Bursa Malaysia Sustainability Guideline Explained

Bursa Malaysia shapes how sustainability is reported and governed across Malaysia’s capital market since its sustainability disclosure was made mandatory in 2015. Its rules have gradually improved from then on, from simple CSR reports to more structured environmental, social, and governance (ESG) disclosures.

Today, the Bursa Malaysia sustainability reporting guide is integrated into listing obligations. All Main and ACE Market issuers are required to include a Bursa Malaysia sustainability report or statement in their annual report, involving topics on strategy, performance, and risk management. With the adoption of international standards such as IFRS S1 and S2, Bursa Malaysia sustainability reporting has developed into a central component of corporate accountability in Malaysia.

What is Bursa Malaysia’s sustainability?

The Bursa Malaysia sustainability framework is the regulatory structure that governs how listed companies identify, manage, and disclose their sustainability matters. These focus on economic, environmental, and social risks and opportunities that can influence financial and operational performance and long-term value.

The framework is primarily implemented through:

Bursa Malaysia Sustainability Reporting Guide: The guide explains the expectations, indicators, and best practices for the sustainability disclosures.
Listing Requirements: This provides the listed issuers for the Main and ACE markets to publish the minimum and required disclosures
Mandatory Sustainability Statements: These are sustainability disclosures in the Bursa Malaysia annual report.
Bursa LINK ESG Reporting Platform: The disclosure platform collects, validates, and keeps the ESG reports submitted.

While governance disclosures are addressed separately under the Malaysian Code on Corporate Governance, the Bursa Malaysia sustainability reporting concentrates on measurable EES impacts, management approaches, and performance outcomes.

Why is Bursa Malaysia’s sustainability important?

Sustainability risks have since been treated as financial risks, increasingly affecting how companies respond to climate exposure, constraints to resources and supply chain pressures and workforce practices. Business leaders have responded by committing to integrate sustainability into their core decision-making and initiatives.

Malaysia has committed to a 45% reduction in carbon intensity against GDP from its 2005 levels by 2030. The Bursa Malaysia sustainability reporting supports this, creating a consistent disclosure baseline across the market to reach the goal. It lets stakeholders, investors, and compare companies using structured ESG data. For companies, this strengthens risk oversight, capital access, and signals readiness for regulatory and market shifts, aligning with standards like GRI, TCFD, and now IFRS. Bursa Malaysia keep companies on the same level as global competitors with similar sustainability commitments.

Who needs to comply with Bursa Malaysia’s sustainability requirements?

All companies listed on Bursa Malaysia:

Main Market, including large and established issuers
ACE Market, covering high-growth companies

Sustainability reporting compliance applies regardless of sector. While the depth of disclosure may vary depending on size and complexity, every listed issuer must publish a sustainability statement as part of its Bursa Malaysia annual report.

Phased Adoption of Bursa Malaysia Sustainability Framework

The National Sustainability Reporting Framework (NSRF) policy implemented a phased adoption to allow companies to scale disclosures over time.

Phase	Issuer Category	Reporting Year	Disclosure Requirements
Phase 1	Large Main Market Issuers	FY ending on or after December 31, 2025.	Sustainability Statements aligned with IFRS S1 and S2, covering governance, strategy, risk management, metrics, targets, and three years of performance data, submitted via Bursa LINK
Phase 2	Remaining Main Market Issuers	FY ending on or after December 31, 2026	Full IFRS S1 and S2 alignment, including climate metrics, targets, transition plans, and the prescribed performance data table
Phase 3	ACE Market Issuers	FY ending on or after December 31, 2027	Phased IFRS S1 and S2 alignment, scaled to issuer size, with mandatory sustainability statements under Bursa Malaysia listing requirements

How is sustainability embedded within the organisation?

The Bursa Malaysia sustainability reporting guide places accountability at the board and senior management level. Companies are expected to integrate sustainability into business strategy, risk management, and operational planning, instead of a standalone business report.

Key expectations include:

Board oversight of sustainability matters
Clear governance structures for decision-making
Identification and prioritisation of material EES risks and opportunities
Defined management approaches, policies, and controls
Measurable targets and performance tracking

Materiality assessments are a core requirement for the Bursa Malaysia sustainability framework. Companies must explain why specific sustainability matters are relevant, how stakeholders were engaged, and how these matters influence strategy and performance.

What are the requirements for Bursa Malaysia sustainability?

Under the listing requirements, sustainability disclosures must present information that is balanced and substantial. These disclosures typically include:

Governance structures overseeing sustainability
Scope and boundaries of reporting
Identified sustainability matters
Management approach for each material matter
Key indicators, targets, and performance trends
Climate-related risks and opportunities
Assurance statements

Companies may use international frameworks as long as these disclosures meet Bursa Malaysia requirements. From 2025, disclosures must align with IFRS S1 and S2 under Malaysia’s National Sustainability Reporting Framework. Companies are required to report performance metrics, targets, and comparative data across several financial years, including the performance data table.

What is the scope of Bursa Malaysia’s sustainability?

The scope of sustainability reporting must be clearly defined. Businesses must specify which operations, geographies, subsidiaries, or value chain elements they include or exclude.

Disclosures are to cover:

Environmental factors such as emissions, energy use, waste, and water
Social factors, including labour practices, safety, diversity, and community impacts
Economic considerations linked to value creation and risk exposure

Bursa Malaysia’s sustainability reporting framework focuses on EES matters, with governance disclosures addressed separately under the Listing Requirements and the Malaysian Code on Corporate Governance.

How Presgo Supports Bursa Malaysia Sustainability Reporting

Presgo is an ESG reporting software that supports companies preparing a sustainability report for Bursa Malaysia with these ESG solutions in one modular platform.