Prime Minister, Datuk Seri Najib Tun Razak said, studies had shown that there is a positive correlation between the sustainability practices of companies and their share price performance.
He said many international responsibility indices had emerged, such as the Dow Jones Sustainability Index and FTSE4Good, as well as other rankings like the Fortune Most Admired Companies.
"These indices profile the world's most socially responsible companies and attract global SRI funds," he said in his keynote address at the Sustainability Guide and Portal "Powering Business Sustainability," here, Tuesday.
Also present were Bank Negara Malaysia Governor, Tan Sri Dr Zeti Akthar Aziz, Bursa Malaysia chairman, Tun Mohamed Dzaiddin Abdullah , Securities Commission chairman, Tan Sri Zarinah Anwar and Bursa Malaysia chief executive officer, Datuk Yusli Mohamed Yusuf.
At the end of last year, the European SRI market value was estimated at US$7 trillion and this figure is expected to increase to US$26.5 trillion by 2015.
Investors are drawn to companies that integrate environmental and societal concerns into their strategic planning and conduct business ethically and responsibly.
Large institutional investors can also actively influence companies to focus on sustainability.
"I believe that over time, this global development will translate into greater demand for SRI funds within Malaysia," said Najib, who is also the Finance Minister.
He commended Bursa Malaysia for coming up with the Business Sustainability Programme and believes it will make a difference.
Najib said sustainable development would have a concrete impact on national economic growth, industrial innovation and the bottom line of individual businesses.
He said although Malaysia began its sustainability journey long ago, it is time for corporate Malaysia to help the nation move faster, by adopting an integrated and inclusive approach to business that embraces a group of stakeholders broader than just shareholders.
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