ALLIANCE BANK SURVEY: ESG AWARENESS AMONG SMES GROWS BY 60 PCT

SUBANG, Jan 21 (Bernama) -- Alliance Bank Malaysia Bhd’s latest environmental, social and governance (ESG) survey has indicated a sixfold increase in environmental, social, and governance (ESG) awareness among small and medium enterprises (SMEs) in Malaysia.

According to the report, the awareness rate surged from 14 per cent to 80 per cent over the past two years.

It also stated that the ESG 2.0 Report results reflect a rapidly growing recognition among SMEs of the importance of sustainability in today’s competitive business landscape.

Speaking at the report launch here today, the bank’s group chief executive officer Kellee Kam emphasised the vital role SMEs play in Malaysia’s economy, noting their collective importance in driving employment and strengthening supply chains.

“At Alliance Bank, we are committed to empowering SMEs to transition toward sustainability, not just as a compliance requirement, but as a driver of growth, innovation, and global competitiveness,” he said.

Kam said the bank’s first ESG report included the development of practical tools and frameworks to assist SMEs.

“A significant milestone is the introduction of Alliance Bank’s 3A Approach, namely advocacy, advice, and answers. This framework aims to guide SMEs through every stage of their ESG journey, from raising awareness to implementing actionable strategies and accessing sustainable financing.

“ESG adoption is no longer just about ticking boxes. It is a market-driven demand, with sustainability becoming a key factor in global supply chains and export markets,” Kam added.

Since the inception of its sustainability initiatives, Alliance Bank has disbursed over RM15 billion to support ESG-related projects, given by strong collaboration with partners, including government agencies, corporations and non-governmental organisations, he said. 

Kam highlighted the importance of nurturing a culture of sustainability that goes beyond merely meeting regulatory requirements, stating that it is not about being told what to do, but about understanding, caring, and delivering for a higher purpose.

“By working together, we can ensure that Malaysian SMEs are equipped to thrive in a competitive, sustainability-focused marketplace,” he said.

The ESG 2.0 Report also revealed that SMEs adopting ESG practices cite cost savings, market demand and innovation as the primary motivators for integrating sustainable practices into their operations, with 60 per cent of SMEs now onboard with ESG initiatives.

They recognise the long-term value of ESG practices, including improved risk management and increased productivity. 

Furthermore, 38 per cent of SMEs that have embraced sustainability into their business reported revenue increases of more than 50 per cent.

Kam encouraged stakeholders to explore the findings, which provide actionable strategies for integrating sustainability into business models.

“With sustainability at the core of its strategy, Alliance Bank aims to create a resilient and inclusive ecosystem that supports SMEs’ growth and strengthens Malaysia’s position as a global economic player,” he said.

The study followed a three-step approach of in-depth discussions and interviews, a survey of close to 400 SME participants as well as insights from secondary research.

-- BERNAMA