The Malaysia Securities Commission has released a simplified board-level guide, “Navigating the Transition: A Guide for Boards”, to help company directors prepare for the National Sustainability Reporting Framework (NSRF), which addresses adoption of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board, including IFRS S1 and IFRS S2. The NSRF is expected to apply on a phased basis to listed issuers on Bursa Malaysia’s Main and ACE Markets and to large non-listed companies with annual revenue of at least RM2 billion. Large Main Market listed companies with market capitalisation of RM2 billion and above begin NSRF implementation in 2025. The guide sets out practical steps for boards across governance, defining sustainability data boundaries, assessing financial impacts, and integrating sustainability reporting with enterprise risk management. To support implementation, the Advisory Committee on Sustainability Reporting has introduced PACE (Policy, Assumptions, Calculators, Education), offering training, tools and resources for meeting NSRF requirements, with further PACE initiatives planned including an interoperability module between Global Reporting Initiative and the IFRS Sustainability Disclosure Standards, illustrative sustainability reports, and an NSRF preparers’ programme.
Malaysia Securities Commission 2025-01-20
Malaysia Securities Commission publishes board guide to support adoption of the National Sustainability Reporting Framework
The Malaysia Securities Commission issued "Navigating the Transition: A Guide for Boards" to help directors prepare for the National Sustainability Reporting Framework (NSRF), incorporating IFRS Sustainability Disclosure Standards. The NSRF will phase in for listed issuers on Bursa Malaysia’s Main and ACE Markets and large non-listed companies with annual revenue of at least RM2 billion, starting with large Main Market companies in 2025. The Advisory Committee on Sustainability Reporting launched PACE to provide training and resources for NSRF compliance, with additional initiatives planned.