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Environmental
Social
Governance

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 EDITORIAL BOARD
2023-2024

PRESIDENT EDITORIAL BOARD

YBhg. Datuk Ir. Ahmad Redza bin Ghulam Rasool
ADVISOR
BOARD MEMBERS YBhg. Datuk Ir. Ahmad Redza bin Ghulam Rasool
YBhg. Dato’ Ir. Haji Badioezaman bin Ab Khalik
YBhg. Datuk Ir. Mohd Adnan bin Mohd Nor CHAIRMAN
YBhg. Dato’ Indera Ir. Dr. Ahmad Sabirin bin Arshad Ir. Fam Yew Hin
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YBhg. Dato’ Ir. Abdul Razib bin Dawood EDITOR
YBhg. Datu Ir. Richard Anak Tajan Dato’ Ir. Fong Tian Yong
Ir. Siraja bin Hj Bashora
Ir. Haji Mohd Hatta bin Zakaria
EDITORIAL MEMBERS
Ir. Megat Johari bin Megat Mohd Noor
Prof. Emeritus Ir. Dr K S Kannan
Ir. Sundraraj a/l A. Krishnasamy
Ir. Prem Kumar
Prof. Ir. Dr Norlida binti Buniyamin
Ir. Anuar bin Mohd Aris
Ir. Fam Yew Hin
YBhg. Dato’ Prof. Ir. Dr Goh Kok Hoe
Ir. Yau Chau Fong
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Ar. Jafri Merican bin Din Merican
Sr Rogayah binti Yunus

REGISTRAR
Ir. Dr Megat Zuhairy bin Megat Tajuddin

SECRETARY
Ir. Hamzah bin Hashim

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 INGENIEUR
9

CONTENTS

5 President’s Message Do You Know?

6 Call for Articles 25 Environmental, Social,
Governance (ESG)
High Achievers
Pilot Project
7 Ainil Asyikin – Multi
Perspective Engineer 29 Carbonisation Technology
Assessment – Environmental
Cover Feature Management & Sustainability in
the Oil and Gas Industry
9 ESG in the Engineering
Realm – Malaysian Feature
Perspective with Global
Significance 36 Safety & Health – Towards
Formation of a Safety-Centric
15 Energy Sector – Significant Workplace Culture
Strides In Achieving SDGs
45 Personal Perspective
20 Electric Vehicles – Towards – Untapped Blue Carbon
a Greener and Sustainable Opportunity
Transportation Network

48 20

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 48 Trends – Communication 60
Technology for Future
Generations

As I See It
52 Versatile Tricycle Pickups in Rural
China
57 Iconic Lisbon Tram

Report
60 Getting Started with ESG 29
63 Social and Governance Elements
under ESG
67 Challenges to Achieving Carbon
Neutrality
71 What Others Say About
Environmental, Social,
Governance

Heritage Corner
36
76 Fenghuang – Tujia Stilted
Building Construction

Engineering Nostalgia
80 Batu Gajah Steam Power Station
at Tanjung Tualang, 1953

52 80
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 PRESIDENT’S MESSAGE
Environmental,
Social,
Governance

Environmental, Social, Governance or ESG is no the engineering industry in adopting it. The article
more a buzzword but rather a requirement for on ESG in the Engineering Realm- Malaysian
relevancy and sustainability in the new business Perspective with Global Significance provides an
environment. insight into the three ESG pillars of environment,
The Ministry of International Trade and social and governance which are intricately woven
Investment or MITI launched the National Industry into the fabric of engineering. In particular, it
Environmental, Social and Governance Framework emphasises the environmental nexus covering
(i-ESG Framework) in October 2023. Its objective optimised resource utilisation, energy efficiency,
is to accelerate the transition towards sustainable waste management and pollution treatment.
practices among manufacturing companies, with The delicate balance between operation
four key pillars - standards, financing, capacity and maintenance of Large Scale Solar (LSS)
building, and market mechanisms - supported farm which are faced with the nuisance of bird
by 17 strategies, 50 deliverables, and six key droppings by studying and analysing the behaviour
enablers. Meanwhile, Bursa Malaysia also of the birds and working in collaboration with avian
unveiled the Bursa Malaysia ESG Reporting NGO for solutions reflects the spirit of SDG Goal
Platform in 2023 for listed companies. 17. The painstaking process and solutions are well
The above messages are clear signals for documented in the article by TNB Renewables on
the engineering fraternities and the Engineering Energy Sector’s Significant Strides in achieving
Consultancy Practices (ECP) to embark on ESG SDGs.
early to gain an early foothold on this new trend to Taking cognisance of the emphasis on ESG
stay relevant. It is even more important for those in the newly launched New Industrial Master
involved in the manufacturing and construction Plan 2030 (NIMP 2030), I urge all engineering
industries with the increasing global pressure and fraternities to start the journey early in this respect
drive to adopt ESG in their practices. to stay ahead in the engineering industry.
ESG as the driving force may be usually
associated with financial sectors, policy makers Datuk Ir. Ahmad Redza bin Ghulam Rasool
and social activists; the call for ESG resonates in President, BEM

5
 INGENIEUR

VOL.96

The Ingenieur is published quarterly by the Board of

OCTOBER-DECEMBER 2023

Engineers Malaysia. The following are the themes

ANNOUNCEMENT

for the coming issues.

Health, • Vol. 98 April-June 2024

Engineering & Law
Safety and
Environment • Vol. 99 July-Sept 2024
Agriculture Engineering

• Vol. 100 Oct-Dec 2024

VOLUME 100 - The Centennial

Articles and other contributions relevant to the

themes are welcomed, but the decision to publish
rests with the Editorial Board.

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Ainil Asyikin –
Multi-Perspective Engineer

HIGH ACHIEVERS
K
elantan-born Ainil Asyikin exhibits keen
intellect, inner drive and positive attitude.
She took the limelight in 2022 when she
graduated from Princeton University with a BSc
in Mechanical and Aerospace Engineering. On
top of this, the young engineer won an award for
undergraduate research in defect detection. She
sees engineering as interesting science where she
can be creative with both hardware and software.
In an online interview from New York with The
Ingenieur, Ainil comes across as a well-rounded,
confident and enterprising engineer.
Ainil says she has a natural inclination to find
out how things work. Her interest in machinery
and working moving parts started early. Her father,
an engineer, exposed her to tools and mechanical
parts from young. She is fortunate that both
parents were supportive and encouraged her to
find solutions to achieve what she wants.
Her academic excellence shone in secondary
school. At the MARA Junior College of Science
in Pengkalan Chepa, Kelantan, she scored 9A+
in the SPM. This led her to a scholarship to take
up the pre-U International Baccalaureate (IB) Ainil Asyikin
diploma in New Mexico, US. Ainil notes that the
two-year IB diploma course was very stimulating students. For instance, many of her peers have
as the subjects were inter-disciplinary and global- vast learning resources. “They could have already
focused. “We learn History of the World, World mastered Coding level 10 while you have to start
Wars, Sciences, Arts,” she elaborates. It opened from scratch,” she illustrates. Adopting the right
her mind to multi disciplines in her pursuit of attitude, Ainil acknowledged the circumstances
knowledge. Her research skills were also honed in and told herself not to compare herself with
one of the IB programmes called Extended Essay. others.
Her good results paved the way to enter the On the other hand, she finds that Princeton
prestigious Princeton University. The Ivy League University opens doors to the ‘real world’ as
university is one of the world’s foremost research students get to hear from prominent speakers
universities. It enrols about 1,500 students a from renowned corporations like Tesla and Nasa.
year and the acceptance rate for international “We are not in a bubble setup; it helps to hear
students is reported to be only 6%. How is it like people from industry, how they grapple in the
to study in an Ivy League institution? Ainil reveals real world.” After graduation, she acknowledges
that it is highly competitive because of well-heeled that the Princeton name has a lot of alumni and

7
 INGENIEUR
networking value.
Studying in a foreign country, Ainil shares that
she had a fair share of communication issues.
Early on, the differences between American and
Malaysian communication styles put her in a spot.
She resorted to asking and observing others. It
took some time for her to make people understand
what she was trying to put across. “I asked a lot
and observed others on how they explain complex
ideas by breaking them down into simple terms,”
she reveals. Eventually, she picked up skills on
intellectual conversations, argument and analysis.
Why did she choose to study Mechanical
Engineering? She sees Mechanical Engineering
as a foundation of a lot of engineering or what she
terms as the ‘build right function’. She does not see
engineering as ‘cut and dry’ but an exciting science
which you can apply and do fun things. At Princeton, Ainil and her family at her graduation in Princeton
she says she enjoyed her projects studying trains,
rockets and robots. She sharpened her interest Ainil’s present job is with Palantir Technologies,
in engineering by learning both hardware and a public-listed American company based in New
software, enjoying the creative use of Artificial York. She is involved in various aspects of the
Intelligence (AI), robotics and data analysis. telecommunications sector such as network,
“You must not be microscopic in engineering,” technology and finance. On why she did not work
she declares, “but be more comprehensive and in the aerospace industry, she explains that
zoom out when trying to solve problems.” This there are few opportunities for foreigners due to
was the principle she applied while doing her stringent US security clearances.
undergraduate research. Ainil says her thinking After work, Ainil unwinds with hobbies like
cap covers many perspectives — engineering, reading, running and dancing. She is an avid
maintenance, design and industrial production. reader. “I love to read, fiction and non-fiction. I can
Her research project evolved around how to detect distil content to a few main points,’ she remarks.
and solve defects in production without stopping Continuously improving herself, she has joined a
machines. The findings in Automated Defect Design Thinking Society to learn about innovation
Detection: An end-to-end Pipeline From Data to and transformation.
Deployment earned her the Donald Janssen Dike For the future, she has set her sights on a
Award for Excellence in Undergraduate Research. higher goal. She plans to obtain a Master’s degree
Following this, she was nominated to be a member in Public Policy and do some policy work. Her
of Sigma Xi, a scientific research honour society rationale is that many society problems can only
founded in 1886. Sigma Xi chapters are found be solved with the right public policies.
at many colleges and universities, Government On her advice for aspiring engineers, she calls
laboratories and industry research centres around on them to be their own agent of change. They
the world. More than 200 Nobel Prize winners should decide on the incremental habits that will
have been Sigma Xi members. improve themselves and these habits will lead
Be side s mechanic al and aerospace to a brighter future. “While you are still young
engineering, the pragmatic Ainil took a minor in and exploring your reality, be open to consuming
Entrepreneurship in her degree. This secondary the opportunities around you. Grow curious, fix
specialisation augurs well for the young engineer. your relationship with learning, and never put a
“It comes hand in hand, knowing how to make glass ceiling for yourself in a world already full
things that people want to buy, how to make it of adversities. Your only limit is the one that you
affordable, saleable and scalable,” she explains. impose on yourself.” - Inforeach

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ESG in the Engineering
Realm – Malaysian

COVER FEATURE
Perspective with Global
Significance
By Dr Nik Meriam Nik Sulaiman
Honorary Professor, Universiti Malaya.

Ts. Raja Shazrin Shah bin Raja Ehsan Shah

Managing Director, Galaxy Tech Solutions (KL) Sdn Bhd

I
n this inter-connected age, ESG, encapsulating engineering, requiring these key builders of society
Environmental, Social, and Governance to embrace and adopt these principles.
elements, has emerged as an indomitable force
guiding organisational operations and strategies
across the globe (refer to Figure 1). This powerful Defining the ESG Pillars
triad, while usually associated with financial
sectors, policymakers, and social activists, is no Environmental: This segment is the guardian of
longer confined to these domains. The clarion our planet, addressing everything from urgent
call of ESG resonates profoundly in the world of climate change issues and carbon footprint

Figure 1: Regulations on ESG in selected countries.

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 INGENIEUR

Figure 2: The role of engineers in ESG.

reduction to efficient resource utilisation and ESG? The answer lies in the engineers’ vital role
management of residuals, whether in the air, as the architects of tomorrow’s development on
water, or land. The overarching goal is clear: our a scale ranging from nano-size to the obvious,
current actions must not jeopardise the Earth’s influencing everything from micro-electronic
future ecological balance. components to expansive infrastructure projects,
Social: This pillar is humanity’s advocate. It including those helmed by Malaysian giants like
underscores the importance of safeguarding the Petronas, Sime Darby, and TNB, to name a few.
rights, health, and well-being of all stakeholders, The choices engineers make in design, material
whether it is the conditions for factory workers, selection, methodologies, and technologies
the impact on residents near major infrastructural cast long shadows on the environment, society,
projects, or the end-users of a particular and the ethical fabric of all projects. One should
innovation. The emphasis is on fostering vibrant also include the impacts of projects that involve
communities culminating in universal value the service sector, such as handling of gaseous
creation. emissions, wastewater, and solid wastes.
Governance: A silent but steadfast For engineers, especially those influencing
pillar, governance focuses on the ethical decisions in large entities, integrating ESG is no
frameworks guiding organisational decision- longer a mere option—it is an imperative. It is
making. It champions transparency, ethics, and not just about constructing the next skyscraper
accountability, ensuring that operations are or designing the next tech innovation; it is
equitable and mutually beneficial. about ensuring that these creations resonate
with sustainability, inclusivity, and ethical
considerations (refer to Figure 2).
Engineering and ESG: An Inextricable While ESG might seem like a modern
Bond catchphrase for now, it actually symbolises
timeless concerns: holistic, sustainable, and
Why, one might ask, should engineers, ethical considerations. For engineers in Malaysia
traditionally associated with design efficiency, and within the larger ASEAN canvas, this means an
structural integrity, and safety, pivot towards evolution in thought, a widening of horizons, and

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a dedication to crafting solutions that transcend Waste Management and Industrial Effluent
mere functionality to embody sustainability, Treatment: Residues, more commonly termed
inclusivity, and ethical integrity. wastes, are the inevitable by-products of human
civilisation but their management need not be
a detriment to the environment. Engineers are
ESG Processes: The Engineering pioneering solutions to minimise waste generation
Intersection at the source, champion recycling initiatives, and
ensure safe and environmentally-friendly waste
The pillars of ESG are intricately woven into the disposal. A critical area here is the management
fabric of engineering. As we embark on this of industrial effluent. Effective treatment systems
exploration of their intersection, it becomes are being engineered to ensure that industrial
evident that engineering processes extend beyond wastewater is treated to meet stringent regulatory
constructing or creating; they inherently influence standards before release, safeguarding aquatic
and are influenced by the broader tenets of ecosystems and preventing groundwater
sustainability encapsulated within ESG. contamination. Similar considerations should
be developed to cater to the management of
THE ENVIRONMENTAL NEXUS emissions into the atmosphere while solid waste
The environment is not just a backdrop but a management provides more fertile opportunities
principal character in the narrative of engineering. for innovations using green technology-based
Its preservation, conservation, and sustainable solutions. Increasingly, future innovations and
utilisation of nature’s resources lie at the core research should take inspiration from nature for
of engineering decisions in determining the solutions.
environmental footprint of their projects. Here is
how this unfolds in specific areas: THE SOCIAL LINK
Resource Utilisation: Engineers are the final Engineers are also responsible for shaping the
arbiters when it comes to selecting materials. This social landscape. Their creations directly impact
decision extends to not just picking those that fit communities and can either foster or hinder social
the purpose, but also ensuring that their sourcing development.
is sustainable and that they can be recycled or Safety and Well-being: From ensuring robust
upcycled, and circularity is considered early in and safe infrastructure to developing technologies
the project. For example, in urban infrastructure that improve quality of life, engineering solutions
projects, opting for green construction methods directly affect societal well-being.
and sustainable materials is no longer an Inclusivity: It is within the realm of engineers to
exception but increasingly the norm. develop inclusive designs that cater to all sections
Environmental Impact Assessments (EIA): of society, be it accessible public transportation
Before major projects see the light of day, a systems or technology solutions that bridge digital
detailed EIA becomes inevitable. Engineers, divides.
alongside environmental specialists, assess Community Impact: Major projects, especially
potential impacts and provide mitigation infrastructural ones, can reshape communities.
strategies, ensuring projects do not leave Engineers have a responsibility to foresee,
undesirable consequences on the environment. An mitigate, and communicate potential disruptions
EIA exercise involves a comprehensive evaluation or benefits to these communities.
that can dictate the trajectory of projects.
Energy Efficiency: Engineers today are GOVERNANCE AND ENGINEERS
leveraging cutting-edge technology to craft While governance is often viewed through the
systems that are not only functional but also prism of boardroom decisions, it also permeates
optimise energy use. Whether it’s designing engineering in various ways:
energy-efficient buildings that conform to green Ethical Decision Making: Engineers face
building standards or devising power grids numerous decisions where ethics come into
equipped with smart technology to curtail energy play. It could be choosing between cost-effective
losses, efficiency is the watchword. materials versus sustainable ones or addressing

11
 INGENIEUR
potential design flaws that might have safety these gaps, contextualising them within the
implications. Malaysian and wider ASEAN frame, and explore
Transparency: In this age of information the potential avenues for engineers.
explosion, stakeholders demand clarity and
integrity of information made available to them. RAPID URBANISATION & SUSTAINABLE
Engineers, thus, need to ensure they communicate INFRASTRUCTURE
designs, impacts, risks, and benefits transparently. Malaysia, like much of other ASEAN member
Accountability: Engineering is a discipline nations, is witnessing rapid urbanisation. Cities like
where mis t ake s c an have signif ic ant those within Wilayah Persekutuan (Kuala Lumpur),
repercussions. Governance in engineering Selangor, Johor and Penang are expanding at
emphasises responsibility, ensuring designs and unprecedented rates. While this growth presents
implementations adhere to the highest standards. numerous opportunities, it also poses challenges
in terms of sustainable infrastructure. The gap
here is in creating sustainable urban environments
Malaysia and ASEAN in the ESG that are resilient, green, and inclusive for its urban
Engineering Context population.
Engineers can pioneer designs that optimise
In the Malaysian and the broader ASEAN scenarios, energy consumption, minimise waste, and
where rapid industrialisation and urbanisation incorporate green spaces. Adopting rainwater
are juxtaposed with rich biodiversity and cultural harvesting in high-rises, using solar devices
diversity, the role of engineers in shaping and designing urban transport are some doable
sustainable futures becomes even more critical. choices which should be made mainstream at
The Petronas Twin Towers, an architectural marvel, affordable prices.
not only showcases engineering prowess but also
embodies advanced energy and environmental INCREASING ENVIRONMENTAL THREATS
design principles. Similarly, Malaysia’s LRT and The region faces escalating environmental threats
MRT systems, while being feats of engineering, from both natural and anthropogenic causes,
also cater to the larger societal goals of reduced resulting in the escalation of disasters such as
traffic congestion, lower emissions, and enhanced floods, landslides and biodiversity losses in both
public transport accessibility. land and marine sectors.
In essence, ESG is not a parallel track running Engineers have the expertise to design systems
alongside the engineering journey; rather it is the to cater for disaster-related events. Under normal
same track on which the journey is set. It is the conditions, there are numerous needs for better
lens through which modern engineering must be machinery and processes that can be developed
viewed, ensuring that every brick laid, every circuit to reduce impacts and conserve the environment.
designed, and every system implemented is aligned Sustainable logging machinery that reduces tree
with the broader vision of a sustainable future for wastage or innovative irrigation systems that
all stakeholders leading to a better quality of life. optimise water use for agriculture are some prime
examples.

