12 April – The ASEAN Capital Markets Forum (ACMF) has unveiled the ASEAN Simplified ESG Disclosure Guide (ASEDG) Version 1, a strategic initiative aimed at enhancing the environmental, social, and governance (ESG) transparency of small and medium enterprises (SMEs) across Southeast Asia. Introduced during the ASEAN Finance Ministers and Central Bank Governors Meeting, this guide seeks to streamline ESG reporting, enabling SMEs to effectively communicate their sustainability practices to stakeholders.
Tailored Framework for SMEs
Recognizing the diverse capabilities of SMEs, the ASEDG consolidates global and local ESG standards into 38 key disclosures. These disclosures are categorized into basic, intermediate, and advanced levels, allowing businesses to adopt ESG reporting at a pace that aligns with their sustainability maturity. This tiered approach ensures that SMEs, regardless of their size or resources, can engage with ESG principles meaningfully.
Facilitating Stakeholder Communication
The primary objective of the ASEDG is to assist SMEs in effectively reporting their ESG practices to various stakeholders, including customers, investors, and lenders. By providing a clear and structured framework, the guide aims to enhance transparency and build trust, thereby fostering stronger relationships between SMEs and their stakeholders.
Commitment to Continuous Improvement
The Securities Commission Malaysia (SC), serving as the chair of the ACMF, has emphasized the importance of continuous development in ESG reporting. The ASEDG is designed to be a living document, with plans for regular updates to reflect changes in global standards and regional feedback. Further consultations are scheduled across ASEAN member states over the next six months to ensure the guide remains relevant and effective in promoting sustainable business practices.
Accessing the Guide
ASEDG Version 1 is available for download at the ACMF’s official website: ASEDG Version 1. This initiative marks a significant step towards fostering a culture of sustainability and transparency among SMEs in Southeast Asia, aligning with global ESG standards and contributing to the region’s inclusive growth.
As SMEs increasingly recognize the importance of ESG factors, the ASEDG provides a valuable resource to guide their sustainability journey. By adopting the practices outlined in the guide, SMEs can enhance their competitiveness, attract investment, and contribute to the broader goal of sustainable economic development in the ASEAN region.
This initiative underscores the commitment of ASEAN countries to promote sustainable and inclusive growth, ensuring that SMEs are equipped with the tools and knowledge to thrive in an increasingly ESG-conscious global market.
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