Tay & Partners | ESG Legal Framework in Malaysia: What Companies Need to Know

In today’s business landscape, it is no longer possible to ignore the role Environmental, Social, and Governance (“ESG”) principles play in businesses. To stay relevant and ensure compliance with applicable laws, business leaders and decision-makers must understand the laws and regulations pertaining to ESG practices.

ESG is particularly pertinent for public listed companies as they are subject to scrutiny from regulators, shareholders and the public. Fragmented ESG regulations and the lack of centralised ESG regulations have made it challenging for businesses to effectively integrate ESG into their operations. This article explores the legal framework pertaining to ESG for public listed companies in Malaysia and for companies in Malaysia in general.