Sujatha (left) delivering her presentation at the Asia ESG Summit 2025.—SIA HONG KIAU/The Star
IMAGINE two scenes: One where the environment is serene and in balance, while the other has been ravaged by climate change.
Although these two contrasting scenarios can occur simultaneously, the latter scene is threatening to completely take over, said Malaysian Institute of Corporate Governance (MICG) chairman Sujatha Sekhar Naik.
According to her, the loss of biodiversity balance can lead to flooding, typhoons and even the spread of zoonotic diseases. It spells disaster from a business perspective, with water scarcity disrupting supply chains, climate disasters causing property damage and the overall depletion of raw materials that are necessary for manufacturing.
“This isn’t just an environmental story. It’s a market reality,” she said.
This reality check was revealed by the speaker at the Asia ESG Summit 2025 on Nov 5. In her presentation, Sujatha, who is also a partner of the Aqran Vijandran law firm, honed in on the devastating effects of biodiversity loss and brought attention to impressive climate change mitigation measures undertaken by various sectors.
She noted that according to the World Economic Forum, over half of the world’s gross domestic product (GDP) hinges on nature and its products.
The world’s food production is highly dependent on pollinators, whose populations are declining due to climate change. A fragile ecosystem gives way to the destruction of life as we know it.
Bee on a strawberry flowerduring summer day
“The ecosystem services us in every aspect of life and commercial endeavours,” the lawyer stated.
However, all hope is not lost, according to Sujatha, for there is a critical window of opportunity to slow down the clock on biodiversity destruction.
Strategic investments in biodiversity preservation can be the make-or-break between ecological collapse and the thriving of humanity.
As she put it, “Our capital flows decide which one becomes reality.”
She explained that the onus of saving the planet lies in the seamless cooperation of the public and private sectors.
For biodiversity preservation to truly work, stakeholders on all levels must work hand-in-hand towards a shared vision.
“The public sector must lead by example. The private sector will follow,” Sujatha said, highlighting the role of the public sector in setting the stage for biodiversity conservation.
The MICG chairman said that the global community is heightening its efforts on the issue of biodiversity.
She applauded the Kunming-Montreal Global Biodiversity Framework for its roadmap to reversing biodiversity loss by 2030 and the mobilisation of financial resources between developed and developing countries.
Vibrant hornbills sit high in the branches, surrounded by rich foliage on Koh Chang island. The striking colors of their beaks add charm to the tropical landscape during a sunny day.
She also highlighted the Cali Fund, which came to fruition at COP16 in 2024, explaining that it was an impressive example of multilateral cooperation. She was particularly impressed by its allocation of resources to indigenous communities.
“At least 50% of the Cali Fund resources will be allocated to indigenous peoples and local communities, recognising their role as custodians of biodiversity,” she said.
Sujatha also touched on climate initiatives on the national level. In Malaysia, pioneering initiatives have been launched in the interest of environmental preservation, namely the issuance of the Green Sukuk, the world’s first Islamic green bond. Bank Negara Malaysia (BNM) and Securities Commission Malaysia (SC) jointly launched the Climate Finance Innovation Lab to develop innovative green finance strategies.
She also highlighted a number of initiatives spearheaded by Sabah and Sarawak. For example, in Sabah, about 48% of its land mass is protected. Sarawak, on the other hand, launched its groundbreaking Biodiversity Master Plan this year.
“Conservation isn’t an add-on; it’s being mainstreamed into economic planning, tourism, forestry and indigenous partnerships,” she said about state-level initiatives.
While the steps taken by the public sector are formidable, there must be complementary steps taken by the private sector. Now more than ever, the private sector must consider implementing an ESG strategy in every aspect of its operations.
Sujatha pointed out that property developers such as IOI Properties Group Bhd and SD Guthrie Bhd have already committed themselves to forest and wildlife conservation efforts.
IOI’s South Ketapang Landscape initiative, which focuses on rivers, and SD Guthrie’s Beyond Zero programme, which targets forestry, are some praiseworthy efforts by the private sector.
Companies such as Kering and L’Occitane have incorporated nature regeneration schemes into their business model. For example, L’Occitane aims to restore shea collection areas in West Africa, while Kering has set up a fund to help promote the adoption of regenerative agricultural practices.
Sujatha also recognised the efforts of FatHopes Energy Sdn Bhd in its role in the circular economy.
The company converts waste oil into biofuel for the aviation industry, which is a rapidly growing market. This initiative is environmentally sustainable while remaining economically profitable.
“The message is clear: Those who adapt early build resilience and unlock future markets; those who delay risk being locked out by regulation, market demand and investor standards,” she said.
“The capital is there, it needs to be pulled. The science is sound. (The) urgency is real,” she said.
