Bursa Malaysia introduces mandatory ESG reporting platform for PLCs

• The addition of sustainability disclosures on the digital platform would allow for more standardised reporting and communication of such information, which is currently found in PLCs’ sustainability reports.

KUALA LUMPUR (Dec 5): Public-listed companies (PLCs) in Malaysia will soon have to use the Bursa Malaysia ESG Reporting Platform to comply with mandatory sustainability disclosures set by Bursa Malaysia Securities Bhd. 

The platform, which was launched by the regulator on Monday, will act as a repository for disclosures in a prescribed format. This was mandated under the regulator’s enhanced sustainability reporting requirements introduced last year, which involves Main Market and ACE Market PLCs.
 
The platform is free and accessible via the Bursa LINK system. A summary performance table, including indicators and data pertinent to the listed issuers’ material sustainability matters, will be generated. 

Bursa LINK is an existing system that enables electronic submissions by listed issuers and processing of these applications by Bursa Malaysia. The addition of sustainability disclosures on the digital platform would allow for more standardised reporting and communication of such information, which is currently found in PLCs’ sustainability reports.

A visual representation of these requirements is available in Bursa Malaysia’s Illustrative Sustainability Reporting Guide that was released earlier this year. Additionally, Bursa Malaysia issued user guides and videos to help listed issuers navigate the platform. These guides can be accessed by registered Bursa LINK users.

“We are pleased to see the enhanced disclosures being undertaken with noteworthy progress in sustainability-related practices and disclosures by many listed issuers even before the mandatory periods. This puts our listed issuers in good stead as Malaysia pushes the bar for more robust ESG disclosures over the next few years,” said Julian Hashim, chief regulatory officer of Bursa Malaysia in the press release.

To recap, the enhanced requirements introduced last year include disclosure of Common Sustainability Matters with accompanying indicators for all listed issuers, regardless of sector. These matters are: Anti-corruption, community or society, diversity, energy management, health and safety, labour practices and standards, supply chain management and data privacy and security, and water.

Additionally, listed issuers have to disclose quantitative information for every material sustainability matter, which covers three financial years’ data for each indicator, performance targets and summary of such data and corresponding performance targets in a prescribed format.
These requirements are to be complied with in a phased manner.
 
For instance, Main Market-listed issuers must disclose the Common Sustainability Matters above for the financial year ending on or after Dec 31, 2023, while disclosure of waste management and emissions indicators are only required on or after Dec 31, 2024. Meanwhile, reporting aligned with the Taskforce on Climate-related Financial Disclosure is only applicable on or after Dec 31, 2025.

ACE Market-listed issuers only have to disclose common sustainability matters for the financial year ending on or after Dec 31, 2025, and enhance their prescribed general disclosures — as is already required of Main Market listed issuers — by Dec 31, 2024. 

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