This research project undertakes a comprehensive comparative analysis of greenhouse gas (GHG) emissions and water usage among Malaysian palm oil producers to assess the implications for Environmental, Social, and Governance (ESG) materiality and establish sector-specific sustainability baselines. As global scrutiny intensifies on the environmental footprint of palm oil production, Malaysia, as one of the world’s leading exporters, faces growing pressure to align with global ESG standards and sustainable development goals (SDGs). The problem addressed in this study is the insufficiently granular and comparative understanding of how GHG emissions and water usage differ among producers of varying sizes, operational practices, and certification statuses and how these variations influence the credibility and transparency of ESG reporting within the palm oil sector.

The objectives of this research are fourfold:
(1) to quantify and compare GHG emissions and water consumption among selected palm oil producers across Peninsular Malaysia, Sabah, and Sarawak;
(2) to evaluate how production scale, certification schemes (e.g., RSPO, MSPO, ISCC), and operational practices contribute to environmental performance disparities;
(3) to analyse the degree to which these environmental metrics are material to ESG disclosures based on global and national ESG frameworks; and
(4) to propose a robust baseline for environmental indicators tailored to the Malaysian palm oil context to guide future ESG reporting and regulatory compliance.

Methodologically, the research adopts a mixed-method approach, integrating quantitative data collection through on-site environmental audits, remote sensing, and life cycle assessment (LCA), along with qualitative stakeholder interviews, document analysis of sustainability reports, and ESG ratings review. Comparative analytics and thematic content analysis will be employed to draw meaningful patterns across different producers, enabling the triangulation of primary and secondary data to ensure validity and reliability. The expected outputs include a comprehensive sector-specific dataset on GHG emissions and water use, benchmarking profiles of major producers, a set of ESG materiality indicators contextualised to Malaysia’s palm oil industry, and a policy recommendation framework for regulators and certifying bodies.

The implications of these outputs are multifaceted: they will enhance the transparency and credibility of ESG reporting in the palm oil sector; support financial institutions and investors in risk-based decision-making aligned with ESG principles; inform public policy aimed at carbon and water footprint reduction; and ultimately contribute to Malaysia’s commitments under the Paris Agreement and national low-carbon transition pathways. Furthermore, by identifying best practices and critical gaps in sustainability performance, the study will facilitate knowledge transfer across the industry and stimulate continuous improvement in environmental stewardship. The significance of the research lies in its contribution to bridging the data and knowledge gap between environmental science, ESG accountability, and industrial practice, while reinforcing Malaysia’s leadership role in sustainable palm oil production within global value chains. This project is poised to deliver timely, policy-relevant, and scientifically grounded insights that will empower stakeholders—from producers and policymakers to investors and civil society—to make informed, responsible, and forward-looking decisions for a more sustainable palm oil ecosystem.