ESG Training in Malaysia

ESG training in Malaysia refers to structured educational programs designed to equip professionals with the knowledge and skills to integrate Environmental, Social, and Governance (ESG) principles into business operations. These programs cover key areas such as regulatory compliance, sustainability reporting, ethical governance, and strategic implementation of ESG practices. In Malaysia, ESG training aligns closely with national frameworks like the Bursa Malaysia Sustainability Reporting Guide and the Securities Commission Malaysia’s guidelines on responsible investment.

ESG training participants are trained on topics such as preparing Sustainability Statements in accordance with Bursa’s disclosure requirements, using global frameworks like GRI, TCFD, and ISSB. Programs offered by organizations such as the Securities Industry Development Corporation (SIDC) and Capital Markets Malaysia also support ESG integration into financial analysis, risk assessment, and portfolio management. Executive-level training focuses on board governance, materiality assessments, and strategy oversight. Workshops for small and medium enterprises (SMEs) help build foundational ESG capacity.

Why Is ESG Training Important for Malaysian Businesses?

ESG training is important for Malaysian businesses as it enables them to increase regulatory requirements, meet investor expectations, and maintain competitiveness in a sustainability-driven market. Bursa Malaysia’s ESG Framework requires all listed companies to disclose their environmental, social, and governance performance. ESG reporting is now a compliance obligation rather than a voluntary initiative. Global standards such as the Global Reporting Initiative (GRI), Task Force on Climate-related Financial Disclosures (TCFD), and ISSB influence how Malaysian firms structure their disclosures and sustainability strategies.

Without adequate ESG knowledge, businesses risk non-compliance, reputational harm and difficulty accessing green or sustainable financing opportunities. Investors, both local and international, are increasingly prioritizing ESG-aligned portfolios, and companies that fail to demonstrate ESG maturity may be overlooked or excluded.

ESG training equips employees, managers, and board members with the tools to implement ethical governance, manage environmental impacts, and address social responsibility. It helps businesses future-proof operations, align with stakeholder values, and build resilience in an era where sustainability is closely linked to financial performance and risk management.

Who Provides ESG Training in Malaysia?

ESG training in Malaysia is offered by regulatory bodies, professional institutes and private sector consultancies for different levels of expertise and industry needs. These training providers help businesses understand and implement ESG frameworks, manage sustainability reporting and address sector-specific ESG risks. Training options range from general awareness to specialized programs on carbon disclosure, ESG investment analysis, and governance oversight. Key ESG training providers in Malaysia include:

• Malaysian Institute of Corporate Governance (MICG) – Offers ESG certification and corporate governance programs for directors, senior executives, and compliance professionals.
• Bank Negara Malaysia (BNM) – Works with financial institutions and industry groups to promote ESG risk management and responsible financing practices through training and policy engagement.
• Bursa Malaysia – Conducts ESG-related workshops and webinars in collaboration with sustainability experts, particularly for listed companies preparing mandatory disclosures.
• Securities Industry Development Corporation (SIDC) – Provides structured ESG programs for capital market participants, focusing on responsible investment and ESG integration.
• Private consultancies and firms – Organizations such as One Island Consultancy, Polaris Advisory, and ESG Malaysia offer industry-specific ESG training on topics like carbon footprint measurement, supply chain transparency, and ESG reporting using GRI, TCFD, or ISSB standards.
• Universities and academic institutions – Institutions like Universiti Malaya and Universiti Kebangsaan Malaysia integrate ESG and sustainability modules within their business and environmental programs, supporting long-term talent development.

What Are the Key Components of ESG Training Programs?

ESG training programs in Malaysia provides comprehensive knowledge across the three main pillars: Environmental, Social, and Governance. These programs aim to equip participants with practical tools to assess, implement, and report on sustainability practices that align with both local regulations and global standards. Key components of ESG trainings include:

• Environmental Criteria – Focus areas include climate change mitigation, carbon footprint reduction, renewable energy adoption, sustainable supply chains, and environmental impact assessments. Training providers such as GreenTech Malaysia offer workshops on green technology, energy efficiency, and environmental compliance.
• Social Criteria – This covers labor rights, employee well-being, diversity and inclusion, occupational health and safety, and corporate social responsibility (CSR). Training modules often highlight stakeholder engagement strategies and how companies can create positive community impact.
• Governance Criteria – Governance training addresses board structure, transparency, anti-corruption measures, ethical conduct, and regulatory compliance. Institutions like the Malaysian Institute of Corporate Governance (MICG) focus on best practices in board oversight, risk management, and integrity frameworks.

