a) Purpose:

i) The Research Report will be an APEC Publication. The research report aims to provide an in-depth analysis of the challenges MSMEs face in adopting ESG principles and to offer practical solutions that enhance ESG integration across APEC economies. It will serve as a knowledge resource for policymakers, business leaders, and stakeholders seeking to develop strategies that promote sustainable business practices and supply chain participation for MSMEs. 

b) Contents:

The research report will consist of comprehensive sections, including: 

i) Executive Summary – A high-level overview of key findings, challenges, and recommendations. 

ii)  Introduction & Background – Explanation of ESG principles, their significance, and MSMEs' role in sustainability. 

iii) ESG Adoption Challenges – Analysis of key barriers faced by MSMEs, including lack of awareness, skills, and financial resources. 

iv)  Best Practices & Case Studies – Real-world examples of MSMEs successfully integrating ESG principles. 

v)  Policy Recommendations – Strategic guidance for governments and industry stakeholders to support ESG adoption. 

vi)  Conclusion & Next Steps – Summary of key takeaways and proposed action plans. 

vii) Annexes – Additional data, survey results, interview transcripts, or reference materials supporting the research. 

c) Target Audience: 

i)  Policymakers & Regulators (APEC governments, industry ministries, and sustainability agencies) 

ii)  MSME Business Leaders & Entrepreneurs 

iii) Financial Institutions & Investors 

iv)  Industry Associations & Chambers of Commerce 

v)  Researchers & Academics in Sustainability and Busines Development 

d) Minimum Number of Pages: The research report is expected to have at least 30 pages, excluding annexes, to ensure a detailed and substantive analysis of ESG adoption among MSMEs.

2) Workshop

a)  Workshop Overview 

To enhance awareness and knowledge of Environment, Social, and Governance (ESG) practices among Micro, Small, and Medium Enterprises (MSMEs), a 3-day ESG workshop will be held in Kuala Lumpur, Malaysia. The workshop aims to address key challenges faced by MSMEs, including limited skills and funding, by providing structured guidance on ESG adoption, regulatory compliance, and stakeholder engagement. 

Participants, including approximately 50 representatives from economies, government agencies, and support organizations, will engage in expert-led discussions, practical training, and site visits to observe ESG implementation in real-world settings. The workshop will follow a full-day structure (7-8 hours per day) and include a final session dedicated to discussions, recommendations, and wrap-up. 

b)  Workshop Format 

The workshop will include a mix of speaker presentations, panel discussions, focus group discussions (FGDs), interactive Q&A sessions, and site visits to ensure a comprehensive learning experience. 

Evaluation Plan 

c) To assess the workshop’s effectiveness, ex-ante and ex-post evaluations will be conducted: 

Ex-ante evaluation: Conducted before the workshop (during registration), gathering participants’ baseline knowledge of ESG and key expectations. 

Ex-post evaluation: Conducted at the end of the workshop, assessing learning outcomes, satisfaction levels, and the potential impact on MSME business operations. A follow-up survey may be conducted three to six months later to evaluate long-term implementation. 

d)  3-Day Agenda

Day 1: ESG Fundamentals & Financing 

8:30 a.m. – 9:00 a.m. | Registration & Welcome Remarks

9:00 a.m. – 10:00 a.m. | Understanding SDGs (Speaker from SDG Centre

– Presentation & Q&A)

10:00 a.m. – 10:45 a.m. | Green Industrial Parks (Speaker from World Bank – Presentation & Case Study)

10:45 a.m. – 11:00 a.m. | Tea Break

11:00 a.m. – 12:00 p.m. | Green Financing (CIMB & EXIM Bank) (Panel Discussion – Moderated Q&A)

12:00 p.m. – 1:00 p.m. | Stakeholder Engagement & ESG Regulations (Speaker from Ministry of Investment, Trade & Industry – Presentation & Interactive Discussion)

1:00 p.m. – 2:30 p.m. | Lunch

2:30 p.m. – 4:30 p.m. | Focus Group Discussion (FGD) on ESG Financing & Challenges (Moderated session with industry experts)

4:30 p.m. – 5:30 p.m. | Panel Discussion: Overcoming ESG Adoption Barriers (Moderated discussion with MSME representatives & experts) 

Day 2: Sustainability Standards, Carbon Management & Site Visits 

8:30 a.m. – 9:00 a.m. | Arrival & Recap of Day 19:00 a.m. – 10:45 a.m. | GHG Protocol & Carbon Footprint Management (Speaker from University of Technology Malaysia – Presentation & Q&A)

10:45 a.m. – 11:00 a.m. | Tea Break

11:00 a.m. – 12:00 p.m. | Green Tax Incentives (Speaker from MGTC – Presentation & Case Study Analysis)

12:00 p.m. – 1:00 p.m. | Sustainability Reporting & Frameworks (Speaker from ESGRight – Workshop with hands-on exercises)

1:00 p.m. – 2:30 p.m. | Lunch

2:30 p.m. – 4:00 p.m. | Site Visit: Multinational Corporation (Petronas) (On-site observation, company briefing, and Q&A session)

4:00 p.m. – 5:30 p.m. | Site Visit: Small-Medium Enterprise (Harith Carpenter Sdn. Bhd.) (On-site observation, company briefing, and Q&A session) 

Day 3: Carbon Market, Governance & Closing Discussions 

8:30 a.m. – 9:00 a.m. | Arrival & Recap of Day 29:00 a.m. – 10:00 a.m. | IPCC Guidelines for ESG Reporting (Speaker from The Energy University UNITEN – Presentation & Q&A)

10:00 a.m. – 10:45 a.m. | Carbon Market & Carbon Pricing (Panel Discussion with industry leaders – Interactive Q&A)

