Dato’ Seri Dr. Ahmad Zahid bin Hamidi, Deputy Prime Minister and Minister of Rural and Regional Development has launched the ESG Quick Guide for MSMEs to facilitate the adoption of environmental, social and governance (ESG) practices among Micro, Small and Medium Enterprises (MSMEs).
The Quick Guide published by SME Corp. Malaysia provides the steps for MSMEs to easily understand ESG which is also part of the ongoing efforts by the Ministry of Entrepreneur and Cooperatives Development in preparing MSMEs towards understanding the importance of sustainability and ESG practices. According to YB Datuk Ewon Benedick, Minister of Entrepreneur and Cooperatives Development, “MSMEs need to equip business operations with aspects related to sustainability or the adoption of ESG as it is gaining importance due to the fact that most large companies, multinational companies (MNCs) and Government- linked Companies (GLCs) have started to adopt ESG practices in their business operations. MSMEs that implement ESG practices will not only have a positive social and environmental impact, but also have the opportunity to be part of the supply chain due to the requirement of large firms for their suppliers to implement ESG practices”.
This Guide also lists 13 basic indicators that can be used by all MSMEs. The selection of indicators is based on the suitability and minimum requirements of MSMEs business operations across all sectors, entity type and firm size. Moreover, it also includes important indicators for business sustainability such as employee benefits, culture, risk management and data protection that are less practiced by MSMEs.
This ESG Quick Guide for MSMEs is published in both Malay and English languages and can be downloaded for free upon taking the ESG assessment on SME Corp.
