Bursa Malaysia’s Amendments on Sustainability Reporting Requirements (2024)
Back in 2022, Bursa Malaysia introduced significant enhancements to sustainability reporting, signaling a clear shift towards more structured and decision-useful disclosures. Since then, the regulatory landscape has continued to evolve.
On 23 December 2024, Bursa Malaysia announced further amendments to both the Main Market and ACE Market Listing Requirements to align sustainability reporting with the National Sustainability Reporting Framework (NSRF) issued by the Securities Commission Malaysia. These amendments represent an important step towards globally aligned, investor-focused sustainability disclosures.
This article highlights the key changes, implementation timelines and what listed issuers should be doing now to prepare.
Alignment with the NSRF and IFRS Sustainability Standards
Under the revised requirements, listed issuers are required to prepare a Sustainability Statement in their annual reports in accordance with the IFRS Sustainability Disclosure Standards, namely:
- IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information; and
- IFRS S2 – Climate-related Disclosures.
In line with this shift, Bursa has replaced references to “economic, environmental and social risks and opportunities” with the broader concept of sustainability-related risks and opportunities (SROs). The focus is no longer on narrative sustainability reporting alone, but on disclosures that explain how sustainability matters affect enterprise value, strategy and performance.
With the introduction of the new Sustainability Reporting Requirements:
- the previous TCFD-aligned climate disclosures and certain prescribed common sustainability matters introduced in 2022 have been disapplied;
- issuers that have already begun TCFD-aligned reporting will, however, find themselves better positioned to transition to IFRS S2, as the standard builds upon TCFD principles with greater specificity.
Main Market: Phased Implementation Based on Issuer Size
For Main Market-listed issuers, the adoption of the new sustainability reporting requirements will be implemented in phases:| 1 | Group 1 issuers (with a market capitalisation of RM2 billion or above as at 31 December 2024) are required to adopt the new requirement for financial years ending on or after 31 December 2025. |
| 2 | Group 2 issuers (all other Main Market issuers) shall comply with the requirement for financial years ending on or after 31 December 2026. |
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Before the IFRS Effective Date |
After the IFRS Effective Date |
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Financial Year Ended on or after December 31 |
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1 |
2024 |
– |
2025 |
2026 |
2027 & onwards |
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2 |
2024 |
2025 |
2026 |
2027 |
2028 & onwards |
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A. Management of material economic, environmental and social risks and opportunities with prescribed information (including governance structure, scope and basis of scope, and materiality assessment) |
Transition Reliefs |
Full Adoption |
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A. Management of climate-related risks and opportunities using the IFRS S2 Climate-related Disclosures
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A. Management of sustainability-related risks and opportunities using the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 |
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B. 3 financial years’ data and targets (if any) in relation to reported indicators and summary in the prescribed format |
B. Focus on disclosing climate-related risks and opportunities for principal business segments |
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C. Statement of Assurance |
C. Not required to disclose Scope 3 greenhouse gas emissions, except for categories already required |
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D. 9 common sustainability matters (no longer required to disclose waste and emissions management) |
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D. Quantitative Information (metrics and targets in relation to climate-related risks and opportunities) for the last 3 financial years |
B. Quantitative Information (metrics and targets in relation to sustainability and climate-related risks and opportunities) for the last 3 financial years |
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E. Statement of Assurance |
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ACE Market: Single Effective Date with Transition Period
For ACE Market-listed corporations, the Sustainability Reporting Requirements will take effect for annual reports issued for financial years ending on or after 31 December 2027.
Before the IFRS Effective Date | After the IFRS Effective Date | ||
Financial Year Ended on or after December 31 | |||
2024 | 2025 – 2026 | 2027 – 2029 | 2030 & onwards |
Management of material economic, environmental and social risks and opportunities, containing information that is balanced, comparable and meaningful
| A. Management of material economic, environmental and social risks and opportunities with prescribed information (governance structure, scope & basis for scope, material sustainability matters)
| Transition Reliefs | Full Adoption |
A. Climate-related risks and opportunities in accordance with IFRS S2 Climate-related Disclosures
| A. Sustainability-related (both climate and non-climate) risks and opportunities in accordance with IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2
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B. Focus on disclosure for principal business segments
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C. Not required to disclose Scope 3 greenhouse gas emissions except for categories already required by regulators
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B. 3 financial years’ data and targets (if any) in relation to reported indicators and summary in the prescribed format
| D. Quantitative Information (metrics and targets in relation to climate-related risks and opportunities) for the last 3 financial years, subject to their impact assessment
| B. Quantitative Information (metrics and targets in relation to sustainability and climate-related risks and opportunities) for the last 3 financial years
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E. Statement of Assurance
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What Companies Should Be Doing Now
- assessing data availability and gaps against IFRS S1 and S2 requirements;
- strengthening governance, controls and internal processes around sustainability data;
- integrating climate and sustainability considerations into risk management and strategy; and
- considering the role of internal review or external assurance early in the process.