Malaysia’s National Sustainability Reporting Framework (NSRF)

As part of Malaysia’s commitment to enhancing transparency and accountability in sustainability practices, the National Sustainability Reporting Framework (NSRF) aligns with the International Sustainability Standards Board (ISSB) standards. By addressing the growing demand for consistent and reliable sustainability information, the NSRF aims to strengthen Malaysia’s position as an attractive destination for investors.

Our latest report provides key insights into the framework’s implications for businesses. It outlines timelines for implementation for the applicable entities and the reliefs and exemptions designed to support organizations during the transition. The phased approach ensures that businesses at various levels of sustainability maturity can adapt effectively.

More than a compliance exercise, the NSRF offers businesses an opportunity to embed sustainability into their core strategies. By doing so, organizations can thrive in a competitive environment where sustainability is increasingly tied to long-term growth and investor confidence.

Benefits to the company

Adopting these standards will signify an important change in status, as they will increase the prominence and connectivity of sustainability reporting within the main financial filings. It is important to engage now to understand what this new global baseline will look like and to assess how your company needs to adapt.

Consistency in how companies report globally is important to support investor decisions, creating a more level playing field for companies seeking investment. The ISSB has not started from scratch in developing these standards – they are based on existing frameworks and standards.

Going forward, connected financial and sustainability reporting will be a requirement, rather than a feature, of good-practice reporting. The ISSB refers to the information disclosed as ‘sustainability-related financial disclosures’ – demonstrating that disclosures need to be connected with information in the financial statements, not a disconnected exercise. Finance and sustainability teams will need to work closely together to ensure the information disclosed is complementary and based on the same facts and circumstances.