During the recent International Women’s Day Celebration on the 20th March 2023, some of the panelist spoke on the role of Women and ESG. The platform provided a forum that features stories of female advocates, leaders, and professionals within the ESG and sustainability sector, who are driving and inspiring positive change. By continuing to raise awareness on the importance of Gender Equality, ESG and sustainability, we hope to create a ripple effect allowing the knowledge to spread further, ultimately leading to the development of a strong and resilient community.

SDG 5 which aims to achieve gender equality by ending all forms of discrimination, gender equality is an important factor in achieving quality of education rankings in the world as well as economic growth. Having a leadership team that is comprised of a balance of genders can bring innovation, educational opportunities, and creative solutions to an organization.

In our previous commentary, companies with gender diverse teams have higher returns and have outperformed their competitors. Women, who are often sidelined from leadership roles, have immense talents and ideas to share. When given the platform to lead, their impact could be revolutionary.

For example, Sweden has continuously been positioned top in the Global Gender Gap Index. Since 2005, the country has earned the title of being the most gender equal country in the world. Swedish legislation places a heavy emphasis on gender balances in political and business leadership roles. Moreover, its legislation ensures that both mothers and fathers are provided with a generous amount of parental leave, with both parents being entitled to a total of 480 days’ leave each. This has resulted in a larger proportion of women participating in the workforce.

In addition, Norway, Finland and Iceland are also countries that are widely considered top ranking in gender equality. All of these countries have implemented policies that strive for gender equality and provide support to close the pay gap between genders. Many of these initiatives have also been extended to the public sector, which has allowed women to essentially pursue any occupation of their choosing.

Ultimately, gender equality is a huge contributor to economic growth and high quality education rankings in the world. It is important to advocate for more gender diversity in leadership roles in order to drive positive change.

Countries that have female leaders tend to place a higher emphasis on gender equality and education. Women leaders often prioritize initiatives that empower women and promote gender equality, such as guaranteeing the economic rights and opportunities are women of the same quality as men, or promoting access to education for girls and women.

Possible reason for this is, when women have more power and autonomy, they are more likely to push for initiatives that empower women, prioritize quality education, and strive for gender equality. All of this can lead to higher World Gender Equality and World Education rankings for countries with female leaders.

The rankings of countries with female leaders in terms of Environmental, Social and Governance (ESG) also shows favourable rankings. For example, according to the 2018 UN EPI rankings, Sweden receives the top score of 91. 93, while Iceland receives a score of 71. 97. These rankings can be influenced by factors such as government policies, regulations and incentives to promote environmental sustainability, as well as access to healthcare, social inclusion, and political stability. Ultimately, these factors are key in establishing a culture of corporate responsibility and sustainability, showcasing the importance of female leaders in promoting social and environmental justice.

The Case for Malaysia

As we delve further into the ESG and sustainability agendas, it is clear that Malaysia has taken important strides towards achieving a more sustainable and equitable future.

Nonetheless, there are still areas that we can further improve on. Despite the progress that the Malaysian government has made in addressing the systemic barriers that exist for women’s inclusiveness in Malaysia, there are still gaps that need to be filled. These include:

• Gender pay gap: Women earn an average wage that is 79. 4% of the average male wage in Malaysia.
• Representation in leadership positions: Women make up less than 7% of senior management positions in the public and private sector in Malaysia.
• Access to affordable child care: Approximately 44% of families with children feel they cannot afford the cost of childcare in Malaysia.
• Gender-based violence: It is estimated that 1 in 3 women experience physical, sexual, or emotional abuse in their lifetime in Malaysia.
• Women’s health and education: Women represent roughly 2 to ever 1 male of university students in Malaysia, and and yet lacked in representation in leadership roles .
• Economic opportunities: Women make up only 28% of business owners in Malaysia.

Malaysia currently ranks 49th in terms of ESG ratings (UN EPI, 2018). Malaysia can work to improve its rankings by focusing on initiatives that promote sustainability, social justice, and corporate responsibility. This could involve investing in clean energy, providing tax incentives for green businesses and increasing public transportation, as well as increasing access to education, ensuring equal rights for minorities, and promoting political stability. Taking action to ensure gender equality in both the private and public sectors is also important, as this can empower more women to become leaders and create policy initiatives with a focus on sustainability and social justice, ultimately helping to improve ESG ratings in the country.

It will also be important for us to continue our efforts on building the capacity of individuals and organisations in the sustainable and ESG sphere. This will include providing training and resources to those who are interested in furthering their understanding of sustainability and ESG, as well as providing access to digital tools that can help to measure and monitor sustainability efforts.