Despite not having a large environmental footprint, RCE Capital (RCE) is still targeting to reduce CO2 emissions intensity.
“We also like that it is training staff and educating customers on responsible financing,” said Maybank Investment Bank (Maybank IB) in a recent report.
Yet, women and independent directors could play a bigger role on its board of directors. Maybank IB’s Target Price is set at RM2.38, and maintains the Hold call.
As a non-bank financial institution with only 200 employees, RCE has a small environmental footprint.
“While it can improve its environmental disclosures by reporting Scope 3 emissions, water consumption and waste generation, we note that it targets to maintain its Scope 1 and 2 emissions intensity to below 1.0 tCO2e/employee,” said Maybank IB.
Maybank IB notes that RCE trained 100% of its sales staff on responsible financing and has been posting more and more on responsible financing on social media.
That said, while it is laudable that women constitute 73% of RCE’s workforce, Maybank IB notes that there is no disclosure on what percentage of its managerial roles are held by women. Moreover, only 1 of its 8 directors (13%) is a woman whereas women account for at least 33% of the board of directors of its peers.
“We also note that independent directors (ID) account for only 50% of its board of directors whereas IDs account for at least 60% of the board of directors of its peers,” said Maybank IB.
To be fair, RCE has continued to create value for its shareholders by declaring not only special dividend per share and share dividend per share but also raising its DPR policy from 20-40% to 60-80% recently.