Takeaways

• The Defence Ministry plans to adopt a structured ESG framework to improve transparency, sustainability, and public trust.
• Lessons from private-sector governance and sustainability practices will guide reforms in defence administration.
• A special task force is proposed to tailor ESG principles to national defence needs, with 2026 seen as a turning point.

The Defence Ministry is preparing to adopt a comprehensive Environmental, Social, and Governance framework as part of a broader push to strengthen transparency, sustainability, and institutional credibility.

Speaking on the initiative, Defence Minister Mohamed Khaled Nordin said the ministry would draw lessons from the private sector, where ESG practices have helped companies improve governance standards, enhance resilience, and build public confidence. He acknowledged that governance practices in the public sector still lag behind those seen in many private organizations.

According to the minister, private companies have demonstrated strong performance in areas such as digitalization, transparent procurement, sustainable business practices, and the protection of workers’ rights. These efforts, he noted, have not only made businesses more competitive but have also strengthened trust among stakeholders and the wider public.

Read More: The Growing Need for ESG Companies, Sustainability, and Climate Solutions

Mohamed Khaled said ESG principles are no longer limited to compliance in the private sector but are being actively driven by strong leadership and accountability. He stressed that the Defence Ministry now needs to adopt these principles in a more structured, holistic, and disciplined manner.

“The time has come for the ministry to embrace ESG principles in a more structured, holistic, and disciplined manner,” he said, adding that this would require learning from advanced and proven systems, even if it means rethinking long-standing practices. He described the shift as a necessary reset to ensure the defence institution remains credible, effective, and trusted.

Addressing concerns around national security, the minister said such considerations should not be used as a blanket reason to resist openness or reform. He argued that outdated mindsets, excessive bureaucracy, and ineffective governance structures must be left behind if the ministry is to move forward.

As part of the reform process, Mohamed Khaled called for the establishment of a special task force to guide the development of an ESG framework tailored specifically to national defence requirements. The goal, he said, is to elevate the standing of the defence institution and align it with global best practices in governance and sustainability.

Looking ahead, the minister expressed hope that 2026 would mark a turning point for the ministry. He said the adoption of ESG principles should help usher in a new era defined by integrity, trust, and a shared commitment to serving the nation.

Also Read: Understanding ESG Metrics: Measuring Environmental, Social, and Governance Performance

Integrity, he emphasized, must be firmly integrated as a core value within the defence ecosystem. This includes a comprehensive and uncompromising fight against corruption and misconduct at every level. By strengthening governance, improving transparency, and embedding sustainability into its operations, the Defence Ministry aims to reinforce public trust and ensure that national defence institutions remain robust, accountable, and future-ready.

Follow more news and views via our Social & Governance and Featured Articles sections, and stay updated on the top ESG events to attend in 2026 for industry insights and networking.

If you're looking for suitable ESG and Sustainability providers to share customized solutions specific to your business needs, you can check out KnowESG's Solutions page.

If you are an ESG provider looking to get your organization listed on our portal, visit this page.

Source: The Star