National Sustainability Reporting Framework Sets Reporting Standard For Companies
KUALA LUMPUR, Sept 24 (Bernama) -- The National Sustainability Reporting Framework (NSRF) will help companies to adopt globally aligned sustainability reporting standard, said Finance Minister II Datuk Seri Amir Hamzah Azizan.
The NSFR is a framework which charts Malaysia’s approach for sustainability reporting, using the disclosure standards issued by the International Sustainability Standards Board (ISSB Standards) as well as a framework for sustainability assurance.
He said the NSRF, aimed at enhancing sustainability disclosure by companies, marks another significant step in Malaysia's commitment to integrate sustainability into the core of its economic development.
"It addresses the information needs of investors and financiers to help with capital allocation decisions, and more importantly, promotes economic prosperity which is aligned with environmental stewardship and social responsibility.
"Investors are evaluating companies based on their environmental impact, carbon footprint and waste management, driven by the recognition that the financial risks associated with environmental degradation must be mitigated," he said in his keynote address at the launch of the NSRF here today.
The minister noted that a key outcome from the NSRF is to support the ease of doing business with respect to sustainability reporting.
"The establishment of the ISSB and its two inaugural standards was to address the absence of a unified set of standards for sustainability reporting and the need for a single common language.
"By applying ISSB Standards, the NSRF provides companies with an internationally-recognised and standardised framework to provide reliable, decision-useful and globally comparable sustainability disclosures," he added.
According to Amir Hamzah, Malaysia now joins more than 20 jurisdictions -- collectively representing 55 per cent of the global gross domestic product -- which have decided or are taking steps to use the standards.
"The NSRF also has the support of government-linked investment companies which are prioritising investments that contribute to sustainability goals and address critical issues such as climate action, social inequality and economic inclusivity.
"This is reflected in their investment and engagement policy, as well as targets – including net zero portfolios and net zero emissions for their own operations by 2050," he said.
The NSRF was developed by the Advisory Committee on Sustainability Reporting, which was formed last year with the support of the Ministry of Finance.
Chaired by Securities Commissions of Malaysia, the committee comprises the Audit Oversight Board, Bank Negara Malaysia, Bursa Malaysia, Companies Commission of Malaysia and the Financial Reporting Foundation.
-- BERNAMA