This study aims:

The emphasis on the environmental aspects in these three (3) sectors (telecommunication, broadcasting, and postal and courier) is due to the potential of these sectors to mitigate climate change, conserve resources, manage electronic waste, meet stakeholder expectations, and comply with the regulatory framework. The fundamental framework of the study is built from the Theory of Planned Behaviour. A qualitative method was employed to accomplish the study’s objectives. An interview was conducted to investigate the level of compliance and implementation of ESG focusing on the environment among the communications and multimedia industry players covering challenges, success factors, opportunities as well as ESG influence in business activities among the top management of the telecommunication and multimedia industry (listed and non-listed companies) registered under the MCMC (MCMC Licensees). The findings will provide information and indicators of ESG adoption specifically on the environment within the companies. Thus, it will be useful for policymakers to design more effective and targeted initiatives to enhance the capacity of ESG adoption among communication and multimedia industry players to leverage the path toward achieving the targeted Sustainability Development Goals (SDGs) agenda. It is also a great opportunity for industry players to build greater trust with employees, shareholders, and communities for their sustainable operations.

According to Jasni et al. (2020), a company should meet the requirements of ESG scores even though the ESG mandate is quite challenging for many industries and companies to embrace. Therefore, interested companies need to have a strategic plan for their future consideration, because, without such ESG strategic approaches, the commitments will initially gain zero (0) value. Jasni et al. (2020), Malaysia is in high expectations to realise a mission to become a digital economy by 2050; hence, it is interesting to explore the voluntary ESG commitments of telecommunications companies in providing a sustainable marketplace for the stakeholders. Jasni et al. (2020) also mentioned that a company needs to have a strategic way, to be consistent in ESG commitments, to gain an advantage from sustainable investment. The strategy will allocate available resources by identifying the primary stakeholders and addressing their needs. Consequently, it is a challenging task to address the complexity of deserving multiple stakeholders’ reliance that will provide better quality sustainability practices, thus eventually reflected in the disclosures.

Zhang et al. (2020), indicate that despite the rapid growth of the telecommunications sector, players and firms encountered several challenges. For instance, a rising employment turnover in the telecommunications sector. The major forces that contributed to the employee turnover among telecommunications companies in Malaysia were due to the underpaid wages and employment benefits issues, along with the increasing competitors among telecommunications firms. Besides, there were growing customer complaints over the major telecommunications service providers including the slowdown of broadband internet speeds, and limited 4G LTE coverage for most of the places, which have caused the level of customer satisfaction of the mobile services provided in Malaysia such as Digi, Maxis, Celcom, and U-Mobile to decline (Zhang et al. 2020). Faced with such a backdrop, local mobile service providers seek strategies to increase their market shares and revenues. Hence, investment in CSR initiatives could be one (1) of the strategic tools because it is perceived to be able to enhance corporate image and reputation.

According to Sarangapani et al. (2021), the Malaysian telecommunications industry is currently going through a difficult period, with fierce rivalry. For telecommunications providers, this is indeed an issue. As a result, the telecommunications industry’s uncertainty as a result of rivalry necessitates an understanding of brand loyalty and the forces that influence it to compete in the increasingly competitive telecommunications industry. Ishak & Asmawi (2022) discovered that the current state of knowledge is insufficient to elucidate the effective incorporation of the ESG framework into corporate strategic planning for technology hub developers, especially when the company is not publicly listed. This highlights that the company’s status can indeed impact ESG reporting compliance in various ways.

From the perspective of Pranugrahaning et al. (2020), it is worth noting that the Information Communication Technology (ICT) sector has been identified as a sector that has sought to proactively respond to the international call for business mobilisation to address the SDGs. Reports on the adoption of sustainable development within the private sector have also highlighted the ICT industry as one (1) of the leading industries committed to the United Nations SDGs. Despite this, very little sustainability research has been undertaken on the broader sector, or sub-sector, including within the developing country context.

This study aims to:-

As digital technologies become more prevalent, the digital economy will become the foundation of the modern economy. Accelerating the digital economy is no longer optional but crucial for Malaysia (Malaysia Digital Economy Blueprint). The telecom industry has been highly reliant on innovation as a key source of sustainable growth and rapid expansion. The introduction of a variety of highly innovative products and services allowed telecommunications companies to enhance their performance and profitable growth. Hajar et al. (2020), telecommunications companies are trying to escape market growth saturation by offering a large variety of innovative services. The new focus of these companies is increasing customer value to maintain existing customer loyalty through innovative products and services, instead of seeking new customers. Therefore, telecommunications companies need to move ahead with the value innovation logic of breaking out the competition through making leaps at buyers’ value, thereby opening new market space, and forming the need for demand and more chances for profitable advancement (Hajar et al. 2020).

