KUALA LUMPUR: The Securities Commission (SC) has released a simplified guide to support the board of directors of companies in adopting the National Sustainability Reporting Framework (NSRF).
The board guide, titled 'Navigating the Transition: A Guide for Boards' provides simplified and actionable steps on key areas such as governance, sustainability data boundaries, financial impact assessments and integration with enterprise risk management systems.
The NSRF that was launched in September last year serves as 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.
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.
"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," said SC chairman Datuk Mohammad Faiz Azmi.
To further support this transition, the advisory committee on sustainability reporting, 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 and IFRS Sustainability Disclosure Standards called Illustrative Sustainability Reports to provide companies with illustrative references to guide their disclosures and an NSRF preparers' programme to build capacity.