Maybank IB has rates Ta Ann ESG 2.0 score to be below-average due to lack of disclosures and commitments it said. To its benefit the house said the group observes good agricultural practices for its plantation division, as well as sustainable forest
management practices. TAH scores 20 (out of 100) under the bank’s proprietary ESG scoring methodology.
“E” – Lacking disclosures and targets , Maybank IB said TAH is committed to the Malaysian Sustainable Palm Oil Policy, zero burning policy, no-deforestation, and no new planting on peat soil. It observes good agricultural practices for its plantation division. However, TAH has yet to take stock of its GHG inventory as of FY22. Given that it has yet to disclose its GHG and Energy intensities as well, TAH has yet to make any commitment on its medium-to-longer term emission reduction targets. As for its timber division, all operational concessions (346,021 hain total) are PEFC-certified (i.e. endorsed internationally) for sustainable forest management (SFM). And, TAH is one of the pioneers in forest plantation in Sarawak.
It is granted 3 Licence for Planted Forests (LPF) totalling over 87,000 ha, of which 30,971 ha are planted with fast growing
tree species. Approximately 54,000 ha of the LPF are reserved for fauna and biodiversity conservation, and also community land use.
“S” – A responsible corporate citizen
TAH said it recognises the rights of indigenous and local communities by requiring Free, Prior and Informed Consent (FPIC) prior to developing any land or forest activities. It also undertakes many CSR programmes for the local communities.
“G” – There is room for improvement
Maybank IB said TAH still lag large peers in its Governance initiatives with room for improvement in areas such as Audit Committee (to comprise solely of Independent Directors), and at least half of the Board comprising Independent Directors (presently 38%).
