Why Now is the Time for Malaysian Companies to Embrace Sustainability Reporting

In recent years, businesses across the globe have faced growing pressure to not only deliver profits but also demonstrate their commitment to sustainability. Here in Malaysia, the call for corporate environmental responsibility has just become louder and clearer. By 2025, listed companies on Bursa Malaysia's Main Market and ACE Market, as well as large non-listed companies with annual revenue of RM2 billion and above will be required to start phasing in sustainability reporting as part of the new framework introduced by the Securities Commission (SC). And it’s not just the large corporations—small and medium enterprises (SMEs) are also expected to be on board.

What is Sustainability Reporting?

Simply put, sustainability reporting is about transparency. It means measuring, disclosing, and being accountable for your company’s environmental, social, and governance (ESG) performance. And it’s more than a compliance issue—it’s an opportunity to strengthen your business, build trust with stakeholders, and contribute positively to our world.

Why You Should Start Preparing NOW

If you’re wondering why this matters for your business, here’s what you need to know: starting early could mean a world of difference. Here are the key reasons why Malaysian companies, from industry giants to budding SMEs, should start their sustainability reporting journey now.

1. Future-Proofing Your Business

Waiting until the last minute to comply with new regulations can create unnecessary stress and inefficiency. By starting now, your company will have ample time to build a solid sustainability strategy, set meaningful targets, and ensure compliance when the time comes. Moreover, preparing early can help you identify areas where sustainable practices can save costs, boost efficiency, and enhance brand reputation.

2. Strengthening Brand Reputation and Trust

Today’s consumers are increasingly eco-conscious. They want to buy from companies that are transparent, ethical, and environmentally responsible. By proactively sharing your sustainability journey, you send a powerful message to customers, investors, and the wider community: your business cares about more than just profits. Early adopters of sustainability reporting often find they gain an edge over competitors, as transparency builds trust.

3. Navigating Global Supply Chains

Global supply chains are becoming increasingly intertwined with sustainability requirements. Many international clients now demand that suppliers adhere to ESG standards as part of their partnership agreements. For Malaysian SMEs looking to expand or partner with global companies, having a sustainability report not only demonstrates compliance but also positions your company as a preferred partner, ready to meet international expectations.

4. Access to Sustainable Finance

With more banks and investors focusing on ESG criteria, sustainability reporting opens doors to green financing and investment opportunities. By transparently showcasing your business’s efforts in sustainability, you may find easier access to funds specifically allocated for green projects or sustainable business models.

What Should Businesses Do to Prepare?

To prepare for sustainability reporting, businesses can start by:

• Conducting an ESG Gap Analysis: Identify where your current practices stand and what needs to be improved.

• Engaging Stakeholders Early: Bring together your team, customers, investors, and suppliers to understand their expectations.

• Setting Realistic Goals and Timelines: Outline what you want to achieve with your sustainability efforts, and map out the path to get there.

• Learning from Best Practices: Look to local and international examples of companies that have successfully integrated sustainability into their operations.

Eco Sustainability: Here to Help

At Eco Sustainability, we’re passionate about helping Malaysian companies navigate their sustainability journey. Whether you need help understanding the reporting framework, setting your ESG goals, or communicating your sustainability story, our team is here to guide you through every step.

Don’t Wait Until 2025—Start Your Sustainability Journey Now

The new reporting framework is an opportunity for all Malaysian businesses to lead the way in sustainability. By preparing early, you’ll not only be ready for compliance but also stand out as a sustainability leader in your industry. Embrace sustainability today and watch your business—and the world—flourish together.