ESG Insights from Malaysian SMEs: Building A Better Future Together ESG Insights from Malaysian SMEs: Building A Better Future Together

Alliance Bank's Inaugural ESG Survey Report for SMEs

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The ‘ESG Insights from Malaysian SMEs: Building A Better Future Together’ report was developed by Alliance Bank in partnership with UN Global Compact Network Malaysia & Brunei (UNGCMYB) and SME Corporation Malaysia (SME Corp. Malaysia).

This report provides an overview of the state of ESG among SMEs in Malaysia and aims to raise awareness among businesses on the importance of adopting ESG practices.

Together with our partners, Alliance Bank is committed to helping SMEs with sustainability risks and opportunities by providing financial and non-financial assistance to ensure long-term business viability. We adopt a nurturing approach for SMEs and business owners to transition towards sustainable practices.

File Size: 5Mb

Our 3-Step Approach in ESG Adoption

Partner with UN Global Compact Network Malaysia & Brunei (UNGCMYB) & SME Corp. Malaysia on Survey Report and Thought Leadership Insights
Collaborative efforts to provide Online Assessments, Diagnostic Tools, Tailored Roadmap & Professional Consultancy
Banking (Financing, Cash Management, Trade, FX), Nonbanking (Solar & Renewable Energy, Waste & Water Management, Energy Efficiency, EV and others) & Tripartite Partnerships

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“Whether you are just beginning to explore opportunities to incorporate ESG or seeking ways to further enhance it, we hope that the findings of this report will serve as a valuable resource in your journey towards sustainability.”
Kellee Kam
Kellee KamGroup Chief Executive Officer, Alliance Bank
“We realise that in order to make the ESG journey work, it is not asking businesses to adapt to a single ‘one fits all’ ESG roadmap, rather we want to help develop the most effective ESG roadmap for each SME.”
Rizal IL-Ehzan Fadil Azim
Rizal IL-Ehzan Fadil AzimChief Executive Officer, Alliance Islamic Bank
“The Bank will continue to champion ESG adoption among the community and make a positive impact to society, the economy and the planet. Our approach is defined by our 3 As approach – Advocacy, Advice and Answers – where we create awareness and encourage consumers as well as businesses to adopt ESG practices.”
Dr Aaron Sum Wei Wern
Dr Aaron Sum Wei Wern Group Chief Strategy, Marketing & Business Development Officer, Alliance Bank
“As the backbone of the economy, serving as key drivers of job creation and economic development, SMEs can serve as change agents helping to achieve a sustainable future for all. Together, we are taking a pragmatic approach by providing tools that will help SMEs to better navigate today’s ESG landscape.”
Faroze Nadar
Faroze Nadar Executive Director, UN Global Compact Network Malaysia & Brunei (UNGCMYB)
“Operating sustainably is not just a responsibility, it is an opportunity for SMEs to innovate and grow. By prioritising ESG practices, businesses can build a competitive advantage and enhance their brand image. It is imperative for Malaysian SMEs to embrace ESG in order to remain relevant and competitive in the domestic and global market.”
Rizal Bin Nainy
Rizal Bin Nainy Chief Executive Officer, SME Corp. Malaysia

The COVID-19 Pandemic has Accelerated the ESG Agenda

ESG is evolving in response to global changes, highlighting its growing importance for innovation, business resilience and sustainable growth.
of consumers make purchase decisions based on the products impact to the environment
3 out of 5
SMEs believes ESG practices create long-term value & increase business opportunities.
of SMEs have adopted elements of ESG or have included ESG practices into their strategy.

Their key challenges:
  • Resource constraints
  • Lack of visionary directives
  • Lack of technical and operational expertise
of SMEs have yet to implement ESG practices into their business.

Their key barriers:
  • Uncertainty about the impact of ESG
  • Limited knowledge of ESG
  • Financial constraints

Key Highlights of the Report

80% of SME adopters recognise the value of ESG adoption and plan to continue progressing on their ESG journey
Top 5 benefits gained by ESG adopters from practicing ESG
58% of non-adopters express interest in incorporating ESG practices for business benefits.

Top 3 Motivations for Non-ESG Adopters

52% Help to improve productivity
50%To meet market demand
46%Market expansion/attract new customers

Alliance Bank - For The Future
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