Bursa Malaysia enhances reporting framework


Bursa Malaysia Bhd chief executive officer Datuk Muhamad Umar Swift

PETALING JAYA: Bursa Malaysia Securities Bhd has enhanced sustainability reporting in the Main Market Listing Requirements (Main LR) and the ACE Market Listing Requirements (ACE LR) in efforts to drive sustainability practices and disclosures of listed issuers.

In a statement yesterday, the stock exchange operator said that it has enhanced the sustainability reporting requirements in the LR to ensure continued relevance and to propel listed issuers to adopt international best practices on issues like climate change.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift believes the enhancements are a clear and unequivocal signal of the bourse’s ambition to be the leading exchange for environmental, social and governance (ESG) in the region.

“The high bar that we set for all our listed issuers is underpinned by a multi-year, 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,” he 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 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, according to the exchange.

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.

To recap, the local exchange launched a sustainability reporting framework in 2015 where listed issuers are required to disclose a narrative statement of the management of material economic, environmental and social risks and opportunities in their annual reports.

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