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Simplified ESG Disclosure Guide (SEDG) for SMEs

Capital Markets Malaysia, an affiliate of the Securities Commission Malaysia has launched a public consultation on the Simplified ESG Disclosure Guide (SEDG) for Small to Medium Enterprises (SMEs). The aim of this Guide is to support SMEs in their adoption of Sustainability by providing guidance on the data requirements of their journey. The objectives of the Guide include:
  • To provide SMEs (as the data preparers) and stakeholders (as the data requesters) with a simplified and standardised set of ESG disclosures that align with selected global and local frameworks; and
  • To provide policy and principles-based standard setters with a set of ESG disclosures in support of their guidance.
The target users of this Guide are Small and Medium Enterprises (SMEs) that are compelled to identify, track and report on Environmental, Social and Governance (ESG) data. This serves various purposes, including:
  • To achieve the company’s own goal of adopting Sustainability to be competitive and relevant;
  • To respond to requests from stakeholders, including customers, investors, banks/financiers and regulators; and
  • To qualify for incentives provided to companies with enhanced ESG disclosures.
The public consultation will run from 26 July 2023 – 25 August 2023, and the public can access the document DocSEDG. Interested parties can submit their comments here.