Recognising the Gaps: Opportunities for SUPPLY CHAIN COMPLEXITIES

Engineers in ESG Big companies like Sime Darby and Petronas
have vast and intricate supply chains. Ensuring
The realm of ESG is vast, and while many sustainability throughout these chains, especially
companies and sectors have made strides in when dealing with suppliers from diverse geographies
integrating its principles, there are still pronounced and regulatory environments, is challenging. At the
gaps that should be addressed. Recognising these same time, there is a need to help the SMEs as they
gaps goes beyond pinpointing shortcomings but form a vital part of the supply chain.
also uncovering opportunities where engineers Engineers can develop monitoring and
can lead and innovate. Here, we will delve into analytical tools that track the sustainability

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metrics of various supply chain components, professional practices in the field and is rooted
ensuring that suppliers adhere to the company’s deeply in the education and training of future
ESG benchmarks. engineers. Malaysia, with its recent introduction
of the i-ESG framework, has not only provided a
TECHNOLOGICAL ADVANCEMENTS & structured path for industries but has underscored
SUSTAINABILITY the importance of embedding these principles
With the advent of Industry 4.0, there is an right from the grassroots, namely our educational
explosion of technological possibilities, from AI to institutions.
IoT. There is a dire need to leverage these for ESG
purposes. As immediate examples, engineers, with THE CURRENT EDUCATIONAL LANDSCAPE
their grasp of technology, can lead in integrating AI Traditionally, engineering education in Malaysia is
for energy management or using IoT for real-time focused predominantly on technical competencies.
monitoring of industrial emissions. While these are undeniably vital, there is a growing
realisation of the importance of sustainability
REGULATORY DIVERGENCE in the curriculum. However, the integration of
ASEAN, with its diverse member states, often sustainability into many technical-based curricula
has divergences in environmental and social has been gradual, with many institutions still in
regulations. What is permissible in one country the infancy stages of this inclusion.
might be frowned upon in another.
Engineers, especially those working on WHY SUSTAINABILITY IN ENGINEERING
transnational projects, can standardise operations CURRICULA IS NON-NEGOTIABLE
to the highest ESG standards, ensuring that projects With Bursa Malaysia’s Third Reporting Guideline,
not only meet but exceed local regulatory mandates. Securities Commission Malaysia’s Simplified ESG
Disclosure Guideline, and the launch of the i-ESG
RESKILLING & UPSKILLING CHALLENGES framework by the Ministry of Investment, Trade
As industries shift towards more sustainable and Industry, the message is clear: sustainability
operations, there is a pronounced skill gap to meet is no longer a choice; it is an imperative. Engineers,
the demands of an organisation’s sustainability as the backbone of industrial and infrastructural
programme. Existing workforces, including development, play a pivotal role in actualising
engineers, often find themselves needing to Malaysia’s green goals. This responsibility begins not
upskill and re-skill in this area. on the job but in the classroom. By embedding ESG
Engineers can lead in developing training principles into engineering curricula, we ensure that
modules, courses, and workshops focusing on the our future engineers do not just view sustainability as
integration of ESG in various industrial processes. an add-on but as an integral part of their profession.
The gaps in the current ESG landscape are The i-ESG framework further augments this
not mere challenges; they are opportunities movement. With initiatives like i-ESGReady
waiting to be harnessed. Engineers, with their and i-ESGStart, there is a clear roadmap for
unique blend of technical prowess and problem- institutions to incorporate sustainability into their
solving capabilities, are positioned to not just fill courses, ensuring that their graduates are not just
these gaps but to innovate, setting new industry industry-ready but future-ready.
standards and shaping a more sustainable
ecosystem at national and regional levels. THE CONTINUOUS LEARNING CURVE
Sustainability, given its evolving nature, is not a
one-time lesson but a continuous learning curve.
Cultivating Green Talent: Confluence Practising engineers need to remain updated on
of the ESG Framework and Engineering the latest ESG practices. Professional bodies, in
Education tandem with the Government, can facilitate this
through workshops, seminars, and certifications,
The intersection of engineering and ESG is ensuring that our engineers remain at the forefront
undeniable. Yet, this merger extends beyond of sustainable innovation.

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 INGENIEUR
The Engineer’s Role in Shaping the ESG In this evolving narrative, Malaysia and the
Landscape wider ASEAN region have a story to write, one
that is rich with opportunity and innovation. As
Navigating the complexities of the 21ST century, the this region’s dynamism continues, the appetite
harmonisation of engineering with ESG stands out for sustainable infrastructure and technology
not as an option but as an intrinsic necessity. It is will burgeon. With engineers who are attuned to
evident that the role of today’s engineer stretches the ESG ethos, ASEAN is not merely on the cusp
beyond mere technical constructs, but seamlessly of change but has the potential to script a new
extends into environmental conservation, societal chapter in global sustainability.
welfare, and transparent governance.
Engineers occupy a pivotal juncture:
the nexus where ideas metamorphose into Concluding Remarks
reality and where visions manifest as tangible
outcomes. From this unique vantage point, they Engineers stand on the precipice of a paradigm
have an unmatched potential to sculpt projects shift, armed with the tools and knowledge to
and industries in a manner that imprints mould a sustainable future. It is more than just a
sustainability onto the very fabric of our built role; it is a deep responsibility. In their decisions lie
environment. Engineers now must internalise the echoes of a future yet to unfold: will it be one of
these ESG principles, making them an inherent missed opportunities or visionary transformation?
part of their professional DNA. The answer begins with the choices made today.

TAKE A FRESH LOOK

AT SEWAGE TREATMENT PLANT
AICR Technology
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Odor Level Minimal Quantity of Sludge Minimum Area Usage

AICR Extended
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The system could be extended for treatment of various types of
Uses Natural Conditions and Organisms
industrial wastes
Use Only Biological Processes, No Chemical Processes
Food/Seafood Leachate
Does Not Involve High Electricity Consumption
Soft Drinks Manufacturing Slaughter House
Consume Low Energy During Treatment Process Food/Seafood Processing Hospital Waste/Effluents
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[email protected] Ir Hj Saniman B Mail +6012 – 289 6369

Muhammad Amin B Saniman +6014 – 911 0483
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Energy Sector - Significant
Strides In Achieving SDGs

COVER FEATURE
By Ir. Ts. Dr Wan Syakirah Dato’ Wan Abdullah
Head of Business Development, TNB Renewables
Muhammad Nazry Chik
Head of Asset Management, TNB Renewables
Curie Navita Santhira Mogan
University College London

T
he Sustainable Development Goals (SDGs) sustainable energy solutions. As we strive towards
established by the United Nations in 2015 a greener future through the advancement of
serve as a global framework to address large-scale solar plants, biomass plants, and
the 17 pressing issues affecting people and hydroelectric plants, we must contemplate their
the environment. These goals cover a wide potential impact on the delicate ecosystem and
range of issues, including affordable and clean devise sustainable solutions to mitigate any
energy (Goal 7), climate action (Goal 13) and disruptions they may pose.
the protection of life on land (Goal 15). Through Through the e st ablishment of TNB
dedicated efforts and the widespread adoption Renewables Sdn Bhd (TRe), TNB aims to grow
of sustainable practices within the Energy renewable energy in the local market through the
Sector, we can strive to preserve biodiversity development of Large-Scale Solar (LSS) farms,
whilst accelerating the move towards accessible capable of generating more than 30MW of power
green energy and decarbonisation. These efforts [2]. At present, Malaysia has only a 2% renewable
promise a future teeming with biodiversity, and energy penetration, mainly contributed by solar
the survival of species like the Gastric Brooding [2]. As TRe strives to expand its reliance on solar
Frog. This article explores the efforts of the energy energy, a significant challenge arises in balancing
sector in achieving the SDGs and emphasises the uninterrupted supply of energy with the
the importance of preserving biodiversity and preservation of ecosystems and wildlife.
protecting wildlife habitats, aligning particularly
with SDG Goal 15: Life on Land.
Malaysia’s energy sector has made remarkable TNB Sepang Solar
strides in the pursuit of Goals 7 and 13. Currently,
23% of Malaysia’s energy mix is derived TNB Sepang Solar (TSS) is a remarkable
from renewable sources, notably hydropower achievement for TNB as it actively supports
generation [1]. Moreover, the country is on track Malaysia’s pursuit of sustainable energy while
to reach an impressive 31% contribution from upholding Goal 15. This ground-mounted solar PV
renewables by 2025. Companies such as Tenaga park, owned entirely by TNB Renewables, boasts
Nasional Berhad (TNB) have demonstrated an an impressive capacity of 50MW. Covering an
unwavering commitment to bolstering Solar expansive area of 98 hectares and featuring over
Energy production, capitalising on Malaysia’s 230,000 solar panels, the development of TSS
advantageous equatorial location. Benefiting represents a significant leap towards a greener
from solar irradiance ranging from 1575 to 1812 future. One notable aspect of TSS is its strategic
kWh/m2 yearly [1], Malaysia continues to harness location amidst a vast palm oil plantation. This
its natural resources effectively in its quest for positioning has allowed the solar plant to be

15
 INGENIEUR
established without causing substantial disruption Renewables aims to pave the way for sustainable
to the natural habitat and wildlife in the area, solar energy expansion.
including bird populations. By carefully considering
the ecological impact, TSS sets a positive example
for harmonising renewable energy expansion Collaboration with SARANG
with environmental preservation. Moreover,
the accessibility of TSS adds to its significance. In a collaborative effort with SARANG, an NGO,
Situated only one hour away from the capital city, an extensive three-month study was undertaken
Kuala Lumpur, and approximately half an hour to identify and document the diverse bird
from Kuala Lumpur International Airport, the solar species inhabiting the area surrounding TSS.
farm is easily accessible for visitors and investors This collaboration with seasoned professionals,
who wish to observe its operations firsthand. who have dedicated years to studying avian life,
This proximity facilitates convenient viewing reflects the spirit of SDG Goal 17: Partnerships
opportunities, promoting awareness and interest for the Goals. This partnership demonstrates
in sustainable energy initiatives. the power of collective action and collaboration
In addition to the strategic positioning of TSS, in addressing environmental challenges. This
TNB Renewables understood that the selected collaborative effort also aligned with SDG Goal
area had no existing bird populations. This 15 as it provided invaluable insights and a
knowledge guided their careful site selection comprehensive understanding of the wildlife
process, ensuring minimal ecological disturbance. species present within the vicinity of TSS.
However, approximately two years ago, TSS
started to notice an increase in bird activity at the
site, likely due to the presence of food sources Migratory and Resident Bird Species
near the detention pond and the peaceful
environment. While this indicates the potential A total of 28 bird species were observed in the
for a thriving habitat, it also poses challenges vicinity of TSS, comprising three migratory species
for the solar energy systems implemented. Bird and 25 resident species, each with its own
droppings can obstruct sunlight, leading to a significance and conservation status. Examples of
reduction in panel performance by approximately these birds are listed in Table 1.
7.4% [3]. Additionally, these droppings may These birds play impor tant roles in
contain uric acid that could potentially damage maintaining the balance of local ecosystems.
the solar cells. As TSS strives for decarbonisation For example, the Spotted Dove and Zebra Dove
and sustainable energy solutions, it becomes play a vital role in seed dispersal as they feed
crucial to explore strategies that will effectively on various fruits and disperse the seeds through
address the impact of bird droppings on solar their droppings, whereas the Black-winged Kite
panels while ensuring the preservation of bird and Brahminy Kite act as predators, controlling
populations. rodent populations. The Lesser Coucal,
Fortunately, bird droppings are currently Eurasian Tree Sparrow and Pacific Swallow help
not a concern at TSS. However, it is essential maintain the balance of the local ecosystem by
to acknowledge that this situation may change consuming insects. As for the migratory birds,
over time. TNB Renewables has taken proactive their migratory patterns allow them to access
measures to comprehend the local ecology and optimal breeding sites, find ample food sources,
bird species inhabiting the area to ensure improved and avoid unfavourable weather conditions,
management of future solar projects and address ultimately ensuring their survival and successful
potential challenges. This understanding equips reproduction. Recognising their importance on
them with the necessary knowledge to develop the overall health and resilience of the ecosystem
viable solutions that strike a balance between and understanding their conservation status is
mitigating bird droppings’ effects and preserving crucial for implementing effective measures to
avian populations. Prioritising both clean energy protect and sustain these valuable ecosystems
goals and ecological considerations, TNB for future generations.

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 Resident Species Migratory Species

1. Chinese Pond Heron 1. Pheasant Tailed Jacana

2. Black-winged Kite 2. Lesser Whistling Duck
3. Brahminy Kite 3. Long Tailed Shrike
4. Eurasian Tree Sparrow
5. Barn Swallow
6. Pacific Swallow
7. Zebra Dove
8. Spotted Dove
9. Lesser Coucal

Table 1: Migratory and resident bird species found in TNB Sepang Solar plant

The birds at TSS provide not only ecological One significant outcome of this collaboration
services but also recreational and aesthetic was the debunking of a prevailing myth that
value to visitors, particularly birdwatchers. By birds are attracted to solar panels due to their
showcasing the beauty and diversity of these resemblance to water, causing them to dive into
avian species, TSS has the potential to become the panels. Contrary to popular belief, SARANG’s
a hub for observing and learning about local expertise revealed that birds are much smarter
birds, fostering curiosity, and inspiring further than to mistake solar panels for water. This
exploration and education about clean energy revelation opens new avenues for research at TNB
practices. This engagement with the captivating Renewables because it allows them to shift their
birds at TSS enhances the visitor experience and focus towards exploring the actual factors that
catalyses raising awareness and mobilising more influence bird interactions with solar installations,
individuals to actively support the achievement such as the physical characteristics of the solar
of the Sustainable Development Goals, thus farm or any environmental factors. In addition,
propelling progress towards a sustainable future. SARANG also shed light on the habitat preferences
The three-month study conducted to document of local bird species. For example, the observation
bird species at TSS was an important endeavour to that owls did not utilise the previously installed
understand the local avian biodiversity. However, it birdhouse revealed the importance of providing a
is essential to note that the study primarily focused variety of nesting options. This new understanding
on identifying and documenting bird species paves the way for an improved biological approach
rather than quantifying their specific impact on to rodent populations within the solar farm, as well
ecosystem balance. Consequently, information as contributing to bird conservation strategies
regarding the number of seeds dispersed by the which would cater to the diverse needs of the local
birds or the extent to which they control insect or bird populations.
rodent populations was not determined. While the Given the uncertainties surrounding the
study provided invaluable insights into the diverse potential impact of purposely creating a
bird species present at TSS, further research conducive environment, particularly in light
and studies would be necessary to quantitatively of a previous instance where an abundance
assess the precise contributions of these bird of sparrows negatively affected transformer
populations to the ecosystem’s overall balance. operation at another TNB site, a cautious

17
 INGENIEUR

Chinese pond heron, one of the resident species in TNB Sepang Solar plant

approach is warranted. A thorough evaluation of a slightly higher efficiency. By adopting these

the advantages and disadvantages of establishing efficient solar technologies, TNB Renewables
such environments specifically tailored to TSS’ demonstrates its commitment to improve with
needs should be undertaken. By conducting a each new plant development in both sustainable
comprehensive analysis, accounting for lessons energy production and the preservation of natural
learned from past experiences, and considering habitats, aligning with the objectives of SDG 15.
appropriate mitigation strategies, we can make Moving forward, it is essential to explore further
informed decisions regarding the establishment advancements in solar technology to scale down
of bird habitats that strike a balance between the land area required for future solar installations.
promoting bird populations and safeguarding the The National Renewable Energy Laboratory (NREL)
smooth operation of our facilities. has made significant progress in fabricating six
Target 15.5 of SDG 15 also highlights the junction solar cells with an efficiency of almost 50%,
urgency to reduce deforestation, protect natural suitable for concentrated solar photovoltaics [5].
habitats, and halt biodiversity loss. In line with this However, further studies are needed to assess the
goal, TNB Renewables has been actively seeking feasibility of adopting these technologies within the
more efficient solutions, particularly by prioritising Energy Sector in Malaysia. By continuing to explore
the development of large-scale solar plants that and integrate enhanced technologies, Malaysia
occupy a minimal land area. An example of such can continue its journey towards a greener future,
a plant is TSS, which was established in 2018 further minimising land usage while maximising
and utilises poly-crystalline silicon PV cells with energy efficiency and conservation efforts in line
an efficiency of approximately 17% [4]. This choice with SDG 15.
strikes a balance between cost-effectiveness
and efficiency, making it a suitable option for
the project. Moreover, TNB Renewables’ newer Agrivoltaic Systems
LLS plants, TNB Bukit Selambau Sepang (TBSS)
and TNB Bukit Selambau Sepang 2 (TBSS2) As Malaysia’s energy sector expands its portfolio
take this commitment further by employing of solar farms, there is an opportunity to explore
mono-crystalline silicon PV cells, which have the implementation of dynamic agrivoltaic

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systems, which can maximise the efficient use REFERENCE
of land. This initiative not only aligns with SDG
Malaysia Renewable Energy Roadmap. Putrajaya,
Goal 15 to protect biodiversity and ecosystems
W.P Putrajaya, Malaysia: SUSTAINABLE ENERGY
but also offers additional benefits. According
DEVELOPMENT AUTHORITY (SEDA) MALAYSIA,
to a simulation study, the water requirement of
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lettuce was reduced by less than 20% as a result
my/reportal/wp-content/uploads/2021/12/
of the effect of panel shading [6]. Furthermore,
MyRER_webVer-1.pdf
these systems provide job opportunities to
farmers, contributing to SDG Goal 8 by promoting
W. S. W. Abdullah, M. Osman, M. Z. A. Ab Kadir,
productive employment and work for all. Dynamic
and R. Verayiah, “The Potential and Status of
agrivoltaic systems have the potential to bring
Renewable Energy Development in Malaysia,”
up to a 40% increase in profitability for farmers,
Energies, vol. 12, no. 12, p. 2437, Jun. 2019, doi:
providing them with financial benefits [7]. By
10.3390/en12122437.
integrating agriculture and solar energy, Malaysia’s
energy sector can contribute to sustainable land
R. J. Mustafa, M. R. Gomaa, M. Al-Dhaifallah,
use and foster economic development in rural
and H. Rezk, “Environmental Impacts on the
communities, concurrently supporting multiple
Performance of Solar Photovoltaic Systems,”
SDGs.
Sustainability, vol. 12, no. 2, p. 608, Jan. 2020,
doi: 10.3390/su12020608.
Conclusion Canadian Solar, “DOUBLE-GLASS MODULE
DYMOND C S 6 X - 3 1 5|3 2 0|3 2 5|3 3 0 P -
In light of the changing climate and the dynamic
FG, November 2016. https://si-datastore.
nature of local ecology, the energy sector across
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Malaysia must implement a comprehensive
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adaptive management programme, taking example
pdf
from the proactive approach demonstrated by
TNB Renewables. TNB Renewables’ actions to
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identify and document the birds sighted within the
with 47.1% conversion efficiency under 143 Suns
vicinity exemplify their commitment to equipping
concentration,” Nature Energy, vol. 5, no. 4, pp.
themselves with the necessary knowledge for
326–335, Apr. 2020, doi: 10.1038/s41560-020-
developing feasible solutions. By monitoring and
0598-5.
collecting valuable information, including changes
in wildlife behaviour, population sizes, and
Y. Elamri, B. Cheviron, J.-M. Lopez, C. Dejean, and
habitat usage patterns, the sector can contribute
G. Belaud, “Water budget and crop modelling
to the efforts of environmental organisations.
for agrivoltaic systems: Application to irrigated
Establishing partnerships with local research
lettuces,” Agricultural Water Management, vol.
institutions and environmental organisations
208, pp. 440–453, Sep. 2018, doi: 10.1016/j.
would further enhance scientific studies on the
agwat.2018.07.001.
long-term effects of solar plants on the local
ecology, encompassing ecosystem monitoring,
S. Impulse and @solarimpulse, “Dynamic
habitat assessment, and overall ecological health.
Agrivoltaic System - Solar Impulse Efficient
The data obtained from these endeavours would
Solution,” Dynamic Agrivoltaic System - Solar
serve as a foundation for adaptive management,
Impulse Efficient Solution, Mar. 31, 2023. https://
showcasing the energy sector’s dedication to
solarimpulse.com/solutions-explorer/dynamic-
upholding SDG Goal 15 and its commitment to the
agrivoltaic-system
preservation of biodiversity and the protection of
natural habitats.

