Latest news with #ISSB
New Straits Times
2 days ago
- Business
- New Straits Times
SC upcoming capital market roadmap to align with 13th Malaysia Plan, NETR
KUALA LUMPUR: The Securities Commission Malaysia's (SC) upcoming Capital Market Masterplan 4 (CMP4) will align with current national priorities, including the 13th Malaysia Plan, the National Energy Transition Roadmap (NETR) and other government economic initiatives. SC chairman Datuk Mohammad Faiz Azmi said this will give momentum to capital mobilisation for transition, adaptation and climate resilience financing. "We hope to increase the amount of green investments to support our energy transition and to help prepare for a hotter future," he said in his welcoming address at the Eco-Business Conference 2025 today. Mohammad Faiz had previously highlighted that this year, the SC will begin the process of shaping views and insights over the long term, including vision and objectives, in developing CMP4, which succeeds CMP3 (2021–2025). At the same event, he said the National Sustainability Reporting Framework (NSRF) was launched in September 2024 to ensure consistent and comparable sustainability reporting by corporate Malaysia and to align with the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB). "Our efforts have already earned Malaysia international recognition by the IFRS Foundation for being one of the first adopters of the ISSB standards in Asean. "This year marks the first phase of NSRF implementation involving large Main Market issuers above RM2 billion in market capitalisation – some 130 companies – and we will see the fruits of their work next year when the annual reports are finalised for 2025," he added. — BERNAMA
The Star
2 days ago
- Business
- The Star
SC upcoming capital market roadmap to align with 13th Malaysia Plan, NETR
Securities Commission chairman Datuk Mohammad Faiz Azmi KUALA LUMPUR: The Securities Commission Malaysia's (SC) upcoming Capital Market Masterplan 4 (CMP4) will align with current national priorities, including the 13th Malaysia Plan, the National Energy Transition Roadmap (NETR) and other government economic initiatives. SC chairman Datuk Mohammad Faiz Azmi said this will give momentum to capital mobilisation for transition, adaptation and climate resilience financing. "We hope to increase the amount of green investments to support our energy transition and to help prepare for a hotter future,' he said in his welcoming address at the Eco-Business Conference 2025 today. Mohammad Faiz had previously highlighted that this year, the SC will begin the process of shaping views and insights over the long term, including vision and objectives, in developing CMP4, which succeeds CMP3 (2021-2025). At the same event, he said the National Sustainability Reporting Framework (NSRF) was launched in September 2024 to ensure consistent and comparable sustainability reporting by corporate Malaysia and to align with the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB). "Our efforts have already earned Malaysia international recognition by the IFRS Foundation for being one of the first adopters of the ISSB standards in ASEAN. "This year marks the first phase of NSRF implementation involving large Main Market issuers above RM2 billion in market capitalisation - some 130 companies - and we will see the fruits of their work next year when the annual reports are finalised for 2025,' he added. - Bernama
Japan Times
2 days ago
- Business
- Japan Times
Climate disclosure is advancing — but who's being left behind?
The global push for climate action is becoming increasingly fragmented. While some countries move forward, others are falling behind — widening a gap that could undermine our collective ability to confront the climate crisis. Under the Trump administration, the United States has seen a clear rollback of climate policy, with many disclosure and regulatory measures reversed or abandoned. The European Union, while sticking to its climate goals, has taken steps to ease compliance burdens for smaller businesses by effectively exempting them. Despite these shifts, global momentum for standardized climate-related disclosure remains strong, reflecting a desire to balance regulatory ambition with economic competitiveness, rather than an abandonment of progress on climate. The International Sustainability Standards Board continues to play a central role. Many countries are considering adopting ISSB's climate disclosure standards mainly for listed companies, which aim to bring consistency and comparability to corporate climate data. In the banking sector, the Basel Committee on Banking Supervision has also recently taken steps. In June, it finalized a voluntary climate risk disclosure framework for large banks. But progress depends on one critical factor: the quality of data that banks receive from the companies that they finance. As momentum builds to tackle climate change, a quieter but no less urgent problem is emerging: While many advanced economies and large corporations press forward with ambitious climate action and disclosure frameworks, others face serious capacity constraints. The divide is no longer just about emissions — it's about awareness, resources and fairness in the transition itself. A key driver of this imbalance is 'transition risk' — the financial exposure that companies face as economies move toward decarbonization. These risks stem directly from climate mitigation efforts such as carbon pricing, emissions targets and the transition to renewable energy. While essential, these policies carry economic