The ESG Imperative
in Malaysia.
Carbon tax arrives in 2026. Bursa NSRF reporting is mandatory. ESG-linked financing is coming.Lean IT is your solution to all three.
Carbon Tax Is Coming.
Your IT Infrastructure Is a Liability.
Every watt your servers waste is now a line item on your balance sheet. Malaysia's carbon pricing mechanism launches in 2026 at RM15-40/tonne CO₂e.
The Regulatory Landscape
Bursa Malaysia NSRF (IFRS S1 & S2)
Mandatory sustainability disclosures aligned with global standards. Focuses on climate-related risks and general sustainability-related financial disclosures.
- check_circleScope 1, 2, & 3 Emissions
- check_circleClimate Risk Assessment
Malaysia Carbon Tax
Pricing carbon emissions to drive transition. Early preparation is crucial for mitigating financial impact and identifying operational efficiencies.
- check_circleCarbon Pricing Models
- check_circleDecarbonization Strategy
Bank Negara ESG-Linked Financing
Access to favorable financing rates for sustainable projects and transition activities. Requires robust data verification.
- check_circleSustainable Finance Frameworks
- check_circleKPI Setting & Monitoring
The Compliance Clock
Is Already Ticking
Malaysian enterprises face a convergence of sustainability mandates between 2025 and 2030. Terra helps you get ahead of each one.
NSRF Group 1 Live
Main Market PLCs ≥ RM2B market cap must report IFRS S1/S2 for FY ending Dec 2025.
Active NowNSRF Group 2 + Carbon Tax
All remaining Main Market PLCs begin IFRS S1/S2 reporting. Malaysia carbon tax launches at RM15–40/tCO₂e.
CriticalScope 3 + Assurance
Group 1 PLCs must disclose Scope 3 emissions (including IT supply chain). External assurance on Scope 1 & 2 becomes mandatory.
Prepare NowGroup 2 Scope 3
All Main Market PLCs must disclose full Scope 3 value chain emissions. IT infrastructure carbon is a disclosed number.
Plan AheadFull ETS + Net Zero
Carbon tax transitions to full Emissions Trading System. Malaysia's 13th Plan targets accelerated decarbonisation across all sectors.
Long-TermNSRF Group 1 Live
Main Market PLCs ≥ RM2B market cap must report IFRS S1/S2 for FY ending Dec 2025.
Active NowNSRF Group 2 + Carbon Tax
All remaining Main Market PLCs begin IFRS S1/S2 reporting. Malaysia carbon tax launches at RM15–40/tCO₂e.
CriticalScope 3 + Assurance
Group 1 PLCs must disclose Scope 3 emissions (including IT supply chain). External assurance on Scope 1 & 2 becomes mandatory.
Prepare NowGroup 2 Scope 3
All Main Market PLCs must disclose full Scope 3 value chain emissions. IT infrastructure carbon is a disclosed number.
Plan AheadFull ETS + Net Zero
Carbon tax transitions to full Emissions Trading System. Malaysia's 13th Plan targets accelerated decarbonisation across all sectors.
Long-TermThe Laws and Policies
Driving This Change
Terra's services are designed to directly address the requirements of Malaysia's sustainability regulatory stack.
National Sustainability Reporting Framework (NSRF)
Mandates IFRS S1 (general sustainability) and IFRS S2 (climate) disclosures for all Bursa-listed companies in phased rollout 2025–2027. Scope 1, 2, and 3 emissions must be quantified and disclosed.
Malaysia Carbon Tax 2026
Carbon pricing mechanism launching 2026, initially targeting energy and heavy industry sectors at RM15–40/tCO₂e. Expected to expand to all sectors and transition to a full Emissions Trading System under the 13th Malaysia Plan.
ESG-Linked Financing
Bank Negara targets 50% of financing capacity to be ESG-linked by 2026. Companies with poor ESG scores face higher borrowing costs. SME Bank has committed RM10 billion in sustainable financing.
IFRS S2 Climate Disclosures
Requires governance, strategy, risk management, and metrics disclosures on climate-related risks. Includes scenario analysis, transition plans, and science-based targets — all requiring underlying emissions data.
Green Technology Master Plan 2017–2030
Government roadmap for tech-led sustainability across energy, manufacturing, transport, and ICT sectors. Greentech Malaysia provides investment support and incentives for green technology adoption.
Accelerated Decarbonisation
National roadmap targeting accelerated emissions reduction across all sectors. Carbon tax transitions to full Emissions Trading System (ETS) with binding sectoral targets.
Strategic Alignment
| Terra Service | Bursa NSRF | Carbon Tax 2026 | BNM Financing |
|---|---|---|---|
| Data Strategy & Architecture | checkBaseline Data Readiness | checkEmissions Tracking | checkKPI Data Pipelines |
| GHG Accounting (Scope 1-3) | checkIFRS S2 Compliance | checkTax Liability Assessment | checkBaseline Validation |
| Climate Risk Advisory | checkTCFD Alignment | checkScenario Analysis | — |
| Sustainability Reporting | checkAnnual Disclosures | — | checkProgress Reports |
From assessment to
audit-ready results in 90 days.
A structured engagement model that delivers measurable carbon reductions with minimal disruption to your operations.
Carbon Baseline Assessment
We audit your entire cloud estate — compute, storage, networking, databases — and establish a carbon baseline in kg CO₂e. Takes 1–2 weeks.
Opportunity Mapping
We identify and prioritise every modernisation opportunity by carbon impact and implementation effort. You get a ranked roadmap with ROI estimates for each initiative.
Architecture Design
Our engineers design the target architecture — Graviton instances, auto-scaling policies, serverless components, containerisation strategy — validated against AWS Well-Architected Sustainability Pillar.
Phased Migration
We execute the migration in low-risk phases with rollback capability at every step. Zero-downtime cutovers for production workloads. Typically 4–8 weeks for core workloads.
Carbon Monitoring Setup
We deploy your carbon monitoring dashboard, configure automated reporting, and integrate with Bursa CSI-compatible export formats for your ESG disclosure team.
Carbon Reduction Report
You receive a formal Carbon Reduction Report documenting before/after emissions in tCO₂e, methodology, and data sources — ready for your Bursa NSRF sustainability statement.
Built for Malaysian enterprises
facing the 2026 deadline.
Terra's services are most impactful for organisations with material cloud or on-premise infrastructure footprints and mandatory ESG reporting obligations.
Bursa Main Market PLCs
Group 1 and Group 2 companies with mandatory NSRF reporting. IT infrastructure carbon is a disclosed Scope 2/3 number. Terra turns your cloud into a compliance asset, not a liability.
Energy & Heavy Industry
First-wave carbon tax targets. Every tonne of CO₂e reduced in IT operations directly offsets your carbon tax bill. Graviton migration and auto-scaling deliver measurable, auditable reductions.
Financial Services
Banks and insurers under Bank Negara's ESG-linked financing framework. Demonstrating your own green IT credentials strengthens your position as an ESG-compliant lender.
Tech & Digital Companies
SaaS, e-commerce, and digital-native businesses with significant cloud spend. Your infrastructure IS your product — making it green is both a cost play and a market differentiator.
Manufacturing & Logistics
Companies with ERP, MES, and supply chain systems running on ageing on-premise infrastructure. Migration to cloud + Graviton delivers both carbon and operational efficiency gains.
Education & Healthcare
Institutions with large-scale digital platforms and growing cloud footprints. Serverless and auto-scaling architectures dramatically reduce the carbon cost of serving students and patients.