How New Sustainability Reporting Will Impact Your Business

What do the NSRF requirements mean for your company from 2025 onwards? Who does this impact and why should businesses see this as more than compliance, but as a critical part of long-term success?

Starting in 2025, the phased implementation of Malaysia’s National Sustainability Reporting Framework (NSRF) will change sustainability reporting. Companies will need to disclose direct, indirect, and Scope 3 emissions, aligning with global IFRS standards to enhance transparency and comparability.

In this episode of Enterprise Explores, Nik Shahrizal Sulaiman, Sustainability & Climate Change Partner at PwC Malaysia, explores the NSRF’s requirements, its challenges, and the strategic opportunities it presents. We also discuss how the framework can foster a cultural shift in corporate Malaysia, positioning sustainability as a cornerstone of business strategy.

Here are some highlights from the conversation.

- Global Alignment: The NSRF integrates IFRS Sustainability Disclosure Standards, ensuring Malaysia’s reporting aligns with global practices to attract investors and boost market competitiveness.

- Who’s Affected: Phased implementation applies to large listed companies first, expanding to smaller listed and large non-listed entities with group revenues exceeding RM2 billion.

- Transition Reliefs: Initial focus is on climate-related disclosures, with temporary exemptions for Scope 3 emissions and principal business segments to ease compliance.

- Navigating Scope 3 Challenges: Scope 3 emissions reporting across value chains is complex, but companies can start by addressing material risks such as flood and regulatory risks while building internal capabilities.

- Leadership’s Role: Boards and executive teams must integrate climate risks into strategic planning, shifting from compliance to leveraging sustainability as a competitive advantage.

- Cultural Transformation: Treating sustainability as a strategic imperative enables companies to unlock efficiencies, enhance investor confidence, and remain competitive in global supply chains.

- Malaysia’s Advantage: Enhanced transparency can strengthen Malaysia’s position in global markets and attract foreign investors.

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