Malaysia considers mandatory sustainability reporting based on International Standards

The Securities Commission of Malaysia has announced the initiation of a consultation process regarding the potential adoption of the International Sustainability Standards Board (ISSB) standards, developed by the IFRS Foundation, as the foundation for mandatory sustainability reporting requirements for listed and large companies in the country.

This move follows the establishment of the Advisory Committee on Sustainability Reporting (ACSR) by the Malaysia Securities Commission last year, aimed at facilitating the incorporation of ISSB standards into a new National Sustainability Reporting Framework for Malaysia (NSRF). The framework aims to enhance sustainability reporting practices and support various elements, including assurance frameworks and capacity building.