ACSR's Mandatory Sustainability Assurance Requirement to Take Effect in 2028

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The Advisory Committee on Sustainability Reporting (ACSR) has deferred the commencement of mandatory reasonable assurance requirements on Scope 1 and Scope 2 GHG emissions disclosures for Group 1 applicable entities under the National Sustainability Reporting Framework (NSRF).

The ACSR is chaired by the Securities Commission Malaysia (SC). The requirement for Group 1 applicable entities will now take effect for annual reporting periods beginning on or after 1 January 2028, instead of 1 January 2027.

Accordingly, mandatory assurance for Group 2 and Group 3 applicable entities will also be delayed by one year to 2029 and 2030 respectively.

The decision follows a review by the Minority Shareholders Watch Group (MSWG) and Climate Governance Malaysia (CGM) of the first cohort of 91 Group 1 listed issuers reporting under the IFRS Sustainability Disclosure Standards that found further improvements to the quality of disclosures are needed.

The additional year aims to support preparers in strengthening reporting processes, controls and data quality ahead of mandatory assurance. A public consultation period was held earlier to seek industry feedback on the proposed framework and requirements.

Under this extension, listed issuers will continue to be required under the Main Market and ACE Market Listing Requirements to state whether their sustainability disclosures have been subject to internal review by internal auditors or independently assured by a sustainability assurance provider.

Any independent assurance must now be performed in accordance with the designated recognised assurance standard, i.e. ISSA 5000¹ only. The other two existing assurance standards, the International Standard on Assurance Engagements (ISAE) 3000 (Revised) and the International Organization for Standardization (ISO) will no longer be recommended.

In addition, the ACSR will be issuing a Sustainability Assurance Guide. This will support sustainability assurance providers and facilitate consistent application of sustainability assurance requirements.

The policy document is available online at https://www.sc.com.my/nsrf/resources/policy-documents. The remaining proposals relating to the sustainability assurance framework will be communicated in due course.

For more information or inquiries, contact the ACSR Secretariat at [email protected].

1. International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.

Source: SECURITIES COMMISSION MALAYSIA

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ACSR's Mandatory Sustainability Assurance Requirement to Take Effect in 2028

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