What specific disclosures will the first phase of NSRF focus on?

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The Initial Phase of the National Sustainability Reporting Framework Will Concentrate on Disclosing Sustainability Risks and Climate-Related Issues, Including Greenhouse Gas Emissions

The first phase of Malaysia's National Sustainability Reporting Framework (NSRF) will mandate the disclosure of sustainability risks and climate-related matters, with a specific emphasis on greenhouse gas (GHG) emissions. This initial rollout will encompass 130 companies, and their inaugural reports are scheduled for submission in 2026.
Focus on Sustainability Risks and Climate-Related Issues

The primary objective of the initial phase of the NSRF is to establish a baseline for how companies report on their environmental and social impact. This involves identifying and disclosing potential sustainability risks that could affect their operations or financial performance, as well as detailing their exposure to climate-related challenges. The framework aims to foster a deeper understanding among businesses of their environmental footprint and its broader implications.
Inclusion of Greenhouse Gas Emissions

A critical component of the first phase's disclosure requirements is the reporting of greenhouse gas (GHG) emissions. This focus stems from the scientific consensus on climate change, highlighting the urgency of tracking and mitigating human activity's contribution to global warming. By requiring companies to quantify and report their GHG emissions, the NSRF seeks to drive accountability and encourage efforts to reduce these emissions.
Rollout Timeline and Company Involvement

The implementation of the NSRF is being phased in to allow for a structured adoption process. The first phase, starting in 2025, will involve a select group of 130 companies. These companies are expected to submit their sustainability reports in 2026. Following this initial cohort, other companies listed on Bursa Malaysia's main market will be required to comply in 2026, with issuers on the ACE Market and larger unlisted firms expected to adopt the standards by 2027. This phased approach is designed to facilitate a smoother transition and provide adequate support to businesses as they integrate these new reporting practices.

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What specific disclosures will the first phase of NSRF focus on?

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