Bursa Malaysia Securities Berhad (“Bursa Malaysia” or “the Exchange”) today published a consultation paper seeking public feedback on the proposal to enhance sustainability practices and disclosures in the marketplace.
The proposal comprises a new reporting framework for sustainability which involves changes to the Listing Requirements as well as a Sustainability Reporting Guide. Both are aimed at enhancing sustainability practices and moving the focus from reporting on corporate social responsibility activities to sustainability, i.e. how listed issuers manage material economic, environmental and social risks and opportunities (“Proposal”). In formulating the Proposal, the Exchange undertook extensive benchmarking studies and numerous engagements with various stakeholders.
Dato’ Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said, “As a gateway to a capital market, a stock exchange is uniquely placed to promote better disclosures of non-financial information and greater transparency on sustainability issues. Enhanced sustainability disclosures through our Proposal, will help meet the needs and expectations of investors and stakeholders and ultimately improve the integrity, quality and sustainability of our marketplace.”
He continued, “Embedding sustainability into business strategies has led corporations to better manage their risks and take advantage of opportunities as well as to address stakeholder expectations. It enables them to improve their competitiveness and foster long-term growth and survival.”
In order to promote awareness of the importance of embedding sustainability for the long term health and growth of the listed issuers, the Exchange proposes to issue a Sustainability Reporting Guide. The Guide also seeks to help listed issuers recognise sustainability-related issues impacting their business, provide guidance on how to embed sustainability within their business, as well as guidance on disclosure obligations pursuant to the Listing Requirements’ proposed changes.
In addition to the Guide, in order to foster stronger sustainability practices, the Exchange will also offer other guidance and training to listed issuers to assist them to improve sustainability performance and reporting. The Exchange plans to issue a Toolkit which will comprise practical tools to further augment the Sustainability Reporting Guide. The Toolkit will be made available at a later date on Bursa Malaysia’s website.
The public consultation paper is available on the Bursa Malaysia website at www.bursamalaysia.com. The public and market participants are encouraged to respond to the consultation paper by completing and submitting the Table of Comments attached to the consultation paper.