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Bursa Malaysia Releases Illustrative Sustainability Report






In September 2022, Bursa Malaysia Securities Berhad (Bursa) amended the Main Market Listing Requirements and the ACE Market Listing Requirements to introduce enhanced sustainability reporting requirements. Bursa also concurrently launched the Sustainability Reporting Guide and Toolkits (3rd Edition) (Sustainability Toolkits). The amendments and launching of the Sustainability Toolkits were to encourage listed issuers to adopt international standards when it comes to sustainability practices, in view of the increasing global awareness towards sustainability.

Following this, through a media release on 20.9.2023, Bursa unveiled the Illustrative Sustainability Report (ISR). Besides aiding listed issuers in complying with the enhanced sustainability reporting requirements, the release of the ISR is also aimed to enhance the commitment of listed issuers to sustainability practices and disclosures.

ISR

The ISR is used in conjunction with the Sustainability Toolkits for sustainability reporting by listed issuers. Broadly, the ISR offers:

(a) A visual representation of the enhanced sustainability-related disclosure requirements.

(b) Demonstration of flow of content, conciseness and readability of recommendations throughout to enable easy comprehension.

(c) Cross-references to corresponding requirements/recommendations of selected international sustainability reporting frameworks.

The ISR envisages listed issuers to set out its approach to sustainability under the following aspects:

(a) Sustainability Governance

(b) Stakeholder Engagement

(c) Material Matters

(d) Risk Management

(e) Sustainability Framework

The ISR also envisages listed issuers to state the management’s approach towards material matters, including but not limited to climate change, supply chain management, waste management, community investment and water management.

Additional Resource

In Bursa’s media release on the ISR, Bursa also revealed that they are actively developing another useful resource for sustainability reporting, i.e. the Sustainability Explainer Video, which will be available soon. The idea of the Sustainability Explainer Video is to simplify the reporting process and make it more accessible to listed issuers, ultimately ensuring a smoother transition.

Conclusion

As announced by Bursa in September 2022, the phased implementation of the enhanced sustainability reporting framework begins from financial year ending 31.12.2023. The release of the ISR is timely and listed issuers should refer to the ISR as well as the Sustainability Toolkits in complying with such reporting obligations. The ISR can be accessed on Bursa’s website as follows:



3 November 2023

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