To enhance relevance, many ESG training programs in Malaysia incorporate real-world case studies from local companies, such as Petronas, Tenaga Nasional Berhad (TNB) and Maybank, illustrating how these organizations implement ESG principles in their operations and reporting. These examples help participants connect theory with actual business practices.

How Does ESG Training Benefit Different Industries?

ESG training offers industry-specific benefits by helping organizations identify, manage, and report sustainability risks and opportunities that are most relevant to their operations. In Malaysia, different sectors face unique ESG challenges and regulatory expectations.

• Financial Sector – ESG training enables banks and financial institutions to align with Bank Negara Malaysia’s Climate Change and Principle-Based Taxonomy (CCPT). This includes integrating climate risk into lending decisions, managing portfolio exposures to carbon-intensive industries, and enhancing transparency in green financing.
• Manufacturing – For manufacturers, ESG training focuses on supply chain sustainability, resource efficiency, pollution control, and waste management. It helps companies reduce environmental impact, comply with environmental regulations, and meet international buyer expectations.
• Palm Oil Industry – ESG training is critical for addressing deforestation, biodiversity conservation, and labor practices. Programs help plantation operators comply with Malaysian Palm Oil Board (MPOB) standards and international sustainability certifications such as MSPO and RSPO.
• Energy and Utilities – In companies like Petronas or TNB, ESG training supports carbon transition planning, renewable energy integration, and community engagement for large-scale infrastructure projects.
• SMEs and Exporters – Training helps smaller businesses understand ESG disclosure requirements, particularly when dealing with multinational supply chains that demand sustainability credentials for procurement eligibility.

What Challenges Do Companies Face in ESG Training?

Malaysian companies face several key challenges when implementing effective ESG training, especially as the demand for sustainability reporting and responsible business practices grows across industries.

1. Data Quality and Availability
   One of the main challenges is the lack of reliable and consistent ESG data. Organizations often struggle to track and measure environmental and social performance accurately, making it difficult to align with global reporting standards.
2. Resource Constraints for SMEs
   Small and medium-sized enterprises (SMEs) face significant limitations in terms of budget, manpower, and technical expertise. According to SME Corp Malaysia, only about 30% of Malaysian SMEs have formal ESG policies in place, underscoring the need for cost-effective and accessible training programs tailored to their capacity.
3. Fragmentation of Reporting Standards
   The presence of multiple international frameworks—such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), and Task Force on Climate-related Financial Disclosures (TCFD)—creates confusion. Companies often find it challenging to determine which standards to follow and how to consolidate reporting across them.
4. Lack of Sector-Specific Guidance
   Many general ESG training programs lack industry-specific depth, making it difficult for sectors like agriculture, logistics, or energy to apply principles effectively without additional customization.
5. Low Awareness and Engagement at the Operational Level
   In some companies, ESG is still viewed as a compliance task rather than a strategic priority. This leads to minimal buy-in from employees and insufficient integration of ESG practices into day-to-day operations.

What Are the Trends Shaping ESG Training in Malaysia?

Here are the 3 key trends shaping ESG training in Malaysia:

1. Rising Demand for ESG Data Analytics
   As companies face increasing demands for accurate and timely ESG disclosure, there’s a growing emphasis on training in data analytics tools. AI-driven platforms help automate data collection, reporting, and performance tracking, supporting better ESG management
2. Expansion of Green Financing Education
   With Malaysia’s green bond and sukuk market expanding, BNM issued RM5.5 billion sustainability sukuk in 2023 and corporate issuers like Petronas and Tenaga Nasional mobilizing sizable green financing, there’s increasing demand for programs focused on sustainable finance instruments and frameworks
3. Digital and Remote Learning Platforms
   Organizations like Bursa Malaysia and the Malaysian Institute of Corporate Governance (MICG) are deploying online webinars and digital courses to broaden ESG literacy across sectors. These digital initiatives improve accessibility and scalability, especially for SME participation

Where Can Businesses Find ESG Training Solutions?

Platforms like Majikan.my connect companies with certified ESG training providers. The portal offers curated programs, from basic ESG awareness to advanced reporting techniques, alongside tools for talent development. Businesses can compare courses, access salary benchmarks, and track workforce upskilling progress.

Explore Majikan.my to identify ESG training programs that align with your organizational goals. The platform supports compliance, employee development, and long-term sustainability planning.