Steeling Sustainability: Bursa Malaysia, Masteel Forge Ahead In ESG Initiatives

Bursa Malaysia signed a Memorandum of Collaboration (MoC) with Malaysia Steel Works Berhad (Masteel), bringing the company onboard as the latest addition to the CSI Platform’s Early Adopters Programme (EAP).

The MoC will focus on improving Environmental, Social and Governance (ESG) data transparency and interoperability within the company’s supply chains, while ultimately enhancing its overall competitiveness.

This aligns with the Ministry of Investment, Trade and Industry’s (MITI) New Industrial Master Plan 2030 (NIMP 2030) focus of ensuring industrial manufacturers are equipped and ready for various ESG standards and frameworks, as global expectations on ESG heighten.

Developed by Bursa Malaysia in collaboration with the London Stock Exchange Group, the CSI Platform is envisioned to serve as a repository for sustainability disclosures by Malaysian listed companies, along with disclosures by local and international suppliers throughout their supply chains.

It will enable companies to calculate and track their carbon emissions impact, while subsequently facilitating green financing and decarbonisation efforts.

The MoC was signed by Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia and Dato’ Sri Tai Hean Leng, Managing Director and Chief Executive Officer of Masteel.

Datuk Muhamad Umar Swift said, “It is important to have a wide spectrum of stakeholders and across various industries utilise common indicators in the same repository, to realise the full potential of the CSI Platform and the intended multi-pronged objectives. The Malaysian steel sector is a critical industry with economic and trade significance, and our partnership with Masteel aligns squarely with our intent of facilitating the nation’s and the industry’s shift towards sustainable practices. Masteel’s proactive approach to driving decarbonisation efforts is commendable and essential to accelerate and foster a smooth industry-wide transition.”

Masteel’s participation in the EAP serves to encourage the entire steel industry ecosystem to enhance adherence to international ESG standards including Scope 1, 2 and 3 reporting.

As ESG compliance becomes more pressing, effective management of carbon emissions is critical to ensure products can be exported and remain competitive. Additionally, it enhances market access to countries and regions that prioritise higher ESG standards for market entry.

Dato’ Sri Tai Hean Leng said, “We are pleased to be the first steel manufacturer onboarded to the Bursa Malaysia CSI Platform’s Early Adopters Programme. This will not only enable us to internally streamline our reporting in a standardised manner via its uniform and structured disclosure approach, but it will also enable us to assess the entire value chain within the steel industry, including Scope 3 stakeholders and their sustainable practices. I am confident that this collaboration will not only benefit us, but the larger steel ecosystem, futureproofing its competitiveness as we move forward.”

The MoC is Bursa Malaysia’s first collaboration in the steel industry, and its fifth EAP collaboration for the year. It follows on the Exchange’s previous MoC signings to onboard early adopters from the oil and gas, automotive, property and manufacturing, as well as transportation and logistics sectors, onto the Platform.

Alliance Bank, which had already signed a MoC with the Exchange in the property and manufacturing sectors, will also serve as a supporting financial partner in this collaboration. Masteel’s suppliers that demonstrate efforts in decarbonisation will be eligible to access Alliance Bank’s supply chain financing programme to improve their working capital.

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