ESG or Environmental, Social, and Governance is a term that is being taken very seriously across the global markets and a key factor for investors when selecting a company. Organisations that lack clear ESG vision are shunned until such frameworks are in place and eventually implemented.
In Malaysia, various authorities are already pushing the ESG agenda including Bursa Securities, where listed entities on the stock exchange are being advised to start reporting on their initiatives towards ESG. Research houses like Maybank IB have been assessing companies in their portfolio and offering analysis of the organisation’s ESG journey. Among them, MyEG a well-known service provider used by nearly every motorist in the country was given an above-average overall score of 67 (over 100) by Maybank IB.
The research house found the company’s ESG-related policies and framework adequate, with zero incidents of controversies or breaches of cyber security and customer data. Further inroads into establishing proper carbon reduction and net zero targets could further boost its ESG profile.
As an IT services provider, MyEG identifies cyber threat, technology performance, customer experience, and data protection as the most critical areas for its business model. It has yet to experience any incidents or controversies on these matters thus far. It has also managed to reduce GHG emissions, as well as electricity and petrol consumption between FY19 to FY21 as part of adopting more digitalised practices. Sustainability angle through its blockchain solution MyEG’s supply chain financing application on its Zetrix blockchain platform could also provide a sustainability angle through the traceability of products.
The group recently reached another milestone in Oct 2022 through the formation of partnerships with AmBank and MIMOS Technology Solutions to roll out cross-border trade financing solutions for local businesses with Chinese merchants. Demand for this service, could grow over time as more stakeholders began incorporating traceability as part of their business practices.
Ranked well, with more room for improvements MyEG ranked fairly well on Sustainalytics ESG metric, with a score of 21.5 and ‘medium’ risk rating, as well as being at the top quartile on Bursa’s ESG ranking. That said, the group’s sustainability profile could improve further by setting up more medium-term targets around its emission reduction, service quality, and approach toward achieving Net Zero.