Malaysia Consults on ISSB Adoption

Malaysia’s Advisory Committee on Sustainability Reporting (ACSR) has published a new consultation proposing to mandate the adoption of International Sustainability Standards Board (ISSB) guidance by local companies. The ISSB Standards would be used as a baseline to inform Malaysia’s National Sustainability Reporting Framework, with goals to improve the availability of reliable, comparable and useful information on companies’ material sustainability risks and opportunities. Under the proposal, companies listed on Bursa Malaysia’s Main Market would be required to include IFRS S2 disclosures – on climate-related disclosures – in annual reports issued for fiscal years ending on or after 31 December 2025, and IFRS S1 disclosures – on sustainability-related financial information – a year later. The disclosures could also potentially become mandatory for companies listed on Malaysia’s Access, Certainty, Efficiency (ACE) Market – a sponsor-driven market designed for companies with growth prospect. ACE Market issuers and large non-listed companies would have to adopt IFRS S2 for annual reports for fiscal years ending on or after 31 December 2027, and IFRS S1 disclosures one year later. In addition, the consultation seeks input on whether external assurance on sustainability information should be made mandatory, on the scope of such requirements, on the standards that should be used for them, and on whether assurance providers should be licensed. The consultation is open for comment until 21 March.

The practical information hub for asset owners looking to invest successfully and sustainably for the long term. As best practice evolves, we will share the news, insights and data to guide asset owners on their individual journey to ESG integration.

Copyright © 2024 ESG Investor Ltd. Company No. 12893343. ESG Investor Ltd, Fox Court, 14 Grays Inn Road, London, WC1X 8HN

To Top