NATIONAL SUSTAINABILITY REPORTING FRAMEWORK (NSRF)
24th Sept 2024: Malaysia’s Finance Minister II Datuk Seri Amir Hamzah Azizan launching the Securities Commission Malaysia’s (SC) National Sustainability Reporting Framework (NSRF), accompanied by the SC chairman Datuk Mohammad Faiz Azmi and Ministry of Finance deputy secretary general (Investment) Datuk Dr Shahrazat Haji Ahmad.
The NSRF, according to the Securities Commission Malaysia (SC), addresses the use of the IFRS Sustainability Disclosures Standards issued by the International Sustainability Standards Board (ISSB) as the baseline for sustainability disclosures for companies in Malaysia.
The first phase, effective next year, will apply to large listed-companies on the Main Market with market capitalisation of RM2 billion and above.
This will then be extended to other Main Market listed issuers in 2026, followed by listed companies on the ACE Market as well as large non-listed companies in 2027, the SC said.
The NSRF is developed by the Advisory Committee on Sustainability Reporting (ACSR), which is chaired by the SC with members comprising representatives from Bank Negara Malaysia, Companies Commission of Malaysia, Bursa Malaysia Bhd and the Financial Reporting Foundation.
Finance minister II Datuk Seri Amir Hamzah Azizan, who graced the launch, said that the framework is more than just a regulatory advancement, as it addresses the information required by investors and financiers to help with capital allocation decisions.
More importantly, the new sustainability reporting framework promotes economic prosperity that is aligned with environmental stewardship and social responsibility, he said.
“We have seen the transformation in how investors approach their portfolios. Historically, financial metrics were the sole metric of success, but that is no longer the case today. This shift is not merely a trend but a reflection of a deeper understanding that long-term value creation is intrinsically linked with sustainable and ethical practices.
“Investors are evaluating companies based on their environmental impact, carbon footprint, waste management, to name a few — driven by the recognition that the financial risks associated with environmental degradation must be mitigated.
“In short, sustainability is not an option — it is a necessity. Companies worldwide are being held to higher standards of environmental and social performance, and Malaysia is no exception,” Amir added.