19
 INGENIEUR

Electric Vehicles - Towards

a Greener and Sustainable
COVER FEATURE

Transportation Network
By Associate Professor Ir. Ts. Dr Wong Shen Yuong
Department of Electrical and Electronics Engineering
Xiamen University Malaysia

A
s the world progresses toward a low-carbon, The race in ASEAN nations in the EV sector
and potentially carbon-free, automotive is intensifying as countries steadily revise and
future, electric vehicles (EVs) are gaining enhance their EV development strategies. In
prominence as an increasingly appealing, and Malaysia, the adoption of EVs has been gradually
eventually cost-efficient, means to achieve gaining attention.
this objective. The current EV penetration rate, Malaysia has outlined a roadmap with
standing at 4% in 2020, is anticipated to surge to initiatives to support the development and
20% by 2025, 50% by 2030, and surpass Internal adoption of EVs through the National Automotive
Combustion Engine Vehicles (ICEVs) in sales Policy (NAP). The “NATIONAL TRANSPORT POLICY:
from 2035 onward. Figure 1 shows the EV sales 2019-2030”, released by the Malaysian Ministry
worldwide [1]. of Transport, clearly states the objective of

Figure 1: Worldwide Electric Vehicle Sales [1]

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harnessing the technological power of Industry regulator for the energy sector, and the process
4.0 to create a transportation system [2]. Besides, for licensing EV charging point operators (CPOs).
“LOW CARBON MOBILITY BLUEPRINT: 2021- Furthermore, KPKT, the Ministry of Housing and
2030” also highlights GHG emissions and energy Local Government, has developed guidelines for
reduction via electric vehicle adoption [3]. The EV charging bays.
“NATIONAL ENERGY TRANSITION ROADMAP” has In Malaysia, the EV market primarily consists of
pinpointed green mobility as a pivotal catalyst for a range of vehicles, including:
transformation [4]. Electric vehicles are propelling ● Plug-in Hybrid Electric Vehicles (PHEVs)
countries toward a more environmentally friendly combine Fuel and Electric Power. PHEVs
future, and Malaysia has established the use both an internal combustion engine
necessary groundwork to implement a low-carbon and an electric motor powered by a
transportation system. rechargeable battery. Typically, they offer a
The Ministry of International Trade and limited electric-only range before switching
Industry (MITI) has set up the National EV Task to the combustion engine.
Force (NEVTF) to encourage EV adoption, expand ● Battery Electric Vehicles (BEVs) are fully
the nationwide EV charging infrastructure, and electric vehicles. They operate solely on
stimulate investments within the EV ecosystem electricity stored in rechargeable batteries,
[5]. Additionally, MITI has initiated the National EV producing zero tailpipe emissions. Different
Steering Committee (NEVSC) under the umbrella models offer varying ranges per charge,
of the NEVTF. This committee is dedicated to from shorter ranges suitable for city
accelerating the advancement of Malaysia’s commuting to longer ranges for extended
energy-efficient vehicle (EEV) ecosystem. travel.
The NEV TF has spearheaded promising ● Hybrid Electric Vehicles (HEVs) combine
advancements, including TNB’s Greenlane project Gasoline and Electric Power. HEVs utilise
for EV charging stations (EVCS), the formulation an internal combustion engine and an
of EVCS guidelines by Suruhanjaya Tenaga, the electric motor, but they cannot be plugged

Figure 2: Types of Electric Vehicles

21
 INGENIEUR
in to recharge. They self-charge via the a healthier environment within cities, leading to
regenerative braking charging of the battery a reduction in chronic respiratory diseases and
while driving, enhancing fuel efficiency. associated medical costs. Widespread adoption of
Malaysia has been taking steps to promote electric vehicles can enhance urban transportation
EVs with Environmental, Social, and Governance systems, alleviate congestion during peak public
(ESG) aspects in mind. transit hours, diminish stress while driving, lower
the use of car horns and reduce the number of
aggressive drivers on the road. In this respect,
ENVIRONMENT the integration of electric vehicles aids in noise
reduction, fostering quieter and more habitable
The widespread adoption of electric vehicles is urban settings.
primarily driven by their ability to significantly The expansion of the electric vehicle industry
decrease carbon emissions. Unlike internal generates job opportunities and propels economic
combustion engine vehicles which are reliant growth. The shift towards EV manufacturing, the
on fossil fuels, electric vehicles operate on establishment of charging infrastructure, and the
electricity, thus minimising direct emissions. The development of associated services stimulate job
shift from internal combustion engines to electric creation and economic development. Notably, the
motors enables the transportation sector to rising demand for EVs has catalysed investments
contribute tremendously to meeting Malaysia’s in manufacturing, research and development, and
ambitious climate objectives, as outlined in global infrastructure deployment. This positive social
accords like the Paris Agreement. Shifts in fuel impact contributes to the overall well-being of
preferences are anticipated, reducing the need communities and fosters inclusive prosperity.
for petroleum products while boosting electricity These investments and the creation of job
demand. These changes are likely to impact the opportunities contribute significantly to local
primary energy mix and play a significant role economies, nurturing inclusive prosperity and
in improving the environmental sustainability of bolstering economic resilience.
the energy sector. EVs’ environmental impact is
further enhanced when powered by renewable
energy sources. Their integration with renewable GOVERNANCE
energy like solar or wind power contributes to a
cleaner and more sustainable energy ecosystem. Regarding governance, the electric vehicle industry
Embracing electric vehicles allows societies to can influence corporate operations positively,
diminish their carbon footprint, combat climate requiring firms to prioritise decisions aligning
change, and strive for a cleaner, healthier with sustainable business models and corporate
environment. With emissions absent from the social responsibility. This empowers investors
tailpipe, EVs substantially mitigate greenhouse and consumers to back environmentally and
gases and air pollution, and reduce reliance on socially responsible companies. Consequently,
fossil fuels. electric vehicles are acknowledged as an eco-
With advances in EV technology, there is a friendly alternative with positive impacts on the
shift towards more efficient battery use, leading environment, society, and governance within an
to reduced resource consumption and waste. This ESG framework.
supports resource conservation and promotes ESG considerations hold pivotal importance
the development of sustainable materials and within the corporate governance practices of
manufacturing processes. the electric vehicle industry. Embracing electric
vehicles and nurturing the growth of this industry
allow stakeholders to actively propel the transition
SOCIAL towards a more sustainable future. Collaborative
efforts among Governments, businesses, and
Electric vehicles yield positive social impacts as individuals are imperative to tackle challenges
they aid in enhancing urban air quality and fostering and capitalise on opportunities presented by

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electric vehicles, ensuring a cleaner, fairer, and
more prosperous world for future generations.
By integrating ESG principles, the electric vehicle
industry can lead the charge toward a greener and
more sustainable transportation landscape.
The automotive safety standard for Electric
Vehicles, ISO 26262, is an international
functional safety standard for the development
of electrical & electronic systems in vehicles on
the road. It explains the criteria necessary for the
safety-critical function of the system, along with
the methods, processes, and tools employed Figure 3: Electric Vehicle charging [9] (Credit:
during the development phase. The standard Getty)
ensures that sufficient levels of safety are being
met and maintained throughout the vehicle Charger Compatibility
lifecycle. Challenge: Incompatibility issues between charge
points and EVs, leading to frustration for users.
Solution: Ensuring universal compatibility or
CHALLENGES providing adapters to resolve connection issues
between charging points and various EV models.
Before we can reap the benefits of an EV
ecosystem, we must first address the primary Electric Vehicle Cost
challenges faced by the EV industry [6] [7]. We Challenge: High initial purchase prices of EVs.
also will provide some measures that can be taken Solution: Review manufacturing costs to make
to overcome them. EVs more affordable; increase competition to drive
down prices.
Range Anxiety
Challenge: Fear of an EV not having enough charge Limited Electric Vehicle Selection
to complete a journey. Challenge: Limited options of EV models available,
Solution: Continuous advancements in battery restricting consumer choices.
technology, increasing ranges per charge; Solution: Rapid expansion in EV offerings by
education on the realistic range for most daily various manufacturers, catering to diverse
trips. consumer needs and preferences.

Charging Infrastructure Green Grid Capacity

Challenge: Insufficient rapid charging points, Challenge: Insufficient renewable energy sources
hindering EV purchases due to concerns about to power the increasing number of EVs.
convenient recharging. Solution: Investments in renewable energy
Solution: Ongoing expansion of public chargers, infrastructure to meet the growing demand;
including fast-charging options; development of advancements in grid technology for more efficient
home and workplace charging points. and sustainable power distribution.

Charging Speed Radiation Concern

Challenge: Variations in charging speeds cause Challenge: Perceived health risks associated with
inconvenience and longer wait times. electromagnetic fields around charging stations.
Solution: Standardisation and clarity in Solution: Continual research and assurance of
charging speeds across different charging safety standards compliance; public education
stations; advancements in ultra-rapid charging regarding the minimal health risks posed by EV
technologies. charging infrastructure.

23
 INGENIEUR
REFERENCE
[1] IEA, Global EV Data Explorer, Data and
Statistics.
h t t p s : // w w w . i e a . o r g / d a t a - a n d -
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CjwKCAiA9ourBhAVEiwA3L5RFix
4vFpWW26P__Dq8m1ewJnL0QE90H2Ep--0_
aowIh8figyu_vlCSRoC4gkQAvD_BwE
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2030- Decarbonizing Land Transportation.
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Water (KASA). First edition, 2021.
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The emergence of the electric vehicle sector soon will Malaysians switch to EVs?
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of Environmental, Social, and Governance
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[9] h t t p s : / / w w w . t h e s u n . c o . u k /
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collaborative efforts among stakeholders across
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diverse sectors to optimise the efficacy of these
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batteries, and vehicle-to-grid technologies. ev-footprint-after-tesla-deal.html

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 that it is ready for the growth of the low-carbon
economy.

Do You
For that, Malaysia has revised its Nationally
Determined Contribution (NDC) to reduce the
intensity of greenhouse gas emissions by 45%

Know?
by 2030 compared to 2005 levels, as part of
the nation’s responsibility towards overall global
climate targets.
The efforts towards achieving Malaysia’s NDCs
have been incorporated into the 12 th Malaysia
Plan and the National Energy Policy 2022 – 2040
(NEP 2040). This policy document strategically

Environmental, charts the way forward and outlines key priorities

for the energy sector in the coming years.

Social, It positions the energy sector as a key

catalyst for socio-economic development, and

Governance (ESG) its progressive Low Carbon Nation Aspiration will

ensure that the Malaysian economy is able to
capitalise on opportunities arising from the energy
By Pang Soo Mooi
transition to remain resilient and sustainable.

ESG adoption is on the rise, fuelled by client

demand and a desire to make an impact. As ESG ESG Global Study – Harvard School
momentum continues to gain steam, investors are
refining and evolving their strategies. The demand ESG integration remains the top implementation
from investors for more ESG transparency and strategy, showing how investors are taking a
accountability, together with regulatory changes holistic approach as they look to comprehensively
around the world, creates a broad range of embed ESG into the investment process.
challenges. This rigorous approach is also evident in the
strong bias towards active strategies. Nearly
two-thirds prefer active funds to integrate ESG.
Bursa Malaysia ESG Reporting Platform Investors therefore want managers to use active
security selection to uncover ESG opportunities
Bursa Malaysia Securities Bhd on December and active ownership to engage and influence
2023 unveiled the Bursa Malaysia ESG Reporting investee companies.
Platform, which will act as a repository for The increasing sophistication of ESG investors
disclosures conforming to the prescribed format can also be seen in their attitude towards the UN
mandated under Bursa Malaysia’s enhanced Sustainable Development Goals (SDGs). Almost
sustainability reporting requirements introduced a third say that the ability to report on specific
on September 26, 2022. According to its chief SDGs is one of the most important elements of
regulatory officer, this puts our listed issuers in fund sustainability reporting — nearly double last
good stead as Malaysia raises the bar for more year’s percentage. Half say the ability to offer the
robust ESG disclosures over the next few years. full spectrum of SDG themes is important when
selecting funds.
Crucially, as investors expand their ESG
Malaysia’s NDC knowledge base, they increasingly recognise that
companies with good sustainable credentials are
The Malaysian Government announced in June more likely to outperform. Fewer investors this
2023 that it is determined to be well-positioned to year point to sacrificing returns as an adoption
play its part in reducing emissions while ensuring hurdle. And more are now investing in ESG

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 INGENIEUR
with the specific and sole remit of generating in and the waste it discharges, the
alpha. Furthermore, investors largely agree that resources it needs, and the consequences
investment returns and sustainable impact go for living beings as a result. Not least,
hand in hand. E encompasses carbon emissions and
As investors become more knowledgeable climate change. Every company uses
and familiar with ESG, they are becoming more energy and resources; every company
cognisant of the challenges. Data challenges affects and is affected by, the environment.
continue to be a critical issue that manifests b) S — social criteria — addresses the
throughout the investment process. Difficulties relationships your company has and the
with the quality and accessibility of data and reputation it fosters with people and
inconsistent ratings are hampering the ability of institutions in the communities where you
investors to adopt, incorporate and implement ESG. do business. S includes labour relations
These issues also present themselves to and diversity and inclusion. Every company
fixed-income investors who identify a lack of operates within a broader, diverse society.
standardisation across ESG bond ratings as the c) G — governance — is the internal system
top barrier. of practices, controls, and procedures
Such difficulties are compounded by the fact your company adopts to govern itself,
that investors face an information overload as make effective decisions, comply with
they swim against a tidal wave of ESG data. the law, and meet the needs of external
It is therefore essential that investors seek stakeholders. Every company, which is
help from active managers who possess the itself a legal creation, requires governance.
specific tools, skill sets and resources to address ESG is an inextricable part of doing business.
these challenges. Using proprietary research Its individual elements are themselves intertwined.
and fundamental analysis, active managers can For example, the social criteria overlaps with the
bypass the problems created by superficial scoring environmental criteria and governance when
systems and a lack of consistent and reliable data. companies seek to comply with environmental
The support of asset managers is paramount laws and broader concerns about sustainability.
as the knowledge paradox plays out — the more The focus is mostly on environmental and social
investors know about ESG, the more they realise criteria, but, as every leader knows, governance
what they don’t know and the more help they can never be hermetically separate. Indeed,
need. Indeed, a third of investors say on-going excelling in governance calls for mastering not
ESG education and training from their employer just the letter of laws but also their spirit, such as
would help with ESG analysis and implementation. getting in front of violations before they occur, or
This skills gap presents an opportunity for asset ensuring transparency and dialogue with regulators
managers to forge closer ties with investors instead of formalistically submitting a report and
through the provision of educational materials and letting the results speak for themselves.
resources.
Five links to value creation
These five links are a way to think of ESG
Five ways that ESG creates value – systematically, not an assurance that each link
Mckinsey will apply, or apply to the same degree, in every
instance. Some are more likely to arise in certain
Business is deeply intertwined with environmental, industries or sectors; others will be more frequent
social, and governance (ESG) concerns. It makes in given geographies. Still, all five should be
sense, therefore, that a strong ESG proposition considered regardless of a company’s business
can create value. model or location. The potential for value creation
A framework for understanding the five key is too great to leave any of them unexplored.
ways it can do so is as follows: a) Top-line growth: A strong ESG proposition
a) The “E” in ESG, environmental criteria, helps companies tap new markets and
includes the energy your company takes expand into existing ones. When governing

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 authorities trust corporate actors, they risk or resilience to climate change and other
are more likely to award them the access, natural hazards. It pays particular attention to
approvals, and licenses that afford fresh the internalisation of environmental externalities
opportunities for growth. created by economic activity. It also accounts
b) Cost reductions: ESG can reduce costs for sustainable energy access and food security,
substantially. Among other advantages, crucial factors for stable long-term economic
executing ESG effectively can help combat growth.
rising operating expenses (such as raw-
material costs and the true cost of water Social
or carbon), which McKinsey research has The Social pillar quantifies the sustainability of
found can affect operating profits by as a country’s economic performance concerning
much as 60%. its efficacy in meeting the basic needs of its
c) Reduced regulatory and legal interventions: population, reducing poverty, managing social
A stronger external value proposition can and equity issues and investing in human capital
enable companies to achieve greater and productivity. This category also includes
strategic freedom, easing regulatory demographic criteria, pertinent to stable long-term
pressure. In fact, in case after case across economic growth.
sectors and geographies, we’ve seen that
strength in ESG helps reduce companies’ Governance
risk of adverse Government action. It can The Governance pillar describes the sustainability
also engender Government support. of a country’s economic performance in the
d) Employee productivity uplift: A strong ESG context of its institutional capacity to support
proposition can help companies attract long-term stability, growth and poverty reduction.
and retain quality employees, enhance This category also accounts for the strength of
employee motivation by instilling a sense a country’s political, financial and legal systems
of purpose, and increase productivity and capacity to address environmental and social
overall. Employee satisfaction is positively risks.
correlated with shareholder returns.
e) Investment and asset optimisation: A
strong ESG proposition can enhance Investors want to hear from companies
investment returns by allocating capital about the value of sustainability –
to more promising and sustainable Mckinsey
opportunities (for example, renewables,
waste reduction, and scrubbers). It can While major investors believe that ESG is
also help companies avoid stranded important, they need greater clarity about the
investments that may not pay off because ESG value proposition. Sustainability aspirations
of longer-term environmental issues. or metrics on a page, without context, are not
sufficient to link initiatives to cash flow. That lack
of clarity presents an opportunity for companies to
Sovereign ESG Data Framework – World make the ESG-to-value case more clearly.
Bank Long-term-minded investors —“intrinsic
investors”—have an outsize effect on stock
The World Bank curates and maintains a wide performance over time. These investors recognise
range of ESG data for policymakers, financial that ESG will affect value, but they always want
market participants and academic researchers. to dig deeper. They seek out granular information
about how specific ESG initiatives can be a source
Environment of growth and which risks are most material to a
The Environment pillar measures the sustainability specific company and its broader industry, and the
of a country’s economic performance given its extent to which distinct ESG actions can mitigate
natural resource endowment, management, those risks.

27
 INGENIEUR

“Executives should be able to identify the direct link between a

company’s ESG strategy and its value creation strategy.”

Quest for clarity The Economic and Social Rights

About 85% of the chief investment officers Performance Score – World Bank
we surveyed state that ESG is an important
factor in their investment decisions. 60% of The Economic and Social Rights Performance
respondents review their overall portfolio for Score is one of the new additions to the Sovereign
ESG considerations, and about 80% assess ESG data portal. This indicator was developed by
individual company positions in the context of how the Human Rights Measurement Initiative (HRMI)
ESG affects forecasted cash flows. Strikingly, a and spans 189 countries between 2007 and
significant majority are prepared to pay a premium 2018. As part of the Governance pillar, the data
for companies that show a clear link between their set measures how effectively countries use their
ESG efforts and financial performance. economic resources to ensure the fulfilment of five
Surveyed investors are also eager for clearer economic and social rights—the right to education,
ESG standards. They understand that ESG scores food, health, housing and work.
today, unlike financial ratings, don’t correlate fully
among ESG score providers. While financial ratings Adjusted for income bias
correlate at around 99% among providers, ESG One of the most attractive features of the
ratings can correlate at less than 60% because of Economic and Social Rights Performance Score
the different elements and weighting each agency is that its methodology naturally adjusts for the
assigns to various ESG metrics. ingrained income bias. Many of the widely used
ESG indicators are afflicted by income bias. In
How does this strategy create value? the context of ESG investing, using unadjusted
Executives should be able to identify the direct link scores to guide investments can potentially lead
between a company’s ESG strategy and its value to perverse outcomes, since richer countries tend
creation strategy. To be credible, that connection to have better ESG scores, allocating investments
should not be a checklist recitation of initiatives based on ESG scores that are afflicted by this bias
with a high-minded vision. Rather, companies may inappropriately divert capital away from lower-
should be able to walk investors through, in a income countries toward higher-income countries.
reasonably granular way, why they chose the ESG The Economic and Social Rights Performance
initiatives they did, and how they will create value in Score strips out the income bias by computing the
terms that investors traditionally understand. That scores in relation to the so-called achievement
is, “How will this ESG strategy enhance (or sustain) possibilities frontier and the natural minimum
cash flows, return on capital, and margins, mitigate threshold. The frontier traces what the best-
risks, affect top-line growth, and attract and retain performing countries have shown to be achievable
the talent needed to produce these results?” at each income level.

