ESG-i assessment framework for MSMEs in Malaysia to be launched by Ficus Capital in collaboration with INCEIF University
An environmental, social, and governance (ESG-i) assessment framework has been launched by Malaysian venture capital firm Ficus Capital (Ficus), in partnership with INCEIF University, to enable Malaysian micro, small, and medium-sized enterprises (MSMEs) to adopt sustainable practices.
The Quadruple Bottom Line (QBL) concept—Planet, People, Profit, and Principle—as well as Shariah principles are incorporated into the assessment framework, according to a statement released by Ficus on Thursday.
In addition to a transitional tool to assist MSMEs in fully embracing sustainable practices, it includes enhanced questions and a scoring methodology to assess sustainability practices.
“It is natural for Islamic finance development to converge with ESG as Islamic Social Finance has been practiced by Islamic Banks and Islamic Financial Institutions in Malaysia,” said Deputy Minister of Religious Affairs of Malaysia Zulkifli Hasan.
“This robust ESG-i framework by Ficus and INCEIF is timely as it comes on the back of our Prime Minister Anwar Ibrahim’s recent announcement on the government commitment towards Islamic finance innovation via partnerships,
“Furthermore, it will be catalyst towards greater integration between Islamic Finance and ESG,” he added.
The assertion states that the important role MSMEs play in the global economy led to the creation of the ESG-i assessment framework.
Approximately 97.2 percent of business establishments in Malaysia are MSMEs, which significantly contribute to the country’s GDP, employment, and exports.
They frequently lack the resources, though, to put sustainable practices into practice.
Through the simplification of intricate sustainability standards, the ESG-i assessment framework offers MSMEs useful instruments to facilitate their shift to a low-carbon, Circular, and Resilient (LCCR) future.
MSMEs can reduce risks, open new markets, and improve their financial performance.
“The ESG-i framework offers a practical solution to help MSMEs integrate sustainability into their operations, ensuring they remain competitive and resilient. This aligns with our commitment to supporting companies that operate according to ESG-i principles,” Ficus Capital Chairman Nor Azamin Salleh said.
“When companies seek our assessment, they must undertake the ESG-i framework evaluation,
“Beyond financial metrics, we delve into environmental practices, social impact, and corporate governance. Our standards align with global expectations,” he added.
