenhouse gas emission you are emitting because once the regulations come into play, you’ll have all the things that you need to manufacture or to provide the services in the business you are involved in,’’ he added.
