When your customer sends the ESG memo: How big buyers are forcing Malaysia’s SMEs to comply

[KUALA LUMPUR] Malaysia’s army of small suppliers is discovering that environmental, social and governance (ESG) compliance is much more than a buzzword – it is now a business requirement. For many, the message arrived not in a government circular, but in an e-mail from their biggest customer.

As Bursa Malaysia’s phased sustainability reporting requirements take effect – with the largest listed companies facing their first deadline this December – corporations are requiring ESG data from small companies up and down their supply chains. 

This is effectively creating a de facto compliance regime for thousands of unlisted businesses that have never been directly regulated.