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Sunday, December 10, 2023

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Capital Markets Malaysia issues ESG disclosure guide for SMEs

Capital Markets Malaysia (CMM), the international positioning arm of the Securities Commission Malaysia (SC), has launched the Simplified ESG Disclosure Guide for SMEs in Supply Chains (SEDG). The disclosure guide comprises 35 priority disclosures aligned with local and global sustainability guidelines.

“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,” Awang Adek Hussin, the chairman of the SC, remarked.

With reference to guidelines beyond those imposed in Malaysia, the guide is envisioned to enable SMEs to respond to disclosure requests from multiple stakeholders including customers, investors, banks and regulators.

According to Navina Balasingam, the general manager of CMM, the goal of the guide is to provide straightforward, structured and practical guidance to assist its process of tracking and reporting ESG data.

The guide is divided into three categories to cater to the varying levels of sustainability maturity of SMEs. The categories are basic, intermediate and advanced, including a total of 15 disclosure topics under the E, S and G pillars.

As part of CMM’s effort to promote the adoption of ESG disclosures among SMEs, the Adopter Program will provide SMEs with access to in-person training, tutorials and workshops nationwide.

Salmah Bee Mohd Mydin, the executive director of market development responsible for sustainability at the SC, previously shared with ISFI about the SC’s sustainability agenda for this year including the newly published guide in a podcast interview.

While the guide was launched on the 18th October this year, the SEDG has already seen multiple institutions embrace it as early adopters. These include CIMB Bank, Credit Guarantee Corporation, Generali, Hong Leong Bank, Malaysia Venture Capital Management, Maybank, Penjana Kapital and UOB Bank.

With the launch of the guidelines, CMM has set its sights on the issuance of specialized sectoral disclosure guidance early next year. This year will also see the authority launch Bahasa Malaysia and Mandarin versions of the SEDG to support inclusive and extensive adoption.

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