ESG Reporting: What Is It, Guides, & Frameworks

Key Takeaways

• ESG reporting helps businesses disclose their environmental, social, and governance performance to meet regulatory and stakeholder expectations.
• In Malaysia, ESG reporting is becoming mandatory under Bursa Malaysia’s Sustainability Reporting Framework by 2025.
• Popular ESG frameworks include GRI, SASB, TCFD, IR, and Bursa’s own guidelines.
• Core reporting components cover emissions, labour practices, governance structures, materiality assessments, and stakeholder engagement.
• Common challenges—like fragmented data or evolving standards—can be overcome using automation, centralised platforms, and tools like Lestar.
• ESG reporting tools simplify data collection, tracking, and report generation while ensuring compliance with local and global ESG reporting requirements.
• Businesses can get started by choosing a suitable framework, setting KPIs, and using platforms that integrate with the Bursa ESG reporting platform.

Introduction

ESG stands for Environmental, Social, and Governance—three key pillars used to measure a company’s sustainability, ethical impact, and long-term value.

In today’s global business landscape, ESG reporting is no longer a “nice-to-have”—it’s fast becoming a strategic necessity.

Regulators, investors, and consumers are increasingly demanding greater transparency from businesses. This includes how they manage environmental impact, treat employees and communities, and uphold ethical governance.

This trend is especially strong in Malaysia, where ESG reporting in Malaysia is being actively shaped by guidelines from Bursa Malaysia, aligning local businesses with global ESG reporting standards.

This blog simplifies everything you need to know—what ESG reporting is, which frameworks are used, and how to comply with reporting requirements using the right technology. 

What is ESG reporting?

ESG reporting is the process of disclosing a company’s performance in key environmental, social, and governance areas. It goes beyond financial results to show how a business operates responsibly, manages risk, and contributes to long-term sustainability.

These reports typically cover topics such as carbon emissions, labour practices, board diversity, and corporate ethics—providing a transparent view of how the company aligns with stakeholder values and regulatory expectations.

The goal of ESG reporting is to build trust with investors, regulators, customers, and the public. It also helps businesses benchmark their progress and make informed decisions that balance profit with purpose.

Why does ESG reporting matter in today’s business world?

As global awareness around sustainability and corporate accountability grows, ESG reporting has become a vital part of how businesses operate and communicate. It’s no longer just a compliance exercise—it’s a strategic advantage.

• Builds investor and stakeholder trust: ESG reporting gives stakeholders a clearer view of a company’s values, risk exposure, and long-term vision. Transparency builds confidence in leadership and operations.
  
• Helps comply with regulatory standards: Companies must meet growing ESG reporting requirements, including those outlined by Bursa Malaysia and international ESG reporting standards and frameworks like GRI and TCFD.
  
• Supports long-term risk management and brand value: ESG reporting helps identify operational risks (e.g. climate, labour, governance), reinforcing resilience and reputation.
  
• Enhances access to green financing: Strong ESG disclosures open doors to ESG-linked investments and sustainable funding opportunities.
  
• Meets rising consumer and employee expectations: Customers and talent are more likely to engage with companies that demonstrate social responsibility and ethical governance.

ESG reporting in Malaysia

Malaysia has made significant strides in formalising ESG practices, especially for publicly listed companies. Through Bursa Malaysia, ESG reporting is now guided by clear requirements under the Sustainability Reporting Framework, aligning local businesses with global standards and investor expectations.

The framework mandates that companies disclose key environmental, social, and governance metrics, conduct materiality assessments, and engage stakeholders transparently. It’s part of Malaysia’s broader push under the Sustainable and Responsible Investment (SRI) agenda to create a more inclusive and future-ready economy.

To support the transition, reporting requirements are being implemented in phases. By 2025, all PLCs will be expected to fully comply with updated ESG reporting standards.

Is ESG reporting mandatory in malaysia?

Yes, for listed companies, ESG mandatory reporting is being phased in, with full implementation required by 2025.

Read: Bursa ESG Reporting Solution: A Step-by-Step Guide for PLCs

Common ESG reporting frameworks and standards

There’s no one-size-fits-all when it comes to ESG reporting. Different industries and regions may follow different frameworks, depending on their priorities and compliance needs. 

Here are some of the most widely adopted:

Global Reporting Initiative (GRI)

It is one of the most widely used ESG reporting standards globally, GRI focuses on material topics and stakeholder inclusiveness. It’s suitable for companies of all sizes and sectors.

Sustainability Accounting Standards Board (SASB)

SASB offers industry-specific standards focused on financially material ESG issues. It helps organisations align sustainability reporting with investor expectations.

Task Force on Climate-Related Financial Disclosures (TCFD)

TCFD is centred on climate-related risks and opportunities, helping companies disclose how climate change impacts their financial health and strategy.

Integrated Reporting Framework (IRF)

IR combines financial and non-financial data—including ESG metrics—into a single, cohesive report. It aims to show how value is created over time.

Bursa Malaysia’s Sustainability Reporting Guide

Tailored specifically for Malaysian listed companies, this guide outlines step-by-step ESG reporting requirements under the ‘Sustainability Reporting Framework’. It helps businesses align their disclosures with stakeholder expectations, material ESG risks, and value creation strategies.