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Carbonisation Technology
Assessment - Environmental
Management & Sustainability

PILOT PROJECT
in the Oil and Gas Industry
By Ir. Ts. Fazli Rahim, Noor Suhailah Othman, PETRONAS

Dr Mark Narimi Sueyoshi, Dr Okamura Kazuo, Dr Tasaki Masaharu,

Itazu Masaharu Shimizu Corporation

Nurul Naadia M Nasir, Sufyan M Nor, Achmad Bakhtiar M Yuni,

Malaysian Refining Company Sdn Bhd

S
ustainability is important for companies and circular economy will progressively be one of the
corporations as it creates value for them enablers for a low-waste future, steward natural
and their stakeholders, obtains access resources and minimise carbon footprint. One of
to more capital and transforms businesses into the key approaches adopted is “waste to product”,
stronger brand values. It also helps companies to where wastes are converted to base materials,
identify risks and opportunities, leading to better products or other goods. To demonstrate how
strategic decisions. PETRONAS has long started a circular economy can help in achieving NZCE
its sustainability journey with the establishment of 2050, assessments were done to investigate
the Corporate Sustainability Framework in 2001. the possibility of reducing our hazardous waste
It has evolved over time until the establishment generation via technology.
of our Net Zero Carbon Emission by 2050 (NZCE One key pilot project conducted by PETRONAS’
2050) aspiration. PETRONAS became Southeast Group Health, Safety and Environment (GHSE) is
Asia’s first oil and gas company to declare its exploring a feasible waste reduction technology
aspiration of achieving net zero carbon emissions that can reduce identified types of hazardous
by 2050, representing a significant shift in its long- waste at our operations. It all started as a
term growth strategy. Technology Challenge organised in 2019 to look
PETRONAS’ Statement of Purpose, “A into solutions for Health, Safety & Environment
Progressive Energy and Solutions Partner (HSE) pain points. The project aimed to explore any
Enriching Lives for a Sustainable Future”, new innovative solution for achieving a “cradle to
emphasises that as a purpose-driven organisation, cradle” philosophy with a zero waste end in mind,
sustainability considerations contribute directly achieving the circular economy concept (3R) and
to what PETRONAS does and operates as a reducing the cost of waste disposal or recovery.
business, and how it engages multiple important An initial collaboration effort was made
stakeholders including employees, customers, between GHSE and Shimizu Corporation Japan,
suppliers, service providers, local communities, in assessing carbonisation technology widely
regulators, investors and other stakeholders. One used in Japan for effective waste management.
of the important levers to achieve PETRONAS’ Shimizu Corporation, supported by its Institute
NZCE 2050 is the adoption of a circular economy of Technology and with funding from the Japan
in our business strategies and operations. A Center Co-operation Petroleum & Sustainable

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 INGENIEUR

Figure 1: Carbonisation system simplified process flow

Energy (JCCP), had proposed a two-phase and refining of crude oil, is a known challenge to
pilot programme to be conducted at selected be tackled globally due to the increase in crude
PETRONAS sites. The proposal was realised after oil production from 2,868 million tons in 1973
a pilot site in Malaysian Refining Company Sdn to 4.141 million tons in 2020 (Niu et al., 2022).
Bhd (MRCSB) was identified in 2021, and further Approximately five tons of oily sludge is generated
solidified with a pilot agreement signed between from every 1,000 tons of crude oil (Teng et al.,
MRCSB and Shimizu Corporation in January 2023, 2021). There is limited literature produced on
with JCCP as the pilot project sponsor. The pilot this technology for oil and gas industries, and it
programme is important for concept proofing was reported that a few companies have already
and to determine the technology readiness level ventured into this space, including PetroSA,
for potential upscaling in the future. “Assessing PetroChina and Chevron. Studies reported the use
and testing our hazardous waste using Shimizu’s of carbonisation for biomass (Pelaez-Samaniego
carbonisation technology will enable us to et al., 2022) and other applications.
efficiently enhance 3R of our hazardous waste, Carbonisation technology (see Figure 1) is a
giving a positive impact and reducing harm to process involving the heating of substance (waste)
the environment wherever we operate,” said Dr to 500°C – 600°C in the absence of oxygen which
Salmaan Hussain, Head of Environment, Social will convert the waste into carbonised materials. It
Performance & Product Stewardship. also recovers almost 99% of oil from oily sludge,
which is used to heat the system (energy recycling),
reducing almost 95% of waste volume. The main
Carbonisation Technology Process advantages of waste carbonisation are, firstly,
energy recovery, where the carbonisation of waste
Managing hazardous wastes, especially oily produces biogas or fuel gas which can be used
sludge from various industrial activities during as an energy source to energise the carbonisation
explorations, production, transportation, storage unit. Secondly, it reduces the volume of waste

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 Water content Ignition Loss Oil Content
No. Waste Origin
% % mg/kg-dry
Used clay filter from
1 Spent clay 14.3 7.2 162,000
kerosene treating unit
Spent
2 activated Demin water treatment 18.6 78.3 3,800
carbon
Sludge from effluent water
3 CTP treatment (physical chemical 75.9 34.2 206,000
treatment)
Oily surface water in remote
4 RIB impounding basin that 29.9 91.8 684,000
contains sludge
Vacuum gas oil from
5 VGO tank maintenance and 25.0 95.3 874,000
desludging
Table 1: Identified refinery hazardous wastes for testing and initial characterisation results.

significantly (80-90% from the initial waste weight), of 91.8% and 95.3%. Spent clay, CTP and RIB
reducing the footprint for disposal, the treatment samples have significant amounts of hydrocarbon
costs and further treatment. Carbonisation also content with low boiling points. In general, most
produces charcoal that can be used as fertiliser or of the waste was high in hydrocarbon content
soil conditioner and reduces greenhouse gas from and suitable for testing with a carbonisation unit,
waste as the carbonisation process stabilises since the unit can recover significant amounts of
the organic matter in waste, thus reducing gas hydrocarbon content based on the volatilisation
emissions from decomposition. The targeted process.
waste for assessment is sludge waste from After the baseline characterisation analysis,
wastewater operations and oily sludge from tank all five samples were assessed using a 50kg
cleaning activities, with other types of wastes such carbonisation kiln. The testing process is simplified
as used activated carbons being considered. as follows:
The carbonisation system was installed at the
pilot site in the MRCSB refinery in the identified
Pilot Testing Procedures area equipped with a low-pressure steam utility
line. Waste samples were then prepared with
The pilot testing programme was planned in a predetermined amount in treatment trays,
two phases — in 2022 and 2023. Phase 1 was with a calculated oil load. Low-pressure steam
conducted using a smaller 200L carbonisation was then injected and the kiln door was sealed.
kiln in December 2022 (see Photos 1 & 2). Phase Steam was continuously supplied to drive away
1 was conducted using refinery hazardous waste oxygen for an inert atmosphere and efficient
samples as in Table 1. The samples were selected heating, and initially, diesel was burned to start
based on waste availability and generation indirect heating. Then, hydrocarbon gases,
amount. The baseline results before carbonisation which volatilise at higher temperatures, replaced
testing showed that Compagnie Technique des diesel as heating fuel. The heating was stopped
Petroles (CTP) system sludge had the highest water when the carbonisation chamber hits 600°C,
content of 75% while spent clay had the lowest completing the carbonisation process. To prevent
water content of 14.2%. Vacuum Gas Oil (VGO) damage to equipment, blowers automatically run
sludge and remote impounding basin (RIB) sludge until temperatures drop. The system was then
samples have the highest oil content (684,000- allowed to cool overnight. When the carbonisation
874,000 mg/kg-dry) and aligned with ignition loss chamber temperature fell below 50°C, the

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 INGENIEUR

Photo 1: Carbonisation system pilot chambers (50kg kiln)

Photo 2: Carbonisation Project Team

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 Inlet Outlet HC
Waste Weight Change (g) Ignition Ignition Removal
Water Oil Water Oil
Loss Loss Rate
Residual mg/kg- mg/kg-
Before After % % % % %
(%) dry dry
CLAY 1,000 755 75.5 14.3 7.2 162,000 0.5 1.4 229 99.86

AC 2,001 1,341 67.0 18.6 78.3 3,800 2.2 62.9 170 95.53

CTP 2,002 317 15.8 75.9 34.2 206,000 0.6 14.2 854 99.59

RIB 1,852 186 10.0 29.9 91.8 684,000 0.8 41.7 483 99.93

VGO 3,003 82 2.7 25.0 95.3 874,000 0.3 26.3 201 99.98

Table 2: Phase 1 pilot results for five hazardous waste samples from MRCSB

carbonised/treated samples were removed. To The Phase 1 pilot was successfully conducted
determine waste weight reduction, samples were in December 2022 and the results concluded
weighed and analysed before and after treatment. that oil concentrations for most of the samples
One waste sample type was assessed per day were reduced by the carbonisation system at
using the above cycle. a rate of more than 99% and the generated off-
gas could be used to heat the carbonisation kiln,
hence reducing the system’s energy requirement.
Results & Analysis This feature will potentially reduce the energy
requirement in the next project scale-up, where
The results for the Phase 1 pilot are shown in no additional fuel is needed to energise the
Table 2. In general, CTP sludge, RIB sludge and system while treating the intended waste. The
VGO sludge samples showed significant weight carbonisation system has also proven that the
reductions ranging between 84.2 to 97.3% from waste weight reduction of between 84.2% to
the original weight, which corroborated with the 97.3% of initial weight for high hydrocarbon content
high initial oil content (ranging between 206,000 wastes was achievable. Based on the initial
to 874,000 mg/kg for all types of samples). Weight calculations, it is expected that the cost savings
reduction for spent clay and spent activated per tonne of waste from the carbonisation system
carbon was low due to high mineral contents in will be significant compared to waste treatment
both samples. For all samples, the oil removal via disposal or other treatments, depending on
rates ranged between 95.59% to 99.98%, showing the quality of wastes and any further treatment
very efficient oil removal from all samples. The required to treat the generated residual. As for
results for all waste samples were promising. For activated carbon samples, the treated activated
the study of the residual content of treated waste carbon was considered regenerated and can be
samples, X-ray fluorescence (XRF) was used to reused. Further testing will be done in the Phase 2
assess four of the samples. Significant sulphurs pilot to validate the conditions of activated carbon
were detected in RIB, VGO and CTP samples samples.
(17.2% to 43.8 %), with traces of silica, aluminium A subsequent Phase 2 pilot was carried out
and iron detected. No other hazardous substances at the MRCSB site until mid-November 2023,
were detected in all four samples. The conditions where a bigger carbonisation kiln (1700L) test
of samples before and after carbonisation equipment was used to cater for larger waste
treatment are shown in Figures 2 and 3. loads. After the completion of the Phase 2

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 INGENIEUR

Figure 2: CTP (wastewater sludge) with 99.7% oil removal and 83-85% weight reduction

Figure 3: RIB (wastewater sludge) with 99.4% oil removal and 88-90% weight reduction

pilot, both Phase 1 and Phase 2 results were provided more insights into the carbonisation
analysed to determine the potential for the technology used to treat not only hazardous
up-scaling of this technology. Future works wastes, but also domestic wastes, including
to be considered for this technology include plastic, and turning them into reusable oil (see
determining the waste feedstock availability Photos 3 and 4).
and security, determining the characterisation In summary, carbonisation technology is one
of residue and the potential end-use, such as of the assessed technologies for the treatment
construction materials, energy pellets or other of hazardous waste that has shown potential
uses (potential collaborations with research for scale-up, based on Phase 1 pilot testing
centres or universities) and testing different conducted in MRCSB in December 2022. After the
types of hazardous waste with potential for completion of Phase 2 in December 2023, further
treatment. evaluation for technology readiness will need to
To further explore and validate the project be conducted to evaluate the scale-up process.
feasibility, the PETRONAS team took the Based on preliminary results, the potential
opportunity to visit the Shimizu Corporation reduction of hazardous waste can be achieved
headquarters and witnessed the operational and aligned to meet Sustainable Development
carbonisation scale at their partner’s plant in Gifu Goal 12 (ensure sustainable consumption and
Prefecture, Japan in June 2023. The work visit production patterns).

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Photo 3: PETRONAS and Shimizu Project Team at Shimizu Headquarters, Tokyo

Photo 4: Carbonisation Plant in Gifu Japan

Acknowledgement Dinesh Mohan, Charles U. Pittman, Todd E. Mlsna,

The project team would like to acknowledge Sustainable Biochar for Water and Wastewater
support from Malaysian Refining Company Sdn Treatment, Elsevier, 2022, Pages 39-92.
Bhd for the pilot site and project fund by Japan
Niu, A.; Sun, X.; Lin, C. Trend in Research on
Center Co-operation Petroleum & Sustainable
Characterization, Environmental Impacts and
Energy .
Treatment of Oily Sludge: A Systematic Review.
REFERENCE Molecules 2022, 27, 7795

Manuel Raul Pelaez-Samaniego, Sohrab Haghighi Teng, Q.; Zhang, D.; Yang, C. A review of the
Mood, Jesus Garcia-Nunez, Tsai Garcia-Perez, application of different treatment processes for
Vikram Yadama, Manuel Garcia-Perez, 2 - oily sludge. Environ. Sci. Pollut. Res. 2021, 28,
Biomass carbonisation technologies, Editor(s): 121–132.

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 INGENIEUR

Safety & Health – Towards

Formation of a Safety-
Centric Workplace Culture
By Ir. Kalyana Lakshmi Raman,
FEATURE

Principal, Asia SH&E Management

Prof. Ir. Dr Satesh Namasivayam,

Professor of Mechanical Engineering, Sunway University

T …OSHMP25 is a
he Malaysian Occupational Safety & Health
Master Plan 2021-2025 (OSHMP25), together
with the recently amended Occupational
Safety and Health (Amendment) Act (2020) and
concerted and continuous
Act 835 Factories and Machinery (Repeal) Act effort towards creating a safe
2022, sets out and describes the construct for
encompassing and embedding systems and and healthy work culture in
processes that provides greater protection to
workers and drives greater accountability on Malaysia as well as increasing
employers for safety in the workplace, with a clear
intent to enforce and grow robust, high quality and the compliance level of OSH
sustained occupational safety and health (OSH)
compliance performance across all sectors.
in the country…
At the Annual General Meeting and Asia
Director General of Department
Pacific Occupational Safety & Health Organisation
of Occupational Safety and Health Malaysia
(APOSHO) 2023 conference held in Kuala Lumpur
on October 25, 2023, Deputy Prime Minister
Datuk Seri Fadillah Yusof said the statistics
from the Department of Occupational Safety
and Health (DOSH) revealed that there were
2.22 workers per 1,000 involved in occupational
injuries and 2.06 workers per 100,000 involved in
fatal occupational accidents, noting an increase in
occupational injuries from 21,534 cases in 2021
to 34,216 in 2022.
Datuk Seri Fadillah Yusof went on to call on all
relevant parties, including employers, employees
and non-Governmental organisations to unite in
their efforts to ensure that the workplace remains
a secure, healthy and hazard-free environment. Figure 1: National Occupational Safety and
Health Master Plan 2021 – 2025

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 “…It is my fervent hope that,
together, we can create a
workplace environment that
is both safe and healthy where
employees can work with
confidence and comfort. By
raising awareness, bolstering
protection and adopting best
practices, I am confident
we can prevent unwanted
workplace accidents, injuries
Figure 2: National Occupational Accident and and occupational diseases…”
Disease Statistics 2022
Deputy Prime Minister
Datuk Seri Fadillah Yusof

The following article on safety and health but in the will to make improvements happen
aims to describe, with simple supporting and to put in the effort that is required, i.e. to
information and guidance, a framework, style constantly communicate expectations from the
and approach to help companies underpin a top, make line management accountable and get
transition from a rudimentary traditional safety the responsibilities of all employees clear and
department mindset to the formation of a accepted, never to compromise standards, to
transformational safety-centric workplace culture really put safety first!
involving all employers and employees — a key
pillar of the OSHMP25. A robust safety culture
positions a company to leverage excellent safety Introduction
performance as a competitive edge, drive brand
reputation, attract clients and create shareholder The majority of companies are committed to
value. ensuring that every employee returns home as they
There is no single activity or “trick” which can arrive — injury-free. To support this expectation
be applied that will immediately bring about an and ensure that companies are focused on the
improvement in safety performance. Moreover, right goals, a number of things must occur: every
many companies do carry out safety improvement employee must be trained to perform their jobs
activities to realise their safety vision and values. the right way; supervisors and company leadership
The anticipated improvement as a result of must create the right atmosphere and culture for
both past and present safety initiatives by a safe and quality production; and all employees
company’s senior management can only grow, must clearly understand the expectations and buy
not in the type of activities that are being applied into this high level of performance.

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 INGENIEUR

Figure 3: Frequent effective exchange of safety expectations closes the gaps

between safety policies and their practical implementation.

Leadership Communication that is

An overwhelming majority of injuries are due clear, consistent and constant
to factors which are largely influenced by the
company leadership. Whilst in most cases, senior (3Cs) is essential when laying
company leaders understand the expectations
and the roles that they play, it appears that the out safety expectations — it
layer of management closest to the employees is
not as effective for companies to truly realise their drives the basic foundation
safety goals and targets. In many cases, systems
and procedures are either ineffective or are not for a superior safety-centric
followed, and equipment and communication/
training are inadequate to meet expectations,
workplace culture
contributing to a failure around the application
and execution of the tools and resources that have
been made available to ensure work environments exist in many companies, the quality of execution
are safe and that behaviours are consistently comes into question. In addition, where the jobs
applied to eliminate the risk of incident. This are not routine (e.g. chemical spill clean-ups and
should not be perceived as solely a failure of emergency maintenance) and do not contain
the supervisor, but on how information and specific planning steps, the incident frequency
expectations are communicated and reinforced. tends to be considerably higher. Experience notes
that the split between the number of incidents
between routine and non-routine categories is
Job Planning and Hazard Recognition approximately 50%, with a large portion of the
incidents occurring in non-routine tasks where the
The ability to recognise hazardous conditions is personnel involved considered the same tasks
essential to managing risk. Incident trend analysis to be routine. Of the two categories, however, it
suggests that workers simply do not recognise would be reasonable to assume that routine tasks
or anticipate all the potential hazards that can would contribute the most significant number of
exist before performing their job or task. While work hours, thus increasing real incident rates for
Job Safety Analysis (JSAs) and Work Permits those non-routine injuries.

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 Figure 4: Improperly co-ordinated and ineffective risk management will fail to
identify and eliminate hazards.

