National Sustainability Reporting Framework (NSRF)

National Sustainability Reporting Framework (NSRF): phased ifrs s1/s2-aligned climate and sustainability disclosure for malaysian listed issuers and large companies, filed in xbrl.

Jurisdiction
Status
active
Category
First deadline
Climate-first reporting begins in FY 2025 for Group 1 (Main Market issuers with market cap of at least RM 2 billion)
Who must comply
Applies to Malaysian listed issuers and large companies on a phased basis: Group 1 covers Main Market listed issuers with market capitalization of at least RM 2 billion, followed by other Main Market issuers, then ACE Market issuers and large private companies with revenue of at least RM 2 billion.
Penalties
Non-compliance can result in fines and administrative action, public reprimands or delisting risks, enforcement under the Companies Act, and reputational harm affecting investor confidence.

What it is

The National Sustainability Reporting Framework (NSRF) is Malaysia's national sustainability disclosure framework, spearheaded by the Securities Commission Malaysia and aligned with the IFRS S1 and S2 standards.

It introduces mandatory, phased climate and sustainability reporting for listed issuers and large companies, requiring disclosures on governance, strategy, risk management, metrics, and targets, filed in XBRL format.

Who must comply

The framework applies on a phased basis to Main Market listed issuers with market capitalization of at least RM 2 billion (Group 1), other Main Market issuers, and ACE Market issuers and large private companies with revenue of at least RM 2 billion. Each group has a distinct multi-year phase-in schedule.

What you must disclose

Entities must report Scope 1 and Scope 2 emissions from the start, with Scope 3 phased in by entity group. Disclosures must align with IFRS S1/S2 across governance, strategy, risk management, metrics, and targets, and be filed in XBRL format.

Timeline

The final framework was issued on September 24, 2024, with the climate-first reporting phase beginning in FY 2025. It is administered by the Securities Commission Malaysia.

Rollout is phased by entity group: Group 1 from FY 2025–2027, Group 2 from FY 2026–2028, and Group 3 from FY 2027–2030. Assurance requirements are under review for the period after 2027.

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