consequences, especially for companies in carbon-intensive sectors. As investors and regulators increasingly demand transparency, transition risk has become central to financial reporting. The good news is that these risks are becoming easier to quantify. Widely adopted standards like the Greenhouse Gas Protocol allow companies to track their emissions. Climate scenario models from the International Energy Agency, along with carbon price estimates aligned with the 1.5 degrees Celsius target, offer tools to assess financial exposure. These same tools help banks evaluate climate risk within their lending and investment portfolios. The landscape of climate disclosure is expanding rapidly, with various sector-based frameworks, taxonomies, environmental and social governance scoring systems and certification schemes emerging worldwide. But growing sophistication comes with its own challenge. While these tools aim to enhance transparency and combat greenwashing, they risk overwhelming smaller firms and developing countries that lack the institutional or technical capacity to comply. Many companies are being left behind — for lack of means. This is where a global minimum standard becomes essential. Instead of continually raising the bar, we need to develop a baseline that any company or country can realistically meet. Such a standard wouldn't replace more advanced frameworks — it would complement them, creating a more inclusive and equitable foundation for climate accountability. After all, progress that only includes the well-resourced isn't real progress. More importantly, climate risk isn't just about mitigation and transition risk. The other half of the equation — physical risk — is becoming more urgent by the day. Around the world, extreme weather events such as floods, droughts, wildfires and heatwaves are growing more frequent and more severe. These risks are already inflicting major economic and social losses. Yet efforts to adapt — by building resilience to climate impacts — remain underdeveloped, even in advanced economies. Most companies and financial institutions have yet to meaningfully integrate physical risk into their strategies or disclosures. Unlike transition risk, which is concentrated in carbon-intensive sectors, physical risk affects all countries, industries and communities — often in highly localized and variable ways. This makes it harder to define, quantify and standardize adaptation activities. In many vulnerable regions, disaster insurance coverage is shrinking or becoming unaffordable. Insurance markets alone cannot bear the burden. Governments and businesses must work together to build policy and financing frameworks that proactively address physical risk. In the end, climate risk is not just about emissions. It's about exposure, resilience and the ability to act. If we fail to close the capacity gap — on both mitigation and adaptation — we risk building a climate transition that is exclusive, fragmented and ultimately ineffective. Sayuri Shirai is a professor at Keio University and an adviser on sustainable policies at the Asian Development Bank Institute. She was a former policy board member at the Bank of Japan.
Yahoo
4 days ago
- Business
- Yahoo
IFRS Foundation unveils near-final examples for uncertainty reporting
The IFRS Foundation has published a set of near-final examples to help companies accurately report financial uncertainties, using climate-related situations for practical reference. These examples are designed to assist companies in applying existing IFRS Accounting Standards to their financial statements. The publication of these examples is a response to stakeholder concerns regarding the lack of detailed information about uncertainties. The development of the examples was a collaborative effort between the International Accounting Standards Board (IASB) and the International Sustainability Standards Board. The IASB plans to issue the finalised set of examples by October 2025. The examples demonstrate the practical application of IAS 1, IFRS 18, IAS 36, IAS 37, IFRS 7 and other standards. They address materiality judgments in climate-related transition plans and disclosure of impairment assumptions including emission allowance costs. The themes also cover credit risk reporting for sectors vulnerable to climate impacts and disaggregation of property, plant and equipment based on climate exposure. Additionally, they address decommissioning provisions amid uncertainties from long-term climate policies. IASB chair Andreas Barckow said: 'By publishing the examples in near-final form, we are providing companies with earlier visibility of our work.' Recently, the IFRS Foundation enhanced its IFRS Taxonomy Consultative Group with six new members and two returning members, with their terms starting on 1 August 2025. "IFRS Foundation unveils near-final examples for uncertainty reporting " was originally created and published by The Accountant, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Zawya
18-07-2025
- Business
- Zawya
2025 update: Navigating ESG disclosure changes in South Africa
