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20 April 2022

On 23 March 2022, Bursa Malaysia Berhad (“Bursa Malaysia”) issued a public consultation paper on the proposed amendments to the Main Market Listing Requirements (“Main LR”) and ACE Market Listing Requirements (“ACE LR”) (“Proposed Amendments”) in relation to sustainability reporting requirements. The Proposed Amendments seek to, among other things, spur listed issuers to adopt better sustainability practices as well as requiring disclosures of prescribed sustainability matters which in turn build long-term business resilience and prosperity and contribute to the realisation of the country’s environmental, social and governance (ESG) agenda.

The key proposals relating to sustainability reporting requirements in the Main LR are as follows (“Proposed Main LR Sustainability Reporting Amendments”):

  • Requiring disclosure of prescribed sustainability matters and indicators that are deemed material for listed issuers across all sectors (“Proposed Common Sustainability Matters”);
  • Introducing climate change related disclosures in line with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations;
  • Requiring disclosure of prescribed sustainability matters and indicators that are deemed material for listed issuers in specified sectors;
  • Enhancing disclosure of quantitative information by requiring disclosure of the following:
  • at least three financial years’ data for each reported indicator;
  • performance target(s) in respect of each reported indicator; and
  • a summary of such data and corresponding performance target(s) in a prescribed format; and
  • Requiring a statement on whether the Sustainability Statement has been assured, and if so, the scope covered.

The key proposals relating to sustainability reporting requirements in the ACE LR are as follows:

  • Aligning the ACE Market sustainability reporting requirements with that of the Main Market, where appropriate, by:
  • requiring disclosure of the prescribed information currently stipulated for Main Market listed issuers i.e. sustainability governance, scope of Sustainability Statement and basis for the scope, materiality assessment and management of material sustainability matters;
  • requiring disclosure of the Proposed Common Sustainability Matters;
  • enhancing disclosure of quantitative information in the same manner as the Proposed Main LR Sustainability Reporting Amendments; and
  • requiring a statement on whether the Sustainability Statement has been assured, and if so, the scope covered.
  • Introducing disclosure of a basic plan to transition towards a low-carbon economy.

Interested parties are invited to submit their comments and feedback on the Proposed Amendments to Bursa Malaysia by 18 May 2022.