NEWS & UPDATE
What Is ESG? A Practical, Jargon-Free Guide for Malaysian Business Leaders
What Is ESG? A Practical, Jargon-Free Guide for Malaysian Business Leaders
The Question Every Malaysian Boss Is Asking
If your company has received a detailed supplier questionnaire from a corporate client, faced questions from your commercial banker about carbon metrics, or wondered why tender documents suddenly look different, you have likely encountered three letters: ESG.
For years, many Malaysian business owners viewed corporate sustainability as a public relations exercise—something reserved for large conglomerates with dedicated budgets to print glossy brochures showing tree-planting exercises and community donations.
If your daily priority is keeping production lines operating, managing cash flow, and delivering client orders on schedule, it is natural to ask: “Why are my corporate buyers suddenly demanding this data from me?”
The answer lies in how the Malaysian regulatory landscape has shifted. Under the National Sustainability Reporting Framework (NSRF), which incorporates global IFRS S1 and S2 standards, large listed companies in Malaysia are mandated to track and disclose their complete climate risks and emissions. Because they must report on their entire value chain (Scope 3), their compliance depends directly on their suppliers.
In simple terms: Your operational practices directly affect their compliance scores.
According to recent market industry research, over 80% of Malaysian SMEs are aware of ESG, with operational adoption rising to 60%. Business owners are taking action for two clear commercial reasons: lowering operating overheads through resource efficiency (53%) and safeguarding their contracts against tightening supply chain demands (51%). (Hyperlink to Alliance Bank Malaysia Berhad ESG Report)
The School Report Card: Demystifying the Three Letters
The easiest way to understand ESG is to picture a school report card.
Historically, an enterprise was evaluated on a single subject: financial profit. If your business produced healthy margins and met statutory tax obligations, you received top marks.
Today, international buyers, corporate clients, and commercial lenders evaluate your business using a broader standard. Alongside your financial balance sheet, they now evaluate your conduct marks:
E is for Environmental (Resource Discipline)
This pillar does not ask you to transform your factory into an eco-park overnight. It measures how efficiently you utilise raw resources in your day-to-day operations:
- How much electricity and water does your facility consume each month?
- How much fuel is burned by your logistics fleet, forklifts, and backup generators?
- How does your factory handle production scrap, wastewater, and material waste?
In manufacturing and logistics, resource waste equals direct cost leakage. Tracking energy and raw materials helps reduce overheads while satisfying customer audit requirements.
S is for Social (Workforce Welfare & Site Safety)
A company cannot function without people. The social pillar assesses how you look after the human beings who run your business:
- Are your production floors, warehouses, and yards safe, clean, and properly ventilated?
- Do your workers have correct protective equipment and formal safety training?
- Are local and foreign workers treated fairly, with transparent working hours, lawful wages, and compliant accommodation?
Multinational clients enforce strict social criteria. Safe working conditions protect your enterprise from operational stoppages, labour disputes, and contract disqualification.
G is for Governance (Ethical Leadership & Sustainability Oversight)
In sustainability reporting, governance is not about routine bookkeeping or standard factory filing. It focuses on how your business is directed, ethical accountability, and how risks are managed:
- Does company leadership take active responsibility for sustainability and workplace standards?
- Do you have written, enforceable policies against bribery, kickbacks, and unethical procurement?
- Do you have secure channels for employees or vendors to report misconduct safely?
- Are customer data, employee records, and business agreements managed with integrity and confidentiality?
Clear sustainability governance assures corporate buyers and lenders that your company is managed responsibly, mitigating legal and reputational exposure.
From Questionnaire Anxiety to Market Leadership
Receiving a complex sustainability questionnaire from a key customer can be daunting. However, ignoring it or providing incomplete answers puts your vendor status at serious risk.
Building a defensible sustainability profile does not require expensive technology or bloated software platforms. It requires structured coaching: establishing your baseline resource data, identifying operational gaps, and developing clear sustainability statements that satisfy client and audit expectations.
Taking practical steps today transforms sustainability from an administrative burden into a genuine green competitive advantage—protecting your contracts and positioning your business as a preferred vendor.
