Malaysia Unveils National Sustainability Reporting Framework to Drive ESG Progress

Malaysia Unveils National Sustainability Reporting Framework to Drive ESG Progress

BY  
AnhNguyen  
- September 26, 2024

Malaysia has launched the National Sustainability Reporting Framework (NSRF) to provide investors and financiers with the critical sustainability information they need for informed capital allocation decisions. This initiative, aligned with the International Sustainability Standards Board (ISSB), is a significant step towards enhancing ESG and sustainability reporting across the nation. 

Finance Minister II, Datuk Seri Amir Hamzah Azizan, emphasized that the NSRF will bolster Malaysia’s economic growth while promoting environmental and social responsibility. The framework aims to attract global investors and support government-linked investment companies (GLICs) in addressing sustainability goals like climate action and social inequality. These GLICs have committed to achieving net zero emissions by 2050. 

The NSRF, developed by the Advisory Committee on Sustainability Reporting (ACSR), mandates that companies adhere to the IFRS sustainability disclosure standards. Listed companies on Bursa Malaysia’s Main and ACE Markets, along with large non-listed firms, must begin implementing the new ESG-focused reporting requirements in a phased manner. 

Starting in 2025, approximately 130 large companies on Bursa’s Main Market will focus on climate-related disclosures under IFRS S1 and S2, with the first reports due in 2026. Other companies will follow in subsequent phases, with all groups required to include Scope 3 disclosures by 2027. The framework also mandates that sustainability reports be audit-verified, ensuring greater transparency and accountability. 

This comprehensive reporting initiative positions Malaysia among over 20 jurisdictions adopting these global sustainability standards. By integrating sustainability practices into corporate reporting, Malaysia is set to boost investor confidence, attract foreign direct investments, and further its ESG objectives. 

Sources: 

https://www.nst.com.my/business/corporate/2024/09/1110161/malaysia-launches-sustainability-framework-help-investors 

https://ground.news/article/malaysia-launches-sustainability-framework-to-help-investors-financiers_cf655d 

https://theedgemalaysia.com/node/727797

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