Opening Remarks at the Reporting to Resilience (R2R) Forum
Speaker: Dato’ Mohammad Faiz Azmi, Chairman, Securities Commission Malaysia
Location: Securities Commission Malaysia, Kuala Lumpur Delivered: 12 August 2026
Members of the Advisory Committee on Sustainability Reporting (ACSR), Speakers, preparers, guests, Ladies and gentlemen.
Assalamualaikum warahmatullahi wabarakatuh and good afternoon.
Welcome to the Reporting to Resilience (R2R) Forum. R2R builds on the Data to Disclosures (D2D) Forum we held last October. Then, the focus was on data, particularly the need for more complete, credible and accessible data for better quality sustainability reporting.
Today’s forum is part of broader capacity-building efforts under the PACE initiative to bolster industry capacity and capabilities. These encompass practical training under the NSRF Preparers’ Programme and guidance materials such as the Illustrative Sustainability Reports (ISRs). ISRs for the Plantation and Construction sectors were issued last year. We are currently developing a Manufacturing sector ISR which should be released in the fourth quarter of this year.
Concurrently, the Joint Committee on Climate Change (JC3) Sub-Committee 2 published their National Sustainability Reporting Framework (NSRF) Financial Institutions Guidance Documents for the Banking and Insurance sectors last month. This complements the existing suite of ISRs by the ACSR.
In terms of NSRF implementation, Group 1 companies are now navigating their first reporting cycle with Group 2 companies preparing to follow. Therefore, it is only fitting that we pause, take stock, and learn from one another before the next Group commences.
Why Resilience Matters
Before delving deeper into today’s programme, allow me to take a step back and explain what we mean by ‘resilience’, which sits at the heart of this Forum.
Resilience is the ability to prepare for, withstand, adapt and recover from a risk event. Recovery alone is not enough if the same shock such as climate change continues to reoccur with increasing frequency and scale. True resilience means being ready for the material risk, not just rebuilding after it strikes.
Over the last five years, flood-related losses in the country amounted to more than RM9 billion1. Unfortunately, the data suggests more frequent and severe flooding throughout Malaysia in the future, particularly in the Klang Valley.
The National Water Research Institute of Malaysia’s (NAHRIM) flood risk assessment provides a vivid illustration of what is at stake. Under a mid-range emissions scenario, the Klang and Selangor river basins are projected to reach flood depths exceeding 2.5 metres at their most severe. This places areas such as Port Klang and Shah Alam directly in harm’s way.
In Kuala Lumpur, the same modelling indicates that when extreme rainfall overwhelms the city’s drainage tunnels, the resulting backflow could inundate underground facilities, public utilities and major electrical substations that keep our capital’s businesses running.
This is precisely why disclosure matters. When companies are required to identify, assess and report on their exposure to physical and transition risks, they are better placed to plan ahead rather than just react.
R2R Forum Agenda
For Group 2 companies, this is the risk landscape you will soon need to assess and disclose.
With that in mind, the agenda flow today is catered towards this cohort of companies, and how the ACSR can further ease Group 2’s transition.
We will begin with a presentation by the Minority Shareholders Watch Group (MSWG) on its review of 91 sustainability reports from the first cohort of Group 1 companies. The analysis also utilised an AI-enabled tool, with the results validated by MSWG. Fittingly, it provides a comprehensive look at how the first cohort performed, examples of best practices and key learnings for Group 2 companies to adopt.
NAHRIM will then share in detail their flood-risk assessment report covering Selangor, Kuala Lumpur and Johor. From the SC’s perspective, we felt that this report can assist companies identify high-risk flood areas in these states and assess their physical risk exposure.
Building on this, PwC Malaysia will present an overview of climate scenario analysis. This will further demonstrate how companies can leverage NAHRIM’s flood-risk report to assess and report on climate-related physical risk.
We then conclude the programme with a panel discussion featuring three Group 1 PLCs that have published their ISSB-aligned sustainability reports. They will share firsthand their experiences from data collection to internal coordination, offering Group 2 companies practical insights into what lies ahead.
Closing
Ladies and gentlemen,
The NSRF was deliberately designed with a phased and proportionate approach in mind as we recognise the different levels of readiness among companies.
Our commitment to scoped-in entities is that capacity building remains a central component of NSRF implementation as emphasised in our regulatory approach issued last year.
Today’s forum represents one such opportunity. I would therefore encourage you to actively participate today. Please do ask questions and explore how these reports can assist your reporting processes.
Thank you and I wish you a productive forum.
Calculated using figures provided by Department of Statistics Malaysia (DOSM) for period 2021-2025
The Securities Commission Malaysia (SC) was established on 1 March 1993 under the Securities Commission Act 1993 (SCA). We are a self-funded statutory body entrusted with the responsibility to regulate and develop the Malaysian capital market.
