Environmental issues are becoming increasingly urgent for policymakers as they work to combat global warming and achieve the climate action goals outlined in the Sustainable Development Goals (SDGs). In Malaysia, many companies are stepping up to adopt and implement green practices in their drive towards environmental sustainability. However, research led by Dr Kavitha Sathasivam of Sunway University and her colleagues revealed that companies face significant challenges on this path.

The study, which involved 48 interviews with managers and non-managerial employees across various Malaysian companies, highlights that a primary challenge in adopting green practices is the insufficient focus on environmental issues. The research found that the manufacturing and construction sectors prioritise safety over environmental concerns. This prioritisation is due to the immediate and severe risks associated with inadequate safety measures, including potential loss of life, injuries, and accidents. Consequently, environmental aspects frequently receive less attention compared to safety measures.

In addition to these prioritisation issues, companies in Malaysia encounter difficulties in educating their diverse workforce. This includes overcoming language barriers with foreign workers, addressing generational differences, and managing gender diversity. For example, the construction industry, which heavily relies on foreign workers, struggles with language barriers that hinder effective training. These communication challenges can impede the dissemination of environmental practices and policies. Furthermore, companies often place greater emphasis on productivity and meeting project deadlines rather than focusing on environmental concerns, leading to the neglect of green practices.

The study also identifies several external factors that present significant obstacles for the automotive and construction sectors in implementing sustainable practices. These include the influence of suppliers, vendors, and subcontractors, as well as broader issues such as climate change and the impact of Industry 4.0. These external pressures complicate the integration of green practices into existing business models. Additionally, financial constraints are a major challenge, with many companies struggling with the high costs associated with transitioning to sustainable practices.

Beyond these primary challenges, the study reveals additional issues that contribute to the difficulties companies face in pursuing environmental sustainability. These include a lack of positive environmental attitudes among employees, insufficient support from managerial and top management levels, limited awareness of environmental issues, a shortage of dedicated personnel to implement green initiatives, and inadequate enforcement of existing environmental policies.

The research underscores the critical need for companies to address these challenges to enhance their environmental sustainability efforts. Effectively overcoming these obstacles can provide a significant competitive advantage and contribute substantially to achieving climate goals. To support these efforts, it is essential for the government to implement more stringent laws and regulations and to establish a regulatory body dedicated to closely monitoring business environmental activities. A well-defined framework that incentivises green practices is also crucial. For example, offering tax incentives, grants, subsidies, and other financial mechanisms can help mitigate the financial burden for companies making the transition towards sustainability.

In conclusion, addressing these environmental sustainability challenges requires a concerted effort from both companies and policymakers. Companies must work to improve their focus on environmental issues, overcome workforce education barriers, and address external pressures and financial constraints. Simultaneously, policymakers need to strengthen regulations and provide financial incentives to support the transition to greener practices. By working together, it is possible to promote and support environmental sustainability, ensuring a more resilient and competitive business environment while contributing to global climate goals.

Dr. Kavitha Sathasivam
Sunway Business School
Email: @email

Dr. Md Asadul Islam
Sunway Business School
Email: @email