KUALA LUMPUR, August 2024 – In a groundbreaking initiative, Funding Societies, Southeast Asia’s leading unified digital finance platform for small and medium enterprises (SMEs), in collaboration with STACS ESGpedia, Asia’s premier ESG data and technology company, successfully hosted an event titled “Fostering Sustainable Growth: Empowering SMEs within Supply Chains Through ESG Reporting.” This event underscored the critical importance of ESG (Environmental, Social, and Governance) practices for SMEs and provided valuable insights and tools to help these businesses navigate the increasingly complex ESG landscape.
The Need for ESG in SMEs
The event featured a keynote speech by Mr. Rizal Dato’ Nainy, CEO of SME Corp. Malaysia, who emphasized the pivotal role ESG plays in the longevity and competitiveness of SMEs. He highlighted, “Integrating ESG principles into business operations is now essential for SMEs to remain competitive and resilient.” This message resonates deeply as SMEs face mounting pressures from regulatory bodies, consumers, and corporate partners to adopt sustainable practices.
A Collective Effort Towards Sustainable Growth
In addition to contributions from Funding Societies and STACS ESGpedia, the event also brought together voices from Capital Markets Malaysia (CMM) and Thoughts in Gear (TIG). These industry leaders emphasized the necessity of collective action in promoting sustainable growth within the SME sector. Their insights shed light on how SMEs can leverage ESG practices to drive innovation, enhance brand reputation, and attract investment opportunities.
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The ESG Imperative for SMEs
One of the central themes of the gathering was the misconception that ESG is only relevant to large corporations and multinational companies (MNCs). Chai Kien Poon, Country Head of Funding Societies Malaysia, remarked, “A common misconception persists that ESG is only relevant to large corporations and multinational companies. However, SMEs within the corporate supply chain must also deal with more complex regulations, meet higher quality standards, and adjust to specific demands of the corporate partners. SMEs often overlook the impact of ESG on their businesses.” This perspective is crucial as SMEs play a significant role in the supply chains of larger corporations, making their adherence to ESG standards vital.
Partnership for Progress
The event also marked the extension of the partnership between Funding Societies and STACS ESGpedia in Malaysia. Both organizations are committed to empowering Malaysian SMEs to embrace sustainable business practices. Benjamin Soh, Founder and Managing Director of STACS ESGpedia, noted, “As an ESG reporting platform in the Capital Markets Malaysia’s Simplified ESG Disclosure Guide (“SEDG”) Adopter Programme, we are delighted to be furthering our partnership with Funding Societies to facilitate ESG reporting amongst Malaysian SMEs.”
Closing the ESG Data Gap
The ESG Gathering served as a pivotal step towards closing the ESG data gap among Malaysian SMEs. It highlighted the growing demand for transparent ESG disclosures and provided SMEs with the necessary tools to thrive in an increasingly ESG-focused world. The event emphasized that ESG is not just a passing trend but a fundamental shift in how businesses operate, especially in carbon-intensive markets.
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