The elements of ESG have started to be documented around the globe, particularly in Asia, and are considered the major drivers in determining potential risks, firm value, and being opted by the companies in response to the obligatory requirements defined by the regulatory bodies. Nowadays investment managers often include ESG principles amid the assets allocation process by following a more inclusive approach together with potential other emerging investment tools that attract investors who have particular investment agendas ESG in the telecommunications industry (Khalil et al. 2022). Hiyari et al. (2022) find that firms with stronger ESG performance have a higher investment efficiency (IE). Interestingly, the study finds that board cultural diversity negatively moderates the impact of ESG performance on IE for firms operating in settings prone to overinvestment. While Amosh et al. (2022) in their studies indicated that ESG collective performance maximises financial performance, while governance performance influences return on assets only. The matter is that recent studies show that companies that meet the ESG requirements have better management, take more care of the environment and sustainable development, have lower income volatility, and have access to cheaper cash funds (Alexander & Arseniy 2021).

This study employs a qualitative research design to gain a comprehensive comprehension of the research objectives. This study is of an exploratory nature, with the objective of investigating the degree of adherence and execution of ESG principles among MCMC Licensees operating in the telecommunications, broadcasting, postal, and courier services industry.

In this qualitative research study, a semi-structured interview protocol was developed, consisting of an introductory section addressing participant information and informed consent, followed by open-ended and probing questions exploring key themes such as the level of ESG compliance, challenges, opportunities, and success factors, particularly focusing on environmental aspects within the telecommunications, broadcasting, and postal and courier services sector. The protocol also delved into specific environmental practices and their influence on daily business activities. The interview duration, logistics, and contact information were clearly communicated, and a pilot interview was conducted to refine the effectiveness of the questions.

Purposive sampling was used where key informants were selected based on their expertise on a particular issue. In this case, the study involves top management individuals from listed and non-listed companies in the telecommunications, broadcasting, and postal and courier services sector holding MCMC Licensees. They are leaders for sustainability; risk management; and governance in the organisations. The list of licensees includes Applications Service Providers (ASP), Network Facilities Providers (NFP), Network Service Providers (NSP), Content Application Service Providers (CASP), and licensees under the Postal Services Act 2012. Due to time and technical constraints, the study involves nine (9) companies as key informants. Samples for qualitative study are generally much smaller than those used in quantitative studies (Mason, 2010).

A face-to-face or virtual interview was conducted with top management individuals from the selected companies. For the interview setup process, the researcher first contacts the identified companies. Companies agreeing to participate in this study will designate a key informant, preferably an individual with expertise in sustainability or someone leading the ESG agenda within the company. Thus, all inputs gained from the key informants have been processed and extracted as findings. The interviews aimed to explore and gather information on the compliance and implementation of ESG, challenges faced, success factors, opportunities, and the impact of ESG on business activities. The observational notes were taken during a physical interview session. The interview session was recorded with permission from the key informant to facilitate the note-taking and narrative transcribing purpose.

Develop and adopt specific, measurable, and time bound ESG metrics and targets tailored to the communication and multimedia industry. This will provide a roadmap for improvement and allow for more accurate tracking of progress over time.

Integrate ESG considerations into corporate governance structures, including board oversight and decision-making processes. This ensures that ESG factors are considered at the highest levels of the organisation.

Invest in training programmes and educational initiatives to enhance the understanding of ESG principles and practices among employees at all levels. This can include training on sustainable business practices, ethical decision-making, and the importance of social responsibility.

Foster collaboration with industry peers, NGOs, and other stakeholders to share best practices, address shared challenges, and collectively advance ESG standards within the communication and multimedia sector.

Prioritise research and development efforts towards the creation and adoption of sustainable technologies within the communication and multimedia industry. This includes the development of eco friendly products, energy-efficient technologies, and solutions that promote digital inclusion.

Implement a regular and standardised ESG reporting mechanism, providing stakeholders with consistent and transparent information on ESG performance. This can include annual sustainability reports and other forms of communication.

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