Sustainability-Centric Action Key to Malaysia’s OGSE Industry Recovery
KUALA LUMPUR, July 15, 2021–Dato’ Sri Mustapa Mohamed, Minister in Prime Minister’s Department (Economy), today officiated the first edition of National OGSE Sustainability Forum, at a time when the COVID-19 pandemic has brought into focus the impact businesses including the oil and gas services and equipment (OGSE) industry, have on the environment and climate, underscoring the urgency of greater sustainability awareness among OGSE companies.
Jointly organised by the Economic Planning Unit (EPU) in the Prime Minister’s Department and Malaysia Petroleum Resources Corporation (MPRC), the virtual forum brought together policymakers, industry champions, and thought leaders to provide a holistic perspective on the drivers for the increased focus of sustainability efforts in the OGSE sector.
The Sustainability Forum comes after the launch of National OGSE Industry Blueprint 2021-2030 on April 27. In the Blueprint, sustainability was earmarked as one of four key baselines to track the OGSE industry’s progress.
Dato’ Sri Mustapa Mohamed, Minister in Prime Minister’s Department (Economy), said in his keynote address:
“The low adoption (of sustainability reporting) suggests that sustainability and ESG awareness remains uneven among OGSE players even among public-listed companies,what more among the less informed SMEs. As a critical component of the Malaysian economy, OGSE industry’s health will be key to realising the aspirations of SPV2030, which is to achieve high value, inclusive economic development.
For the industry to emerge stronger from COVID-19, it is imperative for the rest of the industry to embrace ESG commitments and achieve the sustainability goals of the country.
Datuk Saiful Anuar bin Lebai Hussen, Director General, EPU, Prime Minister’s Department in his welcoming remarks said:
“ESG is fast becoming a fundamental element in which investors evaluate companies. This can be seen in growing pressure for oil and gas businesses to safeguard the environment, manage their carbon emissions, among others. This will become the norm, and an important addition to the industry’s strategic planning for the future.
MPRC, as an agency under EPU has been given the responsibility to drive the initiatives outlined in the National OGSE Industry Blueprint 2021-2030, which serves as one of many energy-related policies that support the New Economic Policy. EPU, will also continue to drive, monitor and evaluate the progress of NEP in line with the sustainability goals.”
En. Mohd Yazid Ja'afar, MPRC President and CEO said:
“Demand for companies to adopt sustainable practices and adoption of the ESG framework has grown and will continue to grow as more investors embrace ESG criteria in their investment decisions. Thus, paying closer attention to global sustainability trends can help OGSE companies keep up with the requirements and not lose out on future investment and market opportunities.
We are cognisant of the challenges faced by OGSE companies in adopting sustainability. MPRC is supportive of OGSE companies in this sustainability journey, and we will be identifying initiatives and collaborative efforts to ensure a more holistic adoption of sustainability practices for the sector.”