AN ENVIRONMENTAL-SOCIAL-GOVERNANCE (ESG) FRAMEWORK FOR ENHANCING THE

AN ENVIRONMENTAL-SOCIAL-GOVERNANCE (ESG) FRAMEWORK FOR ENHANCING THE PERFORMANCE OF LISTED REAL ESTATE COMPANIES IN ASIA AND MALAYSIA

Assoc. Prof. Dr Rohaya Binti Abdul Jalil (Project Leader) 

Assoc. Prof. Dr. Muhammad Najib Mohamed Razali 

Dr Shazmin Shareena Ab Azis 

Dr Muhammad Yusaimi Abdul Hamid

(Universiti Teknologi Malaysia)

ABSTRACT

The pandemic and global economic challenges, resulted Malaysia has made sustainability reporting mandatory for all listed companies in its major markets, including listed real estate companies (LRECs). This shift emphasizes a more holistic ESG approach, replacing traditional corporate governance and CSR with an emphasis on environmental responsibility and sustainable value creation. This study uses performance data from Refinitiv Eikon as well as regression and Partial Least Squares (PLS) methods, while thematic analysis is used to build an ESG validation framework for Malaysian LRECs. This study is important because the level of ESG adoption among Malaysian LRECs is still low, which can affect financial performance. The lack of research in Asia leaves investors and stakeholders lacking guidance on sustainable and profitable ESG strategies. This study assesses the impact of ESG on the financial performance of the real estate sector using correlation analysis, multiple regression and PLS. The first objective identifies ESG sub-criteria such as energy management, CSR and corporate governance that enhance long-term investment returns. The second and third objectives emphasize the important role of governance and propose an evidence-based ESG framework that supports green investment, rapid growth and industry stability. 

Keywords: Environment Social Governance, Performance, Listed Real Estate Companies