What does 2026 hold for companies in terms of sustainability and ESG in Malaysia? Question posed by an analysis piece by The Star news portral.
The Climate Change Bill is slated to be tabled in March, before a carbon tax is implemented. Beginning last year, large main market listed issuers have started to adopt the National Sustainability Reporting Framework (NSRF), with other listed and non-listed companies expected to follow in phases.
Internationally, the European Union’s (EU) Carbon Border Adjustment Mechanism (CBAM) is applied in its definitive regime from 2026, covering energy-intensive products such as iron and steel, cement, fertilisers, electricity and hydrogen.
These have been dominating conversations for some time, but they are only part of a much broader sustainability landscape that companies will need to navigate.
“In Malaysia, 2026 represents a decisive shift from ESG intent to execution,” said UN Global Compact Network Malaysia and Brunei (UNGCMYB) executive director Faroze Nadar. “A convergence of national policy developments, regulatory mechanisms and global market forces is reshaping sustainability from a compliance topic into a core business and competitiveness issue.”
This shift is also expected to widen the range of risks that companies must manage. PwC Malaysia partner and sustainability and climate change leader Andrew Chan noted that it is almost certain that the menu of ESG risks will expand for businesses as the economic and regulatory landscape grows in complexity. “The window to make important changes for continued resilience—and to do it responsibly is small,” he cautioned.
Against this backdrop, he added, leading businesses will be those that build their reserves to manage near-term priorities while priming themselves for long-term success.
Read further here.
