KUALA LUMPUR: Malaysia has joined 20 countries globally in implementing standardised guidelines for sustainability reporting with the launch of the National Sustainability Reporting Framework (NSRF).
Finance Minister II Datuk Seri Amir Hamzah Azizan said markets worldwide are moving towards a globally aligned sustainability reporting standard and the NSRF will enable Malaysia to get on that trajectory.
“The establishment of the ISSB (International Sustainability Standards Board) and its two inaugural standards was driven to address the absence of a unified set of standards for sustainability reporting and the need for a single common language,” he said at the launch of the NSRF today.
The NSRF is a framework in sustainability reporting using the disclosure standards issued by the ISSB.
Amir Hamzah said a key outcome from the NSRF is to support the ease of doing business with respect to sustainability reporting.
“Prior to this companies across markets face the burden of complying with multiple reporting standards, which increases not just the complexity of reporting but also the cost,” he said, adding that by using the ISSB Standards, the NSRF intends to provide companies with an internationally-recognised and standardised framework to provide reliable, decision-useful and globally comparable sustainability disclosures.
Under the NSRF, listed issuers on Bursa Malaysia’s Main and ACE Markets, as well as large non-listed companies (NLCo) with annual revenue of RM2 billion and above will have to comply with the new reporting requirements in a phased approach.
Large-listed issuers on the Main Market with market capitalisation of RM2 billion and above will begin using the ISSB Standards in 2025.This will extend to other Main Market listed issuers in 2026, followed by listed issuers on the ACE Market as well as large NLCos in 2027.
Amir Hamzah said the NSRF also has the support of the government-linked investment companies which are prioritising investments that contribute to sustainability goals, and address critical issues such as climate action, social inequality and economic inclusivity.
“This is reflected in their investment and engagement policy, as well as targets – including net zero portfolios and net zero emissions for their own operations by 2050,” he said.
He said that considering the huge financing requirement (RM1.3 trillion) to achieve the energy transition goals), the capital market in Malaysia must be ready to facilitate fund raising and investments.
Following the launch of the NSRF, Bursa Malaysia Securities issued a consultation paper seeking public feedback on the proposed sustainability reporting enhancements to the Main Market and ACE Market Listing Requirements in line with the envisioned adoption of the NSRF.
