SEDG Reporting for SMEs
SEDG reporting support for Malaysian SMEs in supply chains.
Build a practical ESG disclosure process using the Simplified ESG Disclosure Guide, without forcing your organisation into a reporting framework designed for large listed companies.
Scout360 helps SMEs determine which SEDG disclosures are relevant, organise the required data, calculate environmental indicators, establish supporting policies and prepare information for customers, financiers and other stakeholders.
For Malaysian SMEs receiving ESG questionnaires, entering larger supply chains or building their first structured sustainability dataset.
The guide
What is the Simplified ESG Disclosure Guide?
SEDG was developed by Capital Markets Malaysia, an affiliate of the Securities Commission Malaysia, to help small and medium enterprises in supply chains track and disclose ESG information in a simpler and more standardised way.
SEDG consolidates commonly requested information from local and international sustainability frameworks into disclosures designed for SMEs. It serves both SMEs preparing information and stakeholders requesting it, including large customers, financial institutions, investors, government agencies and trade organisations.
Version 2 supersedes Version 1 and adds three disclosures to the original set of 35. It is aligned with Version 2 of the ASEAN Simplified ESG Disclosure Guide for SMEs in Supply Chains.
Three levels of adoption
SEDG organises disclosures into three levels so that companies can progress according to their sustainability maturity.
Basic
Establishes essential data and policies.
Intermediate
Introduces more detailed breakdowns, management information and performance indicators.
Advanced
Addresses more developed value-chain, risk and reduction information.
Fifteen topics across three ESG pillars
Environmental
- Emissions
- Energy
- Water
- Waste
- Materials
Social
- Human rights and labour practices
- Employee management
- Diversity, equity and inclusion
- Occupational health and safety
- Community engagement
Governance
- Governance structure
- Policy commitments
- Risk management and reporting
- Anti-corruption
- Customer privacy
SEDG also provides sector guides for agriculture, construction and real estate, energy, manufacturing, and transport and logistics. Relevant companies should consider both the main guide and their applicable sector guidance.
Applicability
Is SEDG mandatory, and when should SMEs begin?
SEDG is a voluntary disclosure guide. Version 2 states that there is no mandatory adoption timeline for its disclosures.
That does not mean SMEs can ignore ESG information until regulation applies. The practical trigger is often a request from a stakeholder.
Large customers and supply chains
Customers may need supplier information for responsible procurement, Scope 3 emissions, human-rights due diligence or their own sustainability disclosures. SEDG provides a common structure that can reduce repeated interpretation of different questionnaires.
Financing and investment
Financial institutions and investors may request non-financial information when considering ESG-related financing, investment suitability or risk. A maintained SEDG dataset can help the SME respond with consistent information rather than rebuilding answers for each request.
Export and market access
International customers may ask Malaysian suppliers for emissions, labour, anti-corruption, material or other ESG information. SEDG helps SMEs organise locally relevant information while remaining connected to widely referenced sustainability frameworks.
Internal readiness
Companies can begin before receiving a formal request. Starting with relevant Basic disclosures exposes missing records, unclear ownership and inconsistent units while there is still time to improve the process.
Why it matters
Why a structured SEDG process matters.
ESG questionnaires often request the same underlying data
Energy, emissions, workforce, safety, policies and governance information may be requested in different formats by several stakeholders. Maintaining one controlled source reduces duplicated collection and conflicting responses.
Large customers depend on supplier information
An SME's data may contribute to a customer's value-chain assessment and Scope 3 calculation. Missing boundaries, units or methodology can make otherwise available information difficult for the customer to use.
Disclosures must be supported by records
Reporting a number or policy title is not enough if the organisation cannot explain its source. Data owners, calculation methods, reporting periods and supporting evidence should be recorded so information can be reviewed and repeated.
Scope of support
What Scout360 can support.
SEDG readiness and stakeholder review
Review existing customer questionnaires, policies, data and reporting practices; identify the relevant SEDG and sector-guide disclosures; and establish the immediate reporting objective.
Disclosure level and implementation roadmap
Determine a practical Basic, Intermediate or Advanced starting point for each relevant topic, prioritise stakeholder requirements and develop a phased plan that the SME can maintain.
Data ownership and collection structure
Assign responsible data owners, define the reporting period and organisational boundary, develop or adapt templates, provide collection instructions and establish submission and review timelines.
Environmental data and GHG calculations
Organise energy, water, waste and materials information; calculate Scope 1 and Scope 2 emissions using appropriate methodologies and factors; and document assumptions, estimates and data limitations. Scope 3 can be added where relevant.