Transform Your Business with Structured Coaching
Navigating client sustainability requirements does not have to be confusing or disruptive.
Eco Sentido (EcoSense) serves as an integrated sustainability ecosystem developer, providing practical coaching and advisory programmes designed specifically for Malaysian SMEs and mid-tier enterprises:
- ESG Adoption Programme (EAP): A structured 6-month capability-building coaching programme guiding your organisation to become audit-ready and build credible sustainability disclosures at your own operational pace.
- Pre-Assessment Gap Analysis: Identify where your operations stand, clarify your customer requirements, and pinpoint immediate efficiency gains.
- MIDA DIAF 50% Matching Grant Guidance: Qualified Malaysian SMEs can claim 50% matching grant funding for eligible advisory and adoption expenditures before the 31 October 2026 deadline.
Complete Your Complimentary EAP Pre-Assessment Diagnostic Here
Map your operational baseline, address customer audit requirements, and uncover immediate grant-supported opportunities in under 10 minutes.
MOU Signing between Eco Sentido Sdn. Bhd & Lestari Advisory Pte Ltd
Eco Sentido Sdn. Bhd., a leading sustainability training and consultancy provider, is proud to collaborate with Lestari Advisory Pte Ltd to deliver comprehensive sustainability solutions for businesses across Malaysia and the region.
Our services include:
- ESG & Sustainability Strategy Development
- Sustainability Reporting (GRI, IFRS S1 & S2)
- Carbon Footprint Assessment & GHG Accounting
- Climate Risk & Opportunity Assessment
- B Corp Consultation, Readiness Assessment & Certification Support
- B Impact Assessment (BIA) Gap Analysis
- Green Certifications & Sustainability Compliance
- ESG & Sustainability Training Programmes
- HRDC Claimable Sustainability Training
Through our collaboration with Lestari Advisory Pte Ltd, we combine practical industry experience with international sustainability expertise to help organisations navigate evolving ESG requirements, improve corporate sustainability performance, and achieve internationally recognised certifications.
Whether your organisation is exploring B Corp Certification for the first time or preparing for verification, our consultants can guide you through the entire process—from impact assessment and gap analysis to implementation and certification support.
Eco Sentido Sdn. Bhd. Approved as Training Provider for Timber Certification Incentive Programme (TCIP)
Eco Sentido Sdn. Bhd. is proud to announce its appointment as an approved training provider under the Timber Certification Incentive Programme (TCIP), an initiative supported by the Malaysian Timber Industry Board (MTIB).
The TCIP aims to encourage and support Malaysian timber companies in obtaining internationally recognized timber certification such as PEFC (Programme for the Endorsement of Forest Certification) and FSC (Forest Stewardship Council), thereby strengthening the country’s sustainable timber industry.
Through this programme, MTIB-registered companies from various sub-sectors — including sawmills, plywood, kumai wood, building carpentry and joinery (BJC), furniture, export, and other timber-related productions — are eligible to apply for incentives covering both new and renewal certifications.
Key benefits of participating in TCIP include:
• Enhanced brand reputation.
• Greater access to new markets.
• Reduced risk of illegal timber usage.
• Increased consumer trust.
• Broader customer base.
Under TCIP, eligible companies can claim up to RM6,000 or 60% of certification audit costs, with completion periods ranging from 6 to 12 months depending on application type.
“Sustainable certification is not only a compliance measure but also a gateway to global competitiveness,” said Ts. Teh Soo Tyng, Sustainability Director, Eco Sentido Sdn. Bhd. “Through TCIP, we aim to help more timber companies meet international standards while strengthening Malaysia’s position in the global timber industry.”
For more information or to apply, please contact Eco Sentido Sdn. Bhd. at: eap@ecosense.com.my or call +603-894 298 58.
ESG Training Milestone
We are proud to announce that Mr. Effendy has successfully completed the ESG Manager Training Course by the Academy of Sustainability and Innovation (ASI).
