KUALA LUMPUR (Dec 23): Malaysia’s listed companies must prepare sustainability reporting in their annual reports using the IFRS’ Sustainability Disclosure Standards, Bursa Malaysia announced on Monday.

The requirement applies to both Main Market and ACE Market listed companies in stages, Bursa said in a statement. This will align them with the National Sustainability Reporting Framework launched on Sept 24, the exchange noted.

“These enhancements are designed to improve the transparency and accountability of how listed issuers manage their sustainability-related risks and opportunities using a globally recognised standard,” Bursa said, noting that the measure will ultimately ease reference and comparability.

To ease the transition, listed issuers can apply the IFRS standards with specific reliefs, focusing on a climate-first approach, for two full financial years for Main Market issuers, and three full financial years for ACE Market issuers.

Large listed firms on the Main Market with a market capitalisation of at least RM2 billion are required to adopt the IFRS standards for annual reporting starting on Jan 1, 2025, and the rest will follow suit a year later.

For ACE Market listed corporates, the implementation will begin on Jan 1, 2027.