Bursa Malaysia has announced enhanced sustainability reporting requirements in alignment with the International Financial Reporting Standards (IFRS) sustainability disclosure standards. These updates aim to increase transparency, improve corporate resilience, and attract investors by making disclosures more accessible and comparable.
The updated framework incorporates IFRS S1 for general sustainability-related financial disclosures and IFRS S2 for climate-related disclosures as its foundation. Listed issuers are required to include sustainability statements in their annual reports, detailing performance metrics and targets on sustainability-related risks and opportunities over the past three financial years. Disclosures must adhere to a prescribed format and include confirmation of internal review or external assurance.
The implementation will be phased, beginning January 1, 2025, for Main Market issuers with a market capitalisation of RM2 billion or more. Other Main Market issuers will comply by 2026, while ACE Market issuers will transition by 2027. During the transition period, companies will receive relief measures, focusing on climate-related disclosures for two to three years, based on their market tier.
Additional measures include requiring listed issuers to hold in-person or hybrid general meetings starting March 2025, fostering greater shareholder engagement. From January 2, 2025, listing advisers must be identified in public documents, ensuring accountability in the advisory process.