This achievement reflects our continued commitment to sustainability leadership and responsible business practices. With enhanced knowledge in Environmental, Social, and Governance (ESG) frameworks, Mr. Effendy is now better equipped to drive impactful change across operations and value chain.
Congratulations, Mr. Effendy — leading the way toward a more sustainable future!
Ts Teh presenting the ESG Manager certificate to Mr Effendi. Congrats on your achievement!
EAP – Eco Office 2024/2025
Congratulations!
Shiraishi Calsium (Malaysia) Sdn Bhd has successfully obtained a Certificate of Achievement under the ESG Adoption Programme (EAP) – Eco Office.
This accomplishment marks an important milestone in your sustainability journey and offers an excellent opportunity for public recognition of your ongoing commitment to responsible and sustainable practices.
Well done to the team at Shiraishi Calsium — keep leading the way!
Shiraishi Calcium (Malaysia) Sdn. Bhd. awarded ESG Certificate of Achievement under the ESG Adoption Programme – Eco Office. Congratulations!
We are now an ASTM Approved Training Provider for our ESG Manager Certificate Course
We’re thrilled and honoured to announce that we are now ASTM Approved Training Provider for our ESG Manager Certificate Course. This signifies a major milestone as we receive this prestigious global recognition and official approval from ASTM International. ASTM International is a leading standards development organization based in the United States. This endorsement means our course content has been rigorously reviewed and recognized, meeting high international evaluation criteria for a certificate course. For our participants, this approval guarantees a world-class learning experience that aligns with the latest best practices in ESG, giving you an edge in sustainability training that’s trusted worldwide.
Ready to meet your environmental and social governance (ESG) goals? As an ASTM Approved Training Provider for the ESG Manager Certificate Course, we’re here to be your trusted partner in achieving sustainability success. This approval reinforces our dedication to quality training, so whether you’re aiming to:
• Manage environmental impacts,
• Develop impactful ESG strategies,
• Foster transparent governance, or
• Navigate complex regulations,
we’ve got your back!
Why does the ASTM Certification for Our ESG Manager Certificate Course Matter to YOU as our customers?
The ASTM approval of our ESG Manager Certificate Course is a major milestone in our mission to deliver top-tier sustainability training. Here’s why this recognition matters to YOU, our valued customer:
1. Quality Assurance: ASTM’s endorsement means our course content aligns with international standards and is of global relevance, ensuring you’re learning industry-relevant skills in ESG.
2. Global Credibility: This approval gives our course a level of credibility that’s acknowledged across borders, making your learning journey truly world-class.
3. A Clear Competitive Edge: With ASTM approval, you’re getting skills that not only meet the highest standards but also give you a strong competitive edge in the growing ESG job market.
With ASTM-backing, You Can Bank on Us to Give You the Edge!
Ready to level up your career? Attend our interactive and impactful ESG Manager Certificate Course (trust us, ESG is far from boring!), complete 5 modules, pass the exam, and voilà—you’ll have the ticket to becoming the next ESG Manager at the Academy of Sustainability and Innovation (ASI)! Ready to start your journey with an internationally approved course that keeps you ahead in sustainability? Join our ESG Manager Course TODAY.
Our ESG Manager Certificate Course is Now Recognized by MBOT for CPD Hours!
Shout-out to the MBOT community! We’re thrilled to announce that the Malaysia Board of Technologists (MBOT) has officially approved Continuing Professional Development (CPD) hours for our ESG Manager courses! Now, you can earn valuable CPD points while expanding your expertise in Environmental, Social, and Governance (ESG) — a growing priority across industries today.
The Malaysia Board of Technologists (MBOT) is the professional body that gives Professional Recognition to Technologists and Technicians in related technology and technical fields. Part of MBOT’s mission is to promote continuous education and professional development programs that enhance the expertise of registered members. That’s why our ESG Manager Course, under Green Technology—a key area within MBOT’s 24 recognized fields—has now been approved for CPD hours, offering MBOT-registered professionals an opportunity to expand their knowledge and skills in sustainability.
