Kenyataan Media
BURSA MALAYSIA SEEKS PUBLIC FEEDBACK ON ENHANCED SUSTAINABILITY REPORTING PROPOSALS AND CLIMATE RELATED DISCLOSURES
Bursa Malaysia Securities Berhad (“Bursa Malaysia” or “the Exchange”) today issued a public consultation paper on the proposed amendments to the Main Market Listing Requirements (“Main LR”) and the ACE Market Listing Requirements (“ACE LR”) (collectively, “Listing Requirements”) with the aim to elevate the sustainability practices and disclosures of listed issuers.
Since the launch of its Sustainability Reporting Framework (comprising the Listing Requirements, Sustainability Reporting Guide and Toolkits) in 2015, the Exchange has observed considerable improvements among our listed issuers. However, as the global sustainability landscape has evolved significantly in recent years, the Exchange recognises the need to enhance the Sustainability Reporting Framework to ensure its continued relevance.
Datuk Muhamad Umar Swift, CEO of Bursa Malaysia said, “The enhanced sustainability reporting framework will serve as a spring board to propel listed issuers to adopt international best practices and realise our national aspiration to be a leading capital market for sustainability in the region.”
“Listed issuers that do not embrace strong sustainability practices risk losing their competitiveness. It is imperative, therefore, that listed issuers be more transparent with their sustainability strategies and performance,” added Julian Hashim, Chief Regulatory Officer of Bursa Malaysia.
Proposals for the Main Market
Investors, providers of finance and other stakeholders have expressed a need for increased availability, quality, and comparability of sustainability disclosures in the Malaysian capital market. In response, the Exchange is proposing to require the disclosure of prescribed sustainability matters and indicators that are deemed material for listed issuers across all sectors (“proposed common sustainability matters”).
Equally important is the urgent need to internalise and effectively manage climate change-related risks and opportunities in order to successfully transition to a low-carbon world. Combating the impacts of climate change will not only strengthen our listed issuers’ business resilience, but will also realise Malaysia’s aspiration of becoming carbon neutral as early as 2050. Therefore, the Exchange proposes requiring all listed issuers to provide climate change related disclosures that are aligned with the Task Force on Climate-related Financial Disclosures (“TCFD”) Recommendations.
Apart from the above, other key proposals include:
i. prescribing disclosure of prescribed sustainability matters and indicators that are deemed material for listed issuers in specified sectors;
ii. requiring disclosure of data for at least three financial years and performance targets, for each reported indicator (“enhanced quantitative information”); and
iii. requiring a statement whether the sustainability disclosures have been assured and if so, the scope of such assurance (“statement of assurance”).
Proposals for the ACE Market
The Exchange further proposes that, where appropriate, the sustainability practices and disclosures of the ACE Market listed corporations be strengthened to be on par with those of the Main Market. In this regard, the Exchange proposes that ACE Market listed corporations disclose the prescribed sustainability information currently stipulated for Main Market listed issuers[1], as well as the proposed common sustainability matters, enhanced quantitative information, and a statement of assurance. In addition, the Exchange proposes the disclosure of a basic plan to facilitate ACE Market listed corporations in considering climate change risks and opportunities when transitioning towards a low carbon economy.
The
consultation paper on the proposed amendments to the Listing Requirements is
available at https://www.bursamalaysia.com/regulation/public_consultation. Interested parties are invited
to submit their comments and feedback to Bursa Malaysia by 18 May 2022.
[1] This refers to the sustainability governance, scope of the Sustainability Statement and basis for the scope, materiality assessment and management of material sustainability matters.