Capital Markets Malaysia Launches Greenhouse Gas Emissions Calculator for SMEs in Malaysia
Expansion of Simplified ESG Disclosure Guide by Capital Markets Malaysia now includes a Greenhouse Gas Emission Calculator aimed at Small and Medium-sized Enterprises (SMEs)
Small and Medium-sized Enterprises (SMEs) in Malaysia can now easily measure and report their greenhouse gas (GHG) emissions with the new SEDG Greenhouse Gas Emissions Calculator launched by Capital Markets Malaysia (CMM).
Overview
The SEDG Calculator, available at no cost, follows internationally recognized standards and provides a simplified process for SMEs to assess their carbon footprint, encourage sustainable practices, and comply with environmental frameworks.
Methodology
The calculator categorizes emissions into three scopes:
- Scope 1: Direct emissions from owned or controlled sources, such as fuel combustion and company vehicles.
- Scope 2: Indirect emissions from purchased electricity, heat, or steam.
- Scope 3: Other indirect emissions that occur in the value chain, such as business travel, waste disposal, and purchased goods.
The calculator uses Malaysia-specific emission factors where available, supplemented by international values from recognized databases like the IPCC and IEA. For electricity consumption, the Malaysian grid emission factor is applied, reflecting the national energy mix.
Usage
Target Users
The calculator is designed for SMEs operating in Malaysia looking to assess their carbon footprints, meet sustainability goals, or comply with reporting requirements.
How to Use the Calculator
- Register or access the calculator interface (usually via a web portal or downloadable spreadsheet).
- Input data such as electricity consumption, fuel use, business travel distances, waste quantities, and procurement details.
- Review the results, which include GHG emissions in CO2-equivalent (CO2e) and breakdowns by Scope 1, 2, and 3.
- Analyse the results to identify major emission sources and develop mitigation strategies.
Scope 3 Emissions Information
Scope 3 emissions often represent a substantial portion of an SME’s carbon footprint but are more complex to calculate. The calculator typically includes categories like purchased goods and services, business travel, waste generated in operations, employee commuting, and use of sold products.
Data Challenges
Scope 3 requires estimates or default values when direct data is unavailable. SMEs should gather procurement data, mileage, and waste records to improve accuracy.
Importance
Addressing Scope 3 helps SMEs reduce indirect emissions along their value chain. It positions SMEs for future regulatory requirements and stakeholder expectations around full value chain emissions disclosure.
Summary
The SEDG Greenhouse Gas Emissions Calculator simplifies a complex process, making emissions reporting accessible even to first-time users. The calculator is available in three languages: English, Bahasa Melayu, and Simplified Mandarin. For more information, visit sedg.capitalmarketsmalaysia.com.
- Leveraging the SEDG Greenhouse Gas Emissions Calculator, SMEs in Malaysia can now take significant strides toward addressing climate change by measuring and reporting their carbon footprints, aligning with the United Nations Sustainable Development Goals (SDGs) and demonstrating their commitment to corporate responsibility and sustainability.
- With the aid of the SEDG Calculator, businesses can easily categorize their greenhouse gas emissions into three scopes, including Scope 1 (direct emissions), Scope 2 (indirect emissions from energy consumption), and Scope 3 (other indirect emissions from operations and the value chain), thereby facilitating informed decisions for fostering a more sustainable business model.
- Encouraging sustainable practices and complying with environmental frameworks has become a crucial aspect of modern business, and the SEDG Greenhouse Gas Emissions Calculator offers a cost-effective solution for SMEs in Malaysia to finance their efforts in mitigating climate change and meeting their sustainability goals, thereby positioning themselves for continued growth in the competitive global market.
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