Whether you’re looking to stay competitive, or enhance your professional qualifications in sustainability roles, this is your chance to dive into ESG with the assurance of MBOT-approved training.
The ESG Manager Course equips you with essential skills to lead in today’s sustainability-focused world! Covering key ESG areas—like resource management, corporate ethics, and social impact strategies – this hands-on program brings ESG to life with real-world examples, interactive sessions, and expert guidance.
Get ready to strengthen your skills, make an impact with training that’s recognized by the MBOT and earn those crucial CPD hours by joining Eco Sentido’s ESG Manager Course. We’re excited to be part of your journey toward becoming an ESG leader!
Eco Sentido Presents Innovative Sustainability Solutions at MIDA’s DIAFESG Launch Event
Eco Sentido Presents Innovative Sustainability Solutions at MIDA’s DIAF–ESG Launch Event
Eco Sentido, a dynamic spin-off company from the esteemed NetsEco Group of companies, showcased its diverse range of services at the Malaysian Investment Development Authority’s (MIDA) Launching of the Domestic Investment Accelerator Fund for ESG Adoption (DIAF–ESG) event on April 24, 2024.Held at the prestigious Perdana Hall, Level 10, MIDA Sentral, the event convened industry leaders, government representatives, and stakeholders to promote Environmental, Social, and Governance (ESG) integration among Malaysian SMEs and Mid-Tier Companies (MTCs).
As a trusted partner in navigating the complex landscape of sustainability, Eco Sentido offers a comprehensive suite of services tailored to empower sustainable strategies. These services include ecosystem development, Eco Office Initiative Project (EOIP), Environment Management System (EMS), Sustainability Report writing, Environment Social and Governance (ESG) reporting, Life Cycle Assessment (LCA), carbon footprint (CFP) analysis, Eco Innovation Management, Eco Design, Green Event Management, and Smart Green Technology implementation towards a low carbon and circular economy.
Backed by tangible solutions supported by NetsEco, Eco Sentido is positioned as the Ecosense Maker, providing a full cycle of sustainability implementation and consulting services. MIDA highlighted the credibility of exhibitors invited to the event, affirming Eco Sentido’s status as a qualified service provider. With a focus on tangible solutions and real impact, Eco Sentido empowers organizations to navigate the complexities of sustainability with confidence.
Collaborating with international partners, Eco Sentido delivers tangible and measurable positive impacts through solutions such as Carbon Accounting, Eco-Office, and the revolutionary Carbon Management Platform ICEP. Besides, Eco Sentido is also the AA1000 licensed assurance provider, one of the few consultancy companies certified with MyHijau Mark.
The unveiling of DIAF–ESG by Deputy CEO, Ms. Lim Bee Vian, signifies a pivotal step in Malaysia’s sustainability journey. The fund offers matching grants to bolster ESG adoption among local SMEs and MTCs, enhancing global competitiveness.
Applications for DIAF–ESG are now open via the InvestMalaysia portal, offering essential support for organizations committed to embracing ESG practices.
Eco Sentido stands ready to provide tailored solutions and guidance to entities seeking to leverage the grant for sustainable growth.
For more information, please visit the application guideline:
https://www.mida.gov.my/…/2024/04/DIAF-ESG-Guideline.pdf
Contact Information:
Email: info@ecosense.com.my
First ESG Manager of Academy of Sustainability and Innovation (ASI), Miss Alison
Congratulations to Miss Alison, First ESG Manager of Academy of Sustainability and Innovation (ASI)!
Miss Alison has attended 5 courses of ESG Manager Programme, successfully passed the exam and continue her learning journey with another 2 courses of ESG Manager Course in 2023. She has gladly shared her learning experience with us.
I recently attended and completed Eco Sentido’s ESG Manager Course. The courses offered is a good introductory to the ESG topics. The trainers showcased an impressive depth of knowledge on the subject matter and materials provided was relevant and easy to follow.
Moreover, the organisers played a very supportive role in creating a friendly and enjoyable learning experience throughout the course. Highly recommended for those seeking a well-rounded understanding on ESG topics.
