Citation

Md Yatim, Norzarina and Abdullah Salim, Abdullah Sallehhuddin and Ab Razak, Ruzanna (2022) An Exploratory Assessment on Environmental, Social and Governance (ESG) Disclosure among Federal Statutory Bodies in Malaysia. In: Postgraduate Social Science Colloquium 2022, 1 - 2 June 2022, Online.

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Abstract

Background - As part of institutional reform initiatives, ESG disclosure has taken a central position. The enhanced ESG disclosure attracts formidable investment from global sustainable responsible investors. Numerous Malaysian companies have evolved their reporting practices by adopting ESG. While private�sector ESG reporting is striding ahead, the practice in the public sector is still taking early steps including among the Federal Statutory Bodies (FSB); despite the issuance of the improved PA 3.2 of Treasury of Circular on presentation and preparation of annual reports and financial statements. As the governance (G) aspect is commendable, the components of environmental (E), and social (S) require greater attention. Moreover, the PA 3.2 provides general guidelines and offers room for flexibility with regard to environmental and social disclosure. Given the scenario and with the aspiration to nurture potential ESG champions among BBP, as well as providing clarity of definition and scope of ESG disclosure, this study is proposed. Purpose - The study aims to examine the disclosure level of ESG among BBP using the Value-Based Intermediation (VBI) Framework by Bank Negara Malaysia, to record the pattern and the organizational attributes of ESG reporting BBP, and to ascertain the disclosure reasons. Design/methodology/approach - This study is achieved through scanning published reporting statutory bodies’ annual reports and financial statements. First, read the Value-Based Intermediation (VBI) Framework for ESG disclosure. For a better understanding, the framework will be read at least twice, as recommended by Owusu-Ansah (1998). Second, developing the disclosure checklist based on the VBI Framework for ESG disclosure. This initial disclosure checklist shall be reviewed by at least two accountants from the Accountant’s General Department, in order to achieve content validity; and if any contradiction occurred; the disclosure checklist will be finally verified by an officer of Bank Negara Malaysia (BNM) who are responsible towards the value-based intermediation framework. The verification technique is consistent with the approach of Abdullah & Minhat (2013). Next, gathering and reading statutory bodies’ annual reports and financial statements for the year 2020 relating to ESG components. For a better understanding of the nature and complexity of reporting statutory bodies’ operations, each annual report and financial statement will be read at least twice (Abdullah & Minhat, 2013; Cooke, 1989). There are about 128 statutory bodies of the federal government as of the end year of 2020. Findings/Expected Contributions - The expected results include obtaining insights, understanding, and information about the disclosure level of ESG components among statutory bodies of the federal government using the VBI Framework. In addition, the profile and pattern of ESG disclosure among statutory bodies of the federal government Research limitations - The practice of reporting ESG in the public sector is still taking early steps. Therefore, recording the pattern and ascertaining the disclosure purpose will be challenging. Originality/value - ESG scores provide a platform to increase the transparency of FSB regarding their sustainability efforts and condensing it in one number (the ESG disclosure score).

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	Environmental aspects , Social, Governance, Value-Based Intermediation, ESG
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-70 Management. Industrial Management > HD30.2 Electronic data processing. Information technology. Including artificial intelligence and knowledge management
Divisions:	Faculty of Management (FOM)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	17 Aug 2022 06:14
Last Modified:	17 Aug 2022 06:18
URII:	http://shdl.mmu.edu.my/id/eprint/10405

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