KUALA LUMPUR: The Advisory Committee on Sustainability Reporting (ACSR), led by the Securities Commission Malaysia, has introduced a phased compliance strategy designed to help reporting entities transition more effectively into the sustainability reporting requirements mandated under the NSRF.
SC chairman Datuk Mohammad Faiz Azmi explained that many companies are still grappling with foundational challenges, including insufficient ESG expertise, inconsistent external data sources, and limited internal systems to support the complexity of IFRS-aligned sustainability disclosures.
As such, the regulator aims to create an enabling environment that prioritizes capability development over punitive enforcement.
Under this approach, regulatory reviews will focus on progressive disclosure quality, structured engagement sessions, technical guidance and corrective action pathways.
The SC intends for this transition period to allow companies to build internal reporting maturity, ensuring that disclosures eventually meet global standards of comparability, transparency and auditability.