Malaysia recognised for aligning sustainability reporting with global standard
KUALA LUMPUR: Malaysia has been officially recognised for aligning its sustainability reporting with global standards, said the Securities Commission Malaysia (SC).
According to the International Financial Reporting Standards (IFRS) Foundation's latest Jurisdictional Profile, Malaysia is the only Asean nation acknowledged for adopting the International Sustainability Standards Board (ISSB) Standards with a limited transition approach.
This recognition underscores the international credibility of Malaysia's National Sustainability Reporting Framework (NSRF), launched in September 2024 and developed by the Advisory Committee on Sustainability Reporting (ACSR), representing a major advancement in the country's corporate sustainability efforts.
In the SC statement, Malaysia's adoption of ISSB Standards, specifically IFRS S1 and IFRS S2, includes transitional reliefs such as 'climate-first' reporting and deferred Scope 3 greenhouse gas (GHG) disclosures.
"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," it said.
SC chairman Datuk Mohammad Faiz Azmi said the ISSB's endorsement validates Malaysia's sustainability direction.
"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 in the statement.
He also added that the ACSR is cognisant of the high standards the ISSB Standards have set for sustainability reporting and the challenges this may pose to entities.
To support organisations in meeting these new standards, the NSRF has introduced the policy, assumptions, calculators, and education (PACE) initiative, offering training, tools, and technical resources.
This includes earlier training sessions on interoperability between the ISSB and Global Reporting Initiative (GRI) Standards, which were conducted in March.
"Further PACE efforts include the development of illustrative sustainability reports and an NSRF Preparers' Programme to strengthen disclosure capabilities. The ACSR also plans to continue industry engagement to address sector-specific adoption challenges," it said.
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