SC Plans To Adopt ISSB’s Standard In Sustainability For Local Companies

Tags: businesses, companies, ESG, ISSB, local, SC, Securities Commission, Shariah, Sustainability

The Securities Commission Malaysia (SC) are planning to adopt and embrace the International Sustainability Standards Board’s (ISSB) global standards to further encourage sustainability practices for local corporations.

Chairman Datuk Seri Dr Awang Adek Hussin outlined the initiative as part of his opening address during the SIDC Business Foresight Forum (BFF) 2023 conference.

He also noted that the SC will adapt and customise the standard to align with local regulations and requirements.

“Malaysia is at a juncture in its development of domestic renewable energy sources as well as a carbon market. We cannot afford to fall short of Environmental, Social, and Governance (ESG) standards,” he stated in his opening address.

Awang Adek also lauded the centralised sustainability reporting platform, which was launched recently, and allowed Malaysian companies to disclose their ESG data through Bursa Malaysia and the London Stock Exchange, and noted that it positive move.

In addition, Awang Adek talked about how the synergies and alignment between the Shariah and ESG principles were a perfect complement to each other.

“Indeed, Malaysia is in a unique position to take the lead in sustainable finance by leveraging its expertise in the Islamic capital market (ICM).”

“Our regulatory frameworks, such as the Sustainable and Responsible Investment (SRI) Sukuk Framework, SRI-Linked Sukuk Framework, and Waqf-Featured Fund Framework, reflect our commitment to both the sustainability and ICM agendas,” he said.

During his opening address, Awang Adek also talked about the Global Risks Report’s “polycrisis” situation involving supply chain disruptions, global tensions and rising cost of living, how industries need to adapt to digital innovation, and investing in talent to ensure long-term growth.