According to Maybank IB, Aurelius Technology’s overall ESG score at 41 is slightly below the average at 50 (out of
100), based on its ESG scoring methodology. The bank further added while there is room for improvement in its sustainability journey, it acknowledged the progress the company has made since its IPO.
In FY23 (FYE Jan), ATECH established a Sustainability Management Committee and Sustainability Working Team to further strengthen its sustainability and corporate governance structure. Key sustainability milestones achieved in the past 12 months include the initiation of a commitment to attain net-zero emissions by 2050 and to support the global 30×30 goal, aiming to preserve 30% of the planet for nature by 2030. Additionally, the successful installation and activation of
rooftop solar panels have unlocked up to 2.5783 MWp power capacity, with an expected annual savings of c.MYR1.5m in electricity costs. The company has also placed two EV charging stations on its premises, offering complementary charging services to employees and visitors.
Areas for improvement
Opportunities for improvement include enhancing reporting on greenhouse gas emissions (specifically Scope 1 And Scope 3), waste disposal, and water consumption. Additionally, the company is encouraged to increase local sourcing and strive to maintain women board members ≥30%, as per MCCG guidelines. A more detailed roadmap for tracking progress toward the netzero emissions goal would be beneficial.
A proxy beneficiary of supply chain diversification
Maybank said it remains optimistic about ATECH’s prospects, considering it as a proxy beneficiary of supply chain diversification and local E&E FDIs. Growth is underpinned by expansion initiatives and acquiring new customers and products. Nonetheless, we acknowledge potential short-term challenges due to persistent soft end-consumer demand in specific sectors. Significant contributions from key growth catalysts are anticipated only when mass production intensifies in 2HCY24.
