Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia (SC), has unveiled its sectoral guidance (Sector Guides) with enhanced environment and social disclosure guidelines tailored for SMEs in five critical sectors: Energy, Transport & Logistics, Construction & Real Estate, Agriculture, and Manufacturing.
These Sector Guides extend the Simplified ESG Disclosure Guide (SEDG) released by CMM on October 18, 2023. The SEDG provided SMEs with a streamlined, standardised set of ESG disclosures expected in global supply chains.
Notably, Malaysia is the first country to issue a disclosure guidance for SMEs aligned with both global and local ESG frameworks, aiming to encourage widespread adoption of ESG reporting best practices to elevate the national economy.
The development of these Sector Guides stemmed from extensive feedback from public and market consultations involving various stakeholders, including multinational companies, public-listed companies, SMEs, and regulatory bodies. The guides aim to address the specific disclosure needs of SMEs in these significant economic sectors.
Dato’ Seri Dr. Awang Adek Hussin, Executive Chairman of SC and Chairman of CMM, emphasized the importance of these guides amidst increasing scrutiny on global supply chains.
He said: “The complexity and challenges of doing business are escalating, especially for SMEs. The SEDG addressed initial challenges, and today, we enhance the guidance to prepare SMEs in key sectors for industry-specific vulnerabilities and global standards.”
Navina Balasingam, General Manager of CMM, highlighted the timely release of these guides. “As global agencies and regulatory bodies focus more on nature-related risks and human rights responsibilities, these Sector Guides provide critical, sector-specific ESG considerations for SMEs.”
The Sector Guides are structured into Basic, Intermediate, and Advanced levels, catering to the varying sustainability maturity of SMEs. They cover environmental impacts, including biodiversity, nature-related, and climate disclosures, which are pertinent to high-emissions industries.
Additionally, a Human Rights and Labour Rights Guide addresses forced labour concerns, particularly relevant to the Agriculture, Manufacturing, and Construction & Real Estate sectors.
Aligned with global standards like the International Sustainability Standards Board (ISSB), The Greenhouse Gas (GHG) Protocol, the Global Reporting Initiative (GRI), and local frameworks including the Bursa Malaysia Listing Requirements and the Malaysian Code on Corporate Governance (MCCG), these Sector Guides are available on CMM’s website.
