Bursa Malaysia has launched a centralized sustainability intelligence (CSI) solution to support companies in integrating environmental, social and governance (ESG) principles into their business strategies and operations.

The CSI Solution facilitates ESG disclosures by providing companies with the tools to assess carbon emissions across their value chains and streamline sustainability reporting, as part of efforts to boost their overall competitiveness, the Malaysia securities exchange operator says.

“We envision a solution that corporates and their suppliers can utilize to easily address all their ESG reporting needs to customers, financiers, and regulators,” says Bursa Malaysia chairman Tan Sri Abdul Wahid Omar.

“It will support and encourage Malaysian companies to lower their climate impact and simultaneously be on a stronger footing to penetrate global markets, especially those with strong ESG requirements.”

For Malaysian companies and their suppliers that wish to decarbonize and reduce emissions through the CSI platform, participating bank partners will offer preferential financing rates. 

Kellee Kam, group chief executive officer of Alliance Bank Malaysia, says the bank’s financing programme for small and medium-scale enterprises (SMEs) participating in the CSI Solution, includes an allocation of 1 billion ringgit (US$212 million) of green receivables financing as well as lower financing rates by up to 300 basis points.

“We hope to build momentum in assisting and enabling SMEs to decarbonize in an impactful manner. The trusted source of ESG data from the CSI Solution will ensure quality and actionable information is available to scale this initiative, allowing more SMEs to be eligible to participate in our financing programme.”

The CSI Solution is now ready for use by all companies, listed and unlisted, and of various sizes, from conglomerates to small businesses.

Early adopters of the CSI Solution have come from across vital economic sectors such as construction, oil and gas, manufacturing, logistics, and automotive, which Bursa Malaysia says demonstrates its universal applicability across sectors.