Examples of Injury & Incident

Reporting ‘Barriers’

Fear of
Additional Punishment, Loss of Importance
Effort/Increased Employment, of Incident Reporting
Workload To Losing Safety Not Understood/Lack
Report Incidents Incentives & Being of Trust
Investigated

39
 L E M B AG A J U R U TE R A M A L AY S I A
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INGENIEUR
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 INGENIEUR
Incident Reporting significant injury. Companies must encourage
open reporting by not setting targets for injuries
For many companies, incident rates remain and regularly communicating that the company
the primary indicator of safety performance cares for the individual. With a heightened sense
measurement. Incident rates provide a benchmark of reporting, these cases will be hard to hide.
between one company and another and are Workers must also recognise and understand
commonly used throughout industry. Incident the consequences of not reporting incidents.
rates are lagging indicators — indications of past Company leadership must ensure that analysis of
performance. Transforming incident rates from a incidents, across all areas, reflects and reinforces
lagging indicator to a leading indicator involves the importance of learning from incidents.
shifting the focus from historical data to robustly Leadership must make reporting requirements
driving proactive measures like incident reporting. clear to all workers, to ensure consistency in
Incident reporting is crucial as under-reporting of reporting, analysis and interpretation.
safety incidents is always an undesirable trend
since a lot can be learned from the aggressive
review and management of not only serious and Safety Roadmap
severe incidents but also First Aid Cases and
Near Misses, which are indicators of underlying Highlighted below are three recommendations
risks that have the potential to result in a more that will help companies focus and shift efforts

Figure 5: A symbiotic relationship exists between safety culture change and worker
engagement

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towards initiating the evolution of a safety culture provide workplace-specific training programmes.
change that is needed for such growth, as they Encouraging these programmes to be organised
strive to partner and support the needs and and taught by personnel who have firsthand
objectives of OSHMP25. The recommendations experience and practical knowledge of the tasks
are straightforward but require considerable involved will help bridge the gap between theory
effort from management and employees for and practical application, thereby enhancing the
their implementation and continued success. relevance and impact of the training. Customising
The safety roadmap construct concludes with a communication to suit different learning styles and
“Blue Box” which contains a brief description backgrounds together with regular assessments
of some specific ‘Needs and Opportunities’ for and feedback loops will help maintain the quality
performance improvement. and effectiveness of training conducted by such
personnel.
RECOMMENDATION 1: Rules, Standards and
Procedures RECOMMENDATION 3: Addressing Individual
The foundation for safe working behaviour is in the Behaviour
system of safety rules, standards and procedures. Safety in the workplace is a combination of
These have to be comprehensive, respected three measurable components: the person, their
and understood. Consistent enforcement will environment and their behaviour. Addressing
eventually generate the change and culture individual behaviour is the most important form of
change behaviour will become “second nature’. safety activity for a company — the area of safety
Recognising that standards and procedures in improvement that requires the greatest degree of
many companies may already be available, a effort — to promote and drive the culture change
complete self-assessment and review should envisioned. Assuming that companies already
be completed to ensure that the standards and have ongoing programmes to promote safe
procedures are fully comprehensive (in particular behaviour, the existing programmes may require
including simple rules for “everyday” behaviour) further commitment as individual situations are
and that the standards and procedures are kept examined and corrective actions put in place. The
alive in the minds of employees at all times. opportunity to use behaviour-based safety (BBS)
Procedures must be task specific. As an example, observations on a much larger scale involving all
a site procedure for ladders should include not employees to produce a significant measure of
only the specification of approved types and a company’s safety performance (climate) at a
registration/inspection requirements but also particular point in time must be understood, as
rules on how to use the ladders — three-point it will enable safety awareness to be increased,
contact, no tools, no working off ladders, etc. underpinning a process that helps employees
Past experience may confirm these lessons but identify and choose a safe behaviour over an
the lessons must find their way into the standard unsafe one.
procedure and related training programmes.

RECOMMENDATION 2: Training Programmes PROCESS FOR IMPLEMENTATION

To ensure that rules and procedures are
understood by everyone, employees must be able Safety improvement must be led by line
to access, discuss and, if required, participate management. Line management must carry out
in formulating or changing the contents of the detailed implementation by establishing local
rules and procedures. With the amount of rules improvement teams in each workplace area, with
and procedures in place, many of which are a representative composition of the workforce.
workplace-specific, the ideal plan would be to The safety improvement team, through its detailed

43
 INGENIEUR

knowledge of running the area, must plan, lead the opportunity for harm, but measures taken to
and monitor implementation, thereby securing improve safety can also improve reliability.
ownership and increasing participation and
involvement by virtue of the team members being
present on the 'ground’. SUMMARY
Leadership from the top is the foundation for
successful safety improvement. Managers must Leadership accountability across the vertical slice
start to change the way they approach safety of the company and sanction must be clearly
management. As the company grows in safety defined and understood. Institutionalising safety
performance, this will involve a transfer of considerations into job planning for routine and
responsibility and activity to local teams at the non-routine tasks allows a company to foster a
site and will require progress to be dependent culture that values hazard recognition. Without
on local ‘leaders/champions’ emerging. Many careful evaluation and preparation, employees
individual leaders/champions for the various who conduct non-routine tasks can be at risk of
safety programmes will be required, who will serious injury. Timely reporting of all incidents is
lead/champion by example through individual essential for proactive risk management, enabling
dedication rather than prompting or receiving companies to implement corrective actions and
orders. The principles of safety leadership cultivate a safer work environment. Safety must be
require responsibility to be cascaded down to driven by adherence to systems and procedures.
the first-line supervisors and their leadership Excellent safety performance is not about
of local programmes should be actively selecting safe people but about a long process of
encouraged. education and training, looking ahead, managing
The link between safety performance and risks and hazards, not only to avoid things going
plant reliability must also be explored in greater wrong but also trying to make sure that they go
detail. Improved reliability not only reduces right — key elements in growing a safety-centric
intervention in the process and therefore reduces workplace culture.

Safety and Health: Needs and Opportunities

● How do you demonstrate leadership with respect to safety and health
performance and how can this be improved — both from a senior
management and frontline supervisor standpoint?
● What role does general supervisor development — outside the specific
parameters of safety and health — affects the way they motivate, lead,
empower, and hold employees accountable?
● What can you do as an organisation to improve the execution of job
planning and hazard recognition tasks?
● What can you do as an organisation to promote the reporting of
incidents?

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Personal Perspective –
Untapped Blue Carbon
Opportunity
By Kevin Hor

FEATURE
Seagrass meadows have the capacity to offset CO2 emissions

I
t took a trip to the Kuala Lumpur Performing marine life and coastal communities. Malaysia
Arts Centre (KLPAC) for a show called “Seruan is home to 16 species of seagrass and is third in
Setu” to educate this author on the existence the world for seagrass diversity. While the author
of seagrass and how it is becoming increasingly was not surprised at Malaysia’s biodiversity
endangered. While the original intent of attending achievements and the fact that the seagrass
the show at KLPAC was to be mesmerised by ecosystem is currently threatened, what was
some form of theatrical performance, the author surprising however was that this information was
was pleasantly captivated by the narratives so far off the radar of the regular reading of the
about seagrass and its importance to both author. What attracted this author’s interest in

45
 INGENIEUR
seagrass was seagrass’s ability to contribute projects could suffer from an economic versus
towards offsetting CO2 emissions on a large environmental dichotomy; could the same be
scale, in addition to its ability to provide shoreline said of seagrass projects?
protection, improve water quality and as a habitat Detractors of Blue Carbon argue that
for fish populations. uncertainties in the measurement of carbon
Shell-shocked at my ignorance, I began flows in coastal systems are much higher than
searching for journal papers and other general the uncertainties in emissions in other sectors.
information I could trawl off the Internet only to Changes in coastal systems, permanence and
find that seagrass knowledge has close links leakage make it difficult to conduct measurement
with mangrove-related materials. Further reading and verification activities.
unravelled more details on linkages with other
nature-based solutions and the different carbon Q3: Can we agree on the environmental and
offset schemes available and supported by social benefits of seagrass?
individuals and corporates worldwide. While the Isn’t it sufficient for parties who trade on a “willing
author does not claim to be an expert in seagrass, buyer, willing seller” to arrive at a fair compensation
the author feels that it could be quite a shame for the maintenance and protection of such coastal
should others like him be not made aware of ecosystems without further scrutiny and criticism?
seagrass and its possibility as an alternative Is seagrass a commodity? If not why be pedantically
nature-based solution in mankind’s climate strict about the measurement and verification of
change mitigation possibilities. its carbon potential? Why should this be subject to
an exact science given that the general consensus
Q1: Are carbon offsets from seagrass projects is that having/conserving such coastal ecosystem
worth the effort and time? is good for the world? If international negotiations
Carbon sequestered in coastal ecosystems is since the Kyoto Protocol have yet to produce a
commonly referred to as Blue Carbon. In a paper vibrant carbon market, why should extraneous
published by Stankovic et al 2021, seagrass was attention be given to the measurement and
reported to be able to store carbon for centuries verification of the potential of seagrass?
and seagrass meadows contribute to 10-18%
of the total ocean oceanic carbon burial despite Q4: Could there be consequences if we do not
covering less than 0.1% of the total ocean floor. decouple the tangible economic benefits of
These staggering performance figures aroused seagrass from a need for action?
the author’s interest to consider them as an earth- There seems to be a lack of consensus on the
shattering carbon offset programme. But would idea that for the world to sustain further CO2
seagrass projects suffer the same fate as forestry growth, greater CO2 mitigation and adaptation
credits which have received widespread criticism activities need to be put in place. No economy
recently for overstating their CO 2 reduction can bear the brunt of slower growth let alone
abilities? zero growth. Germany’s energy dilemma is one
such conundrum which leaves many to wonder
Q2: Are blue carbon offsets worth their pound of if a silver bullet exists for the climate challenges
flesh? that humanity is currently facing. The paper by
We often hear about tree planting and other Stankovic et al 2021 predicted that at the current
forestry-related carbon projects promoted as loss rate, all meadows will disappear by 2060. Is
carbon sinks; however as timber is a commonly current literature sufficient to compel immediate
used commodity in economic development, it action to preserve seagrass meadows? Are the
does not seem directly plausible for large-scale economic benefits sufficiently large to drive these
projects to be economically attractive, given the activities? It is difficult to generate economic
economic opportunity cost of avoiding cutting incentives for the conservation of coastal
a tree down. For carbon to be captured and ecosystems such as seagrass because many of
stored, the tree would need to be permanently the improvements in water quality, and increased
maintained and never removed. Forestr y habitat for marine life do not have a market price.

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Scientist assessing carbon sequestration rate

Should it therefore be possible for Blue Carbon to well as protection of habitat for fish populations
become the tool to incentivise the preservation are directly beneficial to our economic growth
of such land? and yield shorter returns?

Q5: Where should policymakers stand on this Author’s hope

matter? Carbon flows within the highly variable environment
Similar to forest and agricultural projects, offset in the coastal zone raise questions as to
credits are the de facto emissions trading whether emissions and removals are natural or
scheme for seagrass projects which face low-cost anthropogenic. This makes it very difficult to
offsets regardless of the origin of the credits. A measure the carbon impact of seagrass, and with
marketplace and conservation approach coupled the lack of data in many developing countries,
with an origination story behind the creation of estimates of carbon sequestration are highly
the credits need to be promoted to support the uncertain. Would Malaysia be able to monetise the
broader strategic priorities of such projects. carbon from seagrass protection and conservation?
Japan will in 2024 begin to account for blue Would Malaysia be able to increase tourism
carbon in the national inventory calculations. For revenues by leveraging on seagrass diversity?
a resource-rich country such as Malaysia, it may What might the opportunities and investments be
seem like a loss of opportunity to not account to develop baselines to support the creation of a
for such contributions in Malaysia’s inventory as seagrass carbon methodology for Malaysia? These
well. questions remain unanswered but it is hoped that
Of the possible nature-based solutions readers will become more aware of such a lesser-
evaluated by companies worldwide, such known climate mitigation solution.
as algae, that enjoy payment for ecosystem At time of writing, it seems that Malaysia is
services and forestry carbon offsets, it makes not a member or partner of the International
one wonder if seagrass conservation and Partnership on Blue Carbon. With a greater
seagrass meadow cultivation might not be a demand for CO2 offsets, would it not be a good
better solution and should be prioritised since time for Malaysia to actively participate and
shoreline protection, improved water quality as explore other CO2 offset generation sources?

47
 INGENIEUR

Trends – Communication
Technology for Future
Generations
By Majidah Hashim, CSRA, CEFI
FEATURE

M
y grandfather was a hospital administrator If we transposed the proclamation of
in 1956, when whispers of Malaya’s Malaya’s independence with the communications
independence reached Penang. He technology we have today, the very signing of
had lived through the Japanese and British the Federation of Malaya Agreement would have
occupations, and told me that news of freedom been live streamed straight from Lancaster House
came like a rumour, and everyone was cautious, in London. The ink on the paper would still be
excited and hopeful at the same time. wet when millions of Facebook posts would be
Arriving from London on a ship, Tunku Abdul circulating around cyberspace celebrating our
Rahman Putra Al-Haj had landed in Melaka in independence.
February that year, where he first declared the In a more recent example, one of the many
country’s independence in Padang Bandar Hilir. It reflections that we can draw from the COVID-19
would be more than a year later, at a field in front pandemic global lockdown, is the important role
of the Royal Selangor Club, when the Union flag of communication technology in keeping all of us,
was lowered on August 1957 and the new flag of well, sane.
Malaya was raised to the country’s new national Thanks to communication technology, we
anthem, Negaraku. spent endless hours indoors attending virtual
I tried to imagine what it would be like to live meetings, organising online conferences, learning
through that sort of anticipation. To receive news how to make sourdough bread and doing yoga in
of freedom and independence like a rumour. virtual groups in front of our computer screens.
And then slowly receive bits of information. Over We will also not forget the many, many virtual open
months and months and months. houses we attended as festivities, birthday parties
I don’t think I could. and other social gatherings stretched over the
Today, news travels around the globe almost pandemic period.
instantaneously. We all know the instant a new Again, I can only imagine what we would do,
K-pop album drops in the market, tickets to should the global lockdown have happened in
stadium concerts can sell out in a matter of say, in the 1980s before the availability of stable
minutes, and a paparazzi photo of a celebrity and affordable high-speed Internet. To illustrate
scandal can be retweeted millions of times before this point, how many of us could actually go a day
the celebrity even realizes it. Before official results without connectivity? Half a day? A hour?
have even been announced, mass media and With the accelerated consumption, demand
social media pundits have been able to speculate and competency for communication over recent
election results, as we all watch vote tallies stack years, here are just some considerations
up in real time over a variety of communication in communication technolog y for future
channels. generations.

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Microchip under the skin, futuristic technology

Communication Technology will keep be programmed into these chips. And yes, there
getting smaller and smaller are already people walking around with more than
one of these chips in their bodies.
Yesterday’s supercomputers have become today’s Brain implant technology is not a new area
laptops and smartphones - and is on a steady of engineering. Applications range from cochlear
course to shrink much further. Smartphones implants and retinal vision prosthesis to aid
have now taken the form of wrist watches and no, hearing and vision loss, to neuro-modulation chips,
that is still not yet the smallest communication electrode arrays and microprocessors to treat
technology we have today. brain disorders such as anxiety and post-traumatic
Wireless data microchips, the size of a grain stress disorder (PTSD). More complicated implants
of rice, can now be fitted with RFID and NFC in the human brain has also proven successful in
capability, to be implanted within the human body. enabling communication for sufferers of paralysis
This technology has a number of applications. through brain-computer interface (BCI).
Medical records can be stored in these chips, The question is now, how will this area of
enabling medical personnel to retrieve essential technology grow in the future? It is predicted that
information especially in cases of accidents within this decade, technology would be created
and emergencies. Key cards have also been to manipulate memory function within the brain.
successfully programmed into these chips, In about two decades, this could be expanded to
enabling its user to unlock doors of offices, homes manipulate mood and personality functions. How
and cars very much like a Jedi from Star Wars. humans communicate in the next few years can
Travel records can also be stored in these start to look very different, as our screens get
chips, making passport-less travel a possibility. smaller and possibly even disappear altogether in
Payment gateways such as digital wallets can also generations to come.

49
 INGENIEUR
Increase in energy consumption and the from home, online learning and socialising
race for a new source of energy online to flourish, alongside the development of
uncountable communication tools.
According to research, the information technology Nevertheless, the lines between reality
and communication sector could be consuming and virtual has long been blurred, as younger
over 20% of all electricity produced by year 2025. generations start identifying, sharing and living
The power consumption of 5G base stations is more in the online space. The emergence and
said to be at least twice of that of 4G stations, the post-pandemic proliferation of e-commerce,
equivalence of powering 73 households. digital transactions, e-wallets, QR payment and of
While there are arguments that 5G can enable course, cryptocurrency has brought our economy
better energy efficiency given its higher speed, into the virtual space in a massive way.
less latency and greater capacity, we also need to So here is what the future generation will
consider the greater demand for data from users. look like. They will be plugged in and they will
The incorporation of digital technology into offices, be cashless. Intellectual, social and economic
homes, cars and even whole cities places a transactions will ride on communication platforms.
demand on energy as we have never seen before, These platforms will therefore need to be built with
and with limits that surpass our imagination. careful ethics and utmost security in mind.
There is therefore a need to innovate current
sources of energy, and explore new ones. Again,
this is not a new race. Development in hydro, solar, Limits of Smart and Intelligent
wind, tidal, hydrogen, nuclear, biomass and even Technology
geothermal energy technology has been moving at
a breakneck speed in the past five years. There has Limits? There aren’t any. In negotiations over the
also been keen exploration into new alternative writers and actors strike in the US, lawyers are
sources of energy such as algae, jellyfish, alcohol, now including contract clauses to ensure that
atomic fusion and harnessing cosmic energy from artificial intelligence (AI) and machine learning
space such as from solar flares. (ML) elements are not used in their engagements.
It is without a doubt that future generations will This is for fear that the physical likeness and voice
be fuelled by a new source of energy that would attributes of the person are manipulated through
be powerful and sustainable enough to keep up technology without accreditation or compensation.
with their growing demand. We are therefore left This concern is shared not only by the
with two responsibilities - to create this future entertainment industry but, also a serious
technology, and/or to create the technology that consideration in crimes. Communication
would enable this future technology to be created. technology has already arrived at a point where
And just as a close to this heading, critical scams and hacks can now be carried out through
evolution is also needed in battery technology. AI image and voice manipulation.
Future generations are therefore likely to
use communication technology that has more
Life in Cyberspace and the Metaverse encryption embedded, but not to a point where
it becomes intrusive. Crime and manipulation
Here are some quick statistics. Every ONE MINUTE prevention technology will also need to keep up
in the year 2023: YouTube gains 500 hours of with this.
fresh new video content, 35 million people update Data is currently at a crossroad, both where
their Facebook statuses, five million Google cybersecurity and aggregation are concerned.
searches are made, 350,000 tweets are sent, and Development in this area would be very interesting
six people get hired on LinkedIn. to observe in the coming years as technology
Post-pandemic, many organisations have around data management become more
seen benefits in remote and hybrid working sophisticated, and given the relatively positive and
arrangements, including here in Malaysia. liberal outlook by the younger generation on data
Communication technology has enabled work use.

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Wearing VR glasses to experience the metaverse

Emergence of Internet as a Human Right to see babies and very small children interacting
with screens and even developing dependence on
Since the early 2000s, there has been digital devices.
international civil societal and inter-Governmental Future generations will therefore live in not
talks, some even with declarations, on access to just a highly connected world, but would expect to
the Internet to be recognised as a human right. interact in a completely connected world. These
This is on the basis that fundamental freedoms, generations will not inherit our criticism of the
such as the freedom of expression and the dangers of over-connectivity, nor our scepticism
freedom of opinion, has now come to ride on over new development of communication
access to connectivity in upholding the Universal infrastructure. In fact, they may very well demand
Declaration of Human Rights. it.
While these talks are currently suspended So how where do we go from here? How
at a very high level, it is without a doubt that do we make sure that we are able to create
future generations will demand connectivity as a communication technology that would sufficiently
fundamental right. cater to future generations?
Most of us adults in year 2023 have known and My two-word answer: Bravely and boldly.
lived through the analogue life before the Internet, The future generation is on a path towards
and have evolved to learnt how to use the Internet using communication technology like we never
in adulthood. The same cannot be said for younger could or would. Whether it is brain microprocessor
generations with much earlier exposure to the implants, or jellyfish as the next big source of
Internet. In fact, many communication technology renewable energy, or mega cybersecurity - be
now target infant and early childhood accessibility brave, be bold. Chances are, it is probably not big
as part of their market. Today, it is not uncommon enough. But we can try.

51
 INGENIEUR

A
s I travelled across the length and breadth
of southern China, I observed that mini
tricycle pickups are a common sight all over
the country, especially in rural regions where farm
roads are narrow, winding and undulating. They
As I See It also have a strong presence in mid-tier cities
where small traders market their farm produce
and sundry goods.

Versatile The mini tricycle pickups, are often referred

to as “mini cargo tricycles”. In the rural areas,
they are frequently used for transporting goods,

Tricycle
especially in areas where larger vehicles may face
challenges in navigating narrow roads or rough
terrain. They are known for their compact size,
versatility, and affordability, making them suitable

Pickups in for navigating narrow pathways and carrying loads

on farms.
They usually have a front cabin for the driver

Rural China
with a handlebar for steering and are equipped
with a small cargo bed or pickup truck-style
bed at the rear for transporting various types of
goods, such as agricultural produce, construction
By Dato’ Ir. Fong Tian Yong
materials, or other commodities. They are known
for their manoeuvrability and cost-effectiveness,
making them popular in rural and less developed
areas.

