The latest Securities Commission Malaysia and the World Bank’s report on “ESG Disclosure Assessment of Malaysia’s Listed Companies and Recommendations for Policy Development” shows there is still much improvement needed for ESG disclosers by large corporates in Malaysia.
The report provides a baseline on ESG reporting practice, offering key insight for companies and investors to enhance sustainability reporting to align with international best practices and remain competitive. It aims to analyse the current state of ESG disclosure amongst listed companies and institutional investors, given the growing prominence of ESG and sustainability investments globally.
Speaking at the conference, SC Executive Director of Islamic Capital Market Sharifatul Hanizah Said Ali emphasised the importance of strengthening ESG disclosures amid growing global demand for sustainable investments.
Among the the findings from the report showed larger companies had significantly better ESG disclosure rates than smaller ones and noted that it was regulatory compliance the primary driver of corporate ESG reporting in Malaysia.
On ESG disclosure practices among four large Malaysian asset owners, the assessment indicated relatively low levels of ESG disclosure. However, interviews suggested greater efforts to strengthen ESG practices and processes other than currently publicly disclosed.
The report concludes with a set of recommendations, including continuous monitoring along with consultations, to ensure effective implementation of the ESG disclosures in line with the recently launched National Sustainability Reporting Framework (NSRF).
Source: https://www.businesstoday.com.my/2024/10/15/esg-disclosures-among-large-asset-owners-still-low-sc-world-bank-report/