This article first appeared in The Edge Malaysia Weekly on November 27, 2023 - December 3, 2023

Our approach to value creation is an integrated one where financial and commercial motives dovetail with ESG considerations. For us, the two are interlinked and inseparable.” - Imaan Aiysha

Ranhill Utilities Bhd has emerged as the gold winner in the utilities sector of The Edge Malaysia ESG Awards 2023, thanks to its collective approach in ensuring relevant efforts and resources are in place, and it is geared towards strengthening the innovation and determination that have been the bedrock of the company’s sustainability journey over the years.

Non-independent executive director Imaan Aiysha Hamdan says the company’s role of ensuring sustainable water supply and the continued pursuit of delivering clean energy solutions have always distinguished the group from others.

“We continue to fulfil our role as Johor state’s water provider, managing water resources responsibly while addressing the risks and impacts of climate change. We understand the need for energy, fuelled by socioeconomic growth, and we strive to provide cleaner solutions through solar and other sources,” she says.

“We have continued to remain true to our commitment and mission of building a better world by focusing on safeguarding our precious resources and in rethinking and offering alternative pathways to meet the world’s growing energy needs.”

Focusing on the planet, people and profits have formed the basis of the business model for its operations, which over the years have expanded from the water and energy sectors into the oil and gas, infrastructure and services sectors.

“Our approach to value creation is an integrated one where financial and commercial motives dovetail with ESG considerations. For us, the two are interlinked and inseparable, and we continue to apply this mindset in all that we do across our business strategies and processes, organisational culture and in our business and operational KPIs,” Imaan Aiysha says.

For Ranhill Utilities, which is on the FTSE4Good Index of Bursa Malaysia, challenges over the past year in maintaining its ESG performance include addressing non-revenue water and the effects of climate change on river water supply, especially that of upstream rivers. Towards that end, the company is focused on tapping wastewater as a solution.

“Treated water or greywater provides an alternative for non-potable applications. We look to provide solutions for the nation’s long-standing and serious issue of non-revenue water,” she says.

New challenges on the other hand, such as meeting the energy needs of society through cleaner alternatives, call for collaboration with strategic partners to undertake large-scale carbon capture and storage solutions, she adds.

Hurdles aside, the company has much to celebrate on the ESG front this year. Ranhill SAJ, a subsidiary of Ranhill Utilities, secured the top spot in the Renewable Energy Category for its Micro Hydro Application at the Gunung Ledang Water Treatment Plant in Tangkak, Johor, at the National Energy Awards 2023, which was hosted by the Ministry of Natural Resources, Environment and Climate Change. The triumph led to a subsequent recognition as the first runner-up in the Renewable Energy Project Off-grid Category at the Asean Energy Awards.

As the company continues its sustainability journey, Imaan Aiysha hopes for some form of clarity and focus on Malaysia’s goals, particularly for the net-zero emissions by 2050 target.

She adds that sustainability pathways, such as the National Energy Transition Roadmap, Malaysian Hydrogen Economy and Technology Roadmap, and i-ESG Framework, should be continuously communicated and backed by corresponding support for companies to increase engagements and contributions in accelerating Malaysia towards a low-carbon future.

Increased support and recognition for organisations with good ESG compliance are also welcomed.

“These include provision of financing opportunities, brand recognition and, essentially, rewarding good sustainability performance. This creates a virtuous cycle that will spur a greater drive of ESG implementation and initiatives,” she says, acknowledging the support and partnership of the government, industry players, its supply chain and guidance and advisory partners in its sustainability endeavours.

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