Petaling Jaya: The Securities Commission Malaysia (SC) today released a simplified guide, “Navigating the Transition: A Guide for Boards” (Board Guide), to support boards of directors of companies in adopting the National Sustainability Reporting Framework (NSRF).
Launched in September last year, the NSRF is an important step in advancing Malaysia’s corporate sustainability agenda.
In a statement, the SC said issuers listed on Bursa Malaysia’s Main and ACE markets, as well as large unlisted companies with annual revenues of RM2 billion and above, would be expected to comply with the new reporting requirements in a phased approach. Is.
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 boards 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 RM2 billion and above) listed on the Main Market of Bursa Malaysia have commenced NSRF implementation this year, demonstrating Malaysia’s commitment to global best practices in corporate sustainability.
SC chairman Datuk Mohd Faiz Azmi said, “The NSRF is not a compliance tool, but a blueprint for incorporating sustainability into corporate decision making. With this guide, we are preparing boards not only to meet global standards but also to lead with purpose and flexibility in shaping a sustainable future for Malaysia.
To further support this change, the SC’s Advisory Committee on Sustainability Reporting has introduced PACE (Policy, Assumptions, Calculator, Education).
Other upcoming PACE initiatives include an interoperability module between the Global Reporting Initiative and IFRS sustainability disclosure standards, sustainability reports to provide companies with illustrative context to guide their disclosures, and an NSRF Preparers Program for capacity building.
