Bursa Malaysia Updates Sustainability Reporting To Align With NSRF

KUALA LUMPUR, Dec 23 (Bernama) -- Bursa Malaysia Securities Bhd has updated its sustainability reporting requirements in the Main Market and ACE Market listing requirements to align with the National Sustainability Reporting Framework (NSRF).

The exchange stated that these enhancements aim to drive the adoption of the International Financial Reporting Standard for sustainability disclosure one (IFRS S1) and IFRS S2 climate-related disclosures.

Together, these standards will serve as the foundation for sustainability reporting in Malaysia.

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“These enhancements are designed to improve the transparency and accountability of how listed issuers manage their sustainability-related risks and opportunities (SROs) using a globally recognised standard, ultimately strengthening business resilience and enhancing investors' ability to reference and compare data,” it said in a statement.

Under the enhanced requirements, Bursa Malaysia said, listed issuers must prepare their sustainability statement in the annual report according to the IFRS sustainability disclosure standards.

The sustainability statement must include metrics and targets that demonstrate the issuer’s performance and progress on its SROs for the past three financial years, along with a summary of such data in a prescribed format.

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The statement must also confirm whether the issuer's sustainability statement has been internally reviewed by its internal auditor or independently assured by a recognised assurance standard.

Bursa Malaysia added that recognising the varying levels of maturity and readiness among listed issuers, the enhanced requirements will be rolled out in phases.

Large Main Market-listed issuers (those with a market capitalisation of RM2 billion or more) will begin using the IFRS sustainability disclosure standards for the annual reporting period starting on Jan 1, 2025.

The remaining Main Market-listed issuers will follow on Jan 1, 2026, with ACE Market-listed corporations required to comply by Jan 1, 2027.

“Pending full adoption, listed issuers may use the IFRS sustainability disclosure standards with transition reliefs focusing on a climate-first approach for two full financial years for the Main Market listed issuers and three full financial years for the ACE Market listed corporations,” it added.

In addition to these updates, the exchange has introduced amendments to enhance shareholder participation in general meetings by requiring in-person or hybrid meetings from March 1, 2025. 

It also aims to strengthen the accountability of listing advisers by requiring them to be named in public documents of listed issuers for a specified period, starting from Jan 2, 2025.

-- BERNAMA