KUALA LUMPUR, Sept 24 – From 2025, companies listed on Bursa Malaysia’s main market with a capitalisation of RM2 billion and above will be required to adhere to the National Sustainability Reporting Framework (NSRF), according to Finance Minister II Datuk Seri Amir Hamzah Azizan.

He said the framework, designed to address climate change, is also aimed at attracting investors.

"Sustainability is no longer an option but a necessity. Globally, companies are being held to the highest environmental and social standards, and Malaysia is no different,” he said.

"The government is committed to sustainable development, reflected in our policy frameworks and priorities.”

Securities Commission chairman Datuk Mohammad Faiz Azmi added that the first phase in 2025 will focus on disclosing sustainability risks and climate-related issues, including greenhouse gas (GHG) emissions.

"The scientific consensus is clear: the planet is warming, and human activity is the primary cause.

"The year 2023 was the hottest on record, and ocean temperatures continue to rise. This reporting framework will help companies understand their environmental impact,” he said.

The initial phase will involve 130 companies, with reports due in 2026. Other companies listed on the main market will follow in 2026, with ACE Market issuers and large non-listed firms adopting the standards by 2027.

The NSRF aligns with the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards set by the International Sustainability Standards Board (ISSB).

It aims to provide a globally recognised framework for reliable, comparable sustainability disclosures.

The Finance Minister also noted that Malaysia will need RM1.3 trillion by 2050 to meet its energy transition goals, including investments in renewable energy, energy efficiency, and green mobility.

The NSRF was developed through consultations with stakeholders, including local and foreign investors, and incorporates recommendations from the Taskforce on Climate-related Financial Disclosures (TCFD).

The Advisory Committee on Sustainability Reporting (ACSR), which developed the framework, plans to mandate reasonable assurance of sustainability data by 2027. The ACSR has also launched the PACE initiative to support businesses in adapting to the new requirements.