KUALA LUMPUR (Oct 19): Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia, has launched the Simplified ESG Disclosure Guide (SEDG) targeted at small and medium enterprises (SMEs) within global supply chains.
The guide simplifies environment, social and governance (ESG)-related frameworks and provides guidelines on ESG disclosures to SMEs. It is aligned to global, local and government frameworks and reporting standards, including the Global Reporting Initiative, the International Sustainability Standards Board, the Bursa Malaysia Sustainability Reporting Guide and Malaysian Code on Corporate Governance.
Consultations were conducted with stakeholders such as large multinational companies, public-listed companies, SMEs and regulators when formulating the guide.
“As we collectively transform and elevate Malaysia’s economic system through the adoption of international standards and best practices, it is important to ensure that no SME is left behind. To support inclusive and extensive adoption, CMM will launch the Bahasa Malaysia and Simplified Mandarin versions of the SEDG by end 2023,” said SC executive chairman and CMM chairman Datuk Seri Dr Awang Adek Hussin in a statement.
The SEDG comprises 35 priority disclosures that will enable SMEs to respond to disclosure requests from stakeholders. It is categorised into basic, intermediate and advanced levels to cater to different SMEs.
“The journey of adopting sustainable practices can be daunting for SMEs. As such, our goal is to empower them with a framework that provides straightforward guidance that is structured and practical for SMEs to navigate the process of tracking and reporting their ESG data,” said CMM general manager Navina Balasingam.
CMM has also launched a SEDG Adopter Programme to support SMEs with in-person training, tutorials and workshops nationwide. The reception to the programme has been overwhelming, said Navina.
Early adopters of the SEDG include banks, multinational companies, and industry associations such as Dewan Perniagaan Melayu Malaysia, the Associated Chinese Chambers of Commerce and Industry of Malaysia, the Malaysian Associated Indian Chambers of Commerce and Industry, and Small and Medium Enterprises Association.
CMM plans to launch specialised sectoral disclosure guidance in early 2024.