CMM launches simplified ESG disclosure guide for SMEs in supply chain

KUALA LUMPUR: Capital Markets Malaysia (CMM) today launched a Simplified ESG Disclosure Guide (SEDG) to provide small and medium enterprises (SMEs) within global supply chains with a streamlined and standardised set of guidelines in relation to environmental, social and governance (ESG) disclosures.

CMM is an affiliate of the Securities Commission Malaysia (SC) and the launch makes Malaysia the first country globally to issue such guidelines for SMEs.

In a statement, CMM said the SEDG consolidates and simplifies the many complex global and local ESG-related frameworks to improve the availability of ESG data and information by SMEs.

Executive chairman of SC and chairman of CMM Datuk Seri Dr Awang Adek Hussin said the commission is committed to ensuring that companies, both large and small, are prepared to meet the 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,” he said.

“To support inclusive and extensive adoption, CMM will launch the Bahasa Malaysia and simplified Mandarin versions of the SEDG by end-2023,” he added.

The release of the SEDG is aligned with recent national policy initiatives aimed at elevating business in Malaysia towards a synergy in commercial success and sustainability, particularly in the manufacturing sector, as the nation steps up its net-zero commitments.

These include the New Industrial Master Plan(NIMP) 2023, as well as the Industry ESG (i-ESG) Framework and the National Energy Transition Roadmap (NETR).

The SEDG comprises 35 priority disclosures that are aligned with local and global sustainability guidelines which will enable the SMEs to respond to disclosure requests from multiple stakeholders, including but not limited to customers, investors, banks and regulators.

The disclosures are applicable across all industries with different levels of priority, and the SMEs are encouraged to determine the significance and relevance of these disclosures to their companies, according to the statement. – BK