Awang Adek said it is important for boards to stay on top of sustainability-related developments so that they can effectively manage sustainability risks while capitalising on new opportunities.
PETALING JAYA: Bursa Malaysia and the Securities Commission (SC) have rolled out a new mandatory onboarding programme focused on sustainability for directors of public listed companies (PLCs) on the local stock exchange.
The mandate, which will come into effect on Aug 1, requires all first-time directors of PLCs on the Main Market and ACE Market, as well as directors of listing or transfer applicants, to attend a programme called Leading for Impact (LIP) within 18 months from the date of appointment or admission.
Meanwhile, existing directors of PLCs on both the markets must complete the LIP within 24 months from the effective date.
The programme, known as the Mandatory Accreditation Programme (MAP) Part II: LIP, is aimed at enhancing the knowledge and understanding of sustainability practices among directors and promoting sustainable business practices within Malaysian PLCs.
It serves as an extension to the existing MAP, which is now referred to as MAP Part I, within the Main Market and ACE Market listing requirements (LR).
It is also designed to offer accreditation and guidance, particularly pertaining to environmental, social and governance (ESG) aspects, to directors of PLCs.
In a joint statement, both Bursa and the SC said MAP’s main focus is on corporate governance, including director’s roles, duties and liabilities as well as other obligations under the LR.
SC chairman Datuk Awang Adek Hussin said it is important for boards to stay on top of sustainability-related developments so that they can effectively manage sustainability risks while capitalising on new opportunities.
“This is especially important where stakeholders are becoming increasingly concerned about ESG issues,” he said, adding that the LIP further underpins the SC’s focus on supporting sustainability-conscious and effective leadership of PLCs.
Meanwhile, Bursa chief executive officer Datuk Muhamad Umar Swift said the new commitment is a significant step towards strengthening ESG practices.
“Bursa Malaysia will provide the necessary support and resources to assist our PLC directors in fostering sustainable growth within their organisations to ensure long-term value creation for their stakeholders,” he added.
Details on LIP will be made available on ICDM’s website at https://lip.icdm.com.my.
