The Malaysia Retailers Association (MRA) has launched the Retail ESG Standard (RES), a retail-focused sustainability framework designed to help retailers of different sizes better understand, assess, and improve their Environmental, Social and Governance (ESG) practices.
The Retail ESG Standard was officially unveiled on 9 September 2026 during the MRA Sustainability Symposium held at the AICB Centre of Excellence in Kuala Lumpur.
The new framework responds to the growing importance of sustainability across the retail industry, as businesses face increasing expectations from customers, investors, business partners, and regulators.
A Practical ESG Framework Designed for Retailers
The Retail ESG Standard has been developed specifically around the realities and operating environment of retail businesses.
Through the framework, retailers can use RES as a practical tool to:
- Better understand ESG implementation within their business
- Identify areas that may require further attention or improvement
- Assess their current level of ESG performance
- Identify opportunities to strengthen innovation and business practices
- Use the framework as a practical checklist for key sustainability requirements
Molly Fong, Chair and Founder of the MRA Sustainability Committee, highlighted that one of the key challenges facing businesses today is not simply recognising the importance of ESG, but translating sustainability ambitions into meaningful action.
The Retail ESG Standard was therefore created to provide retailers with a more practical and industry-relevant framework for progressing their sustainability journey.
Three Core ESG Pillars
The RES framework is structured around the three core pillars of Environment, Social and Governance, covering key sustainability matters relevant to retail businesses.
Environmental
The environmental pillar considers areas including:
- Greenhouse gas emissions
- Energy consumption
- Water consumption
- Waste management
- Sustainable and safe materials
Social
The social pillar covers areas such as:
- Labour and human rights
- Occupational safety
- Diversity, equity and inclusion
- Customer welfare
- Community impact
Governance
The governance pillar assesses key business areas including:
- Governance structure
- Business ethics and policies
- Risk management and reporting
- Supply chain screening
- Data privacy and security
Aligned with Established Sustainability Frameworks
The Retail ESG Standard has been designed with reference to established international and Malaysian sustainability frameworks and standards.
These include:
- International Financial Reporting Standards (IFRS) S1 and S2
- Sustainability Accounting Standards Board (SASB)
- Malaysia’s National Sustainability Reporting Framework (NSRF)
- B Corp standards
- Simplified ESG Disclosure Guide (SEDG)
This alignment is intended to help retailers develop their ESG practices in a more structured way while keeping the framework relevant to the retail industry’s day-to-day operational realities.
Free Access to Encourage Wider ESG Adoption
One of the key features of the Retail ESG Standard is that the platform is available free of charge to retailers, helping businesses begin assessing and strengthening their sustainability practices regardless of their current stage of ESG development.
Retailers seeking formal validation may also choose to undergo a paid independent audit process for recognised certification.
The initiative was developed by MRA in collaboration with the ESG Business Institute, a global think tank and network of ESG professionals focused on responsible business and sustainability.
MRA Sustainability Awards 2026
The launch of the Retail ESG Standard was held in conjunction with the inaugural MRA Sustainability Awards 2026, which recognised retailers demonstrating progress and leadership in sustainability.
AEON Co. (M) Bhd. and InNature Bhd. were named co-recipients of the Sustainable Retailer of the Year award.
Katrin BJ Sdn Bhd received the Rising Star in Sustainable Retail Award, while Parkson Corporation Sdn Bhd, Uniqlo (Malaysia) Sdn Bhd, and MST Golf Sdn Bhd received merit recognition for their sustainability efforts.
Supporting a More Sustainable Retail Industry
The introduction of the Retail ESG Standard marks another step in MRA’s efforts to help Malaysian retailers build stronger sustainability capabilities and respond to evolving ESG expectations.
By providing a framework developed specifically for the retail sector, MRA aims to make ESG adoption more practical and accessible for businesses at different stages of their sustainability journey.
Retailers can use the framework to better understand where they currently stand, identify areas for improvement, and progressively strengthen their environmental, social, and governance practices.
Read the Media Coverage
The launch of the Retail ESG Standard was also featured by The Edge Malaysia.
Read the full coverage on The Edge Malaysia