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 Human Rights and Labour Practices Guide

SEDG Human Rights and Labour Practices Guide

Simplified ESG Disclosure Guide (SEDG)

Full Guide 

SEDG Disclosure Guide (SEDG)

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


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


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.

Supply Chains

Supply Chains

Provides a supplier ESG disclosure guide for use in responsible procurement assessments. Adoption by more customers will simplify disclosures by suppliers serving multiple customers.

Financial Institutions

Financial Institutions

Provides an SME ESG financing qualification disclosure guide for use in financing considerations. Adoption by more financial institutions will result in data being made available faster and more accurately.

Investment Portfolios

Investment Portfolios

Provides a non-financial due diligence disclosure guide for use in responsible investing. Adoption by more investors will increase understanding and predictability of ESG considerations for shareholders.



Provides a standardised disclosure-level details to support ESG policies and principle-based guidance issued to address different needs. Adoption by more public sector stakeholders will result in consistency of requirements from the SMEs.

Trade Associations

Trade Associations

Provides clear guidance to members on roll out or implementation of ESG disclosures. Adoption by more associations will allow greater exposure, access and capacity building of companies.

Trade Commissions

Trade Commissions

Provides a globally aligned set of ESG disclosures that can be requested by international companies operating in Malaysia. Adoption by more trade commissions will enable SMEs to provide increased transparency.