ODC initiated the first multi-stakeholder dialogue on ESG in Cambodia

27 August 2024
Economy and commerce / Foreign investors / Investment / Laws and regulations / Legal framework
Environmental Social and Governance (ESG) / Multi-stakeholder Dialogue / Sustainability information disclosure / sustainable development

On 8 August 2024, the Open Development Cambodia Organization (ODC) hosted a full-day multi-stakeholder dialogue on environmental, social, and governance (ESG) reporting in Cambodia at the Himawari Hotel in Phnom Penh. The event attracted 75 participants, including 29 women, from diverse backgrounds and institutions. Attendees included representatives from the government (2), the private sector (15), NGOs and INGOs (19), universities and research institutions (22), journalism (2), community representatives (2), and the general public (18). These diverse stakeholders discussed the prospects and challenges of ESG implementation in Cambodia.

The day-long workshop, themed ‘Leveraging Data and Information Disclosure for Responsible Business,’ started with remarks from Ms. Sin Kimsean, a Board Member of ODC. She outlined the dialogue’s objectives, emphasized the importance of data-driven decision-making, and hoped it would improve ESG reporting, advance good governance, and encourage cross-sector cooperation.

Dr. Joe Buckley, Program Development Coordinator of Solidarity Center Cambodia, followed with an insightful address at the opening remarks session. Drawing on his PhD research in London, Dr. Buckley expressed a fair concern about the ESG practices, raising concerns about ‘greenwashing’, and insufficient focus on workers’ rights. While acknowledging the benefits of properly implemented ESG, he advocated for a worker-centered approach to social responsibility. He illustrated labor issues in developing countries and emphasized that accurate ESG reporting could address these challenges. He highlighted the potential of labor movements to contribute to the Sustainable Development Goals and called for improved ESG standards and guidelines.

Dr. Sokphea Young from Queen Mary University of London introduced ESG principles, explaining what ESG means, how it has been implemented worldwide, and whether it is applicable in Cambodia. He also emphasized the critical role of key stakeholders in enforcing ESG practices and encouraged engagement in the following panel discussions.

The event featured two engaging panel discussions that brought together experts from various fields to share their insights and experiences and provided attendees with a well-rounded perspective on ESG practices in Cambodia, offering both theoretical insights and practical solutions to the challenges of implementing ESG strategies in the Cambodian context. The first panel tackled “Evolving concepts of ESG, legislation, and incentives in Cambodia,” diving into the current ESG landscape in the country. Panelists discussed policies, regulations, and incentives, offering a well-rounded view of the landscape. Dr. Sao Socheata from the Royal University of Law and Economics shared her academic perspective, while Mr. Samuel Schleipman of EuroCham Cambodia provided insights from the business sector. Mr. Mar Sophal from the NGO Forum in Cambodia gave the panel a civil society perspective.

The second panel shifted the audience focus to “From ESG theory and reporting to practice and realization,” therefore concentrating on examples from daily life and advice for businesses that would want to incorporate ESG into their operations. Dr. Sreang Chheat, a researcher at the Cambodia Development Resource Institute (CDRI), gave research perspectives on governance and social inclusion, and Ms. Srey Nak of Sarana Law Firm offered practical perspectives on legal concerns. Dr. Kenneth Paul Charman of CamEd Business School added an educational role to the discussion. Mr. Veng Seanghai, ODC Managing Editor, moderated both topic discussions. He effectively steered the conversations, drawing out key insights from the panelists and ensuring a comprehensive exploration of these crucial topics.

Mr. Zhe Kong from Development Innovation Insider (Diinsider) provided an international viewpoint, presenting China’s sustainable information disclosure regulations and practices. He presented several showcases with timelines detailing the implementation of ESG disclosure policies across key sectors, including the central bank, the State-owned Assets Supervision and Administration Commission (SASAC), the China Securities Regulatory Commission, and the Ministry of Ecology and Environment. Some data illustrated the year-by-year disclosure trends and highlighted significant challenges and issues that our participants can learn from these practices.

Mr. Thy Try, Executive Director of ODC, delivered closing remarks, thanking speakers for sharing global and local ESG insights. He encouraged stakeholders to continue research on effective mechanisms for monitoring businesses’ social and environmental practices. Mr. Try supported improving access to company sustainability information to enhance public and consumer oversight of business ethics. Highlighting the importance of ESG in the new investment law, he stressed the need to understand what motivates businesses to implement ESG or CSR adequately. Mr. Try emphasized the role of data in good governance, announcing ODC’s recent publication of a dataset on companies with CSR information in Cambodia. He expressed plans to expand data collection on ESG reporting, aiming to support stakeholders’ sustainable development efforts in Cambodia.

This dialogue marks a significant step forward in Cambodia’s journey towards sustainable development. By bringing together diverse stakeholders, the event fostered collaboration and knowledge-sharing, paving the way for an open dialogue on ESG practices that could enhance the competitiveness of Cambodian businesses in the global market and promote sustainable growth in Cambodia.