Why take Sustainability Reporting Seriously?

Sustainability reporting has evolved from a “nice-to-have” corporate practice into a critical element of business strategy and compliance. As global and regional regulations, such as Bursa Malaysia’s enhanced sustainability reporting framework, mandate greater transparency and accountability, organizations are compelled to elevate their commitment to environmental, social, and governance (ESG) matters.

Here’s why sustainability reporting matters more than ever:

Regulatory Compliance and Avoiding Penalties
- The updated Bursa Malaysia framework now requires listed companies to disclose specific sustainability matters, TCFD-aligned climate-related disclosures, and quantitative data over at least three financial years. Non-compliance may result in reputational and financial risks, emphasizing the need to stay ahead of regulatory demands. Understanding these frameworks ensures organizations are well-prepared to meet these phased requirements.

Building Investor Confidence
- Investors are increasingly aligning their portfolios with ESG-focused companies. Transparency in sustainability reporting, backed by data and assurance, helps attract and retain investors by showcasing the company’s resilience, climate strategy, and long-term value creation.

Gaining Competitive Advantage
- As the corporate landscape shifts towards sustainability, organizations with robust sustainability practices gain a competitive edge. Comprehensive reporting demonstrates commitment to responsible practices, enhancing brand reputation and stakeholder trust.

Future-Proofing Against Climate Risks
- TCFD-aligned climate-related disclosures aim to prepare businesses for climate risks, fostering resilience. Addressing these risks is not only essential for compliance but also critical for ensuring the long-term viability of the business amidst climate challenges.

Meeting Stakeholder Expectations
- Beyond investors, customers, employees, and communities now expect corporations to operate responsibly. Sustainability reporting provides a transparent mechanism to communicate efforts, progress, and commitment toward addressing key ESG issues.

Driving Internal Accountability and Improvement
- By requiring internal audits or independent assurance, the new framework pushes companies to set meaningful targets, monitor their progress, and continually improve their performance. This approach fosters a culture of accountability and sustainable growth.

As the Bursa Malaysia phased approach begins with mandatory disclosures for financial years ending on or after 31 December 2023, organizations must act now to adapt their strategies and reporting mechanisms. Investing in a professional diploma in sustainability equips professionals with the skills and knowledge to navigate this evolving landscape, helping businesses achieve compliance while driving positive change for a sustainable future.

The time to take sustainability reporting seriously is now—not only to meet regulatory obligations but to seize the opportunities that come with being a responsible and forward-thinking organization.

Bursa Climate Change Reporting Requirement Deadlines

Main Market Listed Issuers:

Common Sustainability Matters:
- For Financial Year Ending (FYE) on or after 31 December 2023.
TCFD-Aligned Disclosures:
- For FYE on or after 31 December 2025.

ACE Market Listed Corporations:

Prescribed Sustainability Information:
- For FYE on or after 31 December 2024.
Basic Transition Plan:
- For FYE on or after 31 December 2026.

SOURCE: BURSA MALAYSIA

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