Photo 1: Typical tricycle pickup - a common sight in smaller towns and rural areas of China

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Photo 2: Narrow and winding streets are a Photo 5: This cabin-enclosed type offers
common sight in the hilly settlements of ethnic complete shelter from rain and with a bigger
tribes in southern China’s provinces such as loading capacity. Notice the brake handles and
Guangxi, Hunan and Guizhou. the wheel lock system in front of the carriage
vertical bar just behind the driver seat. The
loading capacity depends on the motor engine
capacity. The wheel size is also bigger than a
normal motorbike to cater for heavier loads.

Photo 3: The simplest type of tricycle pickup

is a small open-cabin single-seat vehicle with
motorcycle handlebars and a small pickup box
at the back. The photos show a hawker selling
breakfast on a Guangzhou street. It moves about
the commercial area to catch the morning office
staff coming out of subway stations en route to
their offices. This particular pickup is driven by
a petrol motorbike engine although more people
are converting them to a battery-driven type.

Photo 6: Interior view of the bike handle of

another similar type but without a door. Notice
the foot braking system, petrol tank and simple
outfit that makes maintenance easier and more
Photo 4: This flat-bed type, powered by a battery cost-effective.
kept below the seat of the driver with a rooftop
that offers shelter against rain, is useful in areas
with frequent rainfall.
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Photo 7: The more powerful petrol engine type. This model is driven by a 125hp engine and is used
to carry heavier loads for short-haul within the mid-tier city of Nanning’s old town goods dispatching
centre in Guangxi province. Notice the double shock absorbers at the front wheel to cope with the
heavy load it carries. (Photo courtesy of Huang Zhaoliang of CMQIP)

Photo 8: Online sales dispatch companies find Photo 9: Even the Nanning City solid waste
this type of semi-enclosed mini pickup efficient management uses tricycle pickups for
for distributing parcels to customers at narrow transporting kitchen waste to the waste transfer
streets or back lanes that the locals called ‘xiang’ station. The label at the side wall of the pickup
or ‘li’. box says ‘leftover kitchen waste’. The blue
signboard in the front of the transfer station
reads ‘work on environmental sanitation ongoing’

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Photo 10: View of a hawker selling fruits with Photo 11: Modified tricycle with cabin for two
an umbrella attached to a bracket fabricated passengers or goods that need to be shielded
at the tail end of the mini pickup - simple and from rain and sun.
yet provides comfort to the hawker and the
customers to choose the fruits under the hot sun
or rain.

In urban areas, these ‘three-wheeled cargo a three-speed transmission, costing around

motocycles’ are popular for transporting goods USD300. The most sophisticated mini pickup has
and are widely seen for their manoeuvrability and a closed, car-like cabin with a steering wheel and
efficiency in navigating through traffic. radio/cassette player, electric start, a dumping
One notable type is the “electric cargo capability for the cargo bed, and a low-range
tricycle,” which is powered by an electric motor. gearbox that complements the standard three-
These vehicles are eco-friendly and contribute speed transmission. Between these extremes
to the efforts to reduce air pollution in urban are vehicles with almost every conceivable
environments. They typically have a small cabin combination of features.
in the front for the driver and can have an open Most tricycle pickups have the following
or enclosed cargo compartment in the rear for attributes:
transporting goods. ● one-cylinder diesel engine
Generally, these vehicles come in various sizes ● 12 to 15 horsepower
and configurations, and they play a crucial role in ● evaporative water-cooling (no water pump)
last-mile logistics and small-scale transportation ● belt drive from the engine to the
needs in densely populated areas. They are transmission, mounted on the rear axle
commonly used for delivering goods, such as ● payload capacity of 500 kg
groceries, small packages, and other items within ● top speed of 50 km/hr (specified by law)
local communities.
These mini tricycle pickups are available Advantages of owning a tricycle pickup
in a variety of sizes. The least expensive ones Tricycle pickups are generally the preferred
are small open-cabin single-seat vehicles with choice for transporting goods for relatively short
motorcycle handlebars, hand-crank start, and distances. They have the following advantages:

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 INGENIEUR

Tricycles observed in other Asian countries

Photo 12. A fleet of passenger tricycles Photo13: The above passenger tricycles used in
lining up at Jakarta MRT station for Bangladesh are either powered by LPG or battery.
passengers. (Photo courtesy of Ar Dr Goh Ai Tee).

Tricycles are also commonly used in other Asian countries, mainly to ferry passengers for an
affordable fee. Such passenger tricycles are very basic in fabrication, unattractive but functional.

1. Suited to poor road conditions. Rural roads 6. Lower fees and taxes than trucks. Tricycle
are not well suited to conventional low- pickups are subject to lower taxes and
ground-clearance vehicles, and high-speed fees than trucks, though the amount varies
vehicles have little advantage for short greatly.
trips on bad roads. Tricycle pickup’s ground
clearance is normally greater than 180mm. Economies of Scale
2. Low price. A half-ton tricycle pickup The fact that China has a huge number of
costs about half as much as a half-ton farmers in rural areas has resulted in the lower
conventional truck. cost of production of tricycle pickups for multiple
3. Easy to maintain. While tricycle pickups may uses in terms of purchase price, operation
break down frequently, they do not require and maintenance cost. In 2021, the Wuling
expensive parts or specialised repair skills. Hongguang MINIEV was the best-selling car
4. Easy to drive. Tricycle pickup drivers do not model in China, with a sales volume of 426,480
need much training and as such the driving units. The Volkswagen Lavida was the second
license is cheaper and easier to obtain than best-selling model with sales of approximately
for conventional cars and trucks. 391,360 units that year. Tricycle pickup prices
5. More comfortable and faster than farm range from USD300 onwards for small open-
tractors. Tricycle pickups are intermediate cabin single-seat vehicles with motorcycle
between farm tractors and conventional handlebars, hand-crank starting, and a three-
trucks in comfort and speed. speed transmission.

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Tram negotiating the narrow Lisbon streets between two buildings

packed with tourists. As a cost-saver, I purchased a

24-hour public transport card called navegante for
€6.60 which includes rides on all trams, metro and
buses. If using cash, the ticket price is €3 per trip.
The tram service is operated by a company called
As I See It Companhia Carris de Ferro de Lisboa (Carris) .
I first took Tram 24 which was located near my
hotel to the city centre to catch Tram 28. The Tram

Iconic Lisbon 28 route called E28 stretches 7 km from Martin

Monix to Campo Ourique. This is considered the
classic tram route that passes Alfama, Baixa

Tram
and Chiado districts. It connects the eastern and
western sides of central Lisbon.
After jostling with some tourists, I boarded
the iconic yellow electric carriages of Tram 28.
By Ngam Su May The carriage looks old but is well preserved with
wooden floors and timber window frames. Its
body is painted yellow, commercialised with some

O
n my first trip to Lisbon, capital of Portugal, advertising images. On board, I noticed modern
in September 2023, I took a ride on one of facilities namely the card swiping machine and the
its iconic trams. It was indeed memorable, red button for passengers to push when they want
travelling in a century-old tram that can navigate to alight.
narrow and steep streets. The tram is part of an It was standing room only but I was lucky to
extensive and diverse public transport network in get a seat about 10 minutes later. As the tram
Lisbon. Metro Lisbon, with a population of around chugged along, I realised that the Lisbon tram
three million, is well served by other modes of is an old technical marvel. The tram, powered by
transport such as buses, metro, funiculars and 600v DC overhead lines, rattled and screeched as
elevators. it moved on two axles with a wheel base of 1.9m,
I was recommended to take Tram 28 (out of six along a narrow track gauge of just 900mm. What
tram lines) as it is said to be the most famous but is more outstanding is that the tram negotiated

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 INGENIEUR

Writer at a Lisbon tram stop

the meandering, narrow and steep streets of

Lisbon. In some areas, I saw the tram passing
inches away from the side of buildings. According
to www. knorr-bremse.com, the Lisbon tram can
take curves with radii under 10m and negotiate
gradients up to 13.5%, making it a world record
for trams.
I was amazed by the extreme skill and
patience of the tram drivers (there were two
of them on shifts – one man and one woman).
They control the tram as it plied the single track
shared with cars and buses and observed the
Tram driver at the control panel (Wikimedia
traffic lights along the way. They steered carefully
Commons)
and used the horn to warn absent-minded
pedestrians walking close to the tracks. I noticed
the noisy braking system as it is triggered by long
metallic handle pulled by the driver’s hand. The
drivers also use numerous controls in the front
panel to manoeuvre the tram. At one tram stop,
the male driver got up from his seat to collect
cash and return change to a lady passenger.

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The narrow tracks and scenery along the tram route

Further down the line, the driver had to get down is one of the reasons why trams still run in Lisbon.
the tram because a car was parked in the middle The city was reported to receive 5.4 million tourists
of the track. It took a while to get the car out of in 2022. Tourists obviously enjoy this nostalgic
the way. way of exploring the city. It is touted as a ‘must-
On the tram route, I saw the picturesque do’ when in Lisbon. The other reason is Lisbon’s
parts of the historical town. Lisbon is one of the topography. Its landscape is irregular, dominated
oldest cities in Europe with a rich history of kings, by hills and valleys. Inner city streets are also
empires, discoveries, tragedies and rebuilding. narrow with meandering cobbled pavements.
Because of the crowd, it was difficult to take So, the small trams are ideal to transverse many
photos. From the window, I was enthralled by the districts.
many grand buildings and their various classical It is a wonder that the Lisbon tram has
styles. These reflect Portugal’s history through the endured for more than 100 years. The first tram
ages — Romanesque, Gothic, Manueline, Baroque service started in 1873, using horses and then
and others. Many heritage buildings are adorned steam power, before turning electric in 1901. At
with pastel-hued facades, ornate balconies and its height, the tram network grew to 27 lines. It
intricate azulejos (tiles). declined with the expansion of buses and the
It was a long journey of almost one hour, construction of the Lisbon Metro lines. But six
passing 36 stops through the beautiful old tram lines still remain today, with 63 trams in
quarters of the city. I enjoyed the slow-paced but operation covering about 31km. I am glad to have
scenic tram ride. It appears that tourists like me, experienced a part of this unique heritage.

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 INGENIEUR

Getting Started with ESG

By Lee Soo Leng

T
he Global ESG Monitor (GEM), a research responsible companies to do business with.
initiative that examines ESG transparency Employees want to work for and stay with
REPORT

in non-financial reporting of the largest companies committed to building a positive

companies in the world, revealed that Malaysian impact on people and planet.
companies used internationally recognised
frameworks, standards, and strategic tools in ● Better risk management
their Environmental, Social and Governance (ESG) Preparing ESG programmes will help
reporting but lacked the appropriate content and companies identify and manage potential risks
level of detail needed for optimal transparency, and opportunities. For example, a company
thus ranking them in the midfield amongst global that discloses information about its carbon
and regional peers. emissions may be able to identify opportunities
to reduce those emissions, mitigate the
associated risks, and lower costs.
Benefits of a strong ESG programme in
companies
Start with Materiality Report
Some key benefits of implementing ESG
programmes in companies are: All ESG reporting and changes start with the
understanding of the concept of materiality. As
● Improved transparency and trust explained, stakeholders and investors are inquiring
By disclosing detailed information about their about companies’ dedication to sustainability
ESG performance, companies demonstrate initiatives and other activities that fall under the
commitment to transparency, which helps ESG umbrella. It’s essential to have answers to
build stakeholder trust. This can be particularly these questions.
important in the modern business environment A materiality assessment provides a guide
where investors, customers, par tners, or blueprint for an organisation’s ESG strategy.
employees, and others increasingly demand It empowers companies to easily report on the
sustainable and ethical corporate behaviour. current state and outline future initiatives while
considering business goals and risks. Companies
● Decreased costs use the concept of materiality to guide their
A strong ESG programme can decrease sustainability strategic planning processes.
expenses. Examples include lower costs in There is no one way to conduct a materiality
operations, e.g., energy, water, materials, and assessment. Many companies rely on external
waste; in human resources (HR), e.g., higher consultants to help them, while other companies
productivity and easier talent attraction, with more robust sustainability teams manage the
avoiding non-compliance penalties, more process themselves.
accessible access to capital, etc. Generally, the process for conducting a
materiality assessment includes the following
● Stronger competitive advantage steps:
Investors are likelier to invest in companies 1. Identify and categorise the key issues. In
that disclose their ESG performance. Partners this phase, the company should develop
and customers are increasingly looking for a long list of issues. The various problems

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 that could be classified under sustainability ESG Strategy
can make it very hard for a company
to address and manage them. For this Companies should look to incorporate various
reason, a company should identify and ESG trends, practices and ideas into their plans.
prioritise the issues that are most material Some examples include reducing greenhouse
to its business and most relevant to its gas emissions, creating more responsible and
stakeholders. sustainable supply chains, implementing climate
2. Collect data from internal and external adaptation measures and adopting a circular
stakeholders. Internal stakeholders economy model, which aims to reuse product
should include cri tic al manager s components and materials instead of throwing
and business leaders, while external them away or recycling them.
stakeholders should cover significant With such considerations in mind, here are
ac to r s ou t si d e o f t he c o mp any, eight steps to take in developing and implementing
including business partners, community an ESG strategy:-
representatives, and NGOs. They should 1. Get input from internal and external
all be asked to weigh a list of issues by stakeholders. Consult with board members
their relative importance. and business executives about ESG issues
3. Map and prioritise the issues. In this step, that are important to the business, and talk
all of the data collected from internal and to various other stakeholders -- employees,
external stakeholders is put into a model institutional investors, customers,
or framework and transformed into a suppliers, community leaders -- about ones
quantitative score that can be used to map that matter to them.
and prioritise issues. 2. Assess the materiality of different ESG
4. Align the issues with management and issues. Use the input you've gathered to
business vision. Once the data is collected, identify the issues that are most important
it can be integrated into business strategies to both the business and stakeholders, as
and risk assessments. well as the issues that are less important
5. Reporting on progress. Most companies to either party or to both. The individual
publish annual sustainability reports elements of the ESG strategy can then be
to report on progress. These reports prioritised based on that assessment.
generally refer back to the materiality 3. Establish a baseline on ESG performance.
matrix and the sustainability strategy and Document current performance levels,
provide an update on key metrics and policies, practices and statistics on the
targets. ESG factors that will be addressed as part
of the strategy. Doing so provides a starting
point for future comparisons to evaluate
Overview of Reporting Frameworks the progress of ESG efforts.
4. Define measurable goals for ESG
Companies use several key frameworks to develop initiatives. This involves setting objectives
an understanding of the critical materiality and performance targets for the ESG
issues they should consider and report on. The strategy as a whole and the various pieces
frameworks each have a different purpose, of it. Some of these goals might include
audience, and articulation of the materiality desired improvements on KPIs, while
concept. others might call for maintaining current
Companies’ materiality assessment will help performance levels and practices that
pinpoint which frameworks, goals, strategies, and already meet requirements.
portfolios align well. Several of these frameworks 5. Create a deployment roadmap. Next, build
require similar data and information that, once a detailed implementation plan for the
identified, can be easily repurposed for additional ESG programme with project timelines,
reporting processes. milestones and responsibilities.

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Numerous ESG reporting options are available to companies

6. Choose the reporting standards and has identified six dimensions that make up a
frameworks to use. Numerous ESG transparent report:
repor ting options are available to ● Balance: The extent to which the reporting
companies. Many businesses use more mentions positive and negative aspects, as
than one to meet different reporting and well as risks and opportunities.
disclosure requirements. Choosing the ● Comparability: Assess if the reporting was
right framework or combination of them is aligned with frameworks and standards
a key part of developing a successful ESG such as the Global Reporting Initiative, as
strategy. well as provision of metrics, formulas and
7. Collect, analyse and report on ESG data. comparisons.
Once the ESG programme is operational, ● Accuracy: Information on indicators,
processes are needed to collect and topics (qualitative) and delivering concrete
analyse data on the relevant KPIs and information and methodology.
then to prepare reports for stakeholders. ● Timeliness: Information on concretely set
Full reports typically are done on an annual time horizons and a clearly stated reporting
basis, but internal progress updates for the period.
board and senior management are more ● Reliability: The extent to which the reporting
frequent. is externally audited; clear responsibilities or
8. Review and revise the strategy as accountabilities and monitoring are defined.
needed. ESG requirements can change ● Relevance: The report being material
as business needs, stakeholder concerns according to stakeholders’ needs and
and regulatory mandates evolve. An ESG delivering ESG context, with a glossary.
strategy should be reassessed regularly to GEM commented that those that deeply
make sure it's still effective and to identify engage with ESG issues and pursue sustainable
required updates -- including weak spots development can benefit in the long term –
that need to be optimised. a better reputation, higher customer loyalty,
increased employee engagement and reduced
risk of negative impacts on the environment and
Strive to be Transparent in ESG Reporting society.

GEM as an independent research initiative REFERENCE

dedicated to investigating ESG transparency UNDP, TechTarget, Perspective Strategies, STAR

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Social and Governance
Elements under ESG

By Lim Tau Wee

REPORT
he importance of ESG is being increasing rights and pollution; the idea that there could be
felt and practised by firms around the world a link between ESG and financial performance
especially the trading nations. But out of all was just emerging. However, the term ESG did not
three letters in the acronym of ESG, the “G” is often come into use until 2005. Yet, ESG has always
overlooked, because it is viewed as not “directly” included business objectives while striving to
linked to sustainability or often not associated make the world a better place. Since that time,
with environmental and social “good deeds.” The the terms ESG, CSR, and sustainability have been
“G” component was necessary in order to support used interchangeably by companies.
the “E” and “S.” Plus, it’s practically mandatory for ESG issues were first mentioned in the
building up long-term, sustainable value, or even 2006 United Nation’s Principles for Responsible
for general business compliance. Investment (PRI) report consisting of the Freshfield
Similarly, “S” pertains to a company’s Report and Who Cares Wins. ESG criteria was, for
societal influence and risks, encompassing the first time, required to be incorporated in the
employee welfare, human rights, and community financial evaluations of companies. This effort
engagement. Prioritising social responsibility in was focused on further developing sustainable
business builds positive relationships and societal investments. At the time, 63 investment
contributions. companies composed of asset owners, asset
managers and service providers signed with
USD6.5 trillion in assets under management
BACKGROUND OF ESG (AUM) incorporating ESG issues. As of June 2019,
there are 2,450 signatories representing over
The early days of ESG can be traced back to the USD80 trillion in AUM.
1960s and 1970s, when socially responsible The objective of the report was on the
investing (SRI) began to gain popularity. SRI integration of environmental, social and
involves selecting investments based on a governance issues into investment policy
company's social or environmental impact, as well (including asset allocation, portfolio construction
as its financial performance. and stock-picking or bond-picking) voluntarily
A 2004 report from the United Nations — permitted, legally required or hampered by law and
titled Who Cares Wins — carried what is widely regulation; primarily as regards public and private
considered the first mainstream mention of ESG in pension funds, secondarily as regards insurance
the modern context. This report leaned in heavily, company reserves and mutual funds.
encouraging all business stakeholders to embrace Like many professional activities, investment
ESG long-term. The rapid growth of ESG investing decision-making is an art rather than a science:
can be attributed to various factors, including there is no formula that guarantees a particular
increased awareness of global sustainability outcome. It is important to distinguish therefore
challenges, heightened regulatory scrutiny, and between optimal decision-making and optimal
the recognition that ESG factors can materially decisions. The law is concerned with the former,
impact financial performance. as the latter can be arrived at only with hindsight.
'Socially conscious' investors around this time The oft-repeated caveat that ‘past returns are no
were largely focused on topics such as human indication of future performance’ is reflected in

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Volkswagen’s emissions tests scandal,

Facebook’s misuse of data and other recent
incidents have caused significant financial
damage to these companies.

