Bursa Malaysia Commences Centralised Sustainability Programme

Following the announcement by YAB Prime Minister at Invest Malaysia Kuala Lumpur 2023, Bursa Malaysia today signed a Memorandum of Collaboration (MOC) with UMW Corporation Sdn Bhd (UMW) and Maybank to deploy a Centralised Sustainability Platform.

Working in collaboration with the London Stock Exchange Group (LSEG), Bursa Malaysia has developed and tested the Platform that will serve as a repository for listed companies’ ESG disclosures. The Platform will enable listed companies’ to reinforce their sustainability  disclosures and accelerate swift adoption of their supply chain’s carbon emissions, which  also includes non-listed entities. The Platform will also help banks develop green financing  products and services, that will incentivise and encourage decarbonisation of the corporate  sector and their supply chain.  

“We are pleased to be working with the LSEG to develop this Platform which will enable Malaysian corporates to meet regulatory requirements, facilitate greater transparency and  consistency in sustainability disclosures, while providing wider access to green financing  products,” said Datuk Muhamad Umar Swift, CEO of Bursa Malaysia. “The Platform will also offer additional capabilities such as TCFD modules, as well as a carbon emission calculator for corporates and their supply chain.” 

Last year, Bursa Malaysia and the LSEG signed a Memorandum of Understanding (MoU) to expand the ESG collaboration between the two exchanges. The MoU covers ESG educational initiatives, implementation of sustainable supply chain finance, corporate ESG reporting  solutions, among other areas. Commenting on the MoU, Cornelia Andersson, Group  Leader, Sustainable Finance and Investment at LSEG pointed out that this step will yield a  significant increase in the environmental, social and governance (ESG) data and analytics  available on listed companies in Malaysia.  

“We are also exploring the development of an ESG corporate reporting solution to increase  disclosure of climate related risks and opportunities for investors. It follows the launch of a new ESG and low carbon benchmark covering the largest listed issuers on Bursa Malaysia,” Cornelia Andersson added.  

UMW and Maybank are pioneers of the Early Adopter Programme (EAP), an initiative to accelerate Corporate Malaysia’s transition towards a Green Economy. Running from April to October 2023, participants of the EAP will validate the value extraction of this Platform. “Following YAB Prime Minister’s call-to-action at the recent Invest Malaysia event, we commend the leadership stance taken by UMW and Maybank to take on the first movers’ advantage and pilot this innovative sustainability initiative,” said Datuk Muhamad Umar Swift, CEO of Bursa Malaysia. “We envisage building a sustainable  ecosystem that will be able to address the needs of a multitude of stakeholders, and one  that is inter-operable, hence easing the path for acceptance and raising competitiveness of Malaysian companies in the global supply chain.” 

The MOC was signed by Datuk Muhamad Umar Swift; representing UMW was Dato’ Ahmad  Fuaad Kenali, President & Group Chief Executive Officer, while Maybank was represented by its Group President & CEO, Dato’ Khairussaleh Ramli. 

Dato’ Khairussaleh Ramli said that as corporates are duly expediting adoption of  sustainability as a core component of their business strategy, Maybank believes that this Centralised Sustainability Platform would facilitate them to disclose standardised common  ESG data in ways that conform to established global standards.  

“In line with our mission to Humanise Financial Services  and driven by our M25+ strategy, we will continue to support our stakeholders on their decarbonisation journey − providing advisory and engaging them on their plans on  sustainable and transition financing solutions,” added Dato’ Khairussaleh Ramli. 

“Sustainability has always been core to UMW’s purpose and values, and it continues to stand as one of the main pillars of our CREST@UMW strategic framework. Our sustainability roadmap is anchored on four key thrusts, including to achieve carbon  neutrality by 2050 and the Group has been disclosing its Scope 1 and Scope 2 carbon  emissions in its annual Sustainability Report,” said Dato’ Ahmad Fuaad Kenali.  

“Furthermore, the UMW Group is continuing with environmental conservation efforts  through UMW Green Shoots Initiatives to plant mangrove trees throughout Malaysia and  participation in the River of Life programme via the planting of bamboo shoots. With the  introduction of this new platform initiated by Bursa Malaysia, we will be able to work  towards ascertaining the Group’s Scope 3 carbon emissions to enable us to be more objective  and effective management of the Group’s carbon emissions as we embark on the phased  implementation of TCFD from FYE 2024.” 

Concluded Datuk Muhamad Umar Swift, “Bursa Malaysia and our partners share the common goal of creating a sustainable marketplace, where listed companies can grow sustainably  and make profits. With this Platform, we hope to accelerate the pace of achieving this  objective and see improved ESG performances by our listed companies recognised by global investors, while enabling the opportunity for them to access capital freely and improving liquidity of our markets.” 

To familiarise themselves with the features and functions of the Platform, general awareness and education sessions for the broader listed companies will commence from July onwards. This will assist companies with financial year ending December 2023, in time to meet mandatory disclosure requirements which starts March 2024.

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