{"id":44,"date":"2025-09-05T06:41:22","date_gmt":"2025-09-05T06:41:22","guid":{"rendered":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/chapter\/4-3measuring-social-and-environmental-impacts\/"},"modified":"2026-01-16T08:25:18","modified_gmt":"2026-01-16T08:25:18","slug":"4-3measuring-social-and-environmental-impacts","status":"publish","type":"chapter","link":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/chapter\/4-3measuring-social-and-environmental-impacts\/","title":{"raw":"4.3 Measuring Social and Environmental Impacts","rendered":"4.3 Measuring Social and Environmental Impacts"},"content":{"raw":"<div class=\"4.3measuring-social-and-environmental-impacts\">\r\n<p style=\"text-align: justify;\">Measurement of sustainability is crucial for Malaysian companies interested in securing ESG investments and obtaining funding or accreditation from the government and overseas.<\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify;\"><strong>Why Measure Impact in Malaysia?<\/strong>\r\n<ul>\r\n \t<li>Comply to ESG disclosure requirements of Bursa Malaysia.<\/li>\r\n \t<li>Creating a sense of trust amongst stakeholders in Malaysia\u2019s developing green economy.<\/li>\r\n \t<li>Obtain <strong>incentives<\/strong> from the government, like the Green Investment Tax Allowance (GITA).<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<ul>\r\n \t<li><strong>Key Impact Measurement Tools in Malaysia:<\/strong>\r\n<ul>\r\n \t<li style=\"text-align: justify;\"><strong>The<\/strong> <strong>Global Reporting Initiative (GRI) Standards<\/strong> are used by Malaysian multinational companies like Sime Darby and Petronas<\/li>\r\n \t<li style=\"text-align: justify;\"><strong>Bursa Malaysia FTSE4Good Index:<\/strong> Measures an ESG performance of the listed companies in Malaysia.<\/li>\r\n \t<li style=\"text-align: justify;\"><strong>Life Cycle Assessment (LCA):<\/strong> Employed by firms such as <strong>Top Glove<\/strong> in tracking sustainability of glove production.<\/li>\r\n \t<li style=\"text-align: justify;\"><strong>SROI (Social Return on Investment):<\/strong> Applied in CSR programs such as <strong>Khazanah Nasional\u2019s Dana Impak<\/strong> for rural development.<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td style=\"width: 147.986px;\"><strong>Impact Category<\/strong><\/td>\r\n<td style=\"width: 756.997px;\"><strong>Malaysian Example Metrics<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 147.986px;\">Social<\/td>\r\n<td style=\"width: 756.997px;\">Percentage of Malaysian suppliers trained on ESG standards; diversity ratio in workforce<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 147.986px;\">Environmental<\/td>\r\n<td style=\"width: 756.997px;\">Reduction in water use in palm oil plantations (Sime Darby); percentage renewable energy in operations (Petronas)<\/td>\r\n<\/tr>\r\n<tr>\r\n<td style=\"width: 147.986px;\">Economic<\/td>\r\n<td style=\"width: 756.997px;\">Growth in green product sales; local SME support through supply chains<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p style=\"text-align: justify;\"><strong>Malaysian Example:<\/strong><\/p>\r\n\r\n<ul>\r\n \t<li style=\"text-align: justify;\"><strong>Nestl\u00e9 Malaysia\u2019s Project RELeaf<\/strong>: Has a vision to plant three million trees by 2030 in efforts to offset carbon emissions and to promote biodiversity conservation in Sabah and Sarawak.<\/li>\r\n \t<li style=\"text-align: justify;\"><strong>SP Setia\u2019s Eco-Townships:<\/strong> Use green building standards, incorporate sustainable drainage systems and [pb_glossary id=\"264\"]community engagement[\/pb_glossary] programs.<\/li>\r\n<\/ul>\r\n<p class=\"import-Normal\" style=\"text-align: justify;\"><\/p>\r\n\r\n<\/div>","rendered":"<div class=\"4.3measuring-social-and-environmental-impacts\">\n<p style=\"text-align: justify;\">Measurement of sustainability is crucial for Malaysian companies interested in securing ESG investments and obtaining funding or accreditation from the government and overseas.<\/p>\n<ul>\n<li style=\"text-align: justify;\"><strong>Why Measure Impact in Malaysia?<\/strong>\n<ul>\n<li>Comply to ESG disclosure requirements of Bursa Malaysia.<\/li>\n<li>Creating a sense of trust amongst stakeholders in Malaysia\u2019s developing green economy.