Campus revolution

Embedding ESG into higher education

By: Songhe Gao and Dr.Suzana Ariff Azizan

In October 2023, the Ministry of International Trade and Industry introduced the i-ESG framework to establish environmental, social, and governance (ESG) standards. The framework is designed to accelerate the country’s progress towards sustainable development goals by facilitating the adoption of sustainable practices among manufacturing companies. The i-ESG framework specifically targets the local manufacturing sector, with a focus on preparing small and medium-sized enterprises (SMEs) to embrace ESG principles.

The i-ESG principle, which consists of four cores (i.e. standards, financing, capacity building and market mechanism) and is supported by six key enablers (i.e. stakeholder engagement, human capital and capabilities, digitalisation, technology, financing and incentives as well as policies and regulations), is seen as important for the country’s commitment to reduce greenhouse gas emissions by 45% by 2030 and finally achieve carbon neutrality by 2050.

What exactly does ESG mean? ESG is a framework used to access a company’s practices and performances regarding sustainability and ethical issues. ESG is a principle focussing on companies’ commitment toward sustainable practices that respect both people and the planet. Under these principles, businesses must operate in a way that balances the pursuit of financial success with the responsibility to protect the environment and contribute positively to community development.

By adopting ESG principles into their core operations, it is not only contributing to environmental protection and societal equity but also to the company long-term growth. A commitment to ESG principles can significantly impact a company’s internal dynamics. It can substantially boost employee motivation and loyalty by fostering a work environment that values ethical behaviour, social responsibility, and environmental care.

A company’s organizational culture and leadership have a significant impact on its ESG performance. Thus, it is important to incorporate an understanding of these issues at the grassroots level. In this sense, education, especially universities, plays an important role to introduce the next generation on the importance of ESG. Future generation should be equipped with knowledge and skills to face the challenges related with sustainability. Students can gain an understanding of these ideas and be more equipped to use them in their future. Such an educational approach inspires students to critically evaluate the impact of their actions on both the planet and society.

This method not only broadens their knowledge but also fosters a sense of responsibility towards creating a just and sustainable future. To do this, it involves creating an educational environment where sustainability is not just a theoretical concept but a practical and actionable commitment. By strategically embedding ESG topics across various disciplines, universities can ensure that students are consistently exposed to the values of environmental stewardship, social responsibility, and ethical governance, reinforcing the importance of these principles throughout their academic journey.

Although it is acknowledging that integrating ESG principles into higher education is important, universities encounter several obstacles in implementing this. These include a congested curriculum, a lack of educator training on pertinent concerns, and the absence of standardized practices.

To overcome these challenges, a diversified strategy is needed. Overcoming these obstacles requires a multifaceted approach. First, universities need to have an institutional support and clear policies for ESG education. This includes establishing teams that focusing on sustainability, providing financial resources, and offering training for educators. When institutions commit to these measures, they can better integrate ESG principles into their programs, making sustainability a core component of the educational experience.

Furthermore, to effectively integrate ESG-related knowledge into higher education curricula requires an interdisciplinary approach. Sustainability issues are multidisciplinary and require a thorough understanding of economics, sociology, political science, environmental science, and other fields. By combining knowledge from different fields, educators can provide a more holistic understanding of sustainability issues. This approach also prepares students to address these challenges in innovative and effective ways.

Encouraging collaboration among different academic departments can offer a more comprehensive understanding of sustainability. Courses and research projects that combine knowledge from various fields can help students address environmental and social issues. This cross-disciplinary approach ensures that students, regardless of field of study, understand the importance of sustainability and are prepared to address these challenges in their careers.

At the same time, educators can employ various teaching strategies and approaches to successfully convey ESG concepts. Approaches such as case studies, guest lecturers and real-world projects have proven to be effective strategies in teaching and learning. Case studies, for example, can give students the opportunity to analyse real situations and come up with creative solutions and problem-solving skills. Guest speakers can inspire and engage students with their knowledge and experience. Furthermore, real-world projects give students the opportunity to practice theoretical knowledge gained in the classroom in real-world settings.

Collaborating with various stakeholders, including government agencies, private sector companies and non-governmental organizations (NGOs), can also indirectly help in improving environmental, social and governance (ESG) education initiatives at the university. In addition to improving the educational experience of students, this collaboration with stakeholders can foster a sense of social responsibility and dedication to sustainability.

In the effort to apply ESG-related knowledge effectively in the university curriculum, evaluation and continuous improvement are essential. Gathering feedback from students, academics and external partners helps determine areas that need improvement and ensures programs remain relevant and effective.

Integrating ESG-related knowledge into the university curriculum is one of the main steps in preparing to produce future leaders who are able to deal with sustainability challenges. Despite the obstacles, with effective strategies such as institutional support, interdisciplinary collaboration, curriculum development and partnerships, these challenges can be addressed. Universities must continue to innovate and adapt their curricula to meet the growing demand for sustainability education.

Through a comprehensive and systematic approach, universities can play an important role in advancing SDGs and fostering a more sustainable future.