Regulations surrounding Carbon Emission Disclosure In September 2022, Bursa Malaysia announces the enhanced sustainability reporting requirements which mandates carbon emissions disclosure for all main market companies for FYE or after 31st December 2024 (1) within their annual report as part of their sustainability statement.
Summary of the data and performance targets disclosed as part of Sustainability Statement for the past 3 years for each material indicator (3)
Emphasised that climate disclosure should align with TCFD recommendations for FYE on or after 31 December 2023
GHG emissions should be disclosed by international standards Scope 1, 2 and 3 (at least on business travel
Summary of Bursa's enhanced sustainability reporting requirements .
and employee commuting (2)
While listed companies are facing direct local regulations, non-listed companies (SMEs or large corporations) may be indirectly facing regulations in order for them to conduct business. For example, if the company exports to regulated markets, supply to companies that export to regulated markets or are customers to regulated financial institutions, they will be required to perform carbon emissions disclosures.
Some examples of regulations that might impact non-listed companies or SMEs
Pantas has observed an increasing number of regulations implemented across the region, and they strongly believe that as market regulations for larger corporations mature, local regulatory bodies will eventually consider mandating carbon emission disclosures for SMEs and non-listed companies. Ignoring this imminent shift could result in significant business opportunity cost, financial, and reputational losses. This can be further amplified by looming implementation of regional cross-border carbon tax and regulations.
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MSCA 2023 I VOL.5
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