the legal duties imposed on investment decision- and opportunities. However, understanding
makers. governance risks and opportunities in decision-
As public awareness of the environmental and making is critical, as poor corporate governance
social impacts of corporate activity has grown, practices have stood at the core of some of the
the attitude of capital markets to ESG investment biggest corporate scandals.
appears also to have evolved. As a result, Volkswagen’s emissions tests scandal,
investment with regard to ESG performance is Facebook’s misuse of data and other recent
becoming increasingly mainstream. A 2005 survey incidents have caused significant financial
of 195 fund managers from around the world damage to these companies. In the face of
by Mercer Investment Consulting revealed that companies’ missteps and expanding awareness of
the use of positive screening for environmental, global diversity and income inequality, corporate
social and ethical factors is entering mainstream governance is a core component of ESG.
investment analysis particularly where such
screening may potentially yield superior financial
performance by targeting companies that adopt THE “G” FACTOR
socially responsible practices and thereby avoid
future liabilities and losses. The study revealed The "G" in ESG pertains to the governance
that 70% of fund managers believe the integration factors of decision-making, from sovereigns’
of environmental, social and ethical factors into policy making to the distribution of rights and
investment analysis will become a mainstream responsibilities among different participants in
part of investment management corporations, including the Board of directors,
The “G” in ESG refers to the governance factors managers, shareholders and stakeholders.
of decision-making, from sovereigns’ policymaking Governance factors indicate the rules and
to the distribution of rights and responsibilities procedures for countries and corporations,
among different participants in corporations, and allow investors to screen for appropriate
including the Board of Directors, managers, governance practices as they would for
shareholders, and stakeholders. environmental and social factors. A corporation's
The purpose of the corporation, the role purpose, the role and makeup of the Board of
and makeup of the Board of Directors, and the Directors, shareholder rights and how corporate
compensation and oversight of top executives performance is measured are core elements of
have emerged as core issues in companies’ corporate governance structures.
corporate governance structures. S&P Global research on governance factors
When analysing environmental, social, and has shown that companies that rank well below
governance factors, the “G” element is often average on good governance characteristics are
forgotten amid considerations over climate risk, particularly prone to mismanagement and risk
societal implications and other “E” and “S” risks their ability to capitalise on business opportunities

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over time. S&P Global assesses companies’ It's important to note that ESG considerations
governance performance by assessing four have become increasingly important in the financial
factors: structure and oversight, code and values, and investment sectors, and organisations like the
transparency and reporting, and cyber risk and World Bank play a role in encouraging responsible
systems. and sustainable practices in the global economy.
Gender diversity and equity is another high-
profile governance issue, with many institutional
shareholders demanding better representation KEY ELEMENTS OF “G” IN ESG
of women on corporate Boards and in executive
ranks, and equal compensation and mobility for With “G” or Governance under ESG refering to the
women and people of colour. More companies governance practices a company employs to ensure
are emphasising the financial benefit of creating ethical and responsible decision-making, some key
inclusive workplaces in an effort to increase aspects of governance under ESG are as follows:
diversity and inclusivity. S&P Global Market ● Board Structure and Independence:
Intelligence research revealed that firms with Companies with strong governance under
more women on their Board of Directors had ESG typically have a well-structured Board
greater financial performance than less diverse with a sufficient number of independent
companies. directors. This helps ensure that decisions
Understanding the “G” in ESG is critical, as are made in the best interest of the
governance risks and opportunities will likely company and its stakeholders.
increase as social, political, and cultural attitudes ● Executive Compensation: ESG governance
continue to evolve. S&P Global evaluates includes considerations about fair and
governance factors in all of its ESG Solution transparent executive compensation.
offerings. Notably, in addition to determining Companies that align executive pay with
whether the entity is actively and effectively ESG performance indicators are seen as
managing its exposure to governance risks more responsible and sustainable.
and opportunities, the S&P Global Ratings ESG ● Shareholder Rights: Companies promoting
Evaluation weighs potential environmental and good governance under ESG often
social risks to determine an entity’s capacity to prioritise shareholder rights, ensuring that
operate successfully. shareholders have the ability to influence
The World Bank considers governance as a impor tant decisions through voting
crucial element within the ESG framework. ESG mechanisms.
factors are used to assess the sustainability and ● Ethical Business Practices: Governance
ethical impact of an investment in a company or under ESG involves promoting ethical
project. business practices, including anti-corruption
In terms of governance, the World Bank measures, transparency, and accountability.
emphasises good governance practices as ● Risk Management: Ef fec tive risk
essential for sustainable development. This includes management is a crucial component of ESG
transparent and accountable decision-making, governance. Companies need to identify
effective institutions, rule of law, and the protection and manage risks related to environmental,
of human rights. The World Bank recognises that social, and governance issues to ensure
sound governance is vital for attracting investment, long-term sustainability.
fostering economic growth, and achieving positive ● Stakeholder Engagement: Companies
social and environmental outcomes. with strong ESG governance actively
The World Bank has various initiatives and engage with and consider the interests of
programmes that promote good governance various stakeholders, including employees,
practices globally. These efforts aim to strengthen customers, and the community.
institutions, enhance transparency, and combat ● Disclosure and Transparency: Transparency
corruption, all of which contribute to a more is key to ESG governance. Companies are
sustainable and equitable development. expected to disclose relevant information

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regarding their ESG performance, enabling within their operations and in their supply
stakeholders to make informed decisions. chains. This includes avoiding complicity in
● Compliance with Regulations: Adherence human rights abuses.
to applicable laws and regulations ● Customer Relations: Ensuring fair and
is fundamental to governance under transparent business practices in dealing
ESG. Companies need to comply with with customers is crucial. This involves
environmental, social, and governance laws providing accurate information, fair pricing,
and standards. and addressing customer concerns
Overall, governance under ESG emphasises responsibly.
responsible and sustainable business practices ● Product Safety and Quality: Ensuring the
that take into account the broader impact of the safety and quality of products is part of
company on the environment, society, and its own social responsibility. Companies should
internal structures. This approach is increasingly prioritise producing goods and services
important for investors and stakeholders seeking that meet ethical standards and pose no
to support businesses that prioritise ethical and harm to consumers.
sustainable practices. ● Employee Well-being: Beyond fair wages,
companies should focus on the overall
well-being of their employees. This includes
THE “S” FACTOR providing benefits, promoting work-life
balance, and addressing mental health
Social aspects under ESG cover a range of issues concerns.
related to human rights, labour standards, community ● Supply Chain Responsibility: Assessing
engagement, and social inclusion. The World Bank and managing social risks within the supply
recognises that social sustainability is crucial for the chain is crucial. Companies should strive to
success and impact of development projects. ensure that their suppliers adhere to ethical
Addressing social issues under ESG and socially responsible practices.
considerations involves focusing on the social ● Stakeholder Engagement: Regular
impact and responsibilities of a company. Here's communication with various stakeholders,
how companies can tackle social issues under the including employees, customers, investors,
ESG framework: and the broader community, helps in
● Diversity and Inclusion: Promoting diversity understanding and addressing social
and inclusion within the workforce is a concerns effectively.
crucial aspect. Companies should aim to ● Transparency and Reporting: Companies
create a workplace that is representative should be transparent about their social
of different demographics, fostering an impact and efforts to address social
inclusive culture. issues. Regular ESG repor ting can
● Labour Practices: Fair labour practices are help stakeholders assess a company's
vital. This includes ensuring fair wages, commitment to social responsibility.
safe working conditions, and respecting The ‘S’ in ESG is also about Socially
workers' rights. Companies should also Responsible Investing (SRI) which is an
address issues related to child labour and investment strategy that highlights this one
forced labour. facet of ESG. SRI investors seek companies that
● Community Engagement: Engaging with promote ethical and socially conscious themes
local communities positively is essential. including diversity, inclusion, community-focus,
This may involve philanthropy, community social justice, and corporate ethics, in addition
development projects, and being mindful to fighting against racial, gender and sexual
of the social impact of the company's discrimination.
operations on local communities.
● Human Rights: Companies should uphold REFERENCE
and respect human rights standards, both UNEP, TechTarget, Forbes, World Bank

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 Challenges
to Achieving
Carbon
Neutrality

REPORT
By Cheo Hong Keyong

T
he international common goal to achieve Fund (WWF), and others, actively work to promote
carbon neutrality taking cognisance of the carbon neutrality and advocate for policies to
Climate Change threat to the environment combat climate change.
has prompted several organisations to work
towards promoting carbon neutrality and
addressing climate change. Among the key Action by UN Environment
notable entities are:
United Nations (UN): The UN plays a crucial C ar b o n neu t r ali t y, o r having a ne t-
role in promoting global efforts to address climate zero carbon footprint, refers to achieving net-
change. The Paris Agreement, adopted in 2015 zero carbon emissions by balancing a measured
under the UN Framework Convention on Climate amount of carbon released with an equivalent
Change (UNFCCC), aims to limit global warming amount sequestered or offset.
and achieve carbon neutrality. Carbon dioxide emissions account for 82%
Inter-Governmental Panel on Climate Change of global warming, with the rest coming mainly
(IPCC): The IPCC is a scientific body under the from the much more potent greenhouse gases,
UN that assesses the scientific knowledge on methane and nitrous oxide.
climate change. While it doesn’t champion carbon A November 2018 report by the World
neutrality directly, its reports contribute to the Meteorological Organisation of the United Nations
global understanding of climate change, which showed that globally averaged concentrations of
influences policies promoting carbon neutrality. carbon dioxide reached 405.5 parts per million
European Union (EU): The EU has set ambitious (ppm) in 2017, up from 403.3 ppm in 2016 and
targets to achieve carbon neutrality by 2050. The 400.1 ppm in 2015. Concentrations of methane
European Green Deal is a comprehensive plan and nitrous oxide also rose, while there was a
outlining the EU’s commitment to sustainability resurgence of a potent greenhouse gas and
and reducing greenhouse gas emissions. ozone-depleting substance called CFC-11, which
Non-Governmental Organisations (NGOs): is regulated under an international agreement to
Various NGOs, such as Greenpeace, World Wildlife protect the ozone layer.

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 INGENIEUR
UN Environment has achieved climate about the importance of sustainable practices
neutrality largely thanks to an offset programme and encouraging behavioural changes can be a
based on the mitigation and purchase of complex task.
Certificates of Emission Reduction from projects, Technological and Knowledge Gaps: In
mainly in Asia, certified by the UN Framework some cases, there may be gaps in knowledge or
Convention on Climate Change. This, coupled technology needed for certain sectors to achieve
with a 35% net reduction in its climate footprint carbon neutrality. Research and development are
has ensured continuous climate neutrality for a crucial to fill these gaps.
decade. Transitioning Workforce: Shifting to carbon-
neutral practices may impact jobs in certain
industries. There is a need for strategies to
Challenges to achieving Carbon retrain and transition the workforce towards new,
Neutrality sustainable employment opportunities.
Carbon Offsetting Concerns: Relying too
Achieving carbon neutrality poses several heavily on carbon offsetting mechanisms without
challenges, and they vary across different sectors addressing the root causes of emissions can be
and regions. The common challenges associated controversial. Genuine efforts to reduce emissions
with meeting carbon neutrality are as follows: should be prioritised over offsetting strategies.
Technological Challenges: Developing and Resilience to Climate Change: While the goal is
deploying carbon-neutral technologies on a to mitigate climate change, it is also important to
large scale is a significant hurdle. This includes build resilience to its inevitable impacts. Adapting
renewable energy sources, carbon capture and to changing climate conditions is a challenge that
storage, and sustainable transportation solutions. needs consideration.
Economic Impacts: Transitioning to carbon Addressing these challenges requires a
neutrality often requires significant upfront comprehensive and collaborative approach
investments. Businesses and industries may involving Governments, businesses, communities,
face economic challenges in adopting cleaner and individuals.
technologies and practices, especially if there
are competing cheaper, but carbon-intensive
alternatives. ASEAN Readiness for CCT and CCU
Policy and Regulatory Barriers: Inconsistent Technologies
or insufficient policies and regulations can hinder
progress. A lack of clear guidelines or incentives Towards Carbon Neutrality
may discourage businesses from investing in ASEAN’s energy landscape depends on coal
carbon-neutral initiatives. and this remains imperative, particularly in the
Infrastructure Requirements: The shift electricity and industry sectors. To address the
to carbon-neutral energy sources requires increasing energy demand in ASEAN in 2050,
a robust and adaptable infrastructure. This the region is predicted to still rely on fossil fuels
includes updating power grids, building despite its increasing renewable energy share.
charging infrastructure for electric vehicles, and Oil and coal are expected to account for 62%
transitioning industries to more sustainable of the total energy supply of ASEAN in 2050.
processes. The coal used in power generation in 2050 is
Global Co-operation: Carbon emissions are projected to account for 44% of its total energy
a global issue, and achieving carbon neutrality consumption.
requires international collaboration. Co-ordinating Most ASEAN countries have become major
efforts among nations with varying levels of players in the global coal market, both as exporters
development and priorities can be challenging. and importers, even though the trade balance of
Public Awareness and Engagement: Achieving coal in ASEAN is a surplus in 2021. It indicates that
carbon neutrality often involves changing ASEAN still relies on fossil fuels for energy despite
consumer behaviour. Educating the public its unconditional or conditional commitment

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ASEAN countries are projected to still use carbon in power generation in 2050.

under the current national and foreign policies on from other countries that apply technologies that
the climate-energy nexus, such as the Enhanced modify the plant, such as biomass co-firing by
Nationally Determined Contribution (ENDC) and mixing the ratio up to 50% and dedicated firing
Global Coal to Clean Power Transition Statement with diverse types and plant scale, ammonia co-
(GCCPS). firing and green ammonia production, hydrogen
Based on the current trends and projections, utilisation, supply chain of carbon-neutral fuels,
Coal Fired Power Plants (CFPP) will remain and CCU technology.
operational even during the energy transition, By assessing the CCT and CCU deployment
serving as stable supply sources and balancing in the region, ASEAN member states (AMS) still
sources through flexible operation until energy face bottlenecks. There is a lack of commercial
storage technology fully blooms and becomes business models in the feasibility stage due to
affordable. Therefore, Clean Coal Technology high business risks followed by share and transfer
(CCT) and/or Clean Coal Utilisation (CCU) is the financial risk and public acceptance. Meanwhile,
optimal solution to achieve carbon neutrality while there are technical failures and policies and
ensuring energy security during the transition. regulations during the deployment. Thus, a survey
ASEAN could employ this type of technology to use with ASEAN focal points on technology readiness
coal power in the cleanest possible manner. and acceptance was conducted. Based on the
Since the possibility of introducing new coal- online survey, most countries have common
fired power plants is slim globally, the practice of challenges in technology procurement for carbon
CCT and CCU should be introduced as “add-ons” neutrality and energy transition: technical,
to existing power plants, namely (1) air quality financial costs, and enabling policy and regulatory
control system and (2) technology for flexibility and framework. In addition, land acquisition and
balancing. In ASEAN, ongoing projects with CCU geographical constraints pose a significant threat.
technologies can be found in the use of biomass, Therefore, to accelerate the CCT and CCU
hydrogen, and ammonia, CCS projects and energy technologies in the supporting carbon neutrality
storage. Moreover, there are several best practices targets of the region, the following actions are

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 INGENIEUR
well-designed for the introduction and deployment and ambition, as opposed to the previous practice
of CCT and CCU technologies: of measurement against past efforts.
1. enabling policies within each AMS to While adaptation efforts are more difficult to
support market conditions and institutional quantify (unlike the efforts to reduce greenhouse
frameworks; gas emissions) and are very specific to the
2. inclusion of knowledge sharing and locations and geographies of implementation,
enhancing capacity building at the the GGA aims to guide adaptation planning and
policy preparation phase and project strategies at all levels and to align the finance,
implementation and large deployment of technology and capacity-building support needed
these technologies; to achieve these.
3. diversification of the available CCT and Climate finance took centre stage at the
CCU technologies based on the country’s conference and was called the “great enabler of
needs; climate action.”
4. creating greater access for finance or The Green Climate Fund (GCF) received
investment to be economically viable. a boost to its second replenishment with six
Among others, carbon pricing (tax and countries pledging new funding at COP28 with
credit) could serve as an important total pledges now standing at a record USD
instrument with the potential to support 12.8 billion from 31 countries, with further
and encourage private sector engagement contributions expected.
also value chain establishment that
would bolster the growth and resource
enhancement in the region; Conclusion
5. implementation of other supporting
measures and cross-sectoral interlinkages Mitigating climate change requires concerted
such as integrating sustainable land use efforts for global co-operation, sustained efforts,
into existing energy and investment policy, and innovative solutions. Climate scientists,
and policymakers, and experts commonly stress the
6. redesigning and streng thening the importance of reducing greenhouse gas emissions,
industrial hub would enable the region to transitioning to renewable energy sources,
share the required infrastructure of the CCT and implementing nature-based solutions. The
and CCU technologies, reducing cost, and significance of international agreements, such as
ensuring the availability of key elements the Paris Agreement, as highlighted, along with the
needed for these technologies. role of individuals, businesses, and Governments
is crucial in contributing to a sustainable future.
The need for adaptation strategies to address
Enhancing global efforts to strengthen the inevitable impacts of climate change should
resilience under COP 28 be emphasised. There is a need for a range of
solutions, including access to technology and
In a major step forward, COP 28 agreed on early warning systems for disaster management,
targets for the Global Goal on Adaptation (GGA) and enhanced stakeholder capacities at all levels.
and its framework, which identifies where the The role of good governance and incorporation of
world needs to get to in order to be resilient to lessons learned from indigenous knowledge are
the impacts of a changing climate and to assess also recognised.
countries’ efforts. Overall, a collective and co-ordinated approach
The GGA framework reflects a global consensus is seen as crucial to effectively mitigate the
on adaptation targets and covers the themes of impacts of climate change and build a resilient
water, food, health, ecosystems, infrastructure, and sustainable planet for future generations.
poverty eradication and cultural heritage.
The decision gives adaptation progress a future REFERENCE
orientation for the first time, reflecting aspiration UNCC, UN Environment, ASEAN Centre for Energy

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What Others Say About
Environmental, Social, Governance
By Samniang Saenram

REPORT
The Malaysian Budget 2024 reflects the the mid- to long-term is a good thing for the long-
Government’s recognition towards ESG as a term sustainability of the business.” Some 45%
“need” today, and a whole-of-nation approach of board directors now say that ESG is a regular
to make Malaysia an investment destination part of the board’s agenda (up from 34% in 2019).
and achieve carbon neutrality by 2050. Budget In addition, 82% rank being a fair employer and
2024 also demonstrates Malaysia’s commitment good corporate citizen as “extremely” or “very”
to embracing ESG principles and its potential to important. Environmental and social governance
attract sustainable investments while highlighting directly affects business performance: companies
the need for broader and more comprehensive on the S&P 500 ESG Index outperformed, suffered
ESG strategies for the future. fewer losses, and recovered faster than the S&P
500 during the pandemic.

