Meaning of ESG in Sabah's real estate and construction sector | Daily Express Malaysia

Environmental, social and governance principles (ESG) have become a cornerstone of sustainable development in industries worldwide. In Sabah, the real estate and construction sector is increasingly recognizing the importance of ESG compliance in order to ensure long-term viability, regulatory compliance and the trust of investors. However, the integration of ESG into this sector represents unique challenges due to economic restrictions, regulatory gaps and limited awareness.

Let me explain the meaning of ESG in Sabah's real estate and construction industry, identify important questions and challenges and suggest reduction measures to improve sustainability and resilience in this sector.

The importance of ESG in Sabah's property and construction sector
1. Environmental considerations

Sabah is rich in biological diversity, including rainforests, sea ecosystems and endangered species. The construction sector must introduce sustainable practices in order to minimize environmental deterioration. The most important ESG-related environmental aspects include:

• Reduction of CO2 footprint – Construction activities contribute significantly to carbon emissions. Green Building certifications (e.g. Green Building Index, Leed) can help reduce energy consumption.
• Waste management – proper disposal of construction waste and recycling materials can reduce environmental damage.
• Sustainable materials use of environmentally friendly materials (e.g. bamboo, recycling steel) reduces the design and pollution.
• Water and energy efficiency rainwater harvest, solar panels and energy-efficient constructions of lower resource consumption.

2. Social responsibility

The social aspect of the ESG focuses on the well -being of the community, labor rights and inclusiveness. In Sabah, where indigenous communities and urban population groups coexist, social considerations include:

• Affordable housing assurance agents that resident projects for groups with low incomes are advisable to reduce the inequality of the cities.
• Security and fair wages of employees – compliance with the security standards of professional safety and fair work practices.
• Commitment of the community – inclusion of local communities in development plans to prevent land disputes and to ensure cultural preservation.

3. Government and ethical practices
Good governance ensures transparency, anti -corruption measures and compliance with regulatory compliance. One of the most important governance topics in the Sabah area:

• Regulation regulation – compliance with state and federal strict environmental and building laws and regulations.
• Anti-corruption measures to prevent bribery and unethical practices in land developments and project permits.
• Duty to account for stakeholders – make sure that developers, contractors and government agencies maintain ethical standards.

Important problems and challenges when implementing the ESG in Sabah

Despite its importance, the acceptance of the ESG in Sabah's real estate and construction sector is exposed to several obstacles: 1. Limited awareness and expertise

Many developers and contractors lack awareness of the ESG frameworks or lack the expertise in order to implement them effectively. Small and medium -sized companies (SMEs) often prioritize short -term profits against long -term sustainability. 2. High costs for sustainable practices

Green building materials and energy -efficient technologies are often a bonus. Many developers hesitate to invest in ESG-compliant projects that were perceived due to higher costs and uncertain returns. 3. Weak enforcement of regulations and laws

While Malaysia has environmental and building regulations, enforcement in Sabah can be inconsistent. Illegal logging, non -approved country deletion and non -compliance with environmental health and professional problems remain problematic. 4. Infrastructure and resource restrictions

Rural areas in Sabah lack a proper infrastructure for waste management, renewable energies and water savings, which makes ESG conformity difficult. 5. Investor and market resistance

Some investors prioritize quick returns from sustainable projects and prevent developers from taking over ESG principles. In addition, buyers cannot completely appreciate green -certified properties and reduce demand.

Proposed reduction measures

In order to cope with these challenges, the stakeholders – including the government, the developers and the communities – have to work together on the following strategies: 1. Strengthening the ESG training and training

• Workshops and certification

Programs – government agencies and industry authorities should organize training courses on the ESG conformity for developers, contractors and political decision -makers.

• University partnerships – Integration of ESG and sustainable building modules in engineering and architecture courses at Sabah's universities.

2. Incentive for green constructions

• Tax reliefs and subsidies – The government of the state Sabah could offer developers tax incentives for sustainable materials or solutions for renewable energies.
• Green financing banks and financial institutions should provide low-interest loans for ESG-compliant projects.

3. Improvement of the enforcement of regulation

• Stricter environmental health and professional regulations* – make sure that all projects are subjected to strict standards for environmental health and compliance with professional regulations.

4. Advertising for public-private partnerships (PPPS)

• Collaborative projects can work with private developers to build affordable, environmentally friendly apartments and infrastructures.

* Pilot -SG projects -present successful green buildings and sustainable townships to demonstrate feasibility and advantages. 5. Use technology for sustainability

• Intelligent construction techniques – Use of building information modeling (BIM) and prefabrication to reduce waste.
• Integration of renewable energy regulations for solar collectors and energy-efficient designs in new developments.

6. Consumer awareness

• Marketing Environmentally friendly advantages education of home buyers via long-term cost savings (e.g. lower supply calculations) of ESG-compliant real estate.
• Eco feature introduction of certification chains for sustainable buildings to increase market demand.

7. Strengthening the participation of the community

• Local employment opportunities – Hiring Sabahan workers for construction projects to improve the social effects.

Diploma

The ESG integration in Sabah's real estate and construction sector is not only an official requirement, but a need for sustainable growth. While challenges such as high costs, weak enforcement and limited awareness exist, strategic measures – including education, incentives, stricter regulations and technological introduction – can advance progress. By taking ESG principles, Sabah can protect its natural environment, improve social justice and promote ethical government and ensure a resilient and sustainable future for its real estate and construction industry. The collective efforts of the government, the private sector and the local communities will be crucial to implement these ESG efforts into reality.