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26 December 2023 Environmental, Social and Governance

(ESG): Recent Updates In Malaysia

Launching Of Simplified ESG Disclosure Guide (SEDG)

For Small & Medium Enterprises (SMEs)

In October 2023, Capital Markets Malaysia (CMM), an

affiliate of the Securities Commission (SC) launched the
SEDG for SMEs. The design of the SEDG involved extensive
benchmarking exercises against various other global and
local standards and frameworks including the Global
Reporting Initiative, International Finance Reporting
Standard by the International Sustainability Standards Board
and Bursa Malaysia’s Listing Requirements Sustainability
Reporting Guide.

The objectives of the SEDG are to:

(a) Provide SMEs (as data prepares) with a simple and

standard set of ESG disclosures to track and report.

(b) Provide stakeholders (as the data requesters) with a

simple and standard set of ESG disclosures to ask
for.

(c) Provide standard-setters with a simple and standard

set of ESG disclosures to support their policies.

In essence, the SEDG covers indicators that can be tracked

and disclosed to measure a SME’s ESG progress. It
comprises of 35 priority disclosures which are further
categorised into Basic, Intermediate and Advanced to cater
to the different levels of sustainability maturity of each SME.
These disclosures are applicable across all industries and
SMEs are encouraged to determine the materiality of these
disclosures relevant to their companies. It is worth noting
however that there is no mandatory adoption timeline for the
disclosures.

In order to encourage adoption of the SEDG, CMM also

launched an early adopter programme which invites selected
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supply chain stakeholders to support the adoption of the

SEDG. The early adopters include Nestle Malaysia, Volvo
Trucks Malaysia, Maybank, CIMB Bank, Hong Leong Bank,
UOB Bank and as well as various trade associations and
chambers of commerce. The parties to the early adopter
programme benefit from access to nationwide in-person
training and workshops.

The SEDG can be accessed on CMM’s website as follows:

https://sedg.capitalmarketsmalaysia.com/

Launching Of ESG Reporting Platform

Further to the introduction of the enhanced sustainability

reporting requirements for listed issuers (Enhanced
Requirements) in September 2022 and the recent
introduction of the Illustrative Sustainabiltiy Report in
September 2023, on 4 December 2023, Bursa Malaysia
Securities Berhad launched the Bursa Malaysia ESG
Reporting Platform1.

The purpose of the ESG Reporting Platform is to act as a

repository for disclosures conforming to the prescribed
format mandated under the Enhanced Requirements. This
ESG Reporting Platform is accessible via the Bursa Malaysia
Listing Information Network System or better known as
“Bursa Link”. Listed issuers have to access the platform to
generate a summary performance table which must then be
disclosed in their respective Sustainability Statements. It is
noteworthy that the generation of the performance table is
without additional cost to listed issuers.

To aid listed companies in navigating the available

functionalities of the ESG Reporting Platform, user guides
and videos were also concurrently issued by Bursa Malaysia.

Listed companies can refer to the following links for the

Enhanced Requirements as well as the resources launched
by Bursa Malaysia in complying with their sustainability
reporting obligations:

1https://www.bursamalaysia.com/about_bursa/media_centre/bursa-
malaysia-to-launch-platform-for-mandatory-esg-reporting
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(a) Amendments to the Main Market Listing

Requirements

https://www.bursamalaysia.com/regulation/listing_re
quirements/main_market/amendments_to_listing_re
quirements

(b) Amendments to the ACE Market Listing

Requirements

https://www.bursamalaysia.com/regulation/listing_re
quirements/ace_market/amendments_to_listing_req
uirements

(c) Bursa Malaysia’s Sustainability Reporting Guide and

Toolkits (3rd Edition)

https://bursasustain.bursamalaysia.com/droplet-
details/resources/sustainability-reporting-guide-3rd-
edition

(d) Bursa Malaysia’s Illustrative Sustainability Reporting

Guide
https://bursasustain.bursamalaysia.com/droplet-
details/resources/illustrative-sustainability-reporting-
guide