ESG Reporting
Be Ahead of The Sustainability Game
ESG reporting is a practice wherein companies disclose their performance and impact across environmental, social, and governance dimensions. This reporting provides stakeholders with comprehensive insights into the company's sustainability efforts.
ESG reporting typically involves setting goals, measuring performance against these goals, and disclosing relevant data to investors, customers, employees, and other stakeholders to demonstrate the company's commitment to responsible and ethical business practices.
Adopting ESG reporting practices promote a company's commitment to:
Transparency
Accountability
Continuous Improvement
Key Components
ESG reporting encompasses three key components:
Environment
This component focuses on a company's impact on the environment, including its carbon footprint, energy efficiency measures, waste management practices, water usage, pollution prevention efforts, and conservation initiatives.
Social
Social aspect deals with how a company manages relationships with its employees, suppliers, customers, and communities. It includes topics such as diversity and inclusion, employee health and safety, labor practices, human rights, community engagement, and philanthropy.
Governance
Governance refers to the system of rules, practices, and processes by which a company is directed and controlled. It covers aspects such as board composition and structure, executive compensation, risk management, transparency, ethics, and compliance with laws and regulations.
These components are interconnected, offering a comprehensive view of a company's performance in sustainability and responsible business practices. They help stakeholders evaluate a company's environmental and social impact, governance practices, and long-term sustainability strategy.
ESG: From A Choice to Necessity
Factors for Integrating ESG Practices
Customer Demand
An organization may need to produce an ESG report in response to customer demands and as part of their adherence to reporting regulations.
Competitive Advantage
Incorporating ESG reporting practices can set an organization apart in a competitive market, attracting socially and environmentally conscious consumers and investors.
Regulations Compliance
Since 2015, Malaysia has required listed issuers to provide a Sustainability Statement, with Bursa Malaysia further strengthening these requirements in 2022.
In Singapore, all listed and large non-listed companies must make climate-related disclosures starting FY2025 and FY2027, respectively. From Budget 2024, Singapore will offer financial assistance to large companies and SMEs for their initial sustainability reports.
Risk Management
Transparency through reporting practices allows companies to identify potential risks and opportunities related to sustainability and climate issues. By proactively addressing these areas, companies can mitigate environmental impacts, enhance social responsibility, and improve governance practices. This not only reduces the likelihood of regulatory penalties and reputational damage but also promotes long-term financial stability and resilience in an increasingly sustainability-focused market.
Reporting Frameworks & Standards
With numerous frameworks and guidelines in place, EES acknowledges the complexity of integrating suitable reporting standards into your reporting practices. Below are some common reporting frameworks, including the Ten Principles of the UN Global Compact.
Global Reporting Initiative (GRI)
GRI is a global standard for sustainability reporting, enabling any organization (large or small, private or public) to understand and report on their sustainability performance, covering a broad range of ESG topics.
Highly relevant to many stakeholders, GRI is designed for organizations to communicate their material topics, related impacts, and management approaches.
International Sustainability Standards Board (ISSB)
ISSB builds upon the work of CDSB, TCFD, VRF's IR Framework and SASB, and the World Economic Forum's Stakeholder Capitalism Metrics. ISSB covers two specific standards:
IFRS S1: General Requirement for Disclosure of Sustainability-Related Financial Information; and
IFRS S2: Climate-Related Disclosure
More countries are encouraging companies to adopt ISSB standards in reporting their climate-related information.
United Nations Sustainable Development Goals (UN SDGs)
UN SDGs represent a set of global objectives frequently cited by organizations in their ESG reporting, showcasing alignment with wider sustainability aims. These goals offer a shared vocabulary and structure for tackling worldwide sustainability issues.
Singapore Exchange's Sustainability Reporting Guide
The Singapore Exchange (SGX) has released guides that outline the principles and key components of a sustainability report. These guides also offer guidance on determining material ESG factors using the 'Identify-Rate-Prioritize-Validate' approach, enhancing clarity and effectiveness in sustainability reporting.
