Bursa Malaysia Enhances Sustainability Reporting Framework to Align with Global Standards

In 2015, Bursa Malaysia launched a sustainability reporting framework for listed corporations (“PLCs”) ("Sustainability Framework") as part of its effort to advance sustainability in the capital market.

PLCs began their sustainability journey with the flexibility to manage their sustainability matters as they saw fit, recognising the nascent stage of sustainability and their limited resources for extensive initiatives. However, in view of new developments driven by growing stakeholder demands for better practices and more meaningful, comparable disclosures, listed corporations now operate in a significantly evolved sustainability ecosystem.

To address these changes, Bursa revised the Sustainability Framework in 2022 to align with global developments and address the distinctive informational needs of key capital market stakeholders.

Key features of the Enhanced Sustainability Framework include:

Phased Implementation: The enhanced disclosures will be introduced gradually, beginning with the Sustainability Statements from Main Market PLCs for the financial year ended 31 December 2023.
Common Material Sustainability Matters: The framework identifies 11 common material sustainability matters that Main Market PLCs must manage and report on, including:
a. Anti-corruption
b. Community / Society
c. Diversity and inclusion
d. Energy management
e. Health and safety
f. Labour practices and standards
g. Supply chain management
h. Data privacy and security
i. Water management
j. Waste management
k. Emissions management
Specific Indicators: For each sustainability matter, specific indicators are outlined for PLCs to measure and report their performance. Examples include total energy consumption and total volume of water used.
Three Years’ Data: PLCs are required to disclose data for each indicator across three financial years to demonstrate the effectiveness of their sustainability practices over time.

These enhancements aim to keep the framework relevant and drive PLCs to adopt international best practices, ultimately enhancing the overall sustainability performance and reporting quality of these companies.

While the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations have become a de facto standard for climate reporting, the landscape is evolving rapidly. The recent public consultation by the Advisory Committee on Sustainability Reporting (ACSR) on a new global baseline for sustainability reporting hints at potential shifts in the approach. Investors and regulators alike are demanding greater transparency and decision-useful information on climate risks and opportunities. The TCFD framework, while valuable, may need to adapt to incorporate these emerging demands, potentially leading to a more comprehensive and standardised approach to climate reporting in the coming years.

For a better overview of the Enhanced Sustainability Framework, please refer to our illustrative sustainability report (ISR) and guidance videos at:

Other Key Amendments

In 2023, we reviewed various areas of the Main Market Listing Requirements (“Main LR”), ACE Market Listing Requirements (“ACE LR”) and LEAP Market Listing Requirements (“LEAP LR”) (“Listing Requirements”) and the key rule amendments made for market efficiency and integrity are as follows:

No.	Key Amendments	Rules	Effective Date
Enhancing Regulatory Framework for Market Efficiency and Integrity
1.	Amendments to – a. facilitate the transfer of eligible LEAP Market listed corporations to the ACE Market (“transfer of listing”); and b. allow eligible LEAP Market Approved Advisers to act as adviser for the transfer of listing and certain prescribed corporate proposals namely bonus issue, private placements under a general mandate and dividend reinvestment schemes.	ACE LR	1 April 2023
2.	Amendments to – a. enhance transparency on conflict of interest (“COI”) or potential COI that a director or senior management has with the PLC group in immediate announcements and annual reports; and b. enhance the oversight of the audit committee over such COI situations.	Main LR and ACE LR	Staggered effective dates:- 26 May 2023 1 July 2023 30 June 2024
3.	Amendments to mandate sustainability training for directors under the Mandatory Accreditation Programme (in addition to the existing training on corporate governance and directors’ roles, duties and liabilities).	Main LR and ACE LR	1 August 2023
4.	Amendments to facilitate the continued operations of Bursa Malaysia Securities Berhad on a surprise holiday (i.e. unplanned or unanticipated public holiday in Kuala Lumpur).	Main LR, ACE LR and LEAP LR	10 January 2023