The Securities Commission Malaysia (SC) released a simplified guide, ‘Navigating the Transition: A Guide for Boards’ (Board Guide) to support board of directors of companies in adopting the National Sustainability Reporting Framework (NSRF).
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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 RM2 billion and above are expected to comply with the new reporting requirements in a phased approach1.
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 capitalisation of RM2 billion 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.
SC Chairman Dato’ Mohammad Faiz Azmi said, “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,” he added.
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’ Programme to build capacity.
About Securities Commission Malaysia (SC)
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.
The Securities Commission Malaysia has direct responsibility for rule-making, enforcing regulations pertaining to the capital market, ensuring sustainable market growth and development, supervising capital market activities and market institutions including the exchanges, clearing houses and registered market operators, and regulating all entities and persons licensed under the Capital Markets and Services Act 2007. Based on the SCA, the SC reports to the Minister of Finance and our accounts are tabled in Parliament annually.
