In today's dynamic and rapidly changing business environment, companies are increasingly realising the critical significance of ESG factors for their future resilience and growth.
With the urgency to address sustainability concerns reaching unprecedented levels, organisations must conduct a comprehensive evaluation of their current ESG compliance status before embarking on an ESG transition plan.
By conducting a thorough assessment of strengths and weaknesses, fostering strong stakeholder trust, proactively mitigating risks, and seizing opportunities, companies can establish a solid foundation for a successful and impactful ESG journey
Risks from Non-Compliance
Failure to comply with ESG regulations can result in reputational damage for companies, as stakeholders increasingly value sustainability and ethical considerations. Non-compliant companies may face public scrutiny, leading to decreased customer trust and loyalty. Moreover, regulatory penalties, such as fines and sanctions, can have a negative impact on a company's financial performance and profitability. In Malaysia, the importance of ESG factors is also gaining traction in investment decisions, which means that non-compliant companies may encounter challenges in accessing capital and face higher borrowing costs.
The Challenges Facing Malaysian Companies
Starting from December 2023, Malaysia will experience significant changes that will have a profound impact on compliance requirements for businesses and society.
These changes include the introduction of mandatory ESG disclosures, company ESG ratings, and regulations imposed by Bank Negara and Bursa Malaysia.
Nevertheless, Malaysian companies are confronted with a notable challenge due to a shortage of experienced and trained personnel capable of evaluating an organization's current ESG compliance and effectively developing and implementing ESG initiatives that generate tangible benefits for both companies and wider society.
As a result, this situation has led to confusion and operational difficulties for businesses striving to meet the new regulatory ESG requirements imposed upon them. However, it is crucial to recognize that understanding an organization's current ESG compliance and adoption status is no longer an optional endeavour; it has become an essential business imperative.
Meeting These Challenges
To tackle these challenges, the adoption of innovative ESG software can streamline the process, reducing costs, time, and effort required to assess an organization's compliance with upcoming regulatory ESG disclosures. The utilization of such software proves to be a valuable tool for expediting and facilitating the evaluation and preparedness of an organization in meeting ESG standards.
Furthermore, it assists in identifying significant risks and gaps in the organization's current strategy and operations, empowering companies to take targeted actions and ensure alignment with ESG principles.
By embracing technological solutions, businesses can navigate the complexities of ESG compliance more efficiently, enabling them to concentrate on driving positive environmental and social impact while ensuring long-term financial sustainability.
Bursa MY ESG Disclosure Readiness Assessment Tool
ESG Gap Analysis & Readiness
To help inform your next steps / action on your business / organisations ESG Journey.
Introducing the Bursa My ESG Disclosure Readiness Assessment, a powerful tool meticulously designed by our team of ESG subject matter experts (SMEs). Specifically aligned with the Bursa Malaysia Disclosures, this assessment guides users through a comprehensive set of questions required for compliance with Malaysia's formal ESG Disclosure regulations starting from December 2023. Distinguished as the sole automated software solution of its kind in Malaysia, our tool empowers clients to evaluate their current ESG initiatives, data collection processes, and preparedness to meet Bursa Malaysia's requirements. With our solution, there is no need to engage costly ESG consulting firms or assemble a team of consultants to manually conduct a gap analysis of your existing ESG practices.
HOW DOES THE ESG DISCLOSE READINESS ASSESSMENT WORK IN PRACTICE?
Knowing your current state to take action to ensure compliance from December 2023
The ESG Disclosure Readiness Assessment we offer stands unparalleled in Malaysia, designed meticulously to furnish clients with a comprehensive and factual insight into their existing status concerning ESG adoption and preparedness for compliance with Bursa’s ESG disclosure mandates, which are set to profoundly influence companies across various scales in Malaysia. Our sophisticated approach is systematically crafted, emphasising precise data collection and rigorous analysis. Our objective is to proficiently guide you through the intricate paths of specific disclosures associated with Environmental, Social, and Governance (E, S, G) components, ensuring that your business navigates the complexities of ESG disclosure with utmost clarity and readiness.
Breakdown of the one-month Readiness Assessment Process
Our process initiates by zeroing in on essential ‘Parent’ disclosure areas, which have been set out by Bursa Malaysia and Bank Negara as their principal indicators: • Anti-corruption • Community/Society • Diversity and Inclusion • Energy Management • Health and Safety • Labour Practices and Standards • Supply Chain Management • Data Privacy and Security • Water Management • 3-year historical financial data and corresponding performance targets for each reported indicator (if any)
Our internal team of ESG Subject Matter Experts (SMEs) leverage their extensive knowledge and experience with major ESG frameworks, including those utilised by Bursa Malaysia (TCFD & FTSE 4 Good), to meticulously dissect the Parent disclosure indicators into more refined and detailed ‘child’ disclosure questions. This meticulous approach ensures that each essential data component is accurately pinpointed and gathered, facilitating thorough compliance with the established requirements.
Our specialised team of SMEs is dedicated to assisting clients with data collection, ensuring the process is as straightforward and efficient as possible. To simplify this task, we offer the option of presenting the Disclosure questions via a Google Sheet. This method eliminates the need for a complicated software onboarding process, optimising convenience and efficiency in data acquisition. Subsequently, our SMEs will manage the transfer of the collected data from the Google Sheet to our sophisticated software, thereby facilitating a comprehensive and seamless analysis process.
Post data collection, a profound analysis will be conducted by our SMEs, culminating in a Readiness Assessment & Gap Analysis Report. This comprehensive report will spotlight areas where data may be lacking or insufficient, delineating the potential impacts of such gaps on your disclosure compliance.
Conclusively, we will facilitate an engaging presentation, delivering insightful feedback based on our findings. This session will last approximately two hours, providing an ample opportunity for a robust discussion, ensuring that your team grasps the nuances of the readiness assessment, the implications of the findings, and is well-prepared with strategic next steps for consideration.
We are committed to providing a seamlessly integrated and strategic approach to help you navigate through the complexities of ESG disclosure compliance with utmost confidence and precision.
About ESG Disclose Ltd.
ESG Disclose is built on the fundamental belief that empowering our customers, including commercial companies, governments, and investors, enables them to make sustainable decisions that generate ESG benefits for society at large.
Building ESG Awareness & Capability Through Collaboration, Innovation & Vision