The National Sustainability Reporting Framework (NSRF) was launched at the Securities Commission Malaysia (SC) yesterday (24 September 2024) by Finance Minister II, YB Senator Datuk Seri Amir Hamzah Azizan.
Developed by the Advisory Committee on Sustainability Reporting (ACSR), the framework enhances sustainability disclosures for companies by adopting the International Sustainability Standards Board’s (ISSB) Sustainability Disclosure Standards.
These standards aim to improve transparency, accountability, and business resilience, while supporting Malaysia’s broader sustainability agenda.
Large-listed issuers on the Main Market with a market capitalisation of RM2 billion and above will begin using the ISSB Standards in 2025.
This will be followed by other Main Market issuers in 2026, and ACE Market issuers and large non-listed companies in 2027.
The framework also integrates climate disclosure guidelines based on the Taskforce on Climate-related Financial Disclosures (TCFD).
This ensures that companies already familiar with governance, strategy, risk management, and metrics and targets are aligned with the new standards.
To help companies, including medium and smaller enterprises, implement these requirements, the ACSR introduced the PACE initiative (Policy, Assumptions, Calculators, and Education), providing resources, capacity-building programs, and toolkits.
The framework also targets the mandating of reasonable assurance of sustainability information by 2027, pending further consultations.
In line with the NSRF’s launch, Bursa Malaysia has issued a public consultation to amend its Main and ACE Market Listing Requirements, including proposed relief measures to ease compliance.
The consultation also seeks feedback on additional changes related to the mode of general meetings and the publication of IPO advisers’ names.
Public comments are open until 25 October 2024.
SC Chairman Dato’ Mohammad Faiz Azmi said,
“As a major trading country and an open economy that has an important role in the global supply chain, it is important we adopt these requirements in an open way to reap the benefit of being an adopter.”
