KUALA LUMPUR: The Securities Commission (SC) is planning to adopt the International Sustainability Standards Board's (ISSB) global standards to ensure that sustainability becomes an integral part of local corporations, said chairman Datuk Seri Dr Awang Adek Hussin.
He said that at the same time, the SC intends to customise the standard to align with local requirements.
"Malaysia is at a juncture in its development of domestic renewable energy sources as well as a carbon market, thus, we cannot afford to fall short of the environmental, social and corporate governance (ESG) standards.
"We should make full use of the available opportunities," he said in his opening address at the Business Foresight Forum 2023 here, today.
Awang Adek also lauded the launch of the centralised sustainability reporting platform for Malaysian firms to disclose their ESG data by Bursa Malaysia and the London Stock Exchange, saying that it was a positive move.
Furthermore, he said that the synergies and alignment between the Shariah and ESG principles are naturally compatible.
"Indeed, Malaysia is in a unique position to take the lead in sustainable finance by leveraging its expertise in the Islamic Capital Market (ICM).
"Our regulatory frameworks, such as the Sustainable and Responsible Investment (SRI) Sukuk Framework, SRI-Linked Sukuk Framework, and Waqf-Featured Fund Framework, reflect our commitment to both the sustainability and ICM agendas," he said.
He added that waqf is an innovative solution and social finance catalyst that aligns with this commitment to sustainable practices. - Bernama
