ESG Readiness for Micro, Small, and Medium Enterprises in the Supply Chain Ecosystem
Project Period: February - December 2025
ESG Research Study
As the world accelerates toward a more sustainable future, MSMEs—Malaysia’s economic backbone—must be equipped to evolve with it. Yet, only 5% of MSMEs currently consider Environmental, Social, and Governance (ESG) practices a business concern.
Our groundbreaking ESG Research Study seeks to understand and address the real barriers MSMEs face on the path to sustainability—and how we can collectively close that gap.
Why This Study Matters
Malaysia has set its sights on achieving net-zero greenhouse gas emissions by 2050. Public-listed and multinational corporations are under pressure to meet global ESG compliance, and they rely on MSMEs within their supply chains to do the same.
However, a lack of awareness, adoption challenges, and systemic obstacles are slowing progress.
This research aims to bridge that gap by investigating:
MSMEs’ awareness and understanding of ESG and SDG frameworks.
Barriers to adopting ESG practices.
Motivating factors for ESG compliance.
Why MSMEs are particularly hesitant to embrace the Environmental (E) pillar.
As the backbone of the economy, MSMEs supply larger corporations but often lag in ESG compliance. This study identifies barriers, motivations, and actionable solutions to accelerate ESG adoption.
Study Objectives
Our study will:
- Measure ESG and SDG awareness across industries.
- Identify pain points and hesitations among MSMEs.
- Explore financial and regulatory limitations affecting adoption.
- Recommend how government agencies and banks can provide targeted support.
- Highlight benefits of ESG adoption for long-term business competitiveness and sustainability.
Research Methodology
We’ll collect insights using a robust, mixed-methods approach.
1. In-Depth Interviews
With ESG champions, industry leaders, financial institutions, and C-suite executives from public-listed and multinational corporations to uncover:
Real-world ESG journeys and challenges.
Industry-specific drivers and barriers.
Vendor ESG readiness.
2. MSME Survey
We’re engaging 100 MSMEs—representing the services, manufacturing, construction, and agriculture sectors—across Northern, Central, and Southern Malaysia.
3. Secondary Research
Drawing from:
ESG reports by donor-funded stakeholders.
Government white papers and global studies.
UN Global Compact materials and corporate ESG disclosures.
All tools—including multilingual surveys in Bahasa Malaysia and English—will be validated for clarity and reliability.
Be Part of the ESG Transition
This research will pave the way for a more sustainable, resilient MSME sector. The findings will provide:
Actionable insights for policy makers, banks, and corporates
Clarity and support for MSMEs beginning their ESG journey
A roadmap for Malaysia’s supply chain to become truly ESG-ready
👉 Stay tuned as we unveil the outcomes of this critical study. Join us in empowering small businesses to build a greener, more inclusive tomorrow.
