Last Monday (20 January 2025), the Securities Commission of Malaysia (“SC”) introduced a simplified guide titled “Navigating the Transition: A Guide for Boards” to help companies effectively adopt the National Sustainability Reporting Framework (“NSRF”).

The NSRF was introduced last September and marks a major milestone in Malaysia’s drive to advance corporate sustainability practices. The framework is designed to provide a clear roadmap for companies to integrate sustainable reporting into their governance structures and business operations. Our previous article on the NSRF can be viewed here.

“… seeks to bridge this gap by offering the board of directors practical and actionable steps on critical areas such as governance, sustainability data boundaries, financial impact assessments, and integrating sustainability considerations …”

Boards of directors are at the helm of a company’s strategic direction, and their leadership in sustainability is pivotal to driving long-term value. However, many board members may find the transition to sustainability reporting overwhelming, especially if they are unfamiliar with the nuances of ESG principles and the regulatory landscape. This guide seeks to bridge this gap by offering the board of directors practical and actionable steps on critical areas such as governance, defining sustainability data boundaries, conducting financial impact assessments, and integrating sustainability considerations into enterprise risk management systems.