National Industry Environmental, Social, and Governance Framework (i-ESG Framework) for Phase 1.0: “Just Transition” was launched by Ministry of Investment, Trade and Industry (MITI) Malaysia on 2nd October 2023. i-ESG framework is a phased approach which begin with the 'Just Transition' phase (Phase 1.0) from 2024 to 2026, followed by the 'Accelerate ESG Practices' (Phase 2.0) from 2027 to 2030,”
i-ESG Objectives
The objective of the i-ESG Framework is to accelerate the transition towards sustainable practices among manufacturing companies, with four key pillars (standards, financing, capacity building, and market mechanisms) supported by 17 strategies, 50 deliverables, and six key enablers (stakeholder engagement, human capital and capabilities, digitalisation, technology, financing and incentives, as well as policies and regulations).
Expected Outcomes
The Framework’s expected outcomes are as follows:
Phase 1.0 – Just Transition Phase (2024 – 2026)
During the ‘Just Transition’ Phase 1.0, manufacturing companies, including MSMEs, will receive support to embark on their sustainability/ ESG journey. This assistance will include self-readiness assessment, outreach, training/ mentoring programmes, and financing options. The assessment and guidance comprise of i-ESGReady (a Readiness Assessment Programme), and iESGStart (a practical guide with step-by-step instructions, illustrative examples and templates).
With the support of i-ESGReady and i-ESGStart, companies without any prior sustainability reports should be able to develop one within a year. This will ensure their preparedness to meet the more stringent requirements of Phase 2.0, Accelerate ESG (2027 - 2030).
Phase 2.0 – Accelerate ESG Practices (2027-2030)
The plans for Phase 2.0 will be meticulously designed to coincide with both domestic and global ESG standards.
Click here to read more about the i-ESG initiative.
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