ESG Regulations

Which of the following regulates sustainability disclosures for listed companies in Malaysia?

• Malaysian Anti-Corruption Commission Act

• Ministry of Finance Sustainability Charter

• Akta Rahsia Rasmi 1972

• Bursa Malaysia’s Listing Requirements

What is the main objective of the Malaysian Code on Corporate Governance (MCCG)?

• To mandate net-zero commitments

• To enforce environmental audits

• To strengthen board governance, ethics, and sustainability practices

• To regulate product safety and quality

Which act governs the environmental impact of industrial activities in Malaysia?

• Environmental Quality Act 1974

• Factories and Machinery Act

• Petroleum Development Act 1974

• Renewable Energy Act 2011

Under Bursa Malaysia’s Sustainability Reporting Guide, companies must prioritise ESG issues based on:

• Employee suggestions

• Budget availability

• Materiality to business and stakeholders

• Government instructions

Which organisation issued the Sustainable and Responsible Investment (SRI) Framework in Malaysia?

• Ministry of Natural Resources and Environment

• Department of Statistics Malaysia

• Bank Negara Malaysia

• Securities Commission Malaysia

The Environmental, Social, and Governance (ESG) Index by FTSE4Good Bursa Malaysia tracks:

• 
  ESG performance of Malaysian public-listed companies

• Political risk

• High-risk industries

• Export revenue of SMEs

Which of the following applies to the ESG reporting for Malaysia’s Small and Medium Enterprises (SMEs)?

• SMEs are exempt from all ESG reporting

• SMEs follow the same mandatory rules as PLCs
  

• ESG disclosures for SMEs are encouraged through voluntary guidelines and capacity building

• SMEs are required to submit annual net-zero pathways

What tool helps companies determine their ESG risks and opportunities based on materiality?

• UN SDGs

• GRI Standards

• Bursa Malaysia’s Market Cap Index

• ESG Certification Scheme

Only public-listed companies in Malaysia are required to submit ESG disclosures under Bursa Malaysia’s guidelines.

• True

• False

Answer explanation

Currently, mandatory ESG reporting applies only to public-listed companies under Bursa Malaysia’s Listing Requirements. SMEs and private companies are encouraged but not obligated.

The Environmental Quality Act 1974 only covers issues related to water pollution.

• True

• False

Answer explanation

The Act encompasses air pollution, noise, scheduled waste management, and environmental impact assessments (EIAs), not just water-related concerns.