Igniting Change: A Peek into ESG Manager Course Journey
ESG is the hot topic nowadays, and if you’re wondering where to start, Eco Sentido’s Academy of Sustainability & Innovative has got you covered! We’ve just wrapped up three of our ESG Manager Courses, and what an inspiring journey it has been. Participants from diverse backgrounds have embarked on an adventure, uncovering a new chapter in their sustainability journey, gaining a deeper understanding of Environmental, Social, and Governance (ESG) principles, and igniting a passion for lasting change.
Guided by experienced trainers, the participants are equipped with essential skills and know-how that are key to excelling in sustainability. Over the past three sessions, participants explored the core ESG concepts, unlocking the power of protecting the environment, transparent governance, and the ins and outs of GHG management. From grasping sustainability’s vital role in businesses to championing ethical choices, these courses laid strong foundations for sustainable practices.
A Sneak Peek into Our Three Courses Adventure:
Siri 1(ESG01) Sustainability and Environment: Under the guidance of Dr. Chen, this module gave participants a firm understanding of true sustainability. Real-world case studies brought concepts to life, and the connection between SDGs and our daily lives and business was explored. Dr. Chen’s objective? To make sustainability accessible and down-to-earth, even more applicable. And that’s exactly what happened, with a special focus on Environmental Themes and insights into Bursa Malaysia’s requirements and essential sustainability indicators.
Siri 2(ESG02) Sustainability and Governance – Enterprise Risk Management: A dynamic trainer, Mr. Dennis Chong, prompted participants to dive into the critical realm of risk management. They engaged in interactive boardroom sessions, wearing their risk-thinking hats, and exchanging focused discussions. As Mr. Dennis rightly emphasized, every project comes with risks. The challenge lies in identifying them and integrating them into our strategies. It’s all about finding systematic ways to fuse business with the awareness of risks and the power of data. The key? Effective communication and technology.
Siri 3(ESG03) GHG Management: Mr. Tang’s session demystified GHGs and climate change’s impact through relatable examples and systematic approaches. Carbon pricing initiatives, offset strategies, life cycle understanding, and organizational-level GHG accounting became crystal clear. Exercises rounded out the session, letting participants gauge their knowledge. Mr. Tang’s goal? Prepare participants to assess and act on emission reduction, essential in the face of climate change.
Voices of Empowerment: Testimonials from Participants:
- Shahdan from MPOGCF: “Tailored sustainable insights, perfect for my industry. It’s all about becoming responsible and being recognized by global consumers.”
- Yen Yen from Onsemi: “The course is a comprehensive intro for everyone. A chance to contribute to sustainability, industry after industry.”
- Yong Kian from APU University: “Vital for updating student materials. Trainer-participant interactions make learning fascinating.”
- Syafiq from MRANTI: “Incredibly valuable for our sustainability journey. Loved the practicality and insights shared by the trainers. They made complex concepts understandable.”
In a Nutshell: Why Join the ESG Manager Courses?
1. Engaging Learning Adventure: Our ESG Manager Course is a dynamic, interactive experience unlike traditional courses. Our trainers create an environment where insights flow through discussions, case studies, and hands-on exercises. Learning isn’t limited to classrooms; it’s an exploration of solutions and ideas.
2. Tailored for Industries: ESG isn’t one-size-fits-all; it adapts to different sectors. Our course caters to this diversity, offering insights tailored to your industry, whether finance, manufacturing, or tech.
3. Action-Ready Insights: While theory matters, action matters more. The ESG Manager Course equips you with practical insights that transform into real-world change. The trainers bridge the gap between theory and practice, making sustainability accessible.
4. Network of Change-Makers: By joining us, you’re part of a network dedicated to making a difference. Collaboration, idea-sharing, and collective progress are the name of the game.
Don’t let the chance slip away. Join the movement that’s shaping the future. Register now for the next ESG Manager Courses and become an Eco Leader, confident in your ability to make a change. For details and registration, visit https://www.netsgroup.com.my/esg-manager-courses-full-siri/. Let’s build a more sustainable tomorrow, together!
