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Saturday, May 25, 2024

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Bursa Malaysia enhances sustainability reporting listing requirements

Bursa Malaysia has enhanced the sustainability reporting requirements in the Main Market and ACE Market listing requirements to elevate sustainability practices and disclosures of listed issuers. The enhanced requirements are in line with the exchange’s continuous efforts to position itself as a leading exchange for ESG in the region with other recent efforts including the Publicly Listed Companies (PLC)Transformation Program and the upcoming launch of the voluntary carbon exchange market at the end of the year.

“The high bar that we have now set for all our listed issuers is underpinned by a multiyear, phased implementation approach to ensure a successful rollout … By embracing these enhancements, our listed issuers would boost their overall resilience, competitiveness and, in turn, appeal as attractive investments,” said Muhamad Umar Swift, CEO of Bursa Malaysia.

The enhanced sustainability reporting requirements will prime listed institutions to adopt international reporting frameworks and standards. The amendments will require main market listed issuers to include a set of prescribed sustainability matter and indicators that are deemed material for all issuers, climate change-related disclosures that align with the Task Force on Climate-related Financial Disclosures(TCFD) recommendations, a minimum of three financial years’ data for each reported indicator as well as corresponding targets and a statement on whether the issuer’s sustainability statement has been reviewed internally by internal auditors or independently assured.

Common indicators include diversity, energy management, health and safety, labor practices and standards, supply chain management, data privacy and security, water, waste management and emissions management, as detailed in the reporting guide. In conjunction with the introduction of the enhanced sustainability reporting requirements, Bursa Malaysia has launched the 3rd edition of its sustainability reporting guide in addition to updating other existing guides and toolkits.

The enhanced sustainability reporting requirements will be implemented through a phased and staggered approach, beginning with the disclosure of the common sustainability matters for the financial year ending (FYE) on or after the 31st December 2023, and culminating with the TCFD-aligned disclosures for FYE on or after the 31st December 2025.

“Come 2025, all Main Market listed issuers will be reporting TCFD-aligned disclosures where they will be internalizing climate change considerations in their business strategies as well as in responding to the needs of their key stakeholders,” said Julian Hashim, the chief regulatory officer of Bursa Malaysia.

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