The government has announced the launch of ESG standards to help companies transition to renewable energy.
By Paul A. Davies, Farhana Sharmeen, Michael D. Green, and James Bee
On 11 April 2023, the Malaysian government announced that it will introduce a framework on environmental, social, and corporate governance (ESG) standards by the end of 2023. The framework will aim to assist small and medium sized enterprises (SMEs) in relation to funding and capacity building, and to support the transition to renewable energy.
The Malaysian government recognised that a number of export markets require ESG compliance from exporters, and that SMEs in particular need further assistance in this regard. The framework will involve consultations to consider the current position of the Malaysian export industry.
In May 2022, the Green Finance Industry Taskforce — a multi-stakeholder group convened by the Monetary Authority of Singapore to accelerate the development of green finance — released for public consultation a second paper (Consultation Paper) on a Green Taxonomy for Singapore-based financial institutions (Green Taxonomy), with particular relevance to those active across ASEAN. The Consultation Paper follows a first paper on the Green Taxonomy, which was released in January 2021.