Exploring the relationship between Iso 14001 Ems and Esg performance of Malaysian companies

Global environmental concerns have garnered significant attention in recent times. Concerns about encouraging more ecologically friendly production to lessen the effects of pollution have been raised by industrial operations that cause environmental pollution. The adoption of an environmental manage...

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Main Authors: Sia, Mal Kong, Yew, Wong Chin, Tan, Say Keat, Ong, Daniel Zhang Jie, Sia, Wen Di
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2024
Online Access:http://journalarticle.ukm.my/23768/
http://journalarticle.ukm.my/23768/1/342-358%2074754-245850-1-SM.pdf
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author Sia, Mal Kong
Yew, Wong Chin
Tan, Say Keat
Ong, Daniel Zhang Jie
Sia, Wen Di
author_facet Sia, Mal Kong
Yew, Wong Chin
Tan, Say Keat
Ong, Daniel Zhang Jie
Sia, Wen Di
author_sort Sia, Mal Kong
building UKM Institutional Repository
collection Online Access
description Global environmental concerns have garnered significant attention in recent times. Concerns about encouraging more ecologically friendly production to lessen the effects of pollution have been raised by industrial operations that cause environmental pollution. The adoption of an environmental management system in Malaysian firms, however, has received little attention. This paper explores the mediating effect of Environmental, Social and Governance (ESG) framework on the relationship between ISO 14001 Environmental Management System (EMS) and ESG performance of Malaysian companies. Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4 was employed to assess the relationship through a conceptual model developed for this purpose. A total of 86 completed responses were collected from the targeted respondents in Malaysia of different industries. With ESG framework as a mediator, ISO 14001 EMS has an insignificant relationship with ESG performance, and the R2 value of ESG performance is 0.243. When the ESG framework is removed, ISO 14001 EMS has a significant relationship with ESG performance, and the f-square value is 0.176. This effect size is considered medium. The results provide an empirical proof for Malaysian companies to adopt the ISO 14001 EMS as a business tool, with ESG framework as a mediator in order to enhance their ESG performance. The study’s conclusions highlight the implications of using ISO 14001 EMS as a tool for businesses in Malaysia to improve ESG performance.
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spelling oai:generic.eprints.org:237682024-07-09T03:11:48Z http://journalarticle.ukm.my/23768/ Exploring the relationship between Iso 14001 Ems and Esg performance of Malaysian companies Sia, Mal Kong Yew, Wong Chin Tan, Say Keat Ong, Daniel Zhang Jie Sia, Wen Di Global environmental concerns have garnered significant attention in recent times. Concerns about encouraging more ecologically friendly production to lessen the effects of pollution have been raised by industrial operations that cause environmental pollution. The adoption of an environmental management system in Malaysian firms, however, has received little attention. This paper explores the mediating effect of Environmental, Social and Governance (ESG) framework on the relationship between ISO 14001 Environmental Management System (EMS) and ESG performance of Malaysian companies. Partial Least Squares Structural Equation Modeling (PLS-SEM) using SmartPLS 4 was employed to assess the relationship through a conceptual model developed for this purpose. A total of 86 completed responses were collected from the targeted respondents in Malaysia of different industries. With ESG framework as a mediator, ISO 14001 EMS has an insignificant relationship with ESG performance, and the R2 value of ESG performance is 0.243. When the ESG framework is removed, ISO 14001 EMS has a significant relationship with ESG performance, and the f-square value is 0.176. This effect size is considered medium. The results provide an empirical proof for Malaysian companies to adopt the ISO 14001 EMS as a business tool, with ESG framework as a mediator in order to enhance their ESG performance. The study’s conclusions highlight the implications of using ISO 14001 EMS as a tool for businesses in Malaysia to improve ESG performance. Penerbit Universiti Kebangsaan Malaysia 2024-05 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/23768/1/342-358%2074754-245850-1-SM.pdf Sia, Mal Kong and Yew, Wong Chin and Tan, Say Keat and Ong, Daniel Zhang Jie and Sia, Wen Di (2024) Exploring the relationship between Iso 14001 Ems and Esg performance of Malaysian companies. e-Bangi Journal of Social Sciences and Humanities, 21 (2). pp. 342-358. ISSN 1823-884x https://ejournal.ukm.my/ebangi/index
spellingShingle Sia, Mal Kong
Yew, Wong Chin
Tan, Say Keat
Ong, Daniel Zhang Jie
Sia, Wen Di
Exploring the relationship between Iso 14001 Ems and Esg performance of Malaysian companies
title Exploring the relationship between Iso 14001 Ems and Esg performance of Malaysian companies
title_full Exploring the relationship between Iso 14001 Ems and Esg performance of Malaysian companies
title_fullStr Exploring the relationship between Iso 14001 Ems and Esg performance of Malaysian companies
title_full_unstemmed Exploring the relationship between Iso 14001 Ems and Esg performance of Malaysian companies
title_short Exploring the relationship between Iso 14001 Ems and Esg performance of Malaysian companies
title_sort exploring the relationship between iso 14001 ems and esg performance of malaysian companies
url http://journalarticle.ukm.my/23768/
http://journalarticle.ukm.my/23768/
http://journalarticle.ukm.my/23768/1/342-358%2074754-245850-1-SM.pdf