Malaysia Enhances Sustainability Reporting Framework

Listed issuers will be required to disclose prescribed “common sustainability matters” and provide TCFD-aligned disclosures.

Bursa Malaysia has issued a consultation paper proposing amendments to its Main Market and ACE Market listing requirements to elevate the sustainability practices and disclosures of listed issuers.

The exchange group said it had observed considerable improvements among listed issuers since the launch of its Sustainability Reporting Framework in 2015. “However, as the global sustainability landscape has evolved significantly in recent years, the exchange recognises the need to enhance the Sustainability Reporting Framework to ensure its continued relevance,” it said.

Under the proposed requirements, Main Market and ACE Market issuers will be required to:

  • disclose prescribed “common sustainability matters” and indicators that are deemed material for firms across all sectors
  • provide climate change related disclosures that are aligned with the TCFD Recommendations
  • disclose enhanced quantitative information, including data for at least three financial years and performance targets for each reported indicator
  • provide a statement declaring whether the sustainability disclosures have been assured, and if so, provide information on the scope of such assurance

Bursa Malaysia also proposes that ACE Market issuers be required to disclose a basic plan for considering climate change risks and opportunities as they transition towards a low carbon economy.

“The enhanced sustainability reporting framework will serve as a spring board to propel listed issuers to adopt international best practices and realise our national aspiration to be a leading capital market for sustainability in the region,” said Bursa Malaysia CEO Datuk Muhamad Umar Swift.

The consultation paper, published here, is open for comment until 18 May 2022.

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