SC and Bursa Launches Mandatory Sustainability Programme for PLC Directors
by Fintech News Malaysia June 7, 2023The Securities Commission Malaysia (SC) and Bursa Malaysia has rolled out a new mandatory onboarding programme on sustainability for directors of Public Listed Companies (PLCs) on the exchange.
The Mandatory Accreditation Programme (MAP) Part II: Leading for Impact (LIP) is an extension to the existing MAP, now known as MAP Part I under the Bursa Malaysia Main Market and ACE Market Listing Requirements (collectively known as the LR).
LIP has been curated to focus on the baseline knowledge and key considerations surrounding sustainability, including questions which boards should direct towards management in the effort to ensure a more robust and effective oversight of sustainability risks and opportunities of the company.
It will also provide directors with a platform to engage and learn from their peers.
The Institute of Corporate Directors Malaysia (ICDM) has been appointed as the knowledge partner to conduct LIP. ICDM is also the knowledge partner for MAP Part I.
The requirement will come into effect on 1 August 2023. First-time directors and directors of listing and transfer applicants must complete the programme within 18 months from the date of appointment or admission, respectively.
Existing directors of PLCs on the Main and ACE Market of Bursa Malaysia must complete LIP within 24 months from the effective date.
Dato’ Seri Dr. Awang Adek Hussin
SC Chairman, Dato’ Seri Dr. Awang Adek Hussin said,
“This is especially important where stakeholders are becoming increasingly concerned about environmental, social and governance (ESG) issues.
LIP further underpins the SC’s focus on supporting sustainability-conscious and effective leadership of PLCs.”
Datuk Muhamad Umar Swift
“We believe the introduction of LIP for PLC directors is timely, as it is a significant step towards strengthening the commitment towards ESG practices among boards.
Bursa Malaysia will provide the necessary support and resources to assist our PLC directors in fostering sustainable growth within their organisations to ensure long-term value creation for their stakeholders.”
said Datuk Muhamad Umar Swift, CEO of Bursa Malaysia.
