KUALA LUMPUR (July 26): Capital Markets Malaysia (CMM) has released a Simplified ESG Disclosure Guide (SEDG) for small and medium enterprises (SMEs) in relation to environment, social and governance (ESG) matters, for public consultation prior to launching the document by November.

The SEDG encourages SMEs to adopt sustainability practices so that they remain competitive, relevant as well as respond to disclosure requests from stakeholders, customers, investors, banks and regulators.

It aligns with the main global frameworks and reporting standards such as the Global Reporting Initiative and the International Sustainability Standards Board. Moreover, it references local reporting requirements including those under the Bursa Malaysia Listing Requirements, Bursa’s Sustainability Reporting Guide and the Malaysian Code on Corporate Governance.

Securities Commission Malaysia executive chairman and CMM chairman of Datuk Seri Dr Awang Adek Hussin said: “This guide is a crucial step for all companies and businesses in Malaysia to address sustainability considerations within the supply chain as both countries and businesses globally step up their net zero commitment, thus heightening regulatory scrutiny and consumer concerns around the matter.”

While drafting the SEDG, CMM met with multi-stakeholder groups including large multinational and public listed companies to understand disclosure needs from their supply chain, as well as SMEs and corporate governance stakeholders.

CMM is planning to launch the SEDG by November 2023 and is considering all comments and feedback at FormSEDG before the closing date on Aug 25, 2023.