Social and governance disclosures
Structure workforce, labour, safety, diversity, community, governance, risk, anti-corruption and customer-privacy information and identify where policies, records or responsible ownership are missing.
Disclosure preparation and evidence
Complete or review the SEDG disclosure template, reconcile narrative and quantitative information, document methodologies, organise supporting records and prepare the information for management approval or stakeholder submission.
Training and annual repeatability
Train responsible teams on the disclosure requirements and establish an annual update process so the organisation can maintain and improve its SEDG information internally.
How the work runs
A practical SEDG implementation framework.
- 1
Confirm the purpose
Identify who is requesting the information, which decisions or submissions it must support and whether a sector guide or customer-specific requirement also applies.
OutcomeA defined disclosure objective and stakeholder list.
- 2
Select relevant disclosures
Review the 15 topics, determine relevance to the company's activities and choose an appropriate Basic, Intermediate or Advanced starting level.
OutcomeAn agreed SEDG disclosure register and implementation priority.
- 3
Assign ownership and requirements
Map each disclosure to a responsible function, define units and reporting periods, and issue templates and instructions for the required information.
OutcomeA practical data-collection plan with accountable owners.
- 4
Collect, calculate and validate
Gather records, calculate applicable indicators, resolve inconsistent units, document estimates and check the information against its source.
OutcomeA structured ESG dataset supported by available evidence.
- 5
Prepare and review disclosures
Complete the reporting template, add necessary explanations and methodology, identify limitations, and conduct management review before external submission.
OutcomeConsistent SEDG-aligned information ready for its intended audience.
- 6
Improve the next reporting cycle
Record unresolved gaps, strengthen policies and source records, extend selected disclosures when useful and update the information on an agreed annual cycle.
OutcomeA disclosure process that becomes more complete without overwhelming the business.
Deliverables
What your organisation receives.
Depending on the agreed scope, the engagement may include:
- an SEDG readiness and gap assessment;
- a relevant-disclosure and stakeholder-requirement register;
- a phased Basic, Intermediate and Advanced roadmap;
- assigned data ownership and collection templates;
- calculated environmental indicators and methodology notes;
- a policy and evidence gap register;
- a completed or reviewed SEDG disclosure template; and
- an annual maintenance plan and team training.
SEDG implementation does not automatically constitute certification, assurance or compliance with every customer framework. Additional requirements should be mapped separately where a stakeholder requests them.
What SEDG does and does not cover
SEDG helps SMEs determine which ESG data to track and disclose. The guide itself does not provide a complete sustainability strategy, assess and mitigate every ESG risk, or identify all business opportunities. Scout360 can support those wider areas through separate advisory, carbon accounting, training or implementation work where needed.
Explore Sustainability Reporting and AdvisoryWhere this connects
Related services.
Common questions
Frequently asked questions.
No. SEDG is a voluntary guide and has no mandatory adoption timeline. An SME may nevertheless be asked to provide the information by customers, financial institutions, investors or other stakeholders.
Not necessarily. Disclosures should be considered according to relevance, maturity and stakeholder needs. The Basic, Intermediate and Advanced structure supports progressive adoption rather than requiring every SME to begin at the same level.
Version 2 supersedes Version 1 and aligns with ASEAN SEDG Version 2. A customer may still provide an older template, so the requested version should be confirmed before submission.
Yes. Sector guides are available for agriculture, construction and real estate, energy, manufacturing, and transport and logistics. The main SEDG remains relevant, with the sector guide adding considerations for the applicable industry.
Yes. Scout360 can calculate Scope 1 and Scope 2 emissions from the organisation's activity data and document the methodologies and emission factors used. Scope 3 calculations can be included where required.
Not necessarily. The information may be maintained in the SEDG template or supplied through a stakeholder questionnaire. A public-facing sustainability report can be prepared separately if it serves a clear business purpose.
Build the ESG information your customers are beginning to request.
Scout360 can help your organisation start with the disclosures that matter now, create a workable collection process and build towards more complete reporting as stakeholder requirements develop.
We aim to respond within two business days.
Technical and regulatory information last reviewed: 7 August 2026.
Official references: Capital Markets Malaysia: SEDG resource portal, Simplified ESG Disclosure Guide Version 2, Securities Commission Malaysia: SEDG GHG Calculator, and Securities Commission Malaysia: ASEAN SEDG Version 2.