KUALA LUMPUR: Malaysia has received international recognition for aligning its sustainability reporting practices with global standards, according to the Securities Commission Malaysia (SC). The acknowledgement comes via the latest Jurisdictional Profile released by the International Financial Reporting Standards (IFRS) Foundation, positioning Malaysia as the sole ASEAN nation recognised for adopting the International Sustainability Standards Board (ISSB) Standards under a limited transition framework.
This distinction reinforces the credibility of Malaysia’s National Sustainability Reporting Framework (NSRF), launched in September 2024. Developed by the Advisory Committee on Sustainability Reporting (ACSR), the NSRF represents a significant milestone in the nation’s corporate sustainability agenda.
Malaysia’s adoption of the ISSB’s IFRS S1 and IFRS S2 standards incorporates transitional provisions, including a ‘climate-first’ reporting approach and deferred disclosure of Scope 3 greenhouse gas (GHG) emissions. These measures aim to ease the transition for companies at different stages of sustainability maturity.
“This approach facilitates a smooth transition to full adoption of the ISSB Standards, while recognising the varying levels and maturity in sustainability practices among companies,” the SC stated.
SC Chairman Datuk Mohammad Faiz Azmi noted that the ISSB’s endorsement affirms the nation’s strategic direction in sustainability reporting. “The ACSR welcomes the ISSB’s endorsement, which represents an important recognition of our efforts in using the ISSB Standards as the baseline for sustainability disclosures in Malaysia,” he said.
He further acknowledged the challenges entities may face in meeting the rigorous standards set by the ISSB, emphasising the importance of targeted support.
To aid organisations in fulfilling the new requirements, the NSRF has rolled out the Policy, Assumptions, Calculators, and Education (PACE) initiative, which provides training, tools, and technical resources. Earlier this year, PACE conducted sessions on interoperability between the ISSB and Global Reporting Initiative (GRI) Standards.
Ongoing efforts under PACE include the creation of illustrative sustainability reports and the launch of the NSRF Preparers’ Programme, designed to enhance disclosure competencies. The ACSR also intends to continue sector-specific engagement to support broader and more effective adoption.
-Business Times
