Insights

IFRS S1 vs IFRS S2: the short answer IFRS S1 sets the general requirements for disclosing material sustainability-related risks and opportunities that could affect a company’s financial prospects. IFRS S2 is the climate-specific Standard: it requires disclosure of climate-related risks and opportunities, including greenhouse gas (GHG) emissions. The two Standards are not alternatives. IFRS S2 […]

Does NSRF apply to your company? Malaysia’s National Sustainability Reporting Framework (NSRF) applies to Main Market listed issuers, ACE Market listed issuers and certain large non-listed companies. Your reporting start date depends on your NSRF reporting group—not on when your organisation considers itself ready. The NSRF adopts the International Sustainability Standards Board (ISSB) Standards, specifically […]

Takeaways IFRS S2 requires companies to use climate-related scenario analysis to inform their assessment of business and strategic resilience. The sustainability report should clearly explain the scenarios, time horizons, scope, assumptions and methodology applied. Climate scenario findings should be connected to material physical risks, transition risks, opportunities and potential financial effects. Companies may begin with […]

Takeaways ESG governance should reflect the organisation’s size, risks, reporting needs and capabilities. Board members should understand ESG developments, business implications and NSRF resource needs. Senior management should turn Board direction into actions, budgets and reporting processes. Relevant business functions should support ESG implementation and data ownership. Companies should review their governance as sustainability expectations […]

Takeaways NSRF readiness requires Malaysian public listed companies to strengthen governance, strategy, risk management, ESG data and reporting processes across the organisation. Boards and senior management should establish clear accountability for sustainability-related risks, opportunities, disclosures and performance. An IFRS S1 and IFRS S2 gap assessment helps companies identify current weaknesses and develop a prioritised compliance […]

Takeaways Malaysian PLCs do not need a dedicated sustainability team to begin preparing for NSRF, but they do need clear governance and accountability. ESG reporting under NSRF is a cross-functional effort involving the board, management, finance, risk, operations and other business functions. Building governance and internal reporting processes early helps organisations avoid costly last-minute compliance […]

Takeaways Scope 1 and Scope 2 GHG verification is becoming important as Malaysia moves towards NSRF-aligned sustainability assurance. Companies should prepare early by improving emissions data, evidence, methodology and internal controls. Digital tools can help companies organise GHG data and reduce manual errors without overcomplicating the process. GHG verification requires support from finance, sustainability, operations, […]