About ESG (World Economic Forum)

Environmental and Social Standards
The critical thing to understand about ESG is (World Bank)
that it is a strategic concern of businesses, not
just a nice-to-have activity that occasionally pops The ten Environmental and Social Standards
up on a C-suite agenda. A business’ long-term (ESSs) are part of the Environmental and Social
survivability depends on a broad range of factors, Framework (ESF) that supports green, resilient
just as it depends on the business’s ability to and inclusive development by strengthening
master the digital economy. In fact, a company’s protection for people and the environment; and
medium-term (and even short-term) success in making important advances in areas such as
our fast-paced environment depends on making labour, inclusion and non-discrimination, gender,
good decisions around environmental and social climate change, biodiversity, community health
considerations. For this reason, focus has shifted and safety, and stakeholder engagement.
from just doing good—what we call corporate social ESS1: Assessment and Management of
responsibility (CSR)—to setting up governance Environmental and Social Risks and Impacts sets
processes to build these activities into the fabric out the Borrower’s responsibilities for assessing,
of the corporation’s activities. ESG is CSR raised managing and monitoring environmental, social
to a strategic priority, bringing transparency and risks and impacts associated with each stage of
accountability into the company’s environmental a project.
and social impacts. ESS2: Labour and Working Conditions
recognises the importance of employment
Why ESG Is an Important Board Concern creation and income generation in the pursuit of
According to a Fortune 500 company board poverty reduction and inclusive economic growth.
member, “companies are recognisng that taking ESS3: Resource Efficiency and Pollution
care of broader stakeholders in the business over Prevention and Management recognises that

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economic activity and urbanisation often generate projects, enhance project acceptance, and make
pollution to air, water, and land, and consume finite a significant contribution to successful project
resources that may threaten people, ecosystem design and implementation.
services and the environment at the local,
regional, and global levels. This ESS sets out the
requirements to address resource efficiency and UN Environment’s Green Economy
pollution prevention and management throughout Initiative (United Nations)
the project life-cycle.
ESS4: Community Health and Safety United Nations Environment launched the
addresses the health, safety, and security risks Green Economy Initiative (GEI) in 2008, which
and impacts on project-affected communities and consisted of global research and country-level
the corresponding responsibility of Borrowers to assistance encouraging policymakers to support
avoid or minimise such risks and impacts, with environmental investments within the context of
particular attention to people who, because of sustainable development. Thanks to this initiative
their particular circumstances, may be vulnerable. and the work of other agencies, “green economy
ESS5: Land Acquisition, Restrictions on Land in the context of sustainable development and
Use and Involuntary Resettlement - involuntary poverty eradication” was placed on the 2012
resettlement should be avoided. Rio+20 agenda and was acknowledged as a tool
ESS6: Biodiversity Conser vation and for achieving sustainable development.
Sustainable Management of Living Natural UN Environment has developed a working
Resources recognises that protecting and definition of a green economy as one that results
conserving biodiversity and sustainably managing in improved human well-being and social equity,
living natural resources are fundamental to while significantly reducing environmental risks
sustainable development and it recognises and ecological scarcities.
the importance of maintaining core ecological Over the past decade, the concept of the
functions of habitats, including forests, and the Green Economy has emerged as a strategic
biodiversity they support. priority for many Governments and inter-
ESS7: Indigenous Peoples/Sub-Saharan Governmental organisations. All told, 65
African Historically Underserved Traditional countries have embarked on a path towards an
Local Communities ensures that the development Inclusive Green Economy and related strategies.
process fosters full respect for the human rights, By transforming their economies into drivers
dignity, aspirations, identity, culture, and natural of sustainability, they will be primed to take on
resource-based livelihoods of Indigenous peoples. the major challenges of the 21 st century - from
ESS8: Cultural Heritage recognises that urbanisation and resource scarcity to climate
cultural heritage provides continuity in tangible change and economic volatility.
and intangible forms between the past, present
and future. ESS8 sets out measures designed to From GEI to an Inclusive Green Economy
protect cultural heritage throughout the project An Inclusive Green Economy (IGE) has evolved
life-cycle. from earlier work on Green Economy. In its
ESS9: Financial Intermediaries (FIs) recognises simplest expression, such an economy is low
that strong domestic capital and financial markets carbon, efficient and clean in production, but also
and access to finance are important for economic inclusive in consumption and outcomes, based
development, growth and poverty reduction. on sharing, circularity, collaboration, solidarity,
ESS10: Stakeholder Engagement and resilience, opportunity, and interdependence.
Information Disclosure recognises the importance It is focused on expanding options and choices
of open and transparent engagement between for national economies, using targeted and
the Borrower and project stakeholders as an appropriate fiscal and social protection policies,
essential element of good international practice. and backed up by strong institutions that are
Effective stakeholder engagement can improve specifically geared to safeguarding social and
the environmental and social sustainability of ecological floors. And it recognises that there

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are many and diverse pathways to environmental to translate raw data into a more sophisticated
sustainability. rating suffer some level of criticism because of the
wide variance in the results. This implies that if
investors are using and relying on different service
ESG Ratings (Organisation for Economic providers, the score inputs that shape securities
Co-operation and Development) selection and weighting could be driven by choice
of rating provider. This section assesses the extent
The ESG financial ecosystem is evolving, including to which ESG scores of major providers differ, and
issuers and investors who disclose and use also how they compare to the dispersion of credit
information related to environmental, social and ratings across firms.
Governance issues. Financial intermediaries, as The ESG score differences mentioned can
well as Government and international organisation occur for a number of reasons. They may relate
institutions are influencing the emerging practises to different frameworks, measures, key indicators
in ESG investing. While constructive and inclusive and metrics, data use, qualitative judgement, and
progress has been made to develop ESG practices weighting of subcategories, reweighting of scores
by several ESG players, it has generated the to ensure “best in class” in industries. While
spread of a wide array of investment terminology, different methodologies, judgement and data are
and disclosure frameworks which resulted in welcome to offer investors choice of approaches
metric inconsistencies and lack of comparability and outcomes, large differences in ESG ratings
for investors. across providers may reduce the meaning of ESG
In this regard, while ESG methodologies are portfolios that weight better-rated firms more
improving and becoming more transparent, highly.
scoring remains in a state of transition, with ESG ratings can be used in a multitude of
some rating providers still in the way of refining different investment approaches, which tend
their methodology through the inclusion of to conform to five distinct forms. On one side,
factors such as materiality. There is a range of the least amount of complexity is through
scoring methodologies in terms of determining excluding certain firms categorically (e.g. moral
which data to analyse and include, metrics considerations), and on the other side is full ESG
weighting, materiality and how to consider missing integration into the very firm culture of investing,
information. Moreover, subjective judgment is such that it becomes an integrated part of the
layered particularly regarding absolute and relative investment processes. Approaches such as ESG
scores within and across industries. rebalancing, Thematic Focus and ESG Impact can
Even though progress has been made, a be found in the middle. The choice of the strategy
crucial point remains on the alignment with will greatly influence the final performance of the
materiality factors. Different institutions, Global investment.
Reporting Institution (GRI) among others, are
focusing on the assessment of materiality that
is applied to different industries to determine How can infrastructure projects enhance
the importance of each factor in the final ESG social value delivery (New Civil Engineer)
rating. This can depend on the business model,
the external environment and the industry itself. “When you see social value done well, when you
The different materiality approaches have been can see it considered from the conception of a
influential in shaping the choice of key metrics project through the design and delivery, there’s
used by the providers, but the discussion remains something actually quite magical about how many
on the perspective on which metric is material. lives that can impact,” says Abby Reid from Taylor
When information from the issuers’ disclosure Woodrow.
is retrieved and different key factors are weighted An example of social value delivered by Taylor
the final ESG score can be computed. Nonetheless, Woodrow was the construction of a 40m long cycle
ESG ratings can vary greatly from one ESG provider track as part of the Spalding Western Relief Road
to another. The different methodologies used project to help children learn cycling skills.

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“Powerful social value comes when a client What are most CFOs doing now in terms
and a contractor are able to work together of ESG reporting (Forbes)
on what’s appropriate to be delivered,” says
AtkinsRéalis associate social value consultant While many companies have been putting together
Laura Hampson. ESG reports on their own for years, would you say
Enfield Council’s head of Meridian Water that the new focus on it from the CFO’s office is
regeneration project Jenny Offord says that moving the reporting more toward a mature and
there should be collaboration between local set process?
authorities and contractors. Local authorities Its maturity process is on-going, but because
have an idea of what social value elements of the disparate standards and disparate industry
they want and contractors can advise on how foci and different geographical needs, it will be
to deliver it. a while. You’ll have a crystallized view on Europe
“To position additional social value on top of before long, and we’ll have a good understanding
what we are already doing doesn’t work, so we of what clients are doing or what financial services
need to find a way to embed it in our practices, entities are doing, because they’ll converge on
which is something that we’re working towards.” commonality within their groups. But it’ll evolve,
One of the challenges of embedding and it may evolve to the point where the three
social value in projects is the lack of universal letters (ESG) aren’t used anymore, and it will
understanding of what social value is, according simply be considered doing business. That’s when
to social enterprise membership body Social you’ll know.
Enterprise UK senior partnerships manager In five to ten years, it may be considered more
Nichola McAvoy. BAU (business as usual). If everyone’s doing it, and
A big issue is that there is no widely accepted therefore it’s not a new and high-focus area, but
way of measuring social value. “Different it’s baked into the daily life and work of companies
organisations are launching new tools,” Hampson and their operations. That goes back to the context
says. “So, it’s quite difficult to measure apples then. You have an understanding of strategy
with apples.” and stakeholders and data and governance
There is not enough training, shared purpose and reporting, and therefore are focused on the
and language in this space operations.
The most widely used tool is the national
themes, outcomes and measures (TOMs)
framework. TOMs are a set of social value What is ESG? (Kearney Group)
measures agreed by industry experts designed
to maximise impact in five areas – jobs, growth, ESG is a world of corporate performance data
social, environment and innovation. While it can that helps us account for the environmental,
be useful, skills and training organisation, People social and governance behaviour of a company
Plus social value lead Craig Corrigan says it can or investment. It’s one of those terms that most
often lead to contractors inputting social value recognise, but not everyone understands.
measures that will yield the best TOMs score, ESG reflects a company’s:
rather than thinking about what would be most ● environmental performance, like its carbon
appropriate for the scheme. emissions and the amount of water used;
We need clients to get comfortable with what ● social factors such as gender, race,
social value is important to them and for them to diversity and inclusion; and
direct us at the tender stage.” ● governance factors such as corporate risk
Henderson suggests that clients should be management, tax and reporting practices.
given guidance about how to measure social value The term was first coined by the United Nations
specific to their projects. McAvoy adds that an Environment Programme Finance Initiative in their
updated regulatory framework is required “so it’s October 2005 Fleshfields Report. These days, ESG
super clear what it should mean and how it should integration is generally regarded as one of the basic
be measured”. building blocks of a sustainable investment strategy.

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High quality ESG data and reporting are hard to come by

“ESG integration” is the systematic and explicit emissions not only helps mitigate climate change,
inclusion of environmental, social and governance it also reduces your cost base and your risk of
performance data in an investor’s analysis and future climate change-related litigation.
decision-making process. It provides a framework Other companies have simply chosen to ignore
that helps us account for the externalities of a ESG performance or decided against disclosure,
company or investment. And in turn, it gives us a despite the overwhelming arguments in favour of
more comprehensive picture of an investment’s doing so. For some, ESG has been regarded as
real current and future value, and its risks. In this more of a “greenwashing” communication issue,
way, ESG factors are effectively our canary in the than a value-adding strategy.
coal mine; highlighting leading companies, and As a result, high quality ESG data and reporting
helping us identify the laggards. have been hard to come by. And, that which has
Today, ESG integration is central to sustainable been available is far from standardised, making
investment strategies as it’s a powerful tool to de- it difficult to compare apples for apples, so to
risk portfolios and identify future performers, and speak.
thus, improve investment performance. As investor interest in ESG has grown,
This makes intuitive sense when you consider however, so too has demand for data and ESG
the companies and management teams who are rated investments. So, we’re now seeing great
actively mitigating ESG risks and capturing ESG improvements in the quality of reporting and
opportunities; they are, generally speaking, the global standards beginning to emerge. Consumer
highest quality and most skilled teams across the demand and the overwhelming evidence showing
board. that strong ESG performance is linked to better
Many great management teams have always investment results, has put management teams,
actively managed key ESG issues. Doing so is Boards and financial markets on notice. ESG
just good business and reduces corporate risk. integration is here and it’s not going away any time
For example, reducing your company’s carbon soon.

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Fenghuang - Tujia Stilted

Building Construction
HERITAGE CORNER

By Foo Mee Sim

Photo 1: Morning view of Fenghuang ancient townscape along Tuojiang river

T
he ancient town of Fenghuang is situated In addition, there are 88 ancient buildings,
in the southwest region of Tujia-Miao such as ancestral halls, temples, shops and
Autonomous Prefecture of Xiangxi in Hunan guild halls, more than 120 ancient dwellings and
province, China. Tujia and Miao are two of the 55 the ruins of Government offices, as well as the
ethnic minority tribes of PR China. Built in 1704, residences of many famous figures. Fenghuang
this old town was given the title of the “National Ancient Town maintains the intact pattern of urban
AAAA Tourist Attraction” for its charming scenery construction and historical appearance as in the
of ancient towers, bridges, streets, and other Ming and Qing dynasties.
buildings as well as the rich culture of Miao, Tujia The buildings on the more than 30 ancient
and 26 other minority ethnic groups. streets and alleys, are integrated with the
Fenghuang boasts a long history and numerous surrounding natural environment, presenting
cultural relics. It is home to two city gates and a harmonious scene of mountains, water and
walls built in the Ming Dynasty (1368-1644), as people. Walking in the alleys, with green bricks and
well as five frontier passes of the Qing Dynasty tiles, the mottled city walls are grayish-blue, as if
(1644-1911). stepping into the palace of the chieftain 100 years

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 Tujia Construction

Diaojiaolou is a type of building inherited from Tujia

people’s ancestors. It is a typical architectural
form in the Tujia areas in western Hunan and
western Hubei. It has a history of more than 4,000
years. Most of the stilted buildings are built on the
mountain side, and the main house is built on the
ground. Except for one side of the wing that is
connected to the ground and the main house, the
other three sides are suspended and supported by
pillars or stilts. The lower layer is a pig and cattle
Photo 2: Fenghuang tujia stilted houses or pen or used to stack debris.
Diaojiolou along the Tuojiang river bank The Tujia stilted building groups which stand
on the edge of the Tuojiang River in Fenghuang
and with a history of 100 years are one of the
ago. On the Tuojiang River outside Fenghuang, most striking and spectacular views in Fenghuang.
there are 17 bridges of various sizes, forming a Most Tujia stilted buildings are near the East Gate
natural gallery from the upstream Fenghuang Hongqiao and the North Gate Rock Jumping.
Bridge to the downstream Yunqiao Bridge. One end is the river bank, and the other end is
The most striking feature on both sides of above the river surface where the river flows.
the Tuojiang River are the rows of well-arranged The wooden pillars support the rows of stilted
hanging buildings or diaojiaolou, as the Tujia style of buildings anchoring them firmly along the river
construction. These are wooden structures hanging bank. From time to time, the boat canopy passes
over the river facing the scenic water and the street by, causing layers of ripples towards the stilts, and
across the river. These Tujia hanging buildings over the reflections in the water also sway around. The
river bank are unique to Fenghuang although the quaint Tujia Diaojiaolou is now a unique scenery
normal Tujia buildings are built along hill sides at in the ancient city of Fenghuang. Whether it is
the mountainous region of Hunan and Guizhou. shrouded by the mist in the morning or the street

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Photo 3: Intricate wooden beams at one of the Photo 4: The stepping stone river crossing as the
Fenghuang houses popular spot for tourists

lights in the night, it is a major attraction for

Phoenix Hong Bridge
countless tourists.
As a social interaction spot, Fenghuang Town
Phoenix Hong Bridge, also known as The Rainbow
has a characteristic water street corridor. One side
Bridge Art Building at the center of Fenghuang
of the river bank consists of rows of shops while
Ancient Town was built in 1368 AD. Standing on
the other side consists of a long stretch of stone
the bridge, one can view the picturesque scenery
steps descending into the water forming a leisure
of the Tuojiang River banks. The unique design of
area stroll to enjoy the scenic flowing river. This
the masonry bridge with two levels for pedestrian
street is a place for people to relax and shop.
passage is a gathering place for locals to enjoy the
scenic river and the surrounding buildings and city
walls.
Stepping Stone River Crossing

Facing the North Gate of Fenghuang Ancient City,

the Stepping Stone river crossing is a unique
crossing connecting the two sides of the river
banks which is formed by two rows of individual
square stone piers. As the name suggests,
crossing the river through the Stepping Stone
requires one to jump on each step with the fast
flowing water under your feet. This is also one
of the most popular photo shooting spots in
Fenghuang.
Photo 5: Phoenix Hong Bridge

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Fenghuang City Gate Towers

The East Gate Tower is the oldest gate tower in

Fenghuang. At 11m high, it has eight gun holes
above the gate for defence purpose during ancient
times. The North Gate Tower was first built in the
Ming Dynasty. In the Yuan and Ming Dynasties, it
was the office site of the leader of five villages.
Going downstairs from the gate, one will reach the
bank of Tuojiang River.

Photo 6: City gate tower

Tentative UNESCO listing

Fenghuang has all the attributes on Overall

Universal Value for listing as a UNESCO cultural
heritage site and is one of the 61 sites submitted
by PR China to apply for UNESCO Heritage Listing.
The justification of Outstanding Universal Value
covers the following:

Criterion 1 Photo 7: Local Tujia girl posing at the river bank

Ancient Fenghuang Town is situated at the foot of of Tuojiang river bank
mountains and beside waters. Its construction has
proved to be a very practical and scientific exploration Criterion 3
in terms of the town site selection as well as layout With the advancement of society, ancient
design and city planning. Following the undulation of civilization and traditional culture are more
the mountainous landscape, the town walls encircle or less vulnerable to the encroachment of
the ridges and span over the ranges while rivers wind modernisation. This is especially true in small
along the corridors before flowing out through the towns. In Ancient Fenghuang Town, ethnic
town. It is thus by absorbing the artistic philosophy languages, custom, arts as well as distinctive
of traditional Chinese garden design and making architectural remains of Ming and Qing styles
best of the limited space of the mountain area all carry a large amount of historical information
that the town achieves well-structured layout. Such of the rich culture in the ancient State of Chu.
distinctive building clusters displays the intelligence, Therefore, to enlist Ancient Fenghuang town
talents and enthusiasm of the architects, and can be into the World Heritage List will provide effective
called a creative and genius masterpiece. protection of the profound influences and
development of Chinese culture.
Criterion 2
Ancient Fenghuang Town is a well-preserved Criterion 4
integral and authentic historical site. The The town site selection, layout planning and
plentiful historical and cultural information has construction of Ancient Fenghuang Town has made
evoked great interest among litterateurs, artists, wonderful use of the mountain landscape and the
historians as well as architects. The unique water flows to create a harmonious relationship
cultural information carried by the ancient town between human residence and nature, thus
may well serve as an outstanding example for making it an outstanding example in this respect.
human settlement construction and promote It has been the most distinctive architectural
the development of architecture, environment clusters in the remote frontier mountainous area
protection and technical design. of South China (where different ethnic groups
merge with each other).

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 INGENIEUR
ENGINEERING NOSTALGIA

Batu Gajah Steam Power Station at

Tanjung Tualang, 1953
By Cheo Hong Keyong

View of Batu Gajah steam power power station situated at Tanjung Tualang taken in 1953. Notice the
overhead electric cable connected to the power station through the pylon. A tall chimney was built to
emit black smoke from the coal fire boiler to generate steam for electricity generation.
(Photo courtesy of Jabatan Penerangan Malaysia)

The Perak River Hydro Electric Power Company electricity. Due to the thick black smoke and soot
was formed by Balfour Beatty Limited in London created by coal, tall chimneys were built to emit
in 1926 to generate electricity for tin mining it to the atmosphere. During the heydays of the
activities in the Perak region. tin mining industry, 40 dredges were operated
The Batu Gajah power station was one of the in Perak. These three power stations supplied
three Electric Power Stations built in the state of electric power to all the dredges in the region.
Perak in 1933 after Malim Nawar in 1928 and Most of the dredges were owned by Malayan Tin
Chenderoh in June 1930. They were officiated Dredging Company Limited (MTD).
and opened by the Sultan Iskandar Shah of Perak. Due to world recession in the 1970s, the Batu
Batu Gajah and Malim Nawar power stations Gajah Power Station was decommissioned in
used coal and diesel to produce steam to generate 1976 and demolished in the 1980s.

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 UEM Group is one of Malaysia’s leading engineering-based
infrastructure and services conglomerate. We build and
maintain highways, properties and townships. We build
towers, bridges, urban transits and airports. We also build
and service hospitals.

EXPRESSWAYS TOWNSHIP & PROPERTY DEVELOPMENT ENGINEERING & CONSTRUCTION ASSSET & FACILITY MANAGEMENT