Energy transition disclosure in emerging economies: Evidence from Malaysian energy firms

This study examines the trend, extent, and composition of energy transition disclosure (ETD) among Malaysian energy firms and evaluates the information these disclosures provide about firms’ preparedness for the national energy transition agenda. A content analysis was conducted on 161 firm-year observations from 28 energy firms listed on Bursa Malaysia between 2019 and 2024. Specifically, ETD was measured using the 13-item index developed by García-Sánchez et al. (2024), which covers three dimensions: energy commitment, energy action, and energy performance. The overall and dimensional ETD scores for each firm-year observation were then standardised on a 0–100 scale. The findings reveal that the mean ETD score increased from 23.96% in 2019 to 52.47% in 2024, indicating considerable improvement over the study period. At the item level, firms reported most frequently on energy-efficiency policies, environmental audits or certifications, and investments in clean technologies. In contrast, disclosures relating to supply-chain energy policies, renewable energy source breakdowns, and energy consumption outside the organisation remained limited. Furthermore, after adjusting for differences in the number of items within each dimension, energy commitment recorded the highest pooled coverage (48.24%), followed by energy action (36.89%) and energy performance (29.81%). Overall, the findings demonstrate that ETD has improved, although substantial gaps remain in value-chain coverage and quantitative performance reporting. This disclosure pattern is consistent with legitimacy and stakeholder perspectives. Nevertheless, the descriptive research design does not permit conclusions regarding firms’ underlying motivations. Accordingly, this study provides evidence from an emerging economy and recommends clearer sector-specific indicators, stronger assurance practices, and closer alignment between national sustainability reporting requirements and corporate energy transition objectives.