Capital Markets Malaysia (CMM), an affiliate of the Securities Commission Malaysia (SC), has on Tuesday launched the Simplified ESG Disclosure Guide (SEDG) greenhouse gas (GHG) emissions calculator for small and medium sized enterprise (SMEs).
CMM said in a statement the user-friendly tool is designed to help Malaysian companies measure and report their Scope 1 and Scope 2 emissions based on the globally recognized GHG protocol.
“For many SMEs in Malaysia, particularly those operating in global supply chains, the ability to accurately measure and report their Scope 1 and Scope 2 emissions is critical in responding to disclosure demands of their customers,
“The SEDG GHG emissions calculator simplifies a complex process, making emissions reporting accessible even to first-time users,” said Mohammad Faiz Azmi, Executive Chairman of the SC and Chairman of CMM.
According to him, beyond reporting, the calculator also enables companies to pinpoint key emission sources across operations, allowing them to make informed decisions and move towards meaningful climate action.
He added the calculator further complements efforts by the SC to promote consistent and credible sustainability disclosures and supports the adoption of the national sustainability reporting framework by Malaysian companies.
To ensure consistency and credibility, the SEDG GHG Emissions Calculator utilizes a methodology which follows widely accepted international standards such as the GHG Protocol Corporate Accounting and Reporting Standard and Intergovernmental Panel on Climate Change (IPCC).
These standards are also used by the Malaysian government in the Biennial National Communications to the United Nations Framework Convention on Climate Change (UNFCCC).
The calculator comes with pre-filled emission factors from the IPCC’S 6th Annual Report (AR6) for fuel combustion commonly used in Malaysia such as diesel, petrol, liquefied petroleum gas (LPG), natural gas, and others.
Emission factors for grid electricity consumption come from local sources such as publications from Malaysia’s Energy Commission.
“The SEDG has received widespread acceptance since its launch in October 2023,
“We’ve seen a strong response from Malaysian and multinational companies with large supply chains, utilizing the SEDG to support environmental, social, and governance (ESG) reporting by their SME suppliers,” said Navina Balasingam, General Manager of CMM.
According to her, CMM will continue its nationwide workshops to help SMEs in supply chains disclose ESG data credibly and effectively.
She also noted the calculator is a key part of this effort, further simplifying the “Emissions” disclosure requirements of the SEDG.
“In developing the tool, we carried out a series of user acceptance tests (UATs) to understand the needs and expectations of SMEs across diverse sectors within the supply chain,
“To ensure broad accessibility, the calculator is available at no cost to users, in three languages – English, Bahasa Melayu and Simplified Mandarin,” she added.
As global sustainability standards, customer expectations, and ESG compliance requirements continue to evolve, it is essential that the SEDG remains relevant and practical for Malaysian businesses, said the statement.
In line with this, CMM also announced the release of SEDG Version 2, which includes three additional recommended disclosures designed to better align with the reporting needs of global customers.
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