SC Setting Up Inter Agency Committee To Support Implementation Of ISSB Standards

The Securities Commission Malaysia with endorsement from the Ministry of Finance, has set up a national-level Advisory Committee on Sustainability Reporting (ACSR) to support the implementation of the IFRS Sustainability Disclosure Standards (ISSB Standards) in Malaysia.

The ISSB Standards are expected to be issued by the International Sustainability Standards Board at the end of June this year. Chairman Dato’ Seri Dr. Awang Adek Hussin said that the setting up of ACSR is timely as businesses and investors face real sustainability risks, for example, financial losses from disruption to operations and supply chain due to extreme weather conditions, but also opportunities including to decarbonise and transition to clean energy. “Reliable and comparable sustainability-related information across markets is therefore crucial to support the design of strategies, action plans and capital allocation decisions,” he said.

The ACSR will look into the enablers that would support the implementation of the ISSB Standards in Malaysia. This includes approach and timeline for implementation, taking into careful consideration market readiness to meet the reporting requirements. In order to address reliability of the information and mitigate concerns of greenwashing, the ACSR will also discuss matters related to assurance of sustainability statements.

The IFRS Trustees Foundation announced the formation of the ISSB at the 2021 United Nations Climate Change Conference (COP26). The ISSB was established to develop a comprehensive global baseline for sustainability reporting that would meet the needs of investors and the financial markets

The enhanced requirements are built on the TCFD core pillars adopted by the ISSB in developing the ISSB Standards. These are governance, strategy, risk management, as well as key metrics and targets. This similarity between Bursa’s sustainability reporting requirements and the ISSB Standards, provides good grounds for listed issuers on Bursa to move towards more advanced reporting requirements.

The ACSR, chaired by the SC, comprises representatives from Bank Negara Malaysia, Bursa Malaysia, the Companies Commission of Malaysia, the Audit Oversight Board and the Financial Reporting Foundation.

Previous articlePM Launches MASIC AT LIMA 2023
Next articleMalaysia’s Aerospace Sector Secures RM5.7 Billion Contract


Please enter your comment!
Please enter your name here