In December 2024, Bursa Malaysia announced key amendments to the Main Market Listing Requirements (“MMLR”) in relation to the Sustainability Reporting Requirements and other enhancements, aligned with the National Sustainability Reporting Framework (“NSRF”).
Under these amendments, Bursa Malaysia has encouraged listed companies to aim for reasonable assurance for Scope 1 and Scope 2 greenhouse gas (“GHG”) emissions starting 2027, subject to further consultation with relevant stakeholders.
The recommended timeline for specified groups is:
| Group | Group Description | Recommended timeline for reasonable assurance for annual reporting periods beginning on or after |
|---|---|---|
|
1
|
Main Market listed issuers with market capitalisation of RM 2B and above
|
1 January 2027
|
|
2
|
Main Market listed issuers (other than Group 1)
|
1 January 2028
|
|
3
|
ACE Market listed issuers and non-listed companies (NLCos) with annual revenue of RM 2B and above
|
1 January 2029
|
Furthermore, listed issuers must include in their disclosures a statement whether they have subjected the Sustainability Statement to internal review by its internal auditor or independent assurance performed in accordance with recognised assurance standards. The subject matter(s) and scope must be included and for independent assurance, the conclusions must be disclosed.
Voluntary assurance matters more than ever
The NSRF states that external assurance on sustainability reporting by companies is “necessary to ensure reliability of sustainability disclosure and to address concerns on greenwashing.” While assurance is currently voluntary, regulators aim to raise the level of trust and confidence in sustainability reporting to that of audited financial statements.
Companies can prepare to meet the recommended timeline for reasonable assurance of their Scope 1 and 2 GHG emissions by starting with limited assurance. Limited assurance provides a lower level of assurance but establishes that the level of comfort provided is still meaningful.
Listed companies can choose to prepare by seeking limited assurance for their Scope 1 and 2 GHG emissions based on the International Standard on Sustainability Assurance (“ISSA”) 5000 requirements. ISSA 5000 applies to all assurance engagements on sustainability information, including those on GHG statements, which are currently undertaken in line with the International Standard on Assurance Engagements (“ISAE”) 3410.
While the ISSA 5000 is effective for assurance engagements on sustainability information reported 1) for periods beginning on or after 15 December 2026; or 2) as at a specific date on or after 15 December 2026, earlier application is permitted.
Assurance beyond GHG emissions makes a difference
Assuring Sustainability Statements for other sustainability information besides GHG emissions can help investors see the whole picture when it comes to a listed company’s risks and opportunities.
The impacts of climate change don’t show up in emissions calculations alone but have correlations with other corporate performance indicators, from Occupational Health and Safety to Board and Management Diversity.
Aligning with the NSRF’s expectations on limited and reasonable assurance can help listed companies to illustrate their long-term performance more clearly to investors.
Assuring your Scope 1 and 2 GHG Emissions
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