The National Sustainability Reporting Framework (NSRF), which was introduced last year, compelled large non-listed companies (NLCOs) with annual revenue above RM2 billion to prepare sustainability reports for the first time, aligned with the International Sustainability Standards Board’s (ISSB) IFRS S1 and S2, which are seen as the global standard.
The National Sustainability Reporting Framework (NSRF), introduced in 2024, requires large non-listed companies (NLCOs) with annual revenue above RM2 billion to prepare sustainability reports aligned with the ISSB’s IFRS S1 and IFRS S2 standards.
This will need legislative amendments to the Companies Act 2016 and expansion of the Malaysian Accounting Standards Board (MASB)’s role to include sustainability disclosures.
By 2027, NLCOs must report climate-related risks and opportunities (IFRS S2), with Scope 3 emissions only mandatory by 2030. About 260 companies are affected, facing challenges like limited expertise, costs, and a shortage of assurance providers.
Support includes the PACE initiative, oversight by the Advisory Committee on Sustainability, and tax deductions for ESG-related expenses.
