The determinants of early adoption of TCFD reporting in Malaysia

This study examines the determinants that influence the early adoption of TCFD reporting among Public Listed Companies in Malaysia. Utilizing a logistic regression analysis, this study examines several variables, including ownership structure, board size, board independence, board gender diversity, external assurance, sustainability committee, external auditor, company size, profitability, leverage, and the industry sector. The findings reveal that the presence of a sustainability committee and the size of the company are positively correlated with the early adoption of TCFD reporting. These results highlight the importance of strong sustainability governance structures and the influence of company scale in driving the early implementation of climate related financial disclosure in Malaysia. Meanwhile, the other factors did not show a significant correlation with early TCFD adoption. This study contributes to the understanding of TCFD disclosure practices. Policymakers and regulators may use this study to develop targeted initiatives that encourage early adoption of TCFD reporting in Malaysia