Malaysia-1st-Environment&climate change

By Daniel Morris | 13. January 2026

THEMATIC PRIORITY 1: GOVERNANCE

UNGP PILLAR 1

PROCUREMENT, INVESTMENT AND TAX

No.: G1.20

Action: Establish clear regulations governing public procurement activities.

Output Indicator(s):

  • Enactment of a Government Procurement Act that applies to all public procurement processes.
  • Laws are clarified on the protection of human, labour, children’s, and environmental rights throughout procurement processes.

Collaborative Partner(s): Ministry of Housing and Local Government; Local authorities (PBT)

HUMAN RIGHTS OBLIGATIONS

No.: G1.28

Action: Assess and map out coordination gaps and areas of overlapping jurisdiction between ministries, and federal and state governments or agencies.

Output Indicator(s):

  • Recommendations are proposed to improve coordination and resolve jurisdictional issues and weak enforcement of laws related to labour, social protection, climate change and environment, and digital safety.

Collaborative Partner(s): BHEUU; related sectoral agencies, State Governments

UNGP PILLAR 2

No.: G2.1

Action: Adopt robust human, labour, children’s, and environmental rights policies aligned to international standards with transparent and effective budgets for implementation throughout the company’s entire supply chain.

THEMATIC PRIORITY 3: ENVIRONMENT

UNGP PILLLAR 1

FOUNDATIONAL

No.: E1.1

Action: Facilitate multistakeholder dialogue and negotiations on the inclusion of the environment in the Malaysian Constitution and ensuring the Constitutional protection of environmental rights.

Output indicators:

  • Multistakeholder dialogues and policy consultations are conducted to advance the decision-making process on the constitutional Right to a Clean, Healthy and Sustainable Environment.
  • A legal framework is developed that proposes the constitutional recognition of environmental rights in line with developments in ASEAN and Malaysia’s regional position and in response to the SDGs.

Collaborative partner(s): BHEUU; NRES; MOFA

No.: E1.2

Action: Review and address normative gaps in the existing environmental legal framework (e.g. lack of legally binding obligations on corporate environmental due diligence).

Output indicators:

  • Evidence, insights and recommendations and provide proposed updates or amendments to environmental laws in line with international standards.
  • Legal reform on environmental rights is underpinned by a participatory and inclusive climate governance approach.

Collaborative partner(s): NRES

No.: E1.3

Action: Introduce provisions for legal reforms to ensure transparency, accountability and compliance in meeting Net Zero 2050 ambitions (e.g. mandatory corporate climate disclosures, carbon pricing mechanisms).

Output indicators:

  • New or amended laws or regulations are introduced to further support enforcement efforts in meeting Net Zero targets, particularly in the context of corporate compliance. Reform measures are enhanced that define emission reduction pathways and quantify the emissions reduction potential for each mitigation measure.

Collaborative partner(s): NRES

No.: E1.5

Action: Strengthen national water management policies by integrating environmental protection and human rights-based approaches, particularly in areas where improvements are needed.

Output indicators:

  • Recommendations are proposed to embed human and environmental rights protection in the National Water Policy 2024 and Water Sector Transformation 2040 initiative.
  • Emphasis on sustainability is strengthened by underscoring community participation in water governance, especially in the context of water-intensive industries.

Collaborative partner(s): PETRA

ENVIRONMENTAL RIGHTS GOVERNANCE AND ACCOUNTABILITY

No.: E1.6

Action: Introduce and apply the polluter pays principle (PPP)8 as an effective deterrent for business misconduct.

Output Indicator(s):

  • Regulatory instruments and enforcement measures are implemented that clearly apply the PPP, including imposing substantial fines, environmental taxes, or remediation orders on polluting businesses.

Collaborative Partner(s): NRES; MOF; KPDN (SSM); KPKT

No.: E1.7

Action: Socialise the precautionary principle among businesses.

Output Indicator(s):

  • Up-to-date information and guidance on the precautionary principle is developed and disseminated widely among businesses.

Collaborative Partner(s): NRES; MOF; KPDN (SSM); KPKT

No.: E1.8

Action: Conduct a study to introduce anti-greenwashing legislation and enhance consumer protection.

Output indicators:

  • Evidence, insights and recommendations related to the adoption of anti-greenwashing legislation are used to guide policymaking and legal measures, integrating corporate penalties and legal liabilities as well as consumer protection mechanisms.

Collaborative partner(s): NRES; KPDN; IGOs

No.: E1.9

Action: Review the application of EIAs and assess its effectiveness in environmental protection in both urban and rural settings.

