KUALA LUMPUR — The mandatory reasonable assurance requirement for Scope 1 and Scope 2 greenhouse gas (GHG) emissions disclosures by Group 1 applicable entities under the National Sustainability Reporting Framework (NSRF) has been deferred to 2028.
The Advisory Committee on Sustainability Reporting (ACSR), chaired by the Securities Commission Malaysia (SC), said the requirement will now take effect for annual reporting periods beginning on or after Jan 1, 2028, instead of Jan 1, 2027.
Accordingly, the mandatory assurance requirements for Group 2 and Group 3 applicable entities will also be delayed by one year to 2029 and 2030, respectively.
The decision follows a review by the Minority Shareholders Watch Group (MSWG) and Climate Governance Malaysia (CGM) of the first cohort of 91 Group 1 listed issuers reporting under the IFRS Sustainability Disclosure Standards.
The review found that further improvements were needed in the quality of sustainability disclosures, the ACSR said.
It said the additional year would give preparers more time to strengthen their reporting processes, controls and data quality ahead of the implementation of mandatory assurance.
A public consultation was also held earlier to obtain industry feedback on the proposed framework and requirements.
During the extension period, listed issuers will continue to be required under the Main Market and ACE Market Listing Requirements to state whether their sustainability disclosures have undergone internal review by internal auditors or independent assurance by a sustainability assurance provider.
For independent assurance, the ACSR said the designated recognised assurance standard will now be International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.
The other two existing assurance standards, the International Standard on Assurance Engagements (ISAE) 3000 (Revised) and International Organization for Standardization (ISO) standards, will no longer be recommended.
The ACSR will also issue a Sustainability Assurance Guide to support sustainability assurance providers and facilitate the consistent application of sustainability assurance requirements.
The ACSR comprises representatives from the Audit Oversight Board, Bank Negara Malaysia, Companies Commission of Malaysia, Bursa Malaysia and the Financial Reporting Foundation. It was established to identify enablers supporting the implementation of the IFRS Sustainability Disclosure Standards in Malaysia, as well as the sustainability assurance framework.
