CLIMATE Governance Malaysia (CGM) held its inaugural National Climate Governance Summit (NGCS), a transformative three-day event aimed at empowering small-medium enterprises (SMEs) with crucial insights and knowledge to navigate the challenges and seize the opportunities presented by the climate emergency.

The inaugural National Climate Governance Summit took place from Sept 5 to 7 this year and had been jointly curated and organised with Companies Commission of Malaysia (SSM), FIDE FORUM (Bank Negara’s network of financial institution directors), representatives from the United Nations Development Programme (UNDP), SME Corporation Malaysia and the Institute of Corporate Directors Malaysia.

The summit saw physical and virtual attendees attend throughout the three days. Furthermore, all sessions were recorded and made available on the CGM website and media channel post event.

Also present at the event was Regent of Pahang Tengku Mahkota Tengku Hassanal Ibrahim Alam Shah Ibni Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, Natural Resources, Environment and Climate Change (NRECC) minister Nik Nazmi Nik Ahmad, CGM chairperson Datin Seri Sunita Raiakumar, SSM chief executive officer Datuk Nor Azimah Abdul Aziz, Bank Negara Malaysia (BNM) assistant governor Abdul Rahman Abu Bakar.

In his opening remarks, Nik Nazmi said that biodiversity and climate change are intrinsically linked, and cannot be ignored.

“We have adopted pragmatic, progressive, and long-term development strategies that recognise the intrinsic value of our natural heritage.

“Key among these strategies is the alignment with the Kunming-Montreal Global Biodiversity Framework (KMGBF), an international commitment aimed at reversing the decline in biodiversity. This framework, adopted during the 15th CBD COP15 in 2022, emphasises ambitious goals and global collaborative action,” he said.

Addressing this, he said that several policy initiatives are being considered including: conservation education, strengthening legal frameworks, research and data sharing, support for indigenous communities, climate adaptation strategies, investment in green technologies and international cooperation to address transboundary conservation issues.

This event aimed at bringing together a diverse array of more than 100 local and foreign subject matter experts who shared their expertise and experiences through carefully curated panel sessions and workshops in climate governance, sustainability and other related issues.

The discussions centred around crucial topics such as decarbonisation, environmental conservation, biodiversity preservation and the promotion of a just transition.

“We understand that SMEs are a critical component of the Malaysian economy, comprising 97.4% of all businesses in Malaysia and contributing 38.4% of the GDP. Without getting SMEs on board, any climate or sustainability ambition will be undermined,” said CGM in a statement.

A comprehensive, carefully considered, multi-pronged approach is required to enable SMEs to smoothly decarbonise and increase their climate resilience.

“We are in an environment where key stakeholders, including capital markets regulators, as well as allocators of capital such as investors, bankers and insurers, are demanding increased reporting and disclosure from businesses so that informed decisions can be made about the allocation of capital to businesses, industries, countries and regions,” it said.

CGM emphasised that SMEs need to understand how to identify climate risks, then measure and mitigate the impacts such risks as well as seizing opportunities which are arising in the climate crisis.

The urgency of addressing the profound risks associated with the climate crisis has spurred a global multi-stakeholder response, compelling both public and business sectors to take proactive measures.

Recognising the paramount role of SMEs in the Malaysian economy – comprising 98.5% of all businesses and contributing 36.6% of the GDP – the summit marks a pivotal moment in fostering climate resilience within these vital sectors.

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