Output Indicator(s):

  • Evidence, insights and recommendations are developed to inform continuous improvements to the EIA process through procedural, methodological, and technical approaches.

Collaborative Partner(s): NRES; KPDN; IGOs

No.: E1.10

Action: Provide free and easy public access to EIA reports and supporting documentation before development projects begin, in both urban and rural settings.

Output Indicator(s):

  • Establish a centralised, free and publicly accessible Document Retrieval System with alternative retrieval mechanisms, ensuring that information is easily consumed and available in both English and Bahasa Malaysia.
  • EIA reports are published an appropriate amount of time prior to the start of projects to enable meaningful community deliberation and updated or revised EIA reports are made available during an appeals process to prevent procedural manipulation.
  • Businesses effectively demonstrate through documented eort that they have exhausted all means to ensure communities have received EIA reports, understand them, and have responded freely and collectively.

Collaborative Partner(s): Department of Environment (DOE); businesses; CSOs; IGOs;

No.: E1.11

Action: Build the capacity of the DOE and other relevant federal and state agencies and departments by providing effective human, technical and financial resources.

Output Indicator(s):

  • Implementation budgets and capacity building measures are increased at the state-level to ensure functions are performed effectively.

Collaborative Partner(s): NRES

No.: E1.12

Action: Assess how businesses integrate comprehensive human rights and environmental impact assessments into energy transition projects.

Output indicator(s):

  • Evidence, insights and recommendation are developed that highlight implementation gaps and key areas of focus for the energy sector and are used to guide policy amendments.

Collaborative partner(s): NRES; PETRA; Ministry of Economy; CSOs

SUSTAINABLE FOREST MANAGEMENT AND LAND AND MARINE BIODIVERSITY

No.: E1.13

Action: Strengthen commitments that reinforce the pledge to maintain at least 50 per cent of Malaysia’s land mass under forest and tree cover.

Output Indicator(s):

  • Interagency or cross-sectoral coordination mechanisms are formalised, with budgets allocated or access to financial mechanisms increased.
  • New or revised policy instruments are implemented and enforced to protect forests and maintain tree cover, including at the state level.
  • Coverage (in hectares) of forested land secured through policies, gazettement, or legal protections.

Collaborative Partner(s): NRES; IGOs

POLLUTION, WASTE MANAGEMENT AND PLASTIC CIRCULARITY

No.: E1.15

Action: Develop standards of conduct related to the full lifecycle of plastics and its impact on environmental and human rights.

Output Indicator(s):

  • Comprehensive and standard guidelines are developed, applicable to all sectors, in line with international standards on plastic pollution and plastic waste management.
  • Guidelines and other information materials are disseminated widely, tailored by type of business.

Collaborative Partner(s): NRES; CSOs; IGOs

CLIMATE CHANGE GOVERNANCE

No.: E1.17

Action: Swiftly implement and operationalise the Climate Change Act.

Output indicators:

  • Regulations, guidelines, institutional frameworks, and other policy instruments are enacted to support enforcement of the Climate Change Act, recognising the special contexts of Sabah and Sarawak.
  • Implementation measures are demonstrated to be holistic, inclusive and based on collaborative and participatory approaches, encompassing end-to-end strategies from national target setting, establishing the governance structure through the formation of a regulatory entity, financial provisioning, and reporting and monitoring.

Collaborative partner(s): NRES; State governments and agencies; IGOs; CSOs

No.: E1.18

Action: Identify and address regulatory gaps to ensure that all necessary and non-retrogressive measures are in place to prevent, reduce and control climate change and pollution, and ensure the conservation of biodiversity and ecosystem restoration.

Output indicators:

  • Evidence, insights and recommendations are developed that effect amendments to regulations, institutional frameworks, guidelines and other policy instruments and support enforcement related to climate change, pollution, biodiversity protection and ecosystem restoration.

Collaborative partner(s): NRES; PETRA; State governments and agencies; IGOs; CSOs

No.: E1.19

Action: Enhance access to information on climate change and the inter linkages with human rights.

Output indicators:

  • Develop communications and knowledge materials (or other types of media) by collecting accurate, evidence-based information on high-carbon emitting business activities and the impacts of these activities on human rights in the context of climate change.
  • Information materials are disseminated widely to all stakeholders, including at the state level.

Collaborative partner(s): NRES; PETRA; State governments and agencies; IGOs; CSOs

ENVIRONMENTAL JUSTICE

No.: E1.20

Action: Implement the UNDRIP within Malaysia’s current legislative and policy framework.

