The Securities Commission Malaysia (SC) has on Monday released the National Sustainability Reporting Framework (NSRF) guidance to help companies’ board of directors drive sustainability reporting.
The regulator said in a statement that it has issued a simplified guide, ‘Navigating the Transition: A Guide for Boards’ (Board Guide) to support board of directors of
companies in adopting the NSRF.
Launched in September last year, the NSRF is a significant step in advancing Malaysia’s corporate sustainability agenda.
Listed issuers on Bursa Malaysia’s Main and ACE Markets, as well as large non-listed companies (NLCos) with annual revenue of MYR 2 billion ($445 million) and above are expected to comply with the new reporting requirements in a phased approach.
The NSRF addresses the use of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB), including IFRS S1 and IFRS S2.
These standards ensure consistent and comparable sustainability-related financial disclosures.
The Board Guide provides board of directors with simplified and actionable steps on key areas such as governance, sustainability data boundaries, financial impact assessments, and integration with enterprise risk management systems.
Large companies (market capitalization of MYR 2 billion [$445 million] and above) listed on Bursa Malaysia’s Main Market start NSRF implementation this year, showcasing Malaysia’s commitment to global best practices in corporate sustainability.
“The NSRF is not a compliance tool, but a blueprint for embedding sustainability in corporate decision-making,
“With this guide, we are equipping boards to not only meet global standards but to lead with purpose and resilience in shaping a sustainable future for Malaysia,” SC Chairman Mohammad Faiz Azmi said.
To further support this transition, the Advisory Committee on Sustainability Reporting (ACSR), has introduced PACE (Policy, Assumptions, Calculators, Education), an initiative offering training, tools, and resources to meet NSRF requirements in adopting the ISSB standards.
Other upcoming PACE initiatives include an Interoperability Module between the Global Reporting Initiative (GRI) and IFRS Sustainability Disclosure Standards, Illustrative
Sustainability Reports to provide companies with illustrative references to guide their disclosures and an NSRF Preparers’ Program to build capacity.
The SC is a statutory body reporting to the Minister of Finance of Malaysia, was established under the Securities Commission Act 1993.
It is the sole regulatory agency for the regulation and development of capital markets.
The SC has direct responsibility for supervising and monitoring the activities of market institutions, including the exchanges and clearing houses, and regulating all persons licensed under the Capital Markets and Services Act 2007.
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