The guide encourages companies to focus on materiality, stakeholder engagement, and measurable KPIs—while aligning with global best practices like GRI, TCFD, and IR. It also supports companies in preparing for the transition to the Bursa Malaysia ESG reporting platform, which will further streamline submissions in the near future.

ESG reporting requirements: What should be included in a report?

Under Bursa Malaysia’s ESG reporting framework, listed companies are expected to go beyond surface-level disclosures and provide structured, decision-useful information. 

A well-prepared ESG report should include the following components:

• Environmental metrics: Include data on carbon emissions, energy consumption, water use, waste management, and other environmental impacts. Companies in Malaysia should align with national sustainability goals and global climate commitments.
  
• Social metrics: Report on employee welfare, workplace diversity, community investment, labour practices, and supply chain responsibility. These are especially relevant in Malaysia’s multi-ethnic and socially conscious business context.
  
• Governance metrics: Cover board composition, anti-corruption measures, internal controls, and corporate ethics. Governance disclosures are key in meeting investor expectations and Bursa’s listing requirements.
  
• Materiality assessment: Identify and disclose issues that are most material to your business and stakeholders—guided by stakeholder engagement, risk assessments, and regulatory relevance.
  
• Stakeholder engagement: Outline how key stakeholders (investors, employees, communities, regulators) are engaged in shaping ESG strategies.
  
• ESG risk & impact analysis: Assess the short- and long-term ESG risks and their financial or reputational impacts. This ties directly into Bursa’s call for forward-looking disclosures.
  
• Data sources and verification methods: Explain where the ESG data comes from, how it is measured, and whether it has been independently verified or assured.

Challenges in ESG reporting (and how to solve them)

Even with growing awareness, ESG reporting still comes with a few hurdles—especially for companies navigating new regulations in Malaysia. Here are the common challenges and how to overcome them:

• Data fragmentation: ESG data is often scattered across departments and systems.
  Solution: Use a centralised ESG reporting platform to unify data collection and access.
  
• Manual reporting processes: Spreadsheets and manual inputs are time-consuming and error-prone.
  Solution: Adopt ESG reporting software with automation and API integration features.
  
• Lack of internal expertise: Many companies lack in-house sustainability or ESG professionals.
  Solution: Engage ESG reporting services or tools like Lestar, which simplify the entire process.
  
• Evolving regulations and standards: Keeping up with changes in local and global ESG frameworks is challenging.
  Solution: Use adaptable tools and stay informed on updates to Bursa Malaysia ESG reporting requirements.

ESG reporting tools and technology

As ESG requirements become more complex, the right technology can make a significant difference. 

Digitising your ESG process not only saves time—it improves accuracy, ensures compliance, and delivers real-time insights.

ESG reporting platforms matter, because:

• They automate data collection, consolidation, and validation across departments.
• They enable dynamic ESG reporting dashboards and KPI tracking.
• They simplify alignment with ESG reporting standards and frameworks such as GRI, TCFD, and Bursa’s local requirements.

Mandrill’s Lestar ESG platform is built to help Malaysian companies streamline ESG submissions. Whether you’re reporting to the Bursa Malaysia ESG reporting platform or preparing disclosures for international stakeholders, Lestar enables:

• API integration with your existing systems.
• Data visualisation and real-time reporting.
• Automated generation of ESG-compliant reports.
• Support for local and global ESG metrics.

Also read: ESG Reporting Software: Convenience in Sustainable KPI Tracking

How to get started with ESG reporting?

Starting your ESG reporting journey may seem daunting, but breaking it down into clear steps makes it manageable—and scalable. 

Here’s how to do ESG reporting effectively:

1. Identify applicable ESG regulations and frameworks: Understand whether you’re subject to Bursa Malaysia’s sustainability disclosure requirements and which ESG reporting framework (e.g., GRI, TCFD) fits your business best.
   
2. Conduct a materiality assessment: Determine which environmental, social, and governance topics are most relevant to your stakeholders and business operations.
   
3. Set ESG KPIs and data collection methods: Establish measurable goals across each ESG pillar and identify how you will track progress—using structured processes or automated tools.
   
4. Use tools to centralise and track metrics: Leverage a purpose-built ESG reporting tool or platform that consolidates data and keeps it audit-ready.
   
5. Prepare reports aligned with chosen frameworks: Format your disclosures according to GRI, SASB, or Bursa’s ESG reporting standards—and include clear narratives, KPIs, and risk assessments.
   
6. Validate data and report to authorities: Ensure the accuracy of your ESG data, consider third-party assurance, and submit it through the appropriate ESG reporting platform, such as the Bursa ESG reporting platform.

Conclusion: Build a future-ready business with ESG reporting

ESG reporting is no longer optional—it’s essential. For businesses in Malaysia, it represents more than regulatory compliance; it’s a commitment to sustainability, accountability, and long-term resilience.

By embracing ESG reporting best practices, aligning with recognised ESG reporting standards, and using smart tools like ESG reporting software, companies can simplify the process and turn ESG into a competitive advantage.

Whether you’re just getting started or looking to optimise existing efforts, now is the time to invest in a strategy—and platform—that supports growth, compliance, and impact.Ready to transform your ESG journey? Explore the right tools, frameworks, and expert support from Mandrill to future-proof your business.