Making Green the New Gold
June 17, 2025
Key Takeaways
- While most view ESG as a compliance requirement, Sunway has enacted it as a blueprint for long-term growth.
- From building low-carbon cities to pioneering green investments, Sunway is redefining what it means to be a sustainable business – one where innovation and profitability can go hand in hand.
Sustainability has rapidly evolved from a trendy business buzzword to a global corporate mandate, with 95% of the world’s largest companies adopting sustainability reporting and carbon targets. Yet long before this global shift, Sunway had already laid the foundation for sustainability by embedding climate-conscious investments and inclusive community growth into its business strategy.
“Sunway recently celebrated our 50th anniversary in 2024. Not many companies reach 50 years, and we believe staying relevant to our investors, communities and stakeholders is closely tied to our commitments to the ESG agenda.
said Sunway Group executive director of chairman’s office Mr. Ong Pang Yen who oversees Group Sustainability.
“For Sunway, sustainability isn’t just a requirement—it’s a core part of how we continue to grow and stay future-ready.”
Sunway has built an ecosystem where profitability and purpose go hand in hand. Guided by its goal to achieve net-zero carbon emissions by 2050, Sunway has integrated sustainability across all operations, keeping ESG practices aligned with business goals and growth. This approach is evident through its Build-Own-Operate model where Sunway is an integral stakeholder in its communities and townships, fostering sustainable growth beyond just property development.
Beyond real estate, the Group’s strategy spans across all of its business divisions. As Harvard Business School reports, companies with high ESG ratings consistently perform better in both medium and long-term studies, gaining a competitive edge and a safety net from potential risks. By integrating sustainability across its diverse operations, Sunway leverages a unified approach to fully harness the ESG advantage.
Futureproofing with Purpose
Sunway’s commitment to sustainability and ESG practices includes long-term strategies to build resilient, future-proof business models.
Starting with its people, Sunway strives to create a safe, inclusive and diverse workplace to drive innovation, teamwork and accelerate problem solving. Through employee welfare initiatives, occupational health and safety regulations and capacity building, Sunway addresses employee needs, ensures job satisfaction and retains high-performing talent among its 20,000 employees thus creating sustainable value across all business divisions.
Beyond internal operations, Sunway is committed to embedding ESG principles throughout its supply chain. With initiatives such as the implementation of a Sustainable Procurement Policy, a Supplier Code of Conduct, sourcing eco-label products and early adoption of the Simplified ESG Disclosure Guide (SEDG), Sunway is actively fostering a responsible and transparent value chain. Through collaborative and innovative partnerships with suppliers and vendors, the Group is working to reduce residual carbon emissions by 45% by 2030—paving the way towards its goal of achieving Net Zero carbon emissions by 2050.
Digitalisation is also an integral part of Sunway’s sustainable value chain, helping to streamline operations, minimise paper usage and enhance overall efficiency. According to the World Economic Forum, adoption of digital technologies across industries could cut carbon emissions by up to 20% by 2050. Sunway’s commitment to digital transformation supports this global shift, driving progress towards a more sustainable and low-carbon future.
“Sunway’s commitment to sustainability goes beyond compliance requirements – it’s driven by our core values, ethics and doing the right thing.
said Mr. Ong.
Hence, the Group’s ESG efforts extend to its communities through the #SunwayforGood initiative. Guided by three pillars – Healthcare, Education and Community Enrichment – the #SunwayforGood initiatives have positively impacted 83,000 lives since 2014.
Sunway’s commitment beyond compliance also applies to its effort in holding true to its core value of integrity. By holding itself accountable, Sunway strives to ensure its people act professionally, ethically and honourably maintaining its record of zero reported incidents of bribery and corruption. These efforts contribute to building a fair, transparent and resilient organisation, echoing the principles of Peace, Justice and Strong Institutions as outlined in the United Nations Sustainable Development Goals.
Building the Cities of Tomorrow
As the world and business landscapes alike shift towards a more resilient future, sustainability and efficiency become powerful drivers of our cities’ development. Green buildings, energy efficiency and a focus on environmental and social well-being become the driving factors of urban spaces as proven by an International Finance Corporation (IFC) report which estimated cities that prioritise green and climate conscious developments stand to gain up to seven trillion US dollars in investments and create up to 144 million new job opportunities by 2030.
Sustainable living has become synonymous with a higher quality of life, drawing top talent who, in turn, transform these cities into innovation hubs – fostering collaboration, driving progress as well as unlock new market opportunities and long-term economic resilience.
At Sunway, sustainable urban developments and urban regeneration have been a priority since the 1980s, with the establishment of Sunway City Kuala Lumpur (SCKL), Malaysia’s first sustainable township and the pioneer of Sunway’s integrated township model nationwide. In SCKL, green infrastructure, smart mobility and circular economy initiatives have transformed an 800-acre former tin-mining site into a thriving urban hub.
