Bursa Malaysia and the SC have made governance compulsory in PLCs
WITH the rising importance of the governance role in sustainability, the Securities Commission (SC) and Bursa Malaysia had jointly launched a mandatory sustainability onboarding programme for Bursa Malaysia public-listed company (PLC) directors.
Announced on June 6, the Mandatory Accreditation Programme (MAP) Part II: Leading for Impact (LIP) is an extension of the existing MAP Part I, which was also formed under the listing requirements (LR) of Bursa Malaysia’s Main and the ACE Markets.
MAP’s main focus is on corporate governance, including director’s roles, duties and liabilities as well as other obligations under the LR.
Recently, Bursa Malaysia unveiled the Bursa Malaysia ESG Reporting Platform, which will act as a repository for disclosures conforming to the prescribed format mandated under Bursa Malaysia’s enhanced sustainability reporting requirements — a move that further strengthens the bourse’s role in driving the environment, social and governance (ESG) agenda.
Forging greater ESG comprehension
The development of LIP is in line with the SC’s Corporate Governance Strategic Priorities 2021-2023 and provides a step forward in sustainability education within the region.
It aims to strengthen the boards’ ability to address sustainability considerations effectively and has been carefully curated to focus on the baseline knowledge and key considerations surrounding sustainability.
This includes questions that boards should direct towards management in the effort to ensure a more robust and effective oversight of sustainability risks and opportunities of the company.
It also provides directors with a platform to engage and learn from their peers.
The requirement came into effect in August this year, with first-time directors and directors of listing and transfer applicants must complete the programme within 18 months from the date of appointment or admission, respectively.
Existing directors of PLCs on Bursa Malaysia’s Main and ACE Market must complete LIP within 24 months from the effective date.
The Institute of Corporate Directors Malaysia (ICDM) — the knowledge partner for MAP Part I — was appointed to conduct LIP, in line with its mandate to enhance the overall effectiveness of boards and to promote excellence in sustainability-driven governance.
One of the appointees as a faculty member of this newly launched programme is GoImpact Capital Partners (Singapore) Pte Ltd (GoImpact) chief executive officer and co-founder Helene Li.
GoImpact is a startup advisory and investment firm focused on sustainable finance and was developed around three key pillars – GoLearn (education), GoNetwork (structured advocacy) and GoInvest (deal flow platform for sustainable investments).
Through its partners network with online-to-offline initiatives, the company connects investors with deals relevant to their interests and provides learning opportunities to drive real change by example for everyone who is keen to understand more about the sustainable finance agenda.
Li's appointment to the programme is a testament to her extensive experience and dedication to sustainability leadership.
This role places her in the company of seasoned professionals, which reflects her commitment towards advancing sustainability initiatives.
Driving corporate governance
MAP by ICDM plays an essential role in driving better governance in Malaysian PLCs, as highlighted by Li.
“As a mandatory programme covering the full spectrum of sustainability, the MAP serves as a cornerstone in building the knowledge baseline for board directors of PLCs on Bursa Malaysia, and better enables them to provide directional input to these companies,” said Li.
She said the programme was organised around the 11 principles of the enhanced Sustainability Reporting Framework of Bursa Malaysia.
Various modules rich with industry insights reinforce the key themes such as climate risks, sustainable supply chains and more, which form a cohesive programme tailored for board directors of PLCs.
“Our team at GoImpact worked closely with all the stakeholders such as the SC, Bursa Malaysia and ICDM to develop the modularised content and we are one of the five founding faculty delivering this programme,” she explained.
MAP takes a deeper dive into use cases and industry insights that align with the 2022 enhanced Sustainability Reporting Framework that Bursa Malaysia unveiled.
‘The MAP serves as a cornerstone in building the knowledge baseline for board directors of PLCs on Bursa Malaysia,’ says Helene Li.
She pointed out that the LIP enhances the participating directors' ability to oversee sustainability risks and opportunities within their organisations through an interactive format that builds engagement.
The MAP programme also employs regional and local industry use cases that are designed to provide an immersive learning experience pitched at the board level.
“The illustrative use cases help the participating groups to identify risks and opportunities inherent in a range of sustainability-related topics,” she added.
“This is a ground-breaking initiative as Bursa Malaysia is the first exchange to mandate sustainability training programmes at this level.
“Through the practical insights-driven content and interactive format, this will build solid groundwork for a more robust adoption of sustainability into corporate strategies and plans of publicly listed companies.”
She said the mandatory programme's key objectives and learning outcomes will help ensure a consistent baseline of industry knowledge and insights that board directors can call upon to make directional input as part of their fiduciary duties.
“This programme is commissioned by the SC and mandated by Bursa Malaysia Malaysia for all publicly listed companies on the Exchange.
“It is a pioneering initiative with thorough foresight into equipping board directors with essential knowledge around this important but complex and rapidly evolving agenda.”
