Kuala lumpur: ASEAN's pursuit of energy transition, sustainable water management, and climate-resilient infrastructure must be guided by environmental, social, and governance (ESG) principles that extend beyond corporate metrics, Deputy Prime Minister Datuk Seri Fadillah Yusof emphasized. He articulated that ESG should not merely be perceived as a reporting tool for companies but as a framework influencing government regulations, institutional enforcement, and market behavior.
According to BERNAMA News Agency, Fadillah underscored that ESG must transcend being a corporate metric. He advocated for it to guide governmental regulatory designs, institutional standard enforcement, and market incentives for responsible conduct. This perspective was elaborated during his speech at the ASEAN Law Forum 2025, attended by several key figures including Minister in the Prime Minister's Department Datuk Seri Azalina Othman Said and other regional justice ministers.
Fadillah, also serving as the Energy Transition and Water Transformation Minister, stressed the necessity for governance systems aligning with climate ambitions, social protection, and accountability. He highlighted the importance of accessible, efficient, and fair justice systems and dispute resolution mechanisms to achieve these goals.
He expressed his approval of the forum's agenda, which included discussions on ESG disputes, describing it as a timely platform for ASEAN to enhance arbitration capacity within global supply chains. He noted the significance of due diligence and arbitration in navigating the complex interplay of trade, law, and sustainability.
Fadillah also highlighted the importance of a 'just transition' in the energy sector, emphasizing that fairness and inclusivity in economic and environmental reforms are non-negotiable. He conveyed confidence that the ASEAN Law Forum would yield practical solutions to bolster cooperation, improve access to justice, and promote inclusive growth across the region.
The three-day forum, which commenced under Malaysia's 2025 ASEAN Chairmanship, offers ASEAN member states the chance to coordinate efforts in establishing resilient legal institutions and mechanisms, especially in the face of today's unpredictable global economic landscape.