Green Practices Guideline for Services Sector

1.3.1 CLIMATE CHANGE Climate change presents a significant challenge for the services sector in the 21 st century. It is essential to recognise that economic development should not come at the expense of the environment. Controlling greenhouse gas (GHG) emissions is crucial to mitigate the impacts of climate change for the well-being of present and future generations. In the services sector, Malaysia currently contributes 0.7% to global GHG emissions, with the manufacturing and construction industries being the third largest sources of emissions (Malaysia BUR3 UNFCCC Report, 2020). As part of its commitment to climate action and green technology, Malaysia aims to become a low-carbon nation by 2050. This includes a commitment to reduce GHG emissions (against Gross Domestic Product: GDP) by 45% by 2030 compared to the 2005 level. This national aspiration presents opportunities for businesses in the services sector, particularly in areas such as: SUSTAINABLE PRACTICES: Economic instruments are being developed to support businesses in adopting sustainable practices. These instruments enable companies to reduce their carbon footprint while maintaining competitiveness in the market. ESG PORTFOLIO AND SUSTAINABILITY REPORTING: Strengthening Environmental, Social, and Governance (ESG) portfolios and sustainability reporting becomes increasingly important. Embracing green practices aligns businesses with global sustainability goals, enhances their reputation, and attracts environmentally conscious investors. 13 GREEN PRACTICES GUIDELINE FOR SERVICES SECTOR