ESG and Climate Disclosure Regulation: A Comparative Legal Analysis of the United States and Malaysia

Climate-related financial disclosure has emerged as a pivotal element in contemporary Environmental, Social, and Governance (ESG) regulation, reshaping corporate accountability and policy alignment. This article undertakes a doctrinal and comparative legal analysis of regulatory developments in the United States and Malaysia. These two jurisdictions represent distinct ends of the regulatory spectrum, one characterised by adversarial, rule-based approaches, and the other by a consensus-oriented, exchange-based regulatory framework. The study examines primary legal instruments, regulatory guidance, and key policy documents, triangulated with secondary literature to map the evolution and practical operation of climate disclosure regimes. Both jurisdictions face mounting pressure to align with international sustainability standards, including the Task Force on Climate-related Financial Disclosures, the Global Reporting Initiative, and the International Sustainability Standards Board, amid intensifying global investor demands. The article argues that hybrid, interoperable models combining mandatory obligations and market-based innovation offer the most adaptable blueprint for cross-border ESG transparency and regulatory harmonisation.