From being recognised as the first green-integrated township by Malaysia’s Green Building Index to operating Malaysia’s first elevated electric bus system, the Bus Rapid Transit (BRT) Sunway Line, SCKL is a 15-minute city home to more than 200,000 residents who live, work, play and study in a safe, connected and healthy environment.
Up north, Sunway City Ipoh shines as a model for climate resilient cities, nestled amidst lush rainforests, geothermal hot springs and the ancient limestone hills of Tambun. The city boasts natural heritage, eco-tourism attractions, wellness-focused real estate, world-class healthcare facilities and the upcoming Sunway Ipoh Mall. Its well-designed integration with the natural terrain plays a big role in driving the Eastern Development Corridor of Ipoh.
In Malaysia’s southern region, Sunway expands its sustainable vision and developments with Sunway City Iskandar Puteri and the upcoming Bukit Chagar Rapid Transit System (RTS) Link in Johor. These projects are strategically positioned to tap into cross-border economic activities through enhanced connectivity and sustainable urbanisation, reinforcing the Group’s commitment to build future-proof and investment-ready developments.
Driving Innovation in Business and Community
Beyond property development, Sunway’s commitment to embedding ESG principles in its business operations spreads to its other business ventures.
Sunway Healthcare Group (SHG) is at the forefront of integrating technologies to enhance patient outcomes and operational efficiency. One notable initiative is the adoption of AI in medical diagnostics where Sunway Medical Centre (SMC) has partnered with Annalise AI to incorporate AI-driven chest X-ray technology, capable of detecting up to 124 findings within seconds.
AI-enhanced ultrasound imaging has also been introduced in SMC’s emergency department, facilitating quicker and more precise diagnoses for critical conditions such as heart attacks and strokes. By harnessing cutting-edge medical technologies, SHG not only delivers superior patient care but also strengthens its position as a leading healthcare provider — driving sustainable growth and long-term business value.
Through the education sector, Sunway University actively engages in research and collaborations that promote sustainability and technological innovation. Institutions such as the Jeffrey Sachs Center on Sustainable Development, the Asia Headquarters of the United Nations Sustainable Development Solutions Network (SDSN) and the Sunway Centre for Planetary Health aim to address global and environmental challenges through education and support a green transition through evidence-based research.
At the inaugural UNESCO International Forum on the Futures of Education in 2024, one key message stood out: transforming education to become more equitable, sustainable and collaborative is essential to advancing the Sustainable Development Goals.
At Sunway Education, this vision has long been in motion. Through strong partnerships with world-renowned institutions such as the University of Cambridge, Harvard University, Massachusetts Institute of Technology, Boston, and Lancaster University, UK, Sunway champions multilateral research and collaboration to shape a more inclusive and sustainable future for education.
These initiatives go beyond delivering research – they play a vital role in cultivating and nurturing future leaders and talent who will carry forward a vision of innovation and sustainability to create lasting change for generations to come.
Similarly, Sunway REIT (Real Estate Investment Trust) is one of the largest REITs in Malaysia with a diverse portfolio strategically located across award-winning integrated townships in key locations in Kuala Lumpur, Penang, Johor and Perak. Sunway REIT encapsulates ESG principles throughout its portfolio encompassing retail, hospitality, office, industrial and healthcare properties.
Through its key initiatives, Sunway REIT has translated its ESG commitments into financial value. It became the first REIT in Malaysia to introduce a Sustainability-Linked Medium-Term Note (SLMTN), which ties its financial performance to measurable ESG goals such as increasing renewable energy consumption and reducing building energy intensity. As part of its long-term strategy, Sunway REIT targets a 4% annual reduction in energy intensity and aims to source 40% of its electricity from renewable energy by 2030. To support these goals, it launched the Green Lease Partnership Programme, fostering collaboration with tenants to share responsibility for energy efficiency and sustainable practices.
Sunway REIT’s financial achievements were complemented by growing industry recognition for its ESG leadership, earning numerous top accolades in 2024. These included the Platinum Award for Retail REIT at the Asia Pacific Best of the Breeds Award, the Industry Excellence Award for REITs at the National Corporate Governance & Sustainability Awards, the Gold Award in the Sustainability Reporting Award Category at the Australasian Reporting Awards, the Gold Award for Annual Reports by companies with RM2 billion to RM10 billion in market capitalisation at the National Annual Corporate Report Awards (NACRA), and the Silver Award at The Edge ESG Awards. These accolades underscore how integrating sustainability into business strategy can drive strong financial performance.
Through all its business divisions, Sunway has been advocating and developing ESG integration and sustainability practices that give it a competitive edge. It ranges from pioneering new business models and regional expansion down to attracting impact-driven investors as the global economy shifts towards sustainable investments, digital transformation and climate action.
As Sunway’s founder and chairman Tan Sri Sir Dr. Jeffrey Cheah KBE AO always says, “we can all do well by doing good.” Sunway is proving that ESG is not just good for the planet, it is good for business, ensuring long-term resilience and value creation for generations to come.
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