IFRS S1 & S2 in Malaysia – The Sustainability Reporting Roadmap

As sustainability expectations evolve, Malaysia is entering a decisive phase in aligning its corporate reporting landscape with international standards. The International Sustainability Standards Board (ISSB) introduced IFRS S1 and IFRS S2 to create a consistent global baseline for sustainability and climate-related disclosures.

For Malaysian businesses, these standards build on Bursa Malaysia’s sustainability reporting requirements and signal a shift towards more rigorous, transparent, and investor-focused ESG disclosures. Beyond compliance, adopting IFRS S1 and S2 is rapidly becoming a business imperative—linking directly to financing opportunities, investor confidence, and competitiveness in export markets.

Our infographic, IFRS S1 & S2: Malaysia’s Sustainability Disclosure Roadmap, breaks down the implementation pipeline, highlights the differences between S1 and S2, and shows how these requirements align with Malaysia’s own ESG framework. It also provides a practical boardroom checklist and points to the value of early adoption for companies operating across key sectors such as manufacturing, energy, finance, and agriculture.