Malaysia’s lead digital economy agency the Malaysia Digital Economy Corporation (MDEC) has launched the Malaysia Digital Climate Action Pledge (MDCAP), a corporate pledge that aims to build capacity and increase the adoption of sustainability and climate action by businesses across the digital economy.

MDCAP is jointly developed by the MDEC in partnership with UN Global Compact Network Malaysia & Brunei (UNGCMYB), MDEC said in a statement on Thursday.

The first cohort of MDCAP signatories consist of 28 businesses from the digital economy sector.

These signatories will have access to resources including a climate action playbook and carbon toolkit (including a calculator, online scoresheet and reporting tool), to help them take affirmative climate action plan.

Communications and Multimedia Malaysia Minister Annuar Musa said Malaysia’s digital economy reached 22.6 percent of gross domestic product (GDP) last year and is expected to grow beyond the initial target of 25.5 percent by 2025.

“This makes the digital economy a key catalyst for the nation’s shift to more sustainable economic practices,” he said.

He also said the role of the private sector in championing sustainable practices is crucial in achieving the nation’s carbon neutrality aspirations.

“However, we recognise that some companies may find it difficult to relate sustainability to their own operations. Businesses, through MDCAP, will have access to a range of resources and best practices to help them act,” he added.

According to the statement, the pledge is aligned Malaysian government’s commitment to be a carbon-neutral nation
by 2050.

As outlined in Twelfth Malaysia Plan (12MP), the government is aiming for a 45 percent reduction in greenhouse gas emissions intensity of GDP by 2030, compared to a 2005 baseline, and to achieve a 31 percent renewable energy mix by

MDEC Chief Executive Officer Mahadhir Aziz said to leverage the vast opportunities of the green economy, businesses must adapt strategies, structures and processes to strengthen their ability to face emerging risks such as climate change.

“MDCAP is a very important step in supporting the acceleration the growth of the digital economy sustainably,” he said.

Signatories of MDCAP are required to undertake a minimum of two out of the following six commitments:
● Conduct business operations in an environmentally responsible manner, through Reduce, Reuse, Recycle practices.
● Take action to minimise greenhouse gas (GHG) emissions by implementing energy efficiency and/or renewable energy or other emission-reducing measures.
● Implement responsible sourcing across the supply chain.
● Define a climate governance strategy in accordance with the mission, vision, and values of the company.
● Encourage stakeholder dialogue on the company's sustainability practices.
● Share sustainability best practices in terms of strategies, action plans, and initiatives.

“Positive actions begin with strong intentions, and this is what we hope to enable with MDCAP,

“Sustainability need not be overwhelming, it starts with the desire to be a better, responsible business, and the digital economy actors especially are pivotal change agents in enabling the fulfillment of national and global goals on the climate agenda,” said UNGCMYB Executive Director Faroze Nadar.

According to him, the resources and best practices provided have been tailored to be as relatable as possible across all spectrums of sustainability implementation maturity levels.

“We hope this programme will be the catalyst for digital economy companies, to unlock the value of sustainability to increase their resilience and competitiveness and tap the growing sustainable trade demand,” he said.

Malaysia’s MDEC to partner with Asean Fintech Group to facilitate funding opportunities to Malaysian tech companies