SUSTAINABILITY reporting is now crucial for businesses to remain competitive. Regulations such as the European Sustainability Reporting Standards (ESRS), Carbon Border Adjustment Mechanism (CBAM), and Withhold Release Orders (WRO) compel companies to adopt sustainable practices to retain market access.
CBAM enforces carbon pricing on imports to align with the European Union (EU) climate goals, affecting nearly 57% of Malaysia’s exports to the EU by 2026 (BNM, 2023). Similarly, the ESRS, under the EU’s Corporate Sustainability Reporting Directive (CSRD), mandates comprehensive ESG disclosures, increasing transparency obligations for Malaysian firms exporting to the EU.
