Key Changes in Bursa Malaysia’s Sustainability Reporting Framework
By: Dr Wong Ka Fee, Director
Bursa Malaysia has introduced substantial changes to its sustainability reporting framework through the Amendments to Sustainability Reporting Requirements and Other Enhancements, effective from 31 December 2024. Among the key developments is the reduction of common sustainability matters from eleven to nine, signalling a shift towards a more focused and streamlined disclosure framework.
At the same time, the amendments mark a broader transition from the Sustainability Reporting Guide (3rd Edition), which was largely guidance-based, to a more prescriptive and standards-aligned regime anchored on IFRS S1 and IFRS S2 issued by the International Sustainability Standards Board (ISSB). This article compares the 3rd Edition with the amended requirements, while highlighting key compliance obligations, effective dates, preparatory actions for different issuer groups, and the core disclosure expectations under Part A of Annexure PN9A-A.
Reduction of Common Sustainability Matters
Under the Sustainability Reporting Guide 3rd Edition, Main Market listed issuers were required to disclose 11 common sustainability matters, supported by prescribed indicators deemed material to all issuers. These matters formed a baseline for sustainability reporting and were intended to promote comparability across companies.
With the amended requirements, the number of common sustainability matters has been reduced from eleven to nine. This reduction does not represent a relaxation of sustainability expectations. Instead, it reflects Bursa Malaysia’s intention to remove overlaps, sharpen focus, and improve the relevance and decision-usefulness of sustainability disclosures. The revised framework places greater emphasis on how material sustainability matters are governed, managed, and measured, rather than on the volume of indicators reported.
Comparison Between the 3rd Edition and the Amended Requirements
The 3rd Edition primarily functioned as a guidance document, assisting issuers in preparing Sustainability Statements by drawing on multiple international frameworks such as GRI, TCFD, SASB, and early ISSB references. While it encouraged disclosure of material sustainability matters, it allowed flexibility in scope, interpretation, and reporting depth.
In contrast, the amended requirements adopt a standards-based approach, requiring Sustainability Statements to be prepared in accordance with IFRS S1 and IFRS S2. This represents a significant shift towards consistency, comparability, and alignment with global sustainability reporting practices. Sustainability reporting is no longer largely narrative-driven, but increasingly data-driven and performance-oriented.
Who Needs to Comply and Effective Dates
The amended sustainability reporting requirements apply to Main Market and ACE Market listed issuers, subject to phased implementation:
- Group 1: Listed issuers with market capitalisation of RM2 billion and above as at 31 December 2024 (or upon admission thereafter).
- Effective date: Financial year ending on or after 31 December 2025.
- Group 2: All other listed issuers.
- Effective date: Financial year ending on or after 31 December 2026.
This phased approach recognises differences in issuer readiness while ensuring a clear transition path.
Conclusion
In summary, the amendments represent a decisive shift from the guidance-based Sustainability Reporting Guide 3rd Edition to a more focused, standards-aligned sustainability reporting regime. The reduction of common sustainability matters from eleven to nine underscores Bursa Malaysia’s emphasis on materiality and reporting quality, while the alignment with IFRS S1 and S2 strengthens governance, data reliability, and accountability. Listed issuers are therefore expected to embed sustainability reporting more deeply into their corporate reporting and management processes.
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