<\/li>\n<li>Obtain <strong>incentives<\/strong> from the government, like the Green Investment Tax Allowance (GITA).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li><strong>Key Impact Measurement Tools in Malaysia:<\/strong>\n<ul>\n<li style=\"text-align: justify;\"><strong>The<\/strong> <strong>Global Reporting Initiative (GRI) Standards<\/strong> are used by Malaysian multinational companies like Sime Darby and Petronas<\/li>\n<li style=\"text-align: justify;\"><strong>Bursa Malaysia FTSE4Good Index:<\/strong> Measures an ESG performance of the listed companies in Malaysia.<\/li>\n<li style=\"text-align: justify;\"><strong>Life Cycle Assessment (LCA):<\/strong> Employed by firms such as <strong>Top Glove<\/strong> in tracking sustainability of glove production.<\/li>\n<li style=\"text-align: justify;\"><strong>SROI (Social Return on Investment):<\/strong> Applied in CSR programs such as <strong>Khazanah Nasional\u2019s Dana Impak<\/strong> for rural development.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td style=\"width: 147.986px;\"><strong>Impact Category<\/strong><\/td>\n<td style=\"width: 756.997px;\"><strong>Malaysian Example Metrics<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 147.986px;\">Social<\/td>\n<td style=\"width: 756.997px;\">Percentage of Malaysian suppliers trained on ESG standards; diversity ratio in workforce<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 147.986px;\">Environmental<\/td>\n<td style=\"width: 756.997px;\">Reduction in water use in palm oil plantations (Sime Darby); percentage renewable energy in operations (Petronas)<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 147.986px;\">Economic<\/td>\n<td style=\"width: 756.997px;\">Growth in green product sales; local SME support through supply chains<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p style=\"text-align: justify;\"><strong>Malaysian Example:<\/strong><\/p>\n<ul>\n<li style=\"text-align: justify;\"><strong>Nestl\u00e9 Malaysia\u2019s Project RELeaf<\/strong>: Has a vision to plant three million trees by 2030 in efforts to offset carbon emissions and to promote biodiversity conservation in Sabah and Sarawak.<\/li>\n<li style=\"text-align: justify;\"><strong>SP Setia\u2019s Eco-Townships:<\/strong> Use green building standards, incorporate sustainable drainage systems and <a class=\"glossary-term\" aria-haspopup=\"dialog\" aria-describedby=\"definition\" href=\"#term_44_264\">community engagement<\/a> programs.<\/li>\n<\/ul>\n<p class=\"import-Normal\" style=\"text-align: justify;\">\n<\/div>\n<div class=\"glossary\"><span class=\"screen-reader-text\" id=\"definition\">definition<\/span><template id=\"term_44_264\"><div class=\"glossary__definition\" role=\"dialog\" data-id=\"term_44_264\"><div tabindex=\"-1\"><p>A company\u2019s role as a \u201cgood citizen\u201d that contributes positively to the well-being of its local community.<\/p>\n<\/div><button><span aria-hidden=\"true\">&times;<\/span><span class=\"screen-reader-text\">Close definition<\/span><\/button><\/div><\/template><\/div>","protected":false},"author":167,"menu_order":18,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-44","chapter","type-chapter","status-publish","hentry"],"part":3,"_links":{"self":[{"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/pressbooks\/v2\/chapters\/44","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/wp\/v2\/users\/167"}],"version-history":[{"count":3,"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/pressbooks\/v2\/chapters\/44\/revisions"}],"predecessor-version":[{"id":269,"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/pressbooks\/v2\/chapters\/44\/revisions\/269"}],"part":[{"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/pressbooks\/v2\/parts\/3"}],"metadata":[{"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/pressbooks\/v2\/chapters\/44\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/wp\/v2\/media?parent=44"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/pressbooks\/v2\/chapter-type?post=44"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/wp\/v2\/contributor?post=44"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/openbook.ums.edu.my\/sustainablestartup\/wp-json\/wp\/v2\/license?post=44"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}