Since 2015, public listed companies (PLCs) have been required by Bursa Malaysia to provide sustainability disclosures through the inclusion of a Sustainability Statement in their annual report which is replacing the previous CSR Framework. 

In September 2022, Bursa Malaysia has updated the sustainability reporting requirements for better alignment with global reporting expectations, incorporating recommendations from the Task Force on Climate related Financial Disclosures (TCFD).

Enhanced Sustainability Reporting Requirements

Under the new Bursa Malaysia’s sustainability reporting framework, the four disclosures below are to be included in the Sustainability Statements:

• A common set of prescribed sustainability matters and indicators that are deemed material for all listed issuers (“common sustainability matters”)
  
• Climate change-related disclosures that are aligned with TCFD Recommendations (“TCFD-aligned disclosures”);.
  
• At least three financial years’ data for each reported indicator, corresponding targets (if any) as well as a summary of such data and corresponding performance target(s) in a prescribed format (“enhanced quantitative information”); and
  
• A statement on whether the Sustainability Statement has been reviewed internally by internal auditors or independently assured (“statement of assurance”). 

The above new requirements will be implemented on a phased approach, beginning with the disclosure of the common sustainability matters for financial year ending (“FYE”) on or after 31 December 2023, and culminating with the TCFD-aligned disclosures for FYE on or after 31 December 2025 for the Main Market listed issuers. Similarly, ACE Market listed corporations will adopt the enhanced sustainability disclosures on a staggered basis, with disclosures of the prescribed sustainability information taking effect for FYE on or after 31 December 2024, and concluding with disclosures of the basic transition plan for FYE on or after 31 December 2026.

Disclosure Requirements 

In the sustainability reporting, among the disclosures to be made by PLCs are the following:

• Governance structure in place;
  
• Scope of the Sustainability Statement and basis for the scope;
  
• Material sustainability matters;
  
• Management approach of material sustainability matters;
  
• Methodologies for Indicators;
  
• Performance targets;
  
• Statement of assurance; and
  
• TCFD-aligned disclosures.
  

Click here to read more about Bursa Malaysia updated sustainability reporting framework.