KUALA LUMPUR (Sept 17): Malaysia has delayed the mandatory reasonable assurance requirements of applicable entities on their greenhouse gas (GHG) emissions by a year. 

A statement issued by the Securities Commission Malaysia, the Advisory Committee on Sustainability Reporting, which the commission chairs, annouced the delay in mandatory reasonable assurance requirements on Scope 1 and 2 GHG emissions disclosures for Group 1 entities from 2027 to 2028. 

"Accordingly, mandatory assurance for Group 2 and Group 3 applicable entities will also be delayed by one year to 2029 and 2030, respectively. 

"The additional year aims to support those preparing to strengthen reporting processes, controls and data quality ahead of mandatory assurance. 

"A public consultation period was held earlier to seek industry feedback on the proposed framework and requirements," it said in a statement. 

The decision follows a review by the Minority Shareholders Watch Group and Climate Governance Malaysia of the first cohort of 91 Group 1 listed issuers reporting under the IFRS Sustainability Disclosure Standards, which found that further improvements to the quality of disclosures are needed.  

Under this extension, listed issuers will continue to be required under the Main Market and ACE Market Listing Requirements to state whether their sustainability disclosures have been subject to internal review by internal auditors or independently assured by a sustainability assurance provider, the SC said.

"Any independent assurance must now be performed in accordance with the designated recognised assurance standard, i.e. ISSA 5000 only.

"The other two existing assurance standards, the International Standard on Assurance Engagements 3000 (Revised) and the International Organisation for Standardisation will no longer be recommended," it said.

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