JC3 Releases NSRF Guidance Documents (Banks and ITOs)

On 6 August 2026, the Joint Committee on Climate Change (“JC3”), through its Sub-Committee 2 on Governance and Disclosures, launched two Guidance Documents — one for banks and another for insurance and takaful operators (“ITOs”).

Development of these documents was led by the National Sustainability Reporting Framework Financial Institutions Guidance Document Taskforce (“Taskforce”), which comprised representatives from financial institutions, with support from the Islamic Banking and Finance Institute Malaysia (“IBFIM”).

Prepared by industry practitioners and informed by real-world experience, the Guidance Documents incorporate insights from benchmarking against leading industry practices, industry-wide surveys, focus group discussions involving 230 participants from banks and ITOs, and feedback from over 45 parties, including financial industry associations and civil society organisations.

In developing the documents, the Taskforce considered the IFRS Sustainability Disclosure Standards issued by the International Sustainability Standards Board (“ISSB”), alongside relevant local regulatory expectations, in line with BNM’s Climate Risk Management and Scenario Analysis Policy Document and where relevant, Bursa Malaysia’s Main Market Listing Requirements

The Guidance Documents cover a selected set of sustainability-related risks and opportunities that are relevant to banks and ITOs. While the examples are intended to support institutions in developing disclosures in line with IFRS S1 and S2 requirements, they are not prescriptive and should be considered within each institution’s own context, reporting maturity and specific circumstances.

Taskforce Chair and CIMB Group Chief Sustainability Officer, Luanne Sieh, said: “For many financial institutions, translating IFRS Sustainability Disclosure Standards into clear and decision-useful disclosures remains a new and challenging area, particularly given the limited financial sector-specific guidance currently available. These Guidance Documents are intended to make that process more manageable by illustrating possible approaches that preparers can consider and adapt. Grounded in real-world implementation experience, they aim to support more consistent and meaningful sustainability-related disclosures across the financial sector.”

Bank Negara Malaysia and JC3 Co-Chair Assistant Governor, Madelena Mohamed said: “The transition towards high-quality sustainability reporting requires both technical capability and practical guidance. These documents reflect the collective efforts of the industry, through the JC3, to bridge knowledge gaps and support consistent application of the IFRS Sustainability Disclosure Standards within the Malaysian context. By providing illustrative, implementation-focused examples, they will help guide financial institutions in producing consistent, comparable and reliable sustainability information, thereby enabling informed decision-making and strengthening Malaysia’s competitiveness and attractiveness to investors.”

Chief Sustainability Officer of the Securities Commission Malaysia (SC) and Co-Chair of JC3, Neetasha Rauf remarked, “The SC, as chair of the ACSR, welcomes the industry’s initiative in developing these Guidance Documents, which will enhance the compendium of NSRF-related guidance supporting companies in their adoption of the IFRS Sustainability Disclosure Standards (“SDS”).”

JC3 SC2 Co-Chair and Bursa Malaysia Chief Regulatory Officer, Julian M Hashim said: “Bursa Malaysia welcomes these Guidance Documents as a catalyst for financial institutions to elevate the quality and impact of their sustainability disclosures. By aligning with the IFRS Sustainability Disclosure Standards and the National Sustainability Reporting Framework, the resource will drive greater consistency, comparability and transparency of sustainability disclosures and is a step towards strengthening market confidence and positioning Malaysian financial institutions to meet evolving global regulatory and investor expectations.” Download the full Guidance Documents on the JC3 website at www.jc3malaysia.com.