The New Bursa Listing Requirement on Sustainability Reporting

While most Bursa listed companies have shown good progress in their annual sustainability disclosures, there have been tremendous developments and changes in the sustainability reporting landscape in the regional and international capital markets, pushing the reporting expectations further.  
This phenomenon was driven by the ever-increasing demands of various stakeholders and the drastic effects of climate change on the planet.  Hence, Bursa has reviewed and revised the existing sustainability reporting requirement to align with the international standards on sustainability disclosures.  

Under the new Bursa’s sustainability reporting framework, the four primary enhanced requirements are:

  • Disclosing the minimum (eleven) prescribed sustainability matters and indicators.  These prescribed sustainability matters are Anti-Corruption, Community/ Society, Diversity, Energy Management, Health and safety, Labour Practices & Standards, Supply Chaim Management, Data Privacy and Security, Water, Waste Management and Emissions.
  • Improving climate change management by adopting climate-related disclosures based on the Task Force on Climate-related Financial Disclosures (“TCFD”) recommendations in a dedicated section within the Sustainability Statement.
  •  Disclosing the progress and achievement (at least on three (3) financial years rolling basis) of the sustainability performance targets for each of the prescribed sustainability matters.
  •  Requiring the Sustainability Statement to be reviewed by the internal auditor or an independent assurance provider.

The above new requirements will be implemented on a phased approach, considering that listed companies need time to prepare and implement the relevant sustainability practices, policies, procedures and board oversight structure.  In this case, PLCs are given five (5) years to implement this new framework completely.  The following table summarises the new disclosure and the respective effective dates.  

Financial Year Ended on or after December 31:
2023 2024 2025 2026 2027
A. Disclose the following Common Sustainability Matters (“CSM”), their indicators and management:
  • Anti Corruption
  • Community/ Society
  • Diversity
  • Energy Management
  • H&S
  • Labour Practices & Standards
  • Supply Chain Management
  • Data Privacy and Security
  • Water
In addition to the 9 CSM, disclose indicators and management for:

  • Waste Management
  • Emissions
  • TCFD-aligned Disclosure covering 4 Thematic Areas and 11 Recommended Disclosures:

    A. Governance
    • Board oversight function
    • Management’s role in assessing and managing climate-related risks and opportunities
    B. Strategy
    • Short, medium and long-term climate-related risks and opportunities
    • Impact of climate-related risk and opportunities on business, strategy and financial planning*
    • The resilience of the organisation’s strategy in addressing climate-related scenarios, including a 2-degree Celsius deviation of the global temperature*
    C. Risk Management
    • Process for identifying, assessing and managing climate-related risks
    • How climate-related risk management processes are integrated into the organisation’s overall risk management*
    D. Metrics and Targets
    • The assessment metrics used for the strategy and risk management processes
    • Scope 1,2 and 3 (if applicable) for GHG emission and the related risks
    • Targets set for managing the climate-related risk and opportunities and the target achievement

    At a minimum, disclose the progress and status towards meeting full disclosure of the Specified Elements* for 2025 and 2026.
    Disclose the complete TCFD-aligned Disclosures
    B. For each of the above CSM, disclose:
    • 3 financial year data on a rolling basis
    • Performance target for the indicators (if any)
    • Summary of these data and the performance in a prescribed format

    C. Statement of Assurance