Lack of Scope 3 disclosures and the opportunity missed

Latest report by KPMG and the Pacific Basin Economic Council (PBEC) highlighted the challenges and importance of measuring and reporting Scope 3 emissions, which typically account for 70-90% of a company's carbon footprint. Despite their significance, these emissions are difficult to measure as they fall outside a company's direct control. The report, based on analysis of ESG reports from 338 companies across six stock exchanges published between 2022 and 2023, found that only 21% of Malaysian public listed companies (PLCs) met mandatory Scope 3 reporting requirements in 2023.

(Ms.) Phang Oy Cheng, Head of ESG and Sustainability Advisory at KPMG in Malaysia, said, “Under Bursa Malaysia’s mandatory reporting requirements, since 2021, public listed companies (PLCs) in Malaysia are required to report on two Scope 3 indicators: business travel and employee commute. KPMG’s recent study show that only 21% of 975 PLCs reported on the mandatory Scope 3 reporting requirements in their 2023 reporting cycle. Given Malaysia’s net zero ambition, addressing Scope 3 emissions can help advance an organisation’s decarbonization and sustainability journey. This emphasises the need to have comprehensive data on Scope 3 so that businesses can assess where the emission hotspots are across their value chain in order to prioritise reduction strategies.”

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