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Malaysia’s Largest Listed Companies Enter First NSRF Reporting Cycle as Readiness Gaps Emerge
SUBANG JAYA, SELANGOR, MALAYSIA, May 17, 2026 /EINPresswire.com/ -- Malaysia’s largest listed companies are now deep into their first year of mandatory climate-related disclosure under the National Sustainability Reporting Framework (NSRF), with governance readiness, climate scenario analysis, and emissions data emerging as key implementation challenges.
The NSRF, launched by the Securities Commission Malaysia, Bank Negara Malaysia, and Bursa Malaysia in September 2024, requires Group 1 Main Market issuers with a market capitalisation above RM2 billion to apply IFRS S1 and IFRS S2 climate-related disclosure standards for financial years beginning 1 January 2025.
The framework significantly expands disclosure expectations beyond traditional sustainability reporting, introducing investor-grade requirements around board oversight, climate risk governance, scenario analysis, and emissions reporting.
Approximately 130 listed companies, representing more than 80 per cent of Bursa Malaysia’s market capitalisation, fall within the first phase of implementation. Remaining Main Market issuers follow from FY2026, while ACE Market issuers and large non-listed organisations are expected to commence from FY2027.
CCR (Climate Change Response), which operates from Subang Jaya, says Malaysian organisations are facing the greatest implementation pressure around governance accountability, climate scenario modelling, and assurance-ready emissions data.
“Malaysia’s reporting environment has shifted from voluntary sustainability narratives to financially material climate disclosure obligations,” said Raj Aggarwal, Partner – Corporate Services at CCR. “The areas creating the most pressure for organisations are governance accountability, climate scenario analysis, and defensible emissions data capable of supporting future assurance requirements.”
Under IFRS S2, organisations are expected to demonstrate how climate-related risks and opportunities are governed at board level, assess resilience under different climate scenarios, and disclose Scope 1 and Scope 2 emissions, with phased progression toward Scope 3 reporting.
Bank Negara Malaysia’s Climate Risk Management and Scenario Analysis policy expectations have also reinforced similar requirements across the banking and financial services sector.
CCR’s Malaysia engagements currently focus on helping organisations strengthen board-level climate governance, undertake IFRS-aligned climate scenario analysis, and establish structured emissions data systems capable of supporting future assurance and disclosure obligations. The firm says growing international supply chain pressure is also accelerating climate disclosure maturity across Malaysia’s export-oriented sectors.
Malaysian manufacturers supplying into European and multinational markets are increasingly being asked to provide verified emissions information to support Carbon Border Adjustment Mechanism (CBAM) requirements and Scope 3 reporting obligations under international frameworks such as the European Sustainability Reporting Standards (ESRS).
Under the NSRF rollout:
• Group 1 Main Market issuers commenced IFRS S1 and S2 reporting from FY2025
• Remaining Main Market issuers commence from FY2026
• ACE Market issuers and large non-listed organisations commence from FY2027
As Malaysian organisations transition into mandatory climate-related financial disclosure, CCR is supporting businesses across the country to navigate evolving reporting obligations, strengthen governance and emissions data capability, and prepare for increasing assurance and regulatory expectations.
For more information, visit ccr.earth
The NSRF, launched by the Securities Commission Malaysia, Bank Negara Malaysia, and Bursa Malaysia in September 2024, requires Group 1 Main Market issuers with a market capitalisation above RM2 billion to apply IFRS S1 and IFRS S2 climate-related disclosure standards for financial years beginning 1 January 2025.
The framework significantly expands disclosure expectations beyond traditional sustainability reporting, introducing investor-grade requirements around board oversight, climate risk governance, scenario analysis, and emissions reporting.
Approximately 130 listed companies, representing more than 80 per cent of Bursa Malaysia’s market capitalisation, fall within the first phase of implementation. Remaining Main Market issuers follow from FY2026, while ACE Market issuers and large non-listed organisations are expected to commence from FY2027.
CCR (Climate Change Response), which operates from Subang Jaya, says Malaysian organisations are facing the greatest implementation pressure around governance accountability, climate scenario modelling, and assurance-ready emissions data.
“Malaysia’s reporting environment has shifted from voluntary sustainability narratives to financially material climate disclosure obligations,” said Raj Aggarwal, Partner – Corporate Services at CCR. “The areas creating the most pressure for organisations are governance accountability, climate scenario analysis, and defensible emissions data capable of supporting future assurance requirements.”
Under IFRS S2, organisations are expected to demonstrate how climate-related risks and opportunities are governed at board level, assess resilience under different climate scenarios, and disclose Scope 1 and Scope 2 emissions, with phased progression toward Scope 3 reporting.
Bank Negara Malaysia’s Climate Risk Management and Scenario Analysis policy expectations have also reinforced similar requirements across the banking and financial services sector.
CCR’s Malaysia engagements currently focus on helping organisations strengthen board-level climate governance, undertake IFRS-aligned climate scenario analysis, and establish structured emissions data systems capable of supporting future assurance and disclosure obligations. The firm says growing international supply chain pressure is also accelerating climate disclosure maturity across Malaysia’s export-oriented sectors.
Malaysian manufacturers supplying into European and multinational markets are increasingly being asked to provide verified emissions information to support Carbon Border Adjustment Mechanism (CBAM) requirements and Scope 3 reporting obligations under international frameworks such as the European Sustainability Reporting Standards (ESRS).
Under the NSRF rollout:
• Group 1 Main Market issuers commenced IFRS S1 and S2 reporting from FY2025
• Remaining Main Market issuers commence from FY2026
• ACE Market issuers and large non-listed organisations commence from FY2027
As Malaysian organisations transition into mandatory climate-related financial disclosure, CCR is supporting businesses across the country to navigate evolving reporting obligations, strengthen governance and emissions data capability, and prepare for increasing assurance and regulatory expectations.
For more information, visit ccr.earth
Om Dubey
Climate Change Response Pty. Ltd.
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