The outlook for the adoption of environmental, social and governance (ESG) standards by companies in Malaysia looks highly positive next year due largely to practical policy initiatives unveiled this year, such as the carbon tax, increased ESG reporting and scaling up sustainability initiatives.
According to the article by Bernama, the carbon tax would encourage firms to reduce carbon emissions, a move that would advance Malaysia’s ESG commitment further.
“The outlook for ESG adoption among Malaysian companies across all sectors in 2026 is highly positive,” chief executive officer of ThinkPlus Group of Companies, Dr Norsaidatul Akmar Mazelan, said.
“These policies strongly incentivise companies to integrate ESG into their strategies for compliance, competitiveness and access to financing,” she said when reviewing ESG initiatives that are transforming the business climate in the country today.
“Malaysia’s phased ESG adoption framework — starting with the ‘just transition’ phase (2024-2026) and moving into the ‘accelerate ESG practices’ phase (2027-2030) — provides a clear roadmap that encourages companies to improve ESG disclosures and strengthen sustainable operations.
“This foundation is supported by increasing regulatory clarity, technological advancements and stakeholder demand for accountability in ESG performance, positioning 2026 as a pivotal year for scaling sustainability efforts,” she added.
