Bursa Invites Feedback On Proposed Amendments On Sustainability Practice Disclosures

Bursa Malaysia Securities Berhad has requested public feedback on its proposed amendments to the Main Market Listing Requirements and the ACE Market Listing Requirements with the aim to elevate the sustainability practices and disclosures of listed issuers.

The Exchange added, since the launch of its Sustainability Reporting Framework in 2015, it has observed considerable improvements among listed issuers. However, as the global sustainability landscape has evolved significantly in recent years, the Exchange recognises the need to enhance the Sustainability Reporting Framework to ensure its continued relevance.

Datuk Muhamad Umar Swift, CEO of Bursa Malaysia said, “The enhanced sustainability reporting framework will serve as a spring board to propel listed issuers to adopt international best practices and realise our national aspiration to be a leading capital market for sustainability in the region.

“Listed issuers that do not embrace strong sustainability practices risk losing their competitiveness. It is imperative, therefore, that listed issuers be more transparent with their sustainability strategies and performance,” added Julian Hashim,
Chief Regulatory Officer of Bursa Malaysia.

Proposals for the Main Market Investors, providers of finance, and other stakeholders have expressed a need for increased availability, quality, and comparability of sustainability disclosures in the Malaysian capital market. In response, the Exchange is proposing to require the disclosure of prescribed sustainability matters and indicators that are deemed material for listed issuers across all sectors (“proposed common sustainability matters”).

Bursa also added that equally important is the urgent need to internalise and effectively manage climate change-related risks and opportunities in order to successfully transition to a low-carbon world. Combating the impacts of climate change will not only strengthen our listed issuers’ business resilience but will also realise Malaysia’s aspiration of becoming carbon neutral as early as 2050.

  1. Therefore, the Exchange proposes requiring all listed issuers to provide climate change related disclosures that are aligned with the Task Force on Climate-related Financial Disclosures (“TCFD”) Recommendations. Including:
    i. prescribing disclosure of prescribed sustainability matters and indicators that are deemed material for listed issuers in specified sectors;
    ii. requiring disclosure of data for at least three financial years and performance targets, for each reported indicator (“enhanced quantitative information”); and
    iii. requiring a statement whether the sustainability disclosures have been assured and if so, the scope of such assurance (“statement of assurance”).

It further proposes the sustainability practices and disclosures of the ACE Market listed corporations be strengthened to be on par with those of the Main Market. Adding that ACE Market listed corporations disclose the prescribed sustainability information currently stipulated for Main Market listed issuers, as well as the proposed common sustainability matters, enhanced quantitative information, and a statement of assurance.

Also requesting for a basic plan to facilitate ACE Market listed corporations in considering climate change risks and opportunities when transitioning towards a low carbon economy.

The consultation paper on the proposed amendments to the Listing Requirements is available at https://www.bursamalaysia.com/regulation/public_consultation. Interested parties are invited to submit their comments and feedback to Bursa Malaysia by 18 May 2022.

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