Capital Markets Malaysia Expands Simplified ESG Disclosure Guide with a GHG Emission Calculator for SMEs

By: Capital Markets Malaysia via ACN Newswire

July 22, 2025 at 01:15 AM EDT

The Calculator helps Malaysian companies identify key GHG emission sources in line with the ‘Emissions’ disclosure requirements of the Simplified ESG Disclosure Guide (SEDG) for SMEs in Supply Chains.

KUALA LUMPUR, July 22, 2025 - (ACN Newswire) - Capital Markets Malaysia (“CMM”), an affiliate of the Securities Commission Malaysia (“SC”), today launched the SEDG Greenhouse Gas (“GHG”) Emissions Calculator for Small and Medium Enterprise (“SMEs”). The user-friendly tool is designed to help Malaysian companies measure and report their Scope 1 and Scope 2 emissions based on the globally recognised Greenhouse Gas (GHG) Protocol.

Dato’ Mohammad Faiz Azmi, Executive Chairman of the SC and Chairman of CMM said, “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.

Photo 1: Dato' Mohammad Faiz Azmi, Executive Chairman of the SC and Chairman of CMM

“The SEDG GHG Emissions Calculator simplifies a complex process, making emissions reporting accessible even to first-time users. Beyond reporting, it also enables companies to pinpoint key emission sources across operations, allowing them to make informed decisions and move towards meaningful climate action,” he said.

“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,” he added.

To ensure consistency and credibility, the SEDG GHG Emissions Calculator utilises 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 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, LPG, natural gas, and others. Emission factors for grid electricity consumption come from local sources such as publications from Malaysia’s Energy Commission.

Navina Balasingam, General Manager of CMM said, “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, utilising the SEDG to support ESG reporting by their SME suppliers.

Photo 2: Navina Balasingam, General Manager of CMM

“CMM will continue its nationwide workshops to help SMEs in supply chains disclose ESG data credibly and effectively. The Calculator is a key part of this effort, further simplifying the ‘Emissions’ disclosure requirements of the SEDG,” she said.

“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. 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.

For more information, visit https://sedg.capitalmarketsmalaysia.com/

About Capital Markets Malaysia (CMM)

The Securities Commission Malaysia (SC) set up CMM in 2014 to spearhead the local and international positioning as well as profiling of the Malaysian capital market. Funded by the Capital Markets Development Fund, CMM showcases the competitiveness and attractiveness of the various segments of the Malaysian capital market – to promote international participation and enhance opportunities for domestic capital market intermediaries. CMM works to support the advancement of these entities through various initiatives and partnerships, focusing on four key areas: sustainable finance and investing, the Islamic capital market, the digital market, and capital market funding opportunities through the private market.

For media queries, please contact:
Farina Farid
Head of Communications, Capital Markets Malaysia
E: FarinaF@seccom.com.my

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Capital Markets Malaysia Expands Simplified ESG Disclosure Guide with a GHG Emission Calculator for SMEs

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