KUCHING: Alliance Bank Malaysia Bhd recently launched its inaugural report titled Navigating ESG In Sarawak: Insights From SMEs (Sarawak SME ESG Report), a landmark initiative aimed at advancing the Environmental, Social and Governance (ESG) agenda among small and medium-sized enterprises (SMEs) in Sarawak.
The Sarawak SME ESG Report was developed through a comprehensive study conducted with the support of the Sarawak government, InvestSarawak, Monash University and United Nations Global Compact Network Malaysia & Brunei (UNGCMYB).
The report was officially launched by the Premier of Sarawak, Datuk Patinggi Tan Sri (Dr) Abang Abdul Rahman Zohari Tun Datuk Abang Openg, at the Hydrogen Economy Forum (H2EF) held in Kuching.
The launch was also attended Deputy Minister for Energy and Environmental Sustainability (MEESty) Datuk Dr. Hazland Abang Hipni and MINTRED Sarawak Deputy Minister Malcolm Mussen Lamoh.
Also present were the report key strategic partners InvestSarawak, Monash University, and UNGCMYB.
The Sarawak SME ESG Report offers valuable insights into the current levels of ESG awareness, adoption, and the challenges faced by SMEs across Sarawak, providing practical recommendations to guide businesses on their sustainability journey.
In the foreword of the report, Abang Johari reaffirmed Sarawak’s commitment to embedding sustainability at the core of its economic development, in line with the Post Covid-19 Development Strategy 2030
(PCDS 2030).
“This comprehensive report not only underscores the progress made by Sarawakian businesses but also highlights areas where support and intervention are necessary. By aligning their practices with ESG principles, SMEs can bolster their resilience, competitiveness, and contribute significantly to Sarawak’s sustainable future.
Deputy Premier Datuk Amar Awang Tengah, in the foreword, said, “Our companies are becoming increasingly aware of the importance of ESG principles and are actively seeking pathways to implement them.”
Invest Sarawak, a key partner in this report is committed to supporting SMEs in overcoming challenges related to ESG adoption, including providing clarity, financial support, and facilitating capacity-building opportunities.
InvestSarawak CEO Timothy Ong said: “ESG practices are increasingly vital for businesses to remain competitive, attract investment, and ensure long-term viability. The findings presented in this report clearly demonstrate that Sarawak’s SMEs recognise the importance of sustainability, with a significant number already taking tangible steps to embed ESG into their business strategies.”
The Sarawak SME ESG Report reveals promising momentum among SMEs, showing that six in ten SMEs in Sarawak are aware of sustainability issues, and 66% have already begun implementing ESG practices including a portion who are unconscious adopters. Among non-adopters, 98% indicated a strong intention to adopt ESG measures, with 59% planning to act within the next two years.
The leading motivators for SMEs to adopt ESG practices include meeting the evolving expectations of consumers, suppliers, and investors. Despite these positive trends, challenges such as limited resources, staffing constraints, and navigating various ESG frameworks were cited as key barriers to wider adoption.
Alliance Bank group CEO Kellee Kam (pic) said: “Delivering a Sarawak focused report is not just timely, it is essential. The state-specific ESG report provides a deeper understanding of the realities faced by local businesses. This enables us to identify both the challenges and the opportunities that lie ahead. The data gathered will empower businesses to make informed decisions while also serving as a benchmark that encourages the adoption of best practices across industries.”
He added: “We recognise the challenges that stand in the way. Many businesses face limitations in terms of resources, staffing, and clarity – especially when confronted with numerous frameworks and fragmented information.
“Access to financing remains another hurdle. These are real issues that we must address collectively. We hope that the report is able to provide critical guidance to SMEs, helping them build capacity and access useful tools and resources as they navigate their ESG journey.”
Speaking on the research component of the report, Monash University Malaysia CEO and pro vice-chancellor and president Professor Datuk Adeeba Kamarulzaman said: “This initiative brings together government, academia, industry, and civil society, underscoring the collective effort needed to advance sustainability.
“The research component of this collaboration involves a state-wide study that offers critical insights into ESG practices among SMEs.
“The findings support the development of policies and strategies that help SMEs integrate ESG principles, enhancing their resilience and competitiveness while contributing meaningfully to Sarawak’s sustainable and inclusive growth”.
