In a statement, SC said that ISSB has developed its first two standards after extensive feedback and calls from the Group of 20 (G20), the financial stability standards boards, the International Organization of Securities Commissions (IOSCO), and the business and investor communities for a common standard to disclose sustainability information and climate-related risks and opportunities.
The first two international financial reporting standards (IFRS) are called the IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures).
SC chairman Awang Adek Hussin said the financial sector, particularly the capital market, must continue to facilitate financing and investments in support of the government’s key initiatives to address sustainability-related issues including the impact of climate change on the economy.
“To facilitate fundraising, the availability of reliable and comparable disclosure that is based on international standards is important.
“Equally important will be the exercise of proportionality in the use of these standards and for interoperability between global and domestic frameworks, to ease some of the challenges companies may face as they transition to the new standards,” he said.
The online public consultation is scheduled for six weeks and the public can provide views and feedback on critical considerations, including implementation approach, timing, and assurance of sustainability disclosures in Malaysia.
Meanwhile, SC managing director and ACSR chairman Kamarudin Hashim said while the immediate consideration is for the ISSB standards to be applicable for listed issuers, there is also demand for sustainability-related action and information on non-listed issuers.
“As such, we strongly encourage all stakeholders, including preparers, investors, sustainability assurance providers, rating agencies, and others to share their views, as this will help shape the national sustainability reporting framework,” he said.
SC said the ACSR was formed with the endorsement of the finance ministry and comprises representatives from Bank Negara Malaysia, Bursa Malaysia Bhd, the Companies Commission of Malaysia, the Audit Oversight Board, and the Financial Reporting Foundation.
Last year, ACSR met with senior representatives from the International Auditing and Assurance Standards Board (IAASB) to get a better understanding of the proposed assurance standards for sustainability information, which the IAASB has developed and made available for public consultation between August and December 2023.
It said a robust assurance framework is important to ensure the reliability of the sustainability information disclosed and to mitigate the risk of greenwashing.