SC Panel Adopts Phased Approach To Sustainability Reporting Gaps

KUALA LUMPUR, Dec 8 (Bernama) -- The Securities Commission Malaysia (SC), as chair of the Advisory Committee on Sustainability Reporting, said its approach to addressing non-compliance with regulatory sustainability reporting requirements was developed in alignment with the National Sustainability Reporting Framework (NSRF).

The SC, together with Bank Negara Malaysia, Bursa Malaysia, the Companies Commission of Malaysia and the Audit Oversight Board, will focus on a phased and practical approach in reviewing disclosures, a statement from SC said today.

SC chairman Datuk Mohammad Faiz Azmi said the regulator recognised the challenges companies face in meeting the new sustainability reporting standards due to, among others, a lack of resources, the quality of external data or the difficulty in obtaining necessary expertise.

“Our approach is to balance the need for compliance with the varied levels of readiness across reporting entities,” he said.

Therefore, emphasis will be placed on capacity building and skills enhancement during the review to ensure reasonable and meaningful progress by reporting entities in disclosing consistent, comparable and reliable sustainable information, Mohammad Faiz added.

“In the case of non-compliance generally, this may be addressed through active engagement and corrective action, among others,” he added.

This is to acknowledge the transition period for reporting entities to adopt the IFRS Sustainability Disclosure Standards, the statement said.

Launched in September last year, the NSRF marks a significant step to advance Malaysia’s corporate sustainability agenda.

It is applicable for listed issuers on Bursa Malaysia’s Main and ACE Markets and large non-listed companies with annual revenue of RM2 billion and above.

-- BERNAMA