To raise sustainability practices and disclosures of listed issuers, Bursa Malaysia Securities Berhad (“Bursa Malaysia”) has enhanced the sustainability reporting requirements in the Main Market Listing Requirements and the ACE Market Listing Requirements (“Enhanced Sustainability Disclosures”) which was announced on 26 September 2022. The Enhanced Sustainability Disclosures will be implemented on a staggered basis for both Main Market and Ace Market listed issuers, with implementation dates ranging from Sustainability Statements in annual reportsissued forthe financial year ending (“FYE”) on or after 31 December 2023 to annual reports issued for FYE on or after 31 December 2026.
Under the Enhanced Sustainability Disclosures framework, the listed issuers will now be required to include the following disclosures in their Sustainability Statements:
(i) the prescribed common materialsustainability matters, the common indicators and how these matters are managed, to enhance the comparability of sustainability information;
(ii) at least three financial years’ data for each reported indicator, the performance targets for each reported indicator (if any) and a summary of such data and performance target in the prescribed format, to facilitate stakeholders’ assessment of progress and to further promote listed issuers’ accountability;
(iii) a statement of assurance on whether the Sustainability Statement has been reviewed by internal auditor or independently assured, to strengthen the credibility of the Sustainability Statement;
(iv) the prescribed general disclosures of sustainability information currently stipulated for Main Market listed issuers (applicable to Ace Market listed issuers only), to enhance the internalization of sustainability management of ACE Market listed issuers in a structured and transparent manner;
(v) climate change-related disclosures that are aligned with the Task Force on Climate-related Financial Disclosures (“TCFD”) Recommendations (applicable to Main Market listed issuers only), to improve climate change management; and
(vi) a basic transition plan towards a low-carbon economy (applicable to Ace Market listed issuers only), to facilitate and integrate considerations of climate-related risks.
With the issuance of the Enhanced Sustainability Disclosures framework, Bursa Malaysia has further issued and updated the Sustainability Reporting Guide and Toolkits to provide guidance and best practices to listed issuers on how best to implement the sustainability practices and to comply with the Enhanced Sustainability Disclosures. Bursa Malaysia hopes to place the Malaysian reporting requirements on par with benchmarked international markets with the Enhanced Sustainability Disclosures framework, thereby increasing listed issuers’ overall resilience, competitiveness and appeal for investment.
The full media release made by Bursa Malaysia can be assessed here and the updated Sustainability Reporting Guide and Toolkits can be assessed here.
For further information, please contact:
Lai Zhen Pik, Partner, Shearn Deleamore & Co.
lai.zhenpik@shearndelamore.com
