Bursa Malaysia's New Sustainability Rules Are Coming for Group 2 Companies — Are You Ready?
In December 2024, Bursa Malaysia adopted the National Sustainability Reporting Framework (NSRF), requiring all Main Market-listed companies to report under IFRS S1 (General Sustainability Disclosures) and IFRS S2 (Climate-Related Disclosures). This is the most significant overhaul of ESG reporting requirements in Malaysia's history.
The Three-Group Phased Timeline: Group 1 (market cap above RM2 billion) reports from FY2025. Group 2 (market cap below RM2 billion) reports from FY2026 — first reports due in 2027. Group 3 (ACE Market and large non-listed companies) follows from FY2027.
What Group 2 Must Report: Under IFRS S1 — Governance (board oversight of ESG risks), Strategy (how ESG affects your business model), Risk Management (ESG risk identification processes), and Metrics and Targets (quantitative data with up to 3 years of comparatives). Under IFRS S2 — Scope 1 and Scope 2 GHG emissions, climate scenario analysis, and climate governance disclosures. All submissions go through Bursa's Centralized Sustainability Intelligence (CSI) Platform.
Why Start Now: Building a compliant sustainability report is not a short exercise. It requires governance structures, materiality assessments, GHG data collection systems, board training, and third-party assurance. Companies that begin in 2025 will be far better positioned than those who scramble in 2026.
Your Next Steps: (1) Confirm your Group 2 classification based on market cap. (2) Conduct a gap assessment against IFRS S1 and S2. (3) Appoint a sustainability champion or engage a consultant. (4) Begin collecting GHG emissions data. (5) Plan board training and governance updates.
Contact Brandford Consulting today for a free initial consultation on your Group 2 compliance journey. We specialise in guiding Malaysian PLCs through every step of sustainability reporting.
Not sure if your company is ready for Bursa NSRF compliance? Take our free Self-Assessment and get your personalised gap analysis report in minutes.
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