Environmental, social, and governance adoption in the Malaysian wood products and furniture industries: Awareness, adoption, and challenges

Abstract

As the world intensifies efforts to mitigate the effect of global climate change, an on-line survey was carried out involving 1,081 wood products and furniture manufacturers in Malaysia. The main objective was to evaluate the level of awareness, extent of adoption, and challenges faced by these manufacturers in adopting environmental, social, and governance (ESG) practices. The survey found that large-sized companies were more receptive to adopting ESG practices, as opposed to the medium-, small-, and micro-sized companies. Respondents were apparently more responsive to environmental requirements, followed by governance, and finally the social factors. Within the environmental sphere, compliance with using certified and legal wood and wood products, waste management, and conformance to emission standards were well received among respondents. The survey revealed that market forces and legislative requirements were the two most important factors that enticed respondents to comply with the ESG practices; among those respondents who did not comply with ESG requirements, the primary deterrent factors include lack of awareness, no direct benefit from adopting ESG, and the high cost involved. The ESG compliance may transform the wood products and furniture industries into a more sustainable industry, offering equitable wages and green jobs while producing high value-added products.

Dichotomy of predictor variables of indoor air quality and prevailing public perception of green living space – A preliminary assessment

“…Meanwhile, Building Related Illnesses (BRI) are closely related to prevailing poor IAP, and the impact of such poor building practices. In fact, with the growing concern for the Environment, Social and Governance (ESG) compliance, in line with the SDGs, such consideration will become increasingly important when designing and constructing homes and buildings in the future (Marques et al 2020;Mannan and Al-Ghamdi 2021;Ratnasingam et al 2023). The sick building syndrome (SBS) describes a situation in which building occupants experience acute health and/or comfort effects that appear to be linked to time spent in a particular building, but where no specific illness or cause can be identified (DOSH 2010).…”

“…In this respect, it is imperative that the design and construction of buildings in the country be re-examined to ensure that the green building concepts are incorporated so that improved living comfort can be achieved. Traditional building design and construction of the past may no longer be viable on the basis of cost, as the general population becomes increasingly conscious of the need for improved living comfort and higher indoor air quality (Ratnasingam et al 2023). In terms of controlling and managing VOCs and formaldehyde emissions indoors, the authorities would need a wholesome approach, rather than a 'knee-jerk' guideline, which is insufficient to contain the problem, and in turn has an adverse impact on the wood products manufacturing industry.…”

“…This guideline is touted to be in line with the international guidelines set by the World Health Organization (2018), as model measurements (in test chambers) of formaldehyde emissions from different wood and wood-based products, as well as from paints, carpeting, etc., have shown high and variable levels (Que and Furuno 2007). Nevertheless, information about the influence of different wood-based panels, finishing materials, and overlaying materials on formaldehyde emission from furniture and wood products in indoor spaces is limited, as alluded in the report by CREA (2022) and Ratnasingam et al (2023). This is mainly because a lot of parameters must be considered, as offices vary in size, equipment, occupant number, as well as the type of activities they are designated for, etc.…”

Discerning the supply chain of Bumiputera entrepreneurs in the Malaysian wood products and furniture industry: Status, challenges, and remedial measures

“…In fact, a previous study by Ratnasingam (2018) showed that mistrust among Bumiputera entrepreneurs of their non-Bumiputera partners appears to be a major challenge in building a lasting business relationship. This calls for an open culture, of mutual respect, which is crucial as a foundation for forging a lasting business relationship, and so important to build a strong and resilient SC (Ratnasingam et al 2023). If the Bumiputera entrepreneurs focus on developing the above aspects, their capacity to consolidate and increase its power on partners and actors, to attract the voluntary collaboration would be improved significantly (Zekić and Samaržija 2017), allowing the entrepreneurs to actively source, process, and sell their products.…”