NAVIGATING ESG IN SARAWAK
INSIGHTS FROM SMEs
Supported by:
In collaboration with our Knowledge Partner:
Strategic Partners:
ABOUT THE REPORT
Alliance Bank is committed to supporting Sarawak-based Small and Medium Enterprises (SMEs) on their Environmental, Social, and Governance (ESG) journeys. We believe that through collaboration and the integration of sustainability into business strategies, we can collectively nurture a robust and inclusive ESG ecosystem in the region.
This report, titled “Navigating ESG In Sarawak: Insights From SMEs”, provides timely insights into the current state of SMEs in Sarawak, evaluating their readiness for ESG practices and highlighting avenues for sustainable business development.
Key Questions Answered in This Report*
- Current ESG Adoption Level Among SMEs in Sarawak
- Similarities/Differences in ESG Adoption Among SMEs
- Challenges Encountered When Adopting ESG
- Assistance Needed by SMEs in Sarawak to Adopt ESG
The interactive report also comes with hyperlinks for easier page navigation Download Report *The study focused on three ways of obtaining valuable data including online surveys as the main methodology, supported by secondary research and stakeholder engagement.
KEY HIGHLIGHTS ON THE SARAWAK SME ESG REPORT 2025
General ESG Awareness Level
The encouraging level of ESG awareness is the result of concerted efforts of government bodies, NGOs, and corporations in disseminating ESG-related information and promoting sustainable business practices.
General ESG Adoption Level
Two-thirds of SMEs in Sarawak have incorporated ESG practices into their business operations, demonstrating a strong commitment to sustainability.
Top Motivations for ESG Implementation
Meeting market demand, along with the pursuit of cost efficiencies, has driven ESG adoption among SMEs. These efforts not only enhanced competitiveness but also unlocked access to new customer segments and expanded market opportunities.
Similarly, meeting market demand and cost savings were key drivers for non-adopters, while innovation gained importance by offering new paths to profitability and growth.
Adoption Level of Three ESG Pillars
Environmental
Social
Governance
Over 40% of SMEs in Sarawak reported implementing initiatives across Environmental, Social, and Governance (ESG) pillars, signaling growing momentum.
Governance emerged as the most widely adopted pillar, with key practices including the strengthening of technology and data governance.
In the Social pillar, aligning leadership with social responsibility was emphasised, whereas within the Environmental pillar, more SMEs have adopted practices to manage waste and resources.
Governance emerged as the most widely adopted pillar, with key practices including the strengthening of technology and data governance.
In the Social pillar, aligning leadership with social responsibility was emphasised, whereas within the Environmental pillar, more SMEs have adopted practices to manage waste and resources.
Resources
ESG Report 2.0 (2025)
This report unveils a sixfold increase in awareness amongst the Malaysian SMEs and sheds light on significant shifts in ESG across the various sectors in Malaysia View More
ESG Survey Report for SMEs (2023)
This report provides an overview of the state of ESG among SMEs in Malaysia and aims to raise awareness among businesses on the importance of adopting ESG practices. View More
Sustainability Impact Programme (SIP)
The Sustainability Impact Programme (SIP) promotes sustainability in the business community through:- Advocacy
- Advisory services
- Answers and green financing solutions at preferential rates