Output indicators:

  • Regulations, institutional frameworks and other policy and programmes are implemented to support enforcement of UNDRIP, recognising the special contexts of Sabah and Sarawak.
  • Guidelines and protocols are developed, accompanied by trainings, on the application of UNDRIP in policy and decision-making.
  • Indigenous representatives are formally included in the implementation process at both federal and state levels.

Collaborative partner(s): Ministry of Rural and Regional Development (KKDW); JAKOA; SUHAKAM; related State agencies; IGOs; CSOs; Environmental and Human Rights Defenders (EHRDs)

No.: E1.25

Action: Ensure the meaningful participation of EHRDs in Just Transition policy development.

Output Indicator(s):

  • Formal mechanisms or platforms are created for EHRDs to participate in Just Transition decision-making processes.
  • Stakeholder engagement dialogues, forums or workshops are held, centring EHRDs and communities.
  • Federal or state-level policy drafts are publicly disclosed for comments and feedback from EHRDs and the general public.

Collaborative Partner(s): NRES; PETRA; Ministry of Economy; SUHAKAM; CSOs; EHRDs

UNGP PILLAR 2

FOUNDATIONAL

No.: E2.1

Action: Expressly define and incorporate environmental and human rights within company operations. Businesses should adopt an environmental and human rights charter that is aligned with international standards and best practice, approved and acknowledged by their highest management and guided by the most up to date expert advice and analyses. The charter should also set clear expectations for all employees, business partners and other parties relevant to the business.

No.: E2.2

Action: Adopt holistic policies that commit businesses towards mitigating greenhouse gas emissions (GHG) and addressing climate-related human rights risks and impacts. Such policies should be drafted with the input of all stakeholders, centred around affected communities, and be made publicly available.

No.: E2.3

Action: Refine procurement policies to emphasise climate and environmental dimensions and the need for effective due diligence. Businesses’ procurement practices should be aligned with recognised international benchmarks to ensure consistency and credibility. Periodic policy revisions are equally crucial and must be conducted to ensure procurement practices stay relevant and contribute positively to equity and sustainability objectives.

No.: E2.4

Action: Strengthen and improve voluntary carbon emissions disclosure mechanisms as part of the transition to a mandatory framework. Carbon emissions disclosures will only be effective if there is a standardised and uniform framework for measuring emissions which can be independently audited and verified. Studies on the market response to disclosures and voluntary or mandatory measures would be highly beneficial to improve such market mechanisms.

No.: E2.5

Action: Publicly disclose carbon emissions information in full to enable a meaningful examination of compliance to national regulations and targets. Disclosures should reflect the realities on the ground as far as possible, complete with key operational challenges, linkages to potential and actual harms to communities and outcomes on corporate responses.

No.: E2.6

Action: Review and update environmental standards on the worst polluting industries in line with the latest guidelines by the World Health Organization (WHO) and other expert bodies. These standards should be made legally binding, timebound and enforceable, with a clear definition of worst polluting industries. Further, a review should prompt improvements to the First Schedule and Second Schedule of the EQA.

No.: E2.7

Action: Identify, prevent, mitigate and account for how the company addresses actual and potential adverse climate change-related impacts on vulnerable groups, including those resulting from production-related and consumption-related activities and those connected to their value chains and global operations.

ACCESS TO REMEDY

No.: E3.1

Action: Establish a specialised body such as the National Green Tribunal (NGT) in India or the Land and Environment Court of New South Wales in Australia, tasked with adjudicating environment-based litigation and capable of delivering time-sensitive decisions.

Output Indicator(s):

  • An environmental adjudication body, such as a tribunal, is legally established that has the required mandate, functions, expertise and experience to promote rightsholders’ ability to hold business accountable for environmental rights harms.
  • The institutional mechanism enables effective ADR pathways on environmental disputes; specialised responses and accessible procedures for women, youth, and children; provisions for legal aid for communities who cannot afford or access legal resources; access to independent or technical experts; and the use of local languages of members of the impacted community.

Collaborative Partner(s): BHEUU; NRES; SUHAKAM; AIAC; JBG; Bar Council

No.: E3.4

Action: Establish or enhance Businesses business-led non-judicial and routinised grievance mechanisms, with a specific focus on addressing environmental human rights matters.

Output Indicator(s):

  • Comprehensive and robust corporate grievance mechanisms are developed that are accessible, accountable, transparent, adaptive and proactive, with a specific focus on addressing environmental human rights matters.

Collaborative Partner(s): Businesses