The Securities Commission Malaysia (SC) today released a simplified guide, ‘Navigating the Transition: A Guide for Boards’ (Board Guide) to support board of directors of companies in adopting the National Sustainability Reporting Framework (NSRF).
Launched in September last year, the NSRF is a significant step in advancing Malaysia’s corporate sustainability agenda.
Listed issuers on Bursa Malaysia’s Main and ACE Markets, as well as large non-listed companies (NLCos) with annual revenue of RM2 billion and above are expected to comply with the new reporting requirements in a phased approach[1].
The NSRF addresses the use of the IFRS® Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB), including IFRS S1 and IFRS S2. These standards ensure consistent and comparable sustainability-related financial disclosures.
The Board Guide provides board of directors with simplified and actionable steps on key areas such as governance, sustainability data boundaries, financial impact assessments, and integration with enterprise risk management systems.
Large companies (market capitalisation of RM2 billion and above) listed on Bursa Malaysia’s Main Market start NSRF implementation this year, showcasing Malaysia’s commitment to global best practices in corporate sustainability.
SC Chairman Dato’ Mohammad Faiz Azmi said, “The NSRF is not a compliance tool, but a blueprint for embedding sustainability in corporate decision-making.”
“With this guide, we are equipping boards to not only meet global standards but to lead with purpose and resilience in shaping a sustainable future for Malaysia,” he added.
To further support this transition, the Advisory Committee on Sustainability Reporting
(ACSR), has introduced PACE (Policy, Assumptions, Calculators, Education), an initiative offering training, tools, and resources to meet NSRF requirements in adopting the ISSB standards.
Other upcoming PACE initiatives include an Interoperability Module between the Global Reporting Initiative (GRI) and IFRS Sustainability Disclosure Standards, Illustrative Sustainability Reports to provide companies with illustrative references to guide their disclosures and an NSRF Preparers’ Programme to build capacity.
The Board Guide and other related resources are available at www.sc.com.my/nsrf. For more information or inquiries, please contact the ACSR Secretariat at nsrf@seccom.com.my.
[1] Large-listed issuers on the Main Market with market capitalisation of RM2 billion and above will begin using the ISSB Standards in 2025 (Group 1). This will extend to other Main Market listed issuers in 2026 (Group 2), followed by listed issuers on the ACE Market as well as large NLCos in 2027 (Group 3).
