This article first appeared in The Edge Malaysia Weekly on October 28, 2024 - November 3, 2024

MGB Bhd (KL:MGB) has won the silver award in the construction category for the second year in a row at The Edge Malaysia ESG Awards 2024.

Its CEO Lim Lit Chek attributes the win to the successful implementation of sustainable construction practices through the adoption of the industrialised building system (IBS) technology. The adoption of IBS is one of the firm’s proudest achievements.

“Using IBS, MGB has significantly reduced construction waste, energy consumption and our overall carbon footprint. Additionally, by installing solar panels at some of our [construction] sites, we have managed to enhance energy efficiency, and thus reduce greenhouse gas emissions,” he says.

The success of the firm’s ESG initiatives is largely due to the dedication and hard work of its frontline staff, Lim highlights.

“They are the heart of the company’s ability to achieve its environmental goals as they actively implement green technologies and uphold MGB’s sustainability standards in day-to-day operations.”

The biggest challenge the company faced in maintaining its ESG performance in the past year was to strike a balance between cost efficiency and sustainability.

Lim says the firm allocated resources to invest in technologies that are more environmentally friendly, which could mean a higher cost of doing business.

“Despite facing cost pressures, MGB innovates within our supply chain to find cost-effective green solutions and educates our teams on the long-term financial and environmental benefits of ESG adherence.”

Moving forward, he hopes to see stronger collaboration with and support from key stakeholders, such as the government, consumers and investors to further advance ESG adoption within the industry.

In addition, he would like to see more comprehensive green financing schemes in the market, tax incentives and grants that encourage sustainable construction practices or investment into green technologies.

“We also look forward to seeing greater awareness from consumers, which translates into stronger demand for sustainable products and services, and makes more companies adopt ESG principles.”

Besides IBS, Lim says MGB comprehensively integrates ESG practices into its business operations. For instance, it has a zero-plastic policy on construction sites and provides training for its workforce on sustainability matters. The company also emphasises affordable housing and community engagement, which are socially impactful.

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