When he was a young lad, Edey Suresh (main image), was polishing his shoes until they shone. He felt so proud, but there was a problem.
When his father asked him about the hole in his sock, Edey replied: “No one’s going to see the hole. They will only see the shoes”.
“I was showing everyone how shiny the shoes were, but not making sure that the inside was also aligned and attuned to what I was trying to show off. In a way, I was practising a form of ‘greenwashing,’” said Edey, a director at the United Nations Global Compact Network Malaysia and Brunei (UNGCMYB).
Edey’s childhood experience of focusing on the visible ‘shiny shoes’ without addressing the hidden issue of the hole in his sock mirrors how some companies today focus on superficial environmental claims – greenwashing – without addressing the core sustainability challenges they face.
Edey said greenwashing was a big threat to ESG – Environmental, Social, and Governance – as businesses are misrepresenting their commitment to sustainability by presenting something shiny, but without value.
He said greenwashing takes many forms, from vague language and false claims to misleading labels, and the rise of greenwashing tactics like ‘green shifting’ or ‘green labelling,’ which can deceive consumers into thinking they are supporting environmentally responsible businesses when, in fact, these companies may not be living up to their promises.
“Greenwashing is deceptive marketing practices that give false impressions of environmentally responsible products or claims that are usually vague or don’t make sense,” said Edey at the recent CIMB Sustainability Masterclass for Media, part of the bank’s landmark Cooler Earth Series, in Kuala Lumpur.
“Sometimes, we take these claims at face value. There must be a balance between what companies say and what they do. They can claim all sorts of things, but do their actions match what they say, or are they merely doing something to tick a box?
“We need to look at the science behind it. Sometimes, they’ll tell you beautiful things, but in reality, the opposite happens. Claims are easy – actions speak louder.”
He added that recently, he noticed a company had a label, and when he asked what it was for, he was told: “It was something they had come up with”.
“It was false advertising, but not many are familiar with all the labels, so no one called them out on it,” said Edey.
“The media has to play a bigger role in educating the public about the different labels and what they represent, and be brave enough to call out those peddling their goods under false pretences.”
“There are sufficient laws to penalise companies that engage in such activities, and it is time we identify those who are doing this.”
He added that ESG is not just about values, but also about creating enterprise value.
“It’s about understanding the opportunities, the risks, and ultimately, how businesses can be more responsible without compromising on profitability,” he said.
“We must look at everything from a systemic lens and understand that everything is interconnected. The E in ESG talks about the biodiversity of the soil. It addresses GHG (Greenhouse Gas) emissions, the carbon footprint, climate, and so on. If one thing happens, it will impact the other.”
The core of Edey’s vision is an integrated approach to ESG, which links governance, society, and the environment.
“The success of a smallholder farmer depends on human capital, such as the farmer’s skills, social capital, such as ties with buyers, and natural capital, such as soil, water, and biodiversity,” he said.
“The bottom line may be impacted by disruptions in any of these areas. This all-encompassing method is essential for comprehending how companies engage with their surroundings.”
Edey’s views were echoed by Faroze Nadar, UNGCMYB’s executive director. While Edey focuses on the interconnectedness of environmental, social, and governance factors, Faroze highlights the importance of communicating these complex issues effectively through storytelling to drive change.
Faroze said that in 2023, Oxfam published the ‘Climate Equality Report,’ which highlighted four key points:
• The richest 1 per cent of the world’s population is responsible for 16 per cent of global emissions.
• The richest 10 per cent of the world’s population is responsible for half of global emissions.
• The poorest 15 per cent of the world’s population is responsible for less than 10 per cent of global emissions.
• It will take someone in the bottom 99 per cent of the world 1,500 years to produce as much carbon as the richest billionaires do in a year.
“We need to build a culture where we study and focus on these issues and shift the conversation, because the missing element in sustainability is storytelling,” said Faroze.
“Storytelling must engage with the emotional reality because change is driven by emotion.
“Last year, The Guardian did an expose on carbon credits, essentially calling it out. This changed the entire conversation around carbon credits, resulting in companies beginning to question whether they were doing the right thing. Maybe they needed to do better.
“This shift in behaviour was driven by a media publication.”
Faroze said that closer to home was the issue of the Kuala Langat North Forest Reserve, which the Selangor government wanted to de-gazette in 2020, affecting 930.93 hectares of the forest for a mixed development project.
“However, following media coverage and public pressure, there was a turnaround, and that forest is still protected today,” he said.
“People often say they don’t have the money to address these issues, but businesses spend more money on wars and missiles than on environmental or social issues.
“It is not the lack of money, but the failure to highlight the right problems and ask the right questions.”
Besides Faroze and Edey, the other two speakers were Monash University Malaysia’s Dr Avvari V. Mohan, Professor and Deputy Head (Engagement & Impact) at the School of Business, and Dr Karren Khaw, Associate Professor and Head of the Department of Finance.
Avvari said that universities and business schools should actively contribute to sustainability, not just criticise companies.
He added that businesses should focus on leadership, culture, and values, rather than just data and reporting.
He also raised the issue of how companies are adapting to evolving sustainability regulations, emphasising that businesses and individuals must look beyond superficial measures to engage in meaningful sustainability efforts.
Khaw, meanwhile, stated that Malaysian banks are increasingly committed to mobilising funds for sustainable projects, with local banks leading the charge in sustainable finance.
She added that sustainable finance serves as a bridge between profitability and responsibility, demonstrating that financial returns and sustainability can coexist effectively.
