Simplified ESG Disclosure Guide (SEDG)
for SMEs in Supply Chains
Download the Simplified ESG Disclosure Guide (SEDG) and supplementary
information below:
Simplified ESG Disclosure Guide (SEDG)
Full Guide
Simplified ESG Disclosure Guide (SEDG)
Disclosure Template
The Simplified ESG Disclosure Guide (SEDG) for SMEs in Supply Chains consolidates and simplifies the many complex global and local ESG-related frameworks to improve the availability of ESG data and information by SMEs.
The release of the SEDG in October 2023 makes Malaysia the first country globally to provide SMEs within global supply chains with a streamlined and standardised set of guidelines in relation to ESG disclosures. The SEDG comprises 35 priority disclosures that are aligned with local and global sustainability guidelines, categorised into Basic, Intermediate and Advanced, to cater to the different levels of sustainability maturity of each SME.
SEDG Sector Guides
The SEDG Sector Guides feature enhanced ESG disclosure guidelines for SMEs in the supply chains of five (5) significant sectors in Malaysia’s economy – namely Energy, Transport and Logistics, Construction and Real Estate, Agriculture and Manufacturing.
The Sector Guides delve into environmental considerations which are reflected in the form of additional disclosures required by these individual sectors to better capture the impact by the companies on the ecosystem around them, including specific material considerations such as biodiversity, nature-related and climate disclosures that are likely to impact all five high-emissions industries.
They also incorporate social considerations to help companies achieve a deeper understanding of human rights and labour standards, specifically to address the global concern of forced labour. The social considerations are especially relevant to the labour-intensive Agriculture, Manufacturing, and Construction and Real Estate sectors.
SEDG Sector Guides
Full Guide
SEDG Human Rights and Labour Practices Guide
SEDG Sector Guides
Disclosure Templates
SEDG Human Rights and Labour Practices Guide
Simplified ESG Disclosure Guide (SEDG)
Full Guide
SEDG Disclosure Guide (SEDG)
Disclosure Templates
SEDG Sector Guides
SEDG Sector Guides
Disclosure Templates
Simplified ESG Disclosure Guide (SEDG)
Full Guide
SEDG Disclosure Guidance
The Disclosure Guidance document is to be read together with the Additional Guidance document
SEDG Additional Guidance
The Additional Guidance document is to be read together with the Disclosure Guidance document
SEDG Template
Track and report disclosures
SEDG Adopters
To encourage the adoption of the SEDG, CMM launched the early adopter programme by inviting selected supply chain stakeholders within the ecosystem to support the adoption of the disclosures. The adopters include large companies with supply chains, SMEs, financial institutions, government agencies and chambers of commerce. An adopter has the access to in-person training and workshops that will be conducted across the country on the SEDG and notice of upcoming developments on the SEDG, for example sector guidances or video tutorials among others.
SEDG Adopter Category and Commitment
Large Companies
with Supply Chains
Commitment to begin aligning suppliers’ ESG disclosures to the SEDG
Small and Medium-sized Enterprises (SMEs)
Commitment to begin aligning ESG disclosures to the SEDG
Financial Institutions
Commitment to begin aligning suppliers’ and customers’ ESG disclosures to the SEDG
Investors
Commitment to begin aligning investee companies’ ESG disclosures to the SEDG
Regulators and Government Agencies
Commitment to align new and existing ESG frameworks to the SEDG
Trade Associations, Chambers of Commerce and Trade Commissions
Commitment to promote and encourage the adoption of the SEDG within member companies
ESG Reporting Platforms
and Tools
Commitment to provide the capability for companies to report on SEDG disclosures on the platform or tool
Service Providers, Consultants and Non-Governmental Organisations (NGOs)
Commitment to facilitate the adoption of SEDG within clients’ ESG disclosures
Overview
The aim of the SEDG is to provide practical, structured guidance on disclosures expected of small-to-medium enterprise (SMEs) within the supply chains, in relation to environment, social and governance (ESG) matters.
The SEDG is aligned with the main global frameworks and reporting standards as well as reference to local reporting requirements. The Guide consists of disclosures that are most commonly required for a company to portray its ESG standing.
About the Guide
The SEDG is a guide to help your company decide what Environmental, Social and Governance (ESG) disclosures to track and report. It seeks to provide a simple and standard way for Malaysian SMEs in supply chains to disclose on ESG.
The SEDG covers indicators that can be tracked and disclosed to measure ESG progress, as well as provide for different levels of adoption. The guidance structure of the disclosures consists of most referenced topics in ESG disclosures. The Guide provides the metrics needed to track progression in each 15 topics and identifies 35 disclosures in selected standards that correlate to chosen disclosures. The SEDG also offers additional guidance to provide SMEs additional information to further guide on the requirements of the disclosure.
The Objectives
The objective of this Guide is to support SMEs in their adoption of Sustainability by providing guidance on the data requirements of their journey. This serves various purposes including – to achieve the SMEs own goal of adopting ESG to be competitive and relevant, to respond to requests from stakeholders, and to qualify for incentives provided to companies with enhanced ESG disclosures.
It provides SMEs (as the data preparers) with a simple and standard set of disclosures to track and report.
It provides stakeholders (as the data requesters) with a simple and standard set of disclosures to ask for.
It provides standard-setters with a simple and standard set of disclosures to support their policies.
SEDG Possible Use Cases
The SEDG was designed to serve the larger needs of the ecosystem. The suggested situations below describe the value and benefits for SMEs in the supply chain to adopt the SEDG.