Environmental, social, and governance (ESG) factors have grown in significance for businesses worldwide, including South African financial institutions. ESG disclosure helps stakeholders understand how companies manage ESG risks and opportunities and how they perform against ESG criteria. As regulatory frameworks continue to evolve, financial institutions must stay informed about current and upcoming disclosure requirements. Why ESG is important All organisations impact the environment and society while also being affected by environmental and societal factors that influence business performance. Stakeholders increasingly expect transparency on non-financial parameters affecting company operations, and ESG disclosure serves as the primary vehicle for communicating this information. Sustainability reporting and climate change reporting are important subsets of ESG disclosure. While mandatory disclosure requirements are already in force in jurisdictions such as the European Union and the United Kingdom, South Africa has been developing its framework through voluntary guidance and regulatory initiatives. ESG developments in SA JSE disclosure guidance In 2022, the Johannesburg Stock Exchange (JSE) released its Sustainability Disclosure Guidance and Climate Change Disclosure Guidance to promote transparency and good governance among listed companies. The JSE is currently reviewing this guidance to align with the International Sustainability Standards Board's (ISSB) IFRS S1 and IFRS S2 standards, published in June 2023. CIPC framework In October 2024, the Companies and Intellectual Property Commission (CIPC) updated its framework by adding a sustainability disclosures module to the XBRL taxonomy. This update aligns with the ISSB's IFRS S1 and S2 standards and encourages voluntary ESG data reporting. On 31 January 2025, the CIPC published Notice 6 of 2025 regarding public consultations on implementing mandatory sustainability reporting obligations. The Department of Trade, Industry and Competition (DTIC) and the CIPC have established a steering committee to oversee a regulatory impact assessment on adopting the ISSB standards in South Africa. FSCA initiatives In May 2023, the Financial Sector Conduct Authority (FSCA) published its Introductory Statement on Sustainable Finance and Programme of Work to foster a fair, efficient, and resilient financial system that supports inclusive and sustainable economic growth. The FSCA aims to enable capital flows that support sustainability objectives; facilitate due diligence; adapt international ESG frameworks; and empower retail consumers. 2025 sustainable finance In March 2025, the FSCA published its Sustainable Finance Update Report, outlining progress under its sustainable finance programme. The report aligns with South Africa's G20 presidency priorities, which include: - Strengthening the global sustainable finance architecture. - Scaling up adaptation finance for a just climate transition. - Unlocking the financing potential of carbon markets. The FSCA's strategy is structured around five key pillars: - Taxonomy: Developing common terminology and understanding, building on outputs from National Treasury's Climate Risk Forum. - Disclosure, reporting and assurance: Aligning corporate disclosure and financial reporting requirements while helping consumers assess sustainability products. - Market development: Supporting the development of sustainable finance markets, including carbon markets. - Active ownership: Encouraging institutional investors to drive positive, sustainable outcomes. - Financial education: Empowering retail investors through financial literacy to understand the risks and benefits of ESG-aligned products We have written a more detailed breakdown on the FSCA's sustainable finance programme, which can be accessed here. Climate-related governance The Prudential Authority has issued guidance notes on climate-related governance and risk practices for insurers and banks, emphasising that: - Insurers and banks need to incorporate climate-related risks into their established risk and corporate governance frameworks. - Climate-related risks go beyond reputational concerns and require holistic treatment. - These risks must be adequately accounted for in board-approved risk management frameworks. The authority has also issued guidance on climate-related disclosures covering governance, strategy, risk management, and metrics and targets. Mitigating greenwashing risks South Africa has joined a global panel of legal counsel issuing opinions on directors' duties and liability for climate-related risks. In September 2024, a legal opinion was issued on behalf of the Centre for Environmental Rights and the Institute of Directors in South Africa (IoDSA) addressing directors' accountability under the Companies Act, 2008; the common law; other relevant legislation; and good governance standards, including the King IV Report on Corporate Governance, 2016, and its Guidance Paper on Climate Change, 2021. The opinion considers the legal bias on which directors may be held liable for failing to address, disclose, or prepare adequately for climate risks affecting the company's business. As ESG disclosure requirements continue to evolve in South Africa, and as the ESG-related disputes increasingly include sustainability disclosure-related stakeholder actions, financial institutions must prioritise transparency, accuracy, and fairness in their ESG reporting. Doing so will mitigate greenwashing risks and enable informed decision-making by consumers and investors. The FSCA will continue to publish annual updates on its sustainable finance programme. Upcoming initiatives include finalising the GFT pilot, issuing guidance notices, and introducing mandatory corporate sustainability disclosure requirements. Financial institutions should begin preparing now by strengthening internal ESG governance structures; enhancing sustainability reporting capabilities; and ensuring alignment with international standards such as IFRS S1 and S2. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
