Understanding ESG Reporting Requirements for Malaysian Companies in 2026

Environmental, Social, and Governance (ESG) reporting is no longer optional for Malaysian businesses. With Bursa Malaysia expanding its sustainability reporting requirements and global investors increasingly demanding ESG transparency, companies across all sectors need to understand their obligations and prepare accordingly.

The Evolving Regulatory Landscape

Bursa Malaysia's enhanced sustainability reporting framework now requires all listed companies to provide detailed climate-related disclosures aligned with the International Sustainability Standards Board (ISSB) standards. This represents a significant step up from previous requirements, with mandatory Scope 1 and Scope 2 greenhouse gas emissions reporting, and encouraged Scope 3 disclosures.

Impact on SMEs and Private Companies

While the mandatory requirements primarily target listed entities, private companies and SMEs are increasingly affected through supply chain requirements. Many large corporations now require their suppliers to demonstrate ESG compliance, creating a ripple effect across the business ecosystem. Forward-thinking private companies are voluntarily adopting ESG frameworks to maintain competitive advantage.

Key Reporting Areas

Companies should focus on three critical areas: environmental impact measurement including carbon footprint and resource consumption; social responsibility covering workforce diversity, health and safety, and community engagement; and governance practices encompassing board composition, risk management, and ethical business conduct.

How KC Chia & Noor Can Help

Our advisory team assists companies at every stage of their ESG journey, from initial materiality assessments to full sustainability report preparation. We help businesses integrate ESG considerations into their financial reporting and develop robust governance frameworks that meet both regulatory requirements and stakeholder expectations.

Get in touch with our team to discuss how we can support your ESG reporting needs and help position your business for sustainable growth.