For most Malaysian businesses, the fastest and most profitable sustainability step is reducing electricity use, which lowers Scope 2 emissions and costs together. Measure with IoT sub-metering, cut waste by 15 to 40%, add rooftop solar, and use automated kWh and CO₂ reports for ESG disclosures. Under Malaysia's NSRF, ISSB-based reporting phases in from 2025 to 2027.
Why sustainability matters to Malaysian businesses now
- Mandatory reporting is arriving. Under Malaysia's National Sustainability Reporting Framework (NSRF), ISSB-based reporting (IFRS S1 and S2) is phased in: Main Market issuers with market capitalisation of RM2 billion and above from 2025, other Main Market issuers from 2026, and ACE Market issuers and large non-listed companies from 2027.
- Your customers are asking. Listed companies and multinationals must report supply-chain emissions, so they ask suppliers for energy and carbon data. Exporters to the EU also face growing carbon disclosure demands.
- Energy law has changed. The Energy Efficiency and Conservation Act 2024 took effect on 1 January 2025 for large energy consumers.
- Electricity costs are rising. The base tariff rose to 45.40 sen/kWh in July 2025, and the monthly Automatic Fuel Adjustment can add surcharges.
The good news: for most businesses, the biggest, cheapest sustainability win is cutting electricity waste. It lowers emissions and costs at the same time.
Scope 1, 2 and 3 in plain language
| Scope | What it covers | Typical examples | How Infinergi helps |
|---|---|---|---|
| Scope 1 | Direct emissions from fuel you burn | Diesel generators, boilers, company vehicles, LPG | Electrification and efficient equipment |
| Scope 2 | Emissions from electricity you buy | Your TNB bill | Efficiency, solar and storage directly reduce it, and metering proves it |
| Scope 3 | Emissions in your value chain | Suppliers, transport, products in use | Credible data you can share with your customers |
For most offices, retailers, hotels and many factories, Scope 2 electricity is the largest controllable emission source.
A practical 5-step sustainability roadmap
- Measure. Install IoT sub-metering to get accurate, auditable energy data instead of estimates.
- Reduce. Remove waste with efficiency measures and smart controls, typically 15 to 40%.
- Generate. Add rooftop solar sized to your reduced load.
- Store and optimise. Use battery storage for peak shaving and resilience.
- Report. Automated monthly reports of kWh saved and CO₂ avoided feed directly into your sustainability or ESG report.
ESG reporting with real data
Investors, auditors and customers increasingly challenge estimated figures. Infinergi's platform gives you:
- Minute-by-minute electricity data by building, floor and asset
- Monthly kWh and CO₂ reports, export-ready for sustainability reports
- Before-and-after savings verification for each project
- Multi-site league tables for retail chains, banks and franchises
Paying for it
Sustainability doesn't have to be a cost centre. Efficiency projects usually pay back in 2 to 4 years, zero CAPEX models let savings fund the work, and incentives such as the Green Investment Tax Allowance (administered by MGTC) can reduce the net cost of qualifying green assets.
Sources & further reading
- Securities Commission Malaysia: National Sustainability Reporting Framework
- Suruhanjaya Tenaga (Energy Commission)
- MGTC: green tax incentives
This guide is general information, not legal, tax or financial advice. Rules and incentives change; confirm details with the relevant authority or your advisers.