MNRB’s sustainability journey has just about commenced and there is still much room for further enhancement to processes and disclosures. Nevertheless, it is fair to say that in aligning its objectives with Maqasid al-Shariah, environmental, social and governance (ESG) compliance is already embedded into the group’s culture.
“It’s ESG adoption is at an infancy stage, with much room to progress,” said Maybank Investment Bank Bhd (MIBB) in a recent report.
In financial year 2022, the group commenced the integration of sustainability initiatives into its corporate and business operation activities and the focus had then been on Principle 1 of the UN Environment Programme Finance Initiative Principles of Sustainable Insurance (UNEP PSI), for example, by embedding its decision-making ESG issues within its insurance business.
“MNRB’s current ESG score of 29 out of 100 was based on our proprietary scoring methodology, which is below average,” said MIBB.
At this stage, there is a lack of disclosure, particularly around scope 1-3 greenhouse gas emissions on the environment front, and various other social parameters.
Sustainability targets need to be spelt out in greater detail, but MIBB takes comfort in the group’s adoption of Shariah principles in its overall operations, which naturally leads to ESG compliance.