Bursa Malaysia's Sustainability Reporting Guide (SRG)
Bursa Malaysia has developed and enhanced guidelines for listed issuers to report their sustainability performance. The Bursa SRG 3rd Edition, derived from GRI, SASB, and ISSB standards, as well as specific requirements for listed issuers, provides clear and comprehensive guidelines for companies to ensure transparent and effective sustainability reporting.
Simplified ESG Disclosure Guide (SEDG)
Developed by Capital Market Malaysia (CMM), SEDG assist and provide guidance for SMEs in preparing to disclose ESG data to their stakeholders. These guidelines are tailored based on the company's maturity in the sustainability journey, aligning with both local and international standards.
Our expertise in these frameworks and guidelines allows us to provide valuable insights and guidance on best practices in ESG reporting, encompassing the core principles of each framework. It's essential to highlight that while organizations may refer to overarching frameworks, customizing reports based on their industry and organizational size is crucial for effectively communicating sustainability efforts.
Planting Seeds Today for a Sustainable Tomorrow
Embrace ESG for Better and Long-Term Performance
Our Approach to ESG Reporting
EES's ESG Reporting Service is designed to simplify your reporting practices, especially for first-time reporters, by aligning with established local and global reporting frameworks and standards to ensure comprehensive and compliant reporting.
Stakeholders Identification
Identify key stakeholders who are impacted or may potentially be affected by the company's activities and business strategies. We conduct stakeholder mapping to determine their degree of influence and dependency on the company.
Materiality Assessment
Conduct materiality assessment to pinpoint the most critical ESG issues for your organization and its stakeholders. This process enables you to prioritize data collection efforts effectively.
A thorough materiality assessment allows a company to evaluate the significance of current and emerging ESG and sustainability issues.
ESG Framework Development
Develop an ESG framework to underscore the company's commitment to sustainability and ESG principles. The identified material topics will be categorized into environmental, social, governance, or economic classes.
Goal Setting
Establish clear and measurable ESG objectives and targets to align with the company's values, industry standards, and stakeholder expectations, based on the materiality assessment.
Strategy Development
Formulate comprehensive strategies and offer actionable recommendations, outlining the essential steps and initiatives for a company to achieve its ESG objectives. Additionally, we provide guidance for integrating these initiatives into the company's core business functions and decision-making processes.
Risks Identification & Management
Define and assess ESG and climate-related risks that are relevant to the company's operations and its stakeholders.
Data Collection
Collect ESG data from diverse sources within the organization, encompassing internal records, past sustainability reports, employee surveys, and supplier data.
As an energy consultant, EES aids in validating 'Energy' data to guarantee its accuracy and reliability. Subsequently, EES offers recommendations for enhancing the organization's energy aspect.
Report Content & Structure
Define the contents and structure of the ESG report according to predefined criteria. Companies can tailor the structure to align with overall business value and desired outcomes.
Data are presented in clear visuals, charts, graphs, and narratives to ensure accessibility for all stakeholders.
Report Writing & Review
Develop an ESG report in accordance with established standards and frameworks, ensuring the confirmed structure is followed accurately.
Conduct a thorough review of the report for accuracy, transparency, and clarity by actively engaging with internal stakeholders for feedback and insights.
Stakeholder Engagement &
Continuous Improvement
Engage stakeholders to gather feedback on the draft ESG report, addressing any concerns or questions they may have.
Utilize the feedback and insights gained throughout the process to continuously improve ESG performance and reporting practices.
The ESG report development is an iterative process guided by the organization's commitment to
transparency, accountability, and continuous improvement in ESG and sustainability practices.
EES Supports You on Your ESG Journey
Starting your sustainability or ESG journey may be confusing. At EES, we stand ready to assist you in your commitment to sustainability and ESG, helping you navigate through the complexities and achieve your goals effectively. Explore our offerings:
