KUALA LUMPUR: The UN Global Compact Network Malaysia & Brunei (UNGCMYB) has launched Small, Medium Enterprises Sustainability Action Guide to assist SMEs in adopting sustainability.
The action guide explains the importance of sustainability to SMEs and why the adoption of environmental, social and governance (ESG) practices makes good business sense.
It also gives a clear step-by-step action approach on how sustainability can be implemented.
UNGCMYB director Edey Suresh said the main goal of producing the guide was to identify the most practical ways in which SMEs could implement sustainability into their business practices.
Suresh said a lot of sustainability frameworks in the market was skewed for multinationals and larger corporations with better access to resources.
"Local SMEs are in need of guidance with a more pragmatic approach.
"They also need to be made aware of the existing facilities in the Malaysian market that can encourage them in their sustainability efforts," he said.
There are many push factors driving sustainability implementation, particularly the shift in consumer demand for sustainable products and the increasing focus by banks on climate-related financial risks.
Adopting sustainability allows SMEs to tap into new markets and gain better access to funding.
Konrad-Adenauer-Stiftung Malaysia director Miriam Fischer said SMEs were a major force within the Malaysian economy, contributing to a third of the country's gross domestic product (GDP) and providing employment for nearly half the workforce.
"We hope that the resources and practical sustainability advice compiled in this guide, will inspire the SME sector to make a strong commitment towards adopting sustainability.
"This will eventually help to build competitive businesses," said Fischer.
The guide gives an easy-to-follow six step approach to implementing sustainability for SMEs.
The steps are learning about sustainability, assessing the business' current status and engaging with stakeholders, making a solid commitment and setting suitable targets and reporting sustainability progress.
With each of the six steps, the reader is provided links to useful resources and practical everyday examples that are simple to emulate.
The main sustainability themes covered under the action guide are climate action, energy management, water, waste, human rights, living wages, diversity, equality and inclusivity, as well as anti-corruption policies.
Source: https://www.nst.com.my/business/2022/11/849179/un-body-malaysia-launches-action-guide-smes-adopt-sustainability