SMALL and medium enterprises (SMEs) are the backbone of our economy, particularly here in Penang, where our economic landscape is largely shaped by the manufacturing sector and multinational corporations (MNCs).
It is now clear that climate change is not only an environmental issue but it has become a pressing economic challenge.
UN Global Compact Network Malaysia and Brunei executive director Faroze Nadar said the consequences of failing to manage climate-related risks are significant and can lead to unpleasant circumstances impacting the globe at large.
“If left unattended, it could potentially lead to substantial financial losses for both communities and businesses.
“This is particularly critical for SMEs, which form the backbone of the Malaysian economy.
“In an era where global supply chain owners, regulators, and financial institutions increasingly demand climate data from their suppliers and clients, SMEs face a unique challenge and opportunities.
“Those looking to export and trade internationally must now demonstrate their climate performance.
“This transition towards low-carbon practices is not just a regulatory requirement but a business imperative.
“Adopting sustainable practices will not only mitigate climate risks but also open doors to green market opportunities, ensuring that SMEs remain competitive and resilient in a low-carbon economy,” Faroze said during the Climate Action Workshop at Amari SPICE Penang in Bayan Lepas on May 16.
The workshop was attended by several state representatives and industry experts.
Hosted by the United Nations Global Compact Malaysia and Brunei (UNGCMYB) in collaboration with Penang Green Council (PGC), InvestPenang and Alliance Bank, the workshop’s highlight was the introduction of UNGCMYB’s PROGRESS climate maturity assessment tool.
Faroze mentioned that the digital tool will assist in identifying key areas for improvement and action, and connect SMEs to funding and green financial initiatives.
Also present during the opening of the workshop were state Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu, InvestPenang chief executive officer Datuk Loo Lee Lian and PGC general manager Josephine Tan.
Story by Kevin Vimal
Pix by Muhammad Amir Irsyad Omar