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SC Malaysia Launches World-First Simplified ESG Disclosure Guide for SMEs

by Fintech News Malaysia October 19, 2023

Securities Commission (SC) Malaysia’s affiliate Capital Markets Malaysia (CMM) has launched a Simplified ESG Disclosure Guide (SEDG) to help SMEs within global supply chains disclose ESG data and information. Malaysia is reportedly the first country to do so globally.

The SEDG is a set of guidelines that consolidates and simplifies the many complex global and local ESG-related frameworks. It is designed to help SMEs comply with disclosure requests from multiple stakeholders, including customers, investors, banks, and regulators.

The SEDG comprises 35 priority disclosures that are aligned with local and global sustainability guidelines. It is further categorised into Basic, Intermediate, and Advanced levels to cater to the different levels of sustainability maturity of each SME.

CMM has also launched the SEDG Adopter Programme that will provide SMEs with access to in-person training, tutorials, and workshops to help them disclose ESG data.

The programme aims to facilitate learning and sharing of experiences from a community of practitioners facing similar successes and challenges in implementing ESG reporting.

The SEDG is aligned to global, local, and government frameworks and reporting standards including the Global Reporting Initiative (GRI), the International Sustainability Standards Board (ISSB), the Bursa Malaysia Listing Requirements, Bursa’s Sustainability Reporting Guide, and the Malaysian Code on Corporate Governance (MCCG).

CMM plans to launch Bahasa Malaysia and Simplified Mandarin versions of the SEDG by end 2023 as well as specialised sectoral disclosure guidance in early 2024.

Dato’ Seri Dr. Awang Adek Hussin

Dato’ Seri Dr. Awang Adek Hussin, Executive Chairman of SC, and Chairman of CMM said,

“As the global sustainability movement forges ahead amid heightened regulatory scrutiny and investor demand for more deliberate company action towards net zero goals, the SC is committed to ensuring that our companies, both large and small, are prepared to meet global ESG requirements.

 

Recognising that SMEs are particularly exposed to risks from supply chain vulnerabilities, the SC welcomes the release of the SEDG which will help SMEs get ahead of the curve and remain relevant in a constantly evolving global marketplace.”

Navina Balasingam

Navina Balasingam, the General Manager of CMM said,

“We are encouraged by the overwhelming reception to the SEDG Adopter Programme which includes major multinational supply chain players, SMEs, numerous financial institutions, government agencies and NGOs, as well as several local chambers of commerce.

 

Their commitment to encourage and support SMEs within their networks to develop ESG reporting practices is highly commendable.”