INTRODUCTION:
The trend of sustainable financing and green accounting in Malaysia has reshaped the financial sectors, influencing the demands of the employers as well. Businesses are actively switching to comply with sustainable ESG factors, which have them demanding skilled finance professionals who can keep up with such business practices. ACCA qualification, on the other hand, is popular for adapting to the industry changes and meeting employers’ demands; therefore, as the world adopted sustainable finance and green accounting, it also started training students and professionals with green accounting skills, ensuring their market competitiveness.
The curriculum of ACCA very efficiently integrates green accounting and sustainable finance concepts, especially in financial reporting, so that ACCA professionals can have an edge in the Malaysian job market. For accounting/ finance professionals and students, having expertise in green accounting in Malaysia is essential as it has become an in-demand skill amongst employers. This concept must be new for those who have limited exposure to sustainability reporting and its importance; therefore, to educate the aspirants, we have gathered some important things you might want to learn about ACCA and green accounting in Malaysia.
WHAT IS GREEN ACCOUNTING AND WHY IS IT VALUED IN MALAYSIA?
Sustainable factors are a set of environmental effects caused by businesses during manufacturing, operations, etc, and their solutions. Businesses comply with the sustainability or ESG factors to make their business practices environmentally friendly; through green accounting, businesses can integrate environmental costs and their benefits into financial reports. Such reporting makes it easier for stakeholders to understand the environmental measures the company has taken; as in sustainable reports, carbon emissions, environmental risks & liabilities, waste management, sustainable initiatives, etc are also included.
Green accounting in Malaysia is valued so much because of the increasing environmental pressures from stakeholders and internal authorities focusing on climate change. Businesses in Malaysia are obliged to keep up with SDGs (Sustainable Development Goals) under the Paris Agreement and national initiatives; hence, more and more businesses seek skilled finance professionals with expertise in green accounting in Malaysia. The demand for transparency in reporting is increasing; hence, aspirants who are really looking forward to having a strong career in the finance and accounting sector of Malaysia from 2026 onwards must equip themselves with strong, sustainable finance skills and green accounting expertise.
WHERE ACCA COMES IN?
The ACCA qualification remains at the forefront when it comes to sustainability or green accounting in Malaysia; it has always treated sustainability as a core part of the finance and accounting industry. In recent times, the prestigious ACCA qualification has come into the limelight because of the measures it has taken to focus more on green accounting; three of the major reasons are stated below:
1: INTEGRATING SUSTAINABILITY INTO THE CURRICULUM:
As the industry expectations from finance and accounting professionals are increasing, ACCA is also giving a modern touch to traditional accounting methods, ensuring a progressive future for professionals. The ACCA curriculum is changed by embedding sustainability concepts in reporting and decision-making, such as expanding aspirants’ knowledge pace in areas like ESG reporting, climate risk assessments, ethical financing, etc. Training aspirants with such skills and enhancing their knowledge pace in areas that are valued by employers leads to increased work opportunities and progressive careers in the complex financial world.
2: TRAINING PROFESSIONALS FOR ESG REPORTINGS:
When ACCA focuses on sustainable finance, how can it possibly overlook the ESG reporting? ESG reporting is an integral part of green accounting practices, which ACCA emphasizes the most by training aspirants with global reporting frameworks like IFRS S1 and IFRS S2. Professionals who manage to master the mentioned reporting frameworks can proficiently produce accurate, transparent, comparable, and reliable ESG disclosures. Businesses, especially the big corporations in Malaysia, desperately seek well-trained finance professionals who can interpret non-financial data into the financial reports.
3: SUPPORTING MALAYSIA’S SUSTAINABLE FINANCE AGENDA:
As mentioned before, ACCA in Malaysia is at the forefront when it comes to supporting the sustainable finance agenda; ACCA’s body works with other regulators, banks, financial institutions, and corporations to encourage carbon accounting, green bonds, sustainable investment taxonomies, climate-related financial statements, and green accounting in Malaysia. This support plays an essential role in pushing Malaysia’s economy towards sustainability and resilience; hence, it won’t be wrong to say that ACCA has played a vital role in this transition.
today!
EXPECTED RISE IN GREEN ACCOUNTING IN MALAYSIA (2026):
As the businesses and financial sectors all across the world are increasingly adopting green practices, it is expected that by 2026, it will become a necessity for professionals to have expertise in sustainable finance to survive in the practical financial world. ESG disclosures will be mandated, banks will integrate climate risk before decision-making, green financing schemes will be launched, and investors will prioritize green accounting practices. Most of these things can still be easily found in the practical world, but by 2026, they will become common across different sectors and industries.
CONCLUSION:
Indeed, to survive in the fast-paced and highly competitive finance world, professionals need to focus on all the trends and stay future-ready; green accounting in Malaysia has transitioned the financial world for professionals, employers, and stakeholders. The importance of expertise in green accounting can be measured through the demand for skilled professionals in the job market; hence, to have a competitive edge in the market, accountants must equip themselves with green accounting in Malaysia.
FREQUENTLY ASKED QUESTIONS:
Q1: Is it mandated for Malaysian Businesses to comply with ESG reporting?
Answer: Some of the businesses are mandated to comply with ESG reporting, especially big corporations. It can highly vary depending on the sector and size of the company; however, businesses of all scales and sectors are encouraged to follow these reporting standards.
Q2: Which are the most important global standards used for green accounting in Malaysia?
Answer: The key global standards used for green accounting in Malaysia include IFRS S1 & S2, GRI, and TCFD; professionals should train themselves with expertise in these frameworks to accelerate their position in the practical world.
