KUALA LUMPUR: Ficus Capital, in collaboration with INCEIF University, launched its ESG-i Assessment Framework that will serve as an innovative tool to empower micro, small and medium enterprises (MSMEs) in Malaysia with sustainable practices.
The launching was held at the Global Forum on Islamic Economics and Finance GFIEF 2024 that was organised by Bank Negara Malaysia (BNM), in collaboration with key industry players and under the patronage of the Ministry of Finance.
The assessment framework is an inclusive blueprint for assessing sustainability that incorporates Shariah principles and the Quadruple Bottom Line (QBL) – planet, people, profit and principle.
“It is natural for Islamic finance development to converge with ESG as Islamic Social Finance has been practised by Islamic Banks and Islamic Financial Institutions in Malaysia. This robust ESG-i framework is timely as a catalyst towards greater integration between Islamic finance and ESG, especially since it comes on the back of our Prime Minister Datuk Seri Anwar Ibrahim’s recent announcement on the government’s commitment towards Islamic finance innovation via partnerships,” said Religious Affairs Deputy Minister Senator Zulkifli Hasan.
By simplifying complex sustainability criteria, the ESG-I Assessment Framework provides practical tools for MSMEs to help them transition to a low carbon, circular and resilient (LCCR) future, enabling them to mitigate risks, unlock new markets and enhance their financial performance.
On this, Ficus Capital Chairman Nor Azamin Salleh said, “The ESG-i Framework offers a practical solution to help MSMEs integrate sustainability into their operations, which aligns with our commitment to supporting companies that operate according to ESG-i principles.
“Hence, the launch of the ESG-i Assessment Framework comes at a crucial time, as global sustainability standards evolve, making it imperative for Malaysian MSMEs to adopt practices that keep them competitive and resilient while fulfilling Islamic finance principles,” he added.
The Assessment Framework was piloted with a diverse group of MSMEs, demonstrating its real-world applicability and impact, highlighting the need for targeted support and the framework’s potential to drive significant improvements in sustainability practices.
Meanwhile, INCEIF University President and CEO, Professor Emeritus Mohd Azmi Omar said, “The positive response from the pilot phase underscores the framework’s practicality and impact. It provides MSMEs with the necessary tools to integrate sustainability into their business practices effectively. Additionally, it empowers them to be resilient, competitive, and future-ready.
“The framework aims to be a catalyst for change, promoting a sustainable supply chain and addressing the evolving sustainability landscape,” he explained.
