One of our missions is to conduct research on areas that are pertinent to directors and boards. Research findings will be shared with ICDM members and the business
community. Detailed research reports will be made available to ICDM members only. If you have any suggestions on what you like to see in our research work, please email
us at advocacy@icdm.com.my.

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National Sustainability Reporting Framework | Navigating the Transition: A Guide for Boards

Navigating the Transition: A guide for boards document is intended to be a simplified guide for boards to use the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, and IFRS S2 Climate-related Disclosures (collectively referred to as the ISSB Standards). It outlines key questions and considerations as companies prepare to use the standards. The guide is not exhaustive and boards are encouraged to undertake the necessary measures to ensure they have the capacity required to undertake their duties effectively in relation to sustainability reporting

Energy Efficiency and Conservation Act (EECA) 2024

The Energy Efficiency and Conservation Act (EECA) 2024 was enacted to regulate the efficient consumption and conservation of energy in Malaysia. The Act aims to improve energy efficiency across various sectors, reduce waste of energy, and support the country’s environmental goals, including carbon neutrality by 2050. The Act applies to large energy consumers, specific buildings, and energy using products, setting out the roles and responsibilities of stakeholders to ensure compliance with energy efficiency standards.

ClimateEarth | Guide on Climate Action for Boards in Southeast Asia

The urgency for corporate directors in Southeast Asia to act swiftly in response to climate change cannot be overstated. With the region’s economy growing at an average of 5% annually and heavily reliant on fossil fuels, the potential for greenhouse gas emissions to surge dramatically by 2050 poses a significant challenge. As stewards of their organisations, directors hold a pivotal role in integrating climate considerations in their decision-making processes. This guide serves as a crucial resource for navigating the complexities of evolving climate-related frameworks and standards, empowering directors to lead their companies toward sustainable practices while safeguarding their business interests.

Corporate directors need to address climate change as a significant risk, as it poses clear financial, legal and environmental concerns. Governments across the region are implementing policies aimed at transitioning to a zero-carbon economy. Legal risks associated with climate change are becoming increasingly pronounced, with growing litigation against corporates and board directors for failing to address foreseeable climate impacts and financial losses due to mismanagement.

This Guide highlights various forms of legal risks such as climate litigation, including cases of greenwashing, corporate liability for climate harm, and inadequate adaptation measures, with notable examples throughout the globe. It underscores that companies must not only comply with environmental regulations but also anticipate legal risks associated with their climate impact. Failure to do so may result in personal liability for directors, and legal liability and reputational damage for the corporations involved. The Guide also covers emerging legal and financial trends related to climate change, such as the growing importance of transition plans for effective decarbonisation, climate transition finance and the impacts of the EU’s Carbon Border Adjustment Mechanism and Corporate Sustainability Due Diligence Directive.

National Sustainability Reporting Framework

The Advisory Committee on Sustainability Reporting (ACSR) , with the endorsement of the Ministry of Finance, has developed the National Sustainability Reporting Framework (NSRF). This framework addresses the use of the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (ISSB), specifically the IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, and IFRS S2 Climate related Disclosures (collectively referred to as the ISSB Standards), as the baseline sustainability disclosure standards for companies in Malaysia, as well as the assurance requirements for sustainability reporting.

By using the ISSB Standards as the baseline sustainability disclosure standards, the NSRF aims to enhance the availability of consistent, comparable and reliable sustainability information including on climate-related risks and opportunities. This not only strengthens Malaysia’s attractiveness as an investment destination, but also aligns investment flows with our national targets and aspirations.

Guidelines for the Reporting Framework for Beneficial Ownership of Companies

The Guidelines for the Reporting Framework for Beneficial Ownership of Companies are issued pursuant to section 20C of the Companies Commission of Malaysia Act 2001 [Act 614] (CCMA 2001) and section 60A of the Companies Act 2016 [Act 777] (CA 2016).

The Guidelines are issued to assist companies to understand and fully comply with the beneficial ownership reporting requirements pursuant to the amendments made to the CA 2016. In particular, the Guidelines will highlight the criteria in determining a beneficial owner, the obligation of companies to provide the name of a senior management where a beneficial owner cannot be identified and other related obligations.