Sustainable Trade Expectation and ESG Standards

The European Green Deal and U.S. sustainable trade policies increasingly focus on setting standards for imports, emphasizing sustainability in products and production methods.

• Overview of the European Green Deal by Kommerskollegium
• CBI's guidance on Green Deal impacts on imports to Europe

Green Initiative and Import Standards in the Middle East

Middle East Green Initiative (MGI) is a central program launched by Saudi Arabia, aiming to combat climate change and promote sustainable practices in the region.

• Saudi & Middle East Green Initiatives

African Continental Free Trade Area (AfCFTA) is an essential resource. It supports sustainable trade and development objectives, especially within agriculture and manufacturing sectors.

• African Continental Free Trade Area (AfCFTA)

Asean Sustainability Taxonomy

This document offers a structured ESH framework for Southeast Asia, guiding sustainable investments and trade across member states.

• ASEAN Taxonomy for Sustainable Finance Version 3

ESG Reporting Requirements in ASEAN

These guidelines focus on sustainability reporting to enhance transparency and meet international standards.

• ESG Reporting ASEAN Economy

MATRADE’s Market Access Guide

MATRADE publishes reports and guidelines on sustainable business practices, green financing, and market access in the ASEAN region, aiming to boost Malaysia's ESG standards and alignment with international practices

• MATRADE

China Green Finanace and Import Standards

China aims to peak carbon emissions by 2030 and reach carbon neutrality by 2060, supported by green finance initiatives promoting renewable energy and sustainable manufacturing.

• Green Compliance in China

Import regulations favour eco-friendly certifications, such as the China Environmental Label from the China Environmental United Certification Center.

• China's sustainability certification

Japan emphasizes sustainable procurement through the Act on Promoting Green Procurement, requiring green standards for government and public sector purchases.

• Introduction to Green Purchasing Legislation in Japan
• Act on Promoting Green Procurement

South Korea has similar practices, including certifications for eco-friendly goods like the Korean Eco-Label, which focuses on lifecycle impacts.

• Eco-label Certification System (ECS) in Korea

ISO 14001 Environmental Management System

This standard supports companies in managing their environmental impact by implementing best practices in energy, waste, and materials use.

It’s recognized globally, helping Malaysian manufacturers position themselves in green procurement markets, and is available through certification bodies such as TÜV SÜD Malaysia

• ISO 14001: Environmental Management (EMS) certification
• TÜV SÜD Malaysia

UNIDO (United Nations Industrial Development Organization) – Green Industry Initiative

UNIDO’s initiative promotes sustainable industrial growth by reducing environmental impacts and enhancing green technologies. The document covers practical frameworks for manufacturing sectors in developing regions

• Green Industry Initiative

Global Reporting Initiative (GRI) Standards for Service Sectors

GRI’s sector standards for service industries help businesses report on ESG performance, with a focus on customer service, supply chain transparency, and ethical labor practices.

• Global Reporting Initiative

EY Future Consumer Index and ESG in Retail Services

This report highlights how service industries, particularly retail and hospitality, are adapting to consumer demand for ESG-compliant practices, from sustainable sourcing to waste reduction.

• EY Insights

Tourism and Hospitality

Certifications like Green Key and EarthCheck promote eco-friendly practices in the hospitality sector, enhancing appeal to eco-conscious tourists.

• Green Key Global
• EarthCheck

Sustainable Agriculture: Malaysia’s Palm Oil Industry Report

MSPO certification addresses sustainable palm oil practices in Malaysia and is integral for exporters focusing on environmentally friendly agricultural goods.

• Malaysia Palm Oil Council

Market-Preferred Certifications

Internationally recognized certifications, such as Organic Malaysia, can enhance the marketability of Malaysian agricultural exports.

• Skim Pensijilan Organik Malaysia (myORGANIC)

Regenerative Agriculture in Southeast Asia (UNDP)

UNDP’s research focuses on Southeast Asian agricultural practices that restore biodiversity, reduce carbon emissions, and promote soil health, essential for sustainable farming.

• UNDP

Renewable Energy Products

Certifications like those for solar and biomass energy verify that Malaysian products meet sustainable energy standards, making them more attractive to international buyers.

These certifications align with global eco-friendly practices, emphasizing Malaysia’s commitment to green energy production.

• Malaysian Green Technology Corporation (MGTC)

Green Construction

Certifications can encourage sustainable building practices, providing guidelines on reducing environmental impact.

This standard helps Malaysian construction products align with global green building requirements, enhancing export potential.

• MyCREST (Malaysian Carbon Reduction and Environmental Sustainability Tool)

• More Malaysian Firms Now Required to do Sustainability Reporting
• Budget 2024: The Future of ESG in Malaysia
• ESG in Malaysia: So Much to Gain so Act Now Without Second Thoughts or Miss Ou
• ESG Disclosure Assessment Report sets baseline for reporting practices
• Malaysian businesses urged to prioritise ESG compliance to compete in US market

• PNB supports securities commission’s latest framework to drive corporate Malaysia’s ESG Excellence
• BURSA Malaysia enhances Sustainability Reporting Framework with new climate change reporting
• Call for Action Webinar: Remain Relevant with ESG or Exit US Market