Bursa Malaysia enhances sustainability reporting framework with new climate change reporting

Bursa Malaysia Bhd CEO Datuk Muhamad Umar Swift

KUALA LUMPUR: Bursa Malaysia Securities Bhd has enhanced sustainability reporting requirements in the Main Market Listing Requirements (Main LR) and the ACE Market Listing Requirements (ACE LR), with the aim to elevate the sustainability practices and disclosures of listed issuers.

The stock exchange operator said there have been significant developments in the sustainability landscape, particularly on the climate change front, in recent years.

Responding to these, the exchange has enhanced the sustainability reporting requirements in the LR to ensure their continued relevance and to propel listed issuers to adopt international best practices.

“The scale of the sustainability reporting enhancements that we have introduced today sends a clear and unequivocal signal of Bursa Malaysia’s ambition to be the leading exchange for ESG in the region,” CEO Datuk Muhamad Umar Swift said in a statement.

“The high bar that we have now set for all our listed issuers is underpinned by a multi-year, phased implementation approach to ensure a successful rollout. More importantly, by embracing these enhancements, our listed issuers would boost their overall resilience, and competitiveness and, in turn, appeal as attractive investments.”

Bursa Malaysia said Main Market listed issuers would now be required to include the following disclosures in their sustainability statements:

(i) a common set of prescribed sustainability matters and indicators that are deemed material for all listed issuers;

(ii) climate change-related disclosures that are aligned with Task Force on climate-related financial disclosures (TCFD) recommendations

(iii) at least three financial years’ data for each reported indicator, corresponding targets (if any) as well as a summary of such data and corresponding performance target(s) in a prescribed format; and

(iv) a statement on whether the Sustainability Statement has been reviewed internally by internal auditors or independently assured.

The sustainability reporting requirements for ACE Market listed corporations have also been strengthened to align with those of the Main Market.

In addition, ACE Market listed corporations are now required to disclose a basic plan to transition towards a low carbon economy, with regards to climate change reporting. This not only facilitates ACE Market listed corporations in considering climate change-related risks and opportunities but also takes into account their maturity in this space.

The enhanced sustainability reporting requirements for Main Market listed issuers will be implemented in a phased manner, beginning with the disclosure of the common sustainability matters for the financial year ending (FYE) on or after Dec 31, 2023, and culminating with the TCFD-aligned disclosures for FYE on or after Dec 31, 2025.

Similarly, ACE Market listed corporations will adopt the enhanced sustainability disclosures on a staggered basis, with disclosures of the prescribed sustainability information taking effect for FYE on or after Dec 31, 2024, and concluding with disclosures of the basic transition plan for FYE on or after Dec 31, 2026.