ICAEW and SC strengthen sustainability regulation expertise

The Institute of Chartered Accountants in England and Wales (ICAEW) has joined forces with the Securities Commission Malaysia (SC) to enhance sustainability-related financial regulation expertise across ASEAN. This collaboration focuses on capacity-building, offering specialised training on climate-related financial disclosures, sustainability certifications, and the integration of ICAEW training resources.

As part of the initiative, ICAEW conducted a pivotal workshop at the ASEAN Capital Markets Forum (ACMF) Chairs Meeting on 14 February 2025 in Penang. The session addressed key sustainability disclosure requirements and regulatory best practices, providing regulators with essential insights into evolving global standards.

Addressing Key Sustainability Challenges

The workshop delved into critical aspects of sustainability reporting, including the International Financial Reporting Standards (IFRS) S1 and S2, which govern climate and sustainability-related disclosures. Regulators were also briefed on the complexities of Scope 3 emissions reporting, measurement challenges, and the implications of global climate regulations such as the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Reporting Directive (CSRD).

The discussion further explored the vital role of regulators in shaping sustainability policies and engaging stakeholders effectively. This knowledge-sharing exercise ensures that ASEAN regulators are equipped to uphold international ESG (Environmental, Social, and Governance) standards while maintaining a balanced and supportive regulatory framework.

Aligning with ASEAN Chairmanship Goals

The collaboration between ICAEW and SC Malaysia is particularly significant as Malaysia assumes the ASEAN Chairmanship for 2025 under the theme “Inclusivity and Sustainability.” With global ESG requirements rapidly evolving, ensuring that regulators are well-versed in sustainability frameworks is crucial for the region’s financial stability and investor confidence.

ICAEW Chief Executive Alan Vallance underscored the importance of this initiative, stating, “Trust, ethics, and sustainability must be at the core of capital markets. Sustainability is not just about compliance—it is a business imperative that drives resilience, innovation, and long-term success. Through this collaboration with the Securities Commission Malaysia, ICAEW reaffirms its commitment to strengthening regulatory expertise in sustainability across ASEAN.”

SC Chairman Dato’ Mohammad Faiz Azmi also highlighted the significance of regulatory upskilling, noting, “Malaysia’s ASEAN Chairmanship in 2025 presents an opportunity to drive sustainability and financial resilience. Our collaboration with ICAEW ensures we stay ahead of global standards while equipping regulators to support market participants. Together, we can strengthen ASEAN’s capital markets and investor confidence.”

By prioritising capacity-building, knowledge-sharing, and sustainable finance innovation, ICAEW and SC Malaysia are reinforcing the region’s commitment to responsible financial governance. The initiative not only strengthens regulatory expertise but also fosters a more interconnected and resilient ASEAN capital market.