Global Institutions and ESG Integration to Accelerate SME Development and Sustainability

Abstract

Since the adoption of the Sustainable Development Goals (SDGs) by the United Nations in 2015, all its 193 member states committed themselves to implementation at the national, regional, and international levels. In particular, the private sector is called upon to play an active role in driving the integration of environmental, social, and governance (ESG) principles among businesses, including SMEs. Armed with adequate resources, global institutions can influence SMEs and lead the way in educating and providing them with sound guidance towards ESG adoption. In collaboration with the local government, global institutions can intensify their efforts in promoting ESG adoption among SMEs. This chapter looks at how SMEs can leverage global institutions for guidance, support, and good practices in charting ESG integration in their business operations, enabling them to achieve business sustainability in the long term. Moreover, this chapter will specifically draw on experiences of ESG integration by Malaysian SMEs.