10:45 a.m. – 11:00 a.m. | Tea Break

11:00 a.m. – 12:00 p.m. | Sustainability Governance (Speaker from ESGRight – Case Study & FGD)

12:00 p.m. – 1:00 p.m. | Forced Labour & Ethical Supply Chains (Speaker from Responsible Business Alliance – Presentation & Discussion)

1:00 p.m. – 2:30 p.m. | Lunch

2:30 p.m. – 3:30 p.m. | Final Session: Discussions, Recommendations & Wrap-Up (Group discussions, key takeaways, and closing remarks)

3:30 p.m. – 4:00 p.m. | Ex-Post Evaluation & Closing Ceremony

e) Rationale for Site Visits & Added Value to the Project

The site visits are essential in reinforcing the workshop’s theoretical learning by demonstrating real-world ESG implementation in both large corporations (Petronas) and SMEs (Harith Carpenter Sdn. Bhd.). These visits allow participants to:

Observe ESG frameworks in practice, including sustainability reporting, green financing, and carbon management.

Engage with industry practitioners, gaining insights on overcoming ESG challenges. 

Compare ESG strategies in different business scales, helping MSMEs tailor their approach. 

Network with stakeholders, fostering collaborations for future ESG adoption. 

Enhance knowledge retention, as hands-on exposure is proven to reinforce learning. 

Importantly, the site visits do not exceed 30% of the total workshop duration, ensuring the majority of time is dedicated to expert-led training, interactive discussions, and practical exercises. By integrating real-world exposure with structured learning, the visits significantly enhance the workshop’s impact, equipping MSMEs with both the knowledge and confidence to implement ESG practices in their operations.

3) Project Summary Report

a)  Purpose:

The project summary report will provide a concise yet comprehensive overview of the project’s objectives, activities, key findings, and overall impact. It will serve as a quick-reference document for APEC officials, project participants, and other stakeholders interested in ESG capacity- building efforts for MSMEs. 

b)  Contents: 

i)  Project Overview – Objectives, scope, and significance of the ESG capacity-building program. 

ii) Summary of Activities – Key workshops, training sessions, stakeholder engagement initiatives, and research efforts. 

iii) Key Findings & Insights – Brief synthesis of the research report’s main findings on ESG adoption challenges. 

iv) Outcomes & Impact – Evaluation of the project's effectiveness in raising ESG awareness and enhancing MSME participation. 

v)  Recommendations & Future Steps – Strategic suggestions for policy and business implementation. 

vi)  Annexes – Supporting documents such as participant lists, survey summaries, and key workshop materials. 

c) Target Audience: 

i)  APEC SMEWG & Other APEC Fora 

ii)  Public & Private Sector Stakeholders 

iii) MSMEs Engaged in ESG Adoption 

iv)  Academic & Research Institutions 

d) Minimum Number of Pages:

The project summary report will be a minimum 15 pages, excluding annexes, ensuring that all key information is captured concisely while maintaining substantive detail. 

This structured approach ensures that both reports provide valuable insights and practical guidance to drive ESG adoption and sustainability efforts among MSMEs in APEC economies.

Outcome
1) Enhanced Awareness & Skill Development: Participants will gain a comprehensive understanding of ESG, including environmental sustainability, social responsibility, and corporate governance, helping them recognize its relevance to their businesses. Through interactive workshops, they will engage in practical training on ESG reporting, stakeholder engagement strategies, and sustainability assessments, equipping them with the necessary skills to integrate ESG principles into their operations effectively.

2) Regulatory Compliance Knowledge: To ensure participants gain a strong understanding of local and international ESG regulations, the workshop will feature expert presentations from regulatory bodies, case studies illustrating compliance successes and failures, and interactive Q&A sessions for industry-specific clarifications. Hands-on compliance framework workshops will guide participants in assessing their businesses against key ESG requirements, identifying gaps, and developing action plans. Additionally, a post-workshop resource pack with regulatory guidelines, compliance checklists, and reference materials will support ongoing implementation.

3) Strategic Visioning and ESG Action Plans for Long-Term Sustainability: The workshop will help MSMEs integrate environmental, social, and governance (ESG) principles into their strategic planning, ensuring long-term sustainability. Participants will receive guidance on developing actionable ESG strategies, setting measurable objectives, and embedding sustainability into their business models. Additionally, they will learn effective monitoring and evaluation techniques to track progress, assess impact, and make data-driven improvements. The medium- to long-term impact of this initiative will be measured through follow-up assessments, including an ex-post evaluation questionnaire. This questionnaire will explore the likelihood of participants applying the provided guidance in their business strategies and ESG monitoring practices. By equipping businesses with structured action plans and performance assessment tools, the workshop ensures continuous adaptation and long-term ESG success while allowing the project to assess its effectiveness in fostering ESG integration and business resilience among MSMEs.

Beneficiaries

All APEC economies are invited to participate in the project, especially relevant private sector representatives and government officials. Key stakeholders, such as officials from the public sector, private sector, chambers of commerce and industry associations, play a crucial role in driving the sustainability agenda. The strategies and recommendations that emerge from their exchanges will be valuable for public sector decision-making, researchers, and other APEC fora, including the SMEWG and Committee on Trade and Investment (CTI). 

In addition to the primary beneficiaries, the project will also benefit secondary stakeholders, including academia, think tanks, financial institutions, and non- governmental organizations (NGOs). These groups will gain insights into ESG best practices, policy trends, and implementation strategies, which can support further research, advocacy, and investment in sustainable business practices. Furthermore, MSMEs beyond the direct participants may also benefit indirectly through the dissemination of knowledge, case studies, and policy recommendations developed through the project.