ENVIRONMENTAL SOCIAL GOVERNANCE IN PROSPERING THE MALAYSIA LISTED REAL ESTATE COMPANIES' PERFORMANCE

The COVID-19 pandemic and increased demand for improved international supply-chain management, Sustainability Reporting has been made compulsory for all listed companies in Malaysia, including LRECs. This reporting highlights the integration of ESG practices, with a more holistic approach compared to corporate governance and CSR previously practised. ESG is aimed at value creation through responsible environmental and social practices. This paper analyzes how ESG practices factor into the financial performance of Malaysian LRECs, including those involved in construction, plantations, REITs, and properties. Based on MRA analysis, this study found that the ESG criteria are substantially influencing the financial performance within the construction, plantation, and REITs sectors with R2 > 0.5. However, only the dividend yield was found to be significantly related to the ESG criteria for the properties sector. Sectoral differences are highlighted in this study as influencing the impact of ESG practices on financial performance.