Bursa Malaysia Berhad, Alliance Bank Malaysia Berhad and OCBC Bank (Malaysia) Berhad have agreed to collaborate through an MOU to establish #financing4ESG, an initiative aimed at improving Malaysian Public Listed Companies’ ESG adoption practices.
Under the terms, Bursa Malaysia will collaborate with Alliance Bank and OCBC Bank in developing sustainable financing options that recognise PLCs’ ESG credentials in accordance with the FTSE4Good assessment criteria. This will enable PLCs the opportunity to accelerate their ESG adoption while also improving their ESG ratings for inclusion into the FTSE4Good Bursa Malaysia Index, which is the Malaysian capital market’s leading ESG index. PLCs eligible for sustainability financing under this collaboration are those in the FTSE Bursa Malaysia EMAS Index, which forms the FTSE4Good ESG assessment universe. This universe comprises companies of various sizes and industries, ranging from large-cap PLCs, GLCs and conglomerates to mid and small SMEs and Shariah-compliant enterprises.
“The signing of the MoU with Alliance Bank and OCBC Bank underscores the Exchange’s commitment towards accelerating ESG adoption among our PLCs, in line with our aspiration to elevate PLCs as regional leaders in this space,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.
”Mr. Joel Kornreich, Group Chief Executive Officer of Alliance Bank said, “We believe it is important to help business owners adopt environmental, social and governance practices and innovations to reduce carbon footprint. When businesses make sustainable choices, they can be a force for good for the community and environment. Their choices will result in positive climate impact, social outcomes, and business’ profitability in the long term.”
Ms. Tan Ai Chin, Managing Director, Senior Banker and Head of Investment Banking of OCBC Bank said, “We aim to mainstream the adoption of sustainable finance to further accelerate the PLCs’ sustainability agendas, as a means to support Malaysia Government’s commitment towards achieving carbon neutrality by 2050.”
In addition to the competitive financing offered by Alliance Bank and OCBC Bank, PLCs will obtain non-monetary benefits from the collaboration’s branding and capacity-building exercises. In this regard, the Exchange will provide access to its investor relations engagements and event platforms, as well as the opportunity to participate in specialised technical workshops on climate-related disclosures.
