SC, Bursa roll out mandatory sustainability onboarding programme for PLC directors

Securities Commission Malaysia building at Kuala Lumpur.

KUALA LUMPUR: The Securities Commission Malaysia (SC) and Bursa Malaysia today unveiled a mandatory onboarding programme on sustainability for directors of public listed companies (PLCs) on Bursa Malaysia.

The Mandatory Accreditation Programme (MAP) Part II: Leading for Impact (LIP) is an extension of the existing MAP, now known as MAP Part I, under Bursa Malaysia’s Main Market and ACE Market listing requirements.

In a joint statement, SC and Bursa Malaysia said MAP’s main focus is on corporate governance, including director’s roles, duties and liabilities and other obligations under the listing requirements.

The development of LIP is in line with the SC’s Corporate Governance Strategic Priorities 2021-2023, which is aimed at strengthening the ability of boards to address sustainability considerations effectively.

SC chairman Datuk Seri Awang Adek Hussin said it is important for boards to stay on top of sustainability-related developments so they can effectively manage sustainability risks while capitalising on new opportunities.

"This is especially important when stakeholders are becoming increasingly concerned about environmental, social and governance (ESG) issues,” he said.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said the introduction of LIP for PLC directors is timely, as it is a significant step towards strengthening the commitment towards ESG practices among boards.

"Bursa Malaysia will provide the necessary support and resources to assist our PLC directors in fostering sustainable growth within their organisations to ensure long-term value creation for stakeholders,” he said.

The listing requirements have been amended to require all first-time directors of PLCs on the Main and ACE Market of Bursa Malaysia and directors of listing or transfer applicants to attend LIP.

The requirement will come into effect on Aug 1, 2023. First-time directors and directors of listing and transfer applicants must complete the programme within 18 months from the date of appointment or admission, respectively.

Existing directors must complete the programme within 24 months from Aug 1, 2023.

Details on LIP will be made available on ICDM’s website at - Bernama

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