Simplified ESG Disclosure

The Malaysia SME Emission Disclosure Guidelines Simplified ESG Disclosure (SEDG) is a guide to help small-to-medium enterprises (SMEs) in Malaysia disclose their environmental, social, and governance (ESG) performance. It was launched in October 2023 by Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia (SC).

The SEDG is aligned with the main global ESG frameworks and reporting standards, but it has been simplified to make it more accessible to SMEs. It consists of 35 priority disclosures that are divided into three categories:

  • Basic: These disclosures are essential for all SMEs to report on, regardless of their size or industry. They include information on the company's ESG strategy, policies, and procedures.
  • Intermediate: These disclosures are for SMEs that are more mature in their ESG journey. They include more detailed information on the company's ESG performance, such as its greenhouse gas emissions, water usage, and employee diversity.
  • Advanced: These disclosures are for SMEs that are leading the way in ESG performance. They include information on the company's ESG impact and its alignment with the Sustainable Development Goals (SDGs).

SMEs can choose to report on as many or as few of the 35 disclosures as they are able to. The SEDG is designed to be flexible and scalable, so that SMEs can report on their ESG performance in a way that is meaningful to them and their stakeholders.

Here are some of the benefits of using the SEDG:

  • It provides a clear and concise framework for SMEs to disclose their ESG performance.
  • It is aligned with global ESG standards, making it easier for SMEs to attract international investors and customers.
  • It is flexible and scalable, so that SMEs can report on their ESG performance in a way that is meaningful to them and their stakeholders.

SMEs can download the SEDG from the CMM website. There are also a number of resources available to help SMEs implement the SEDG, such as webinars, training guides, and templates.

Overall, the SEDG is a valuable resource for SMEs in Malaysia who want to disclose their ESG performance. It is a practical and user-friendly guide that can help SMEs to improve their ESG transparency and accountability.

Comments

Post a Comment

Popular posts from this blog

LCA 101: Beginner’s guide

Image
  LCA 101: Beginner’s guide A Life Cycle Assessment (LCA) is an analysis of the impact one object has on the world around it. But how does it work exactly? In this guide you get a non-technical overview of: What we're covering today: 🔍 What really is a Life Cycle Assessment 🔄 The Product Life Cycle in LCA   1.      What is a Life Cycle Assessment (LCA)? You probably asked yourself that question many times (sometimes without even knowing it). For example, in the supermarket: “ How environmentally friendly were the products I just bought? Should I have bought the tomatoes from The Netherlands or from Spain ? “ This, in a nutshell, is the question that a Life Cycle Assessment tries to answer. An LCA measures the environmental impact of a product through every phase of its life – from production to waste (or recycling, etc.) But LCA isn’t simple – there are countless factors involved: ·        Which raw mater...
Read more

Greenwashing: Unmasking the Hidden Truth Behind "Eco-Friendly" Claims

Image
Introduction In recent years, Environmental, Social, and Governance (ESG) investing has gained significant traction. Investors are increasingly looking to put their money into companies that align with their ethical and sustainability values. This shift towards responsible investing is a positive development for both the environment and society. However, as ESG investments continue to grow, a shadowy phenomenon called "greenwashing" has also emerged, posing a challenge for investors and stakeholders alike. What Is Greenwashing? Greenwashing is a marketing strategy where a company falsely conveys the impression that their products or operations are more environmentally friendly than they are. It's a deceptive attempt to capitalize on the growing demand for sustainable and eco-friendly products by making exaggerated, misleading, or outright false claims about a company's environmental responsibility. The Motives Behind Greenwashing The motivations behind green...
Read more

ISSB Digital Taxonomy: A New Era for ESG Reporting

Image
Introduction In the wake of the growing global concern about climate change and environmental sustainability, the need for standardized Environmental, Social, and Governance (ESG) reporting has never been more critical. The International Sustainability Standards Board (ISSB), an initiative of the International Financial Reporting Standards (IFRS) Foundation, has taken a significant step forward by introducing a Digital Taxonomy. This digital framework promises to revolutionize ESG reporting by streamlining data collection and enhancing transparency, comparability, and accessibility for investors, businesses, and regulators alike. Digital Taxonomy: A Game-Changer for ESG Reporting The ISSB's Digital Taxonomy represents a comprehensive and structured system of classifying and organizing ESG data. It is designed to provide a common language for reporting entities, making it easier for stakeholders to understand, assess, and compare sustainability information. The Digital Taxonom...
Read more