Bursa Malaysia Berhad signed a Memorandum of Collaboration (MOC) with UMW Corporation Sdn Bhd (UMW) and Malayan Banking Berhad (Maybank) to deploy a Centralised Sustainability Platform.
Working in collaboration with the London Stock Exchange Group (LSEG), Bursa Malaysia has developed and tested the Platform that will serve as a repository for listed companies’ ESG disclosures. The Platform will enable listed companies to reinforce their sustainability disclosures and accelerate the swift adoption of their supply chain’s carbon emissions, which also includes non-listed entities. The Platform will also help banks develop green financing products and services, that will incentivise and encourage decarbonisation of the corporate sector and their supply chain.
“We are pleased to be working with the LSEG to develop this Platform which will enable Malaysian corporates to meet regulatory requirements, and facilitate greater transparency and consistency in sustainability disclosures while providing wider access to green financing products,” said Datuk Muhamad Umar Swift, CEO of Bursa Malaysia. “The Platform will also offer additional capabilities such as TCFD modules, as well as a carbon emission calculator for corporates and their supply chain.”
Last year, Bursa Malaysia and the LSEG signed a Memorandum of Understanding (MoU) to expand the ESG collaboration between the two exchanges. The MoU covers ESG educational initiatives, implementation of sustainable supply chain finance, and corporate ESG reporting solutions, among other areas. Commenting on the MoU, Cornelia Andersson, Group Leader, Sustainable Finance and Investment at LSEG pointed out that this step will yield a significant increase in the environmental, social and governance (ESG) data and analytics available on listed companies in Malaysia.
“We are also exploring the development of an ESG corporate reporting solution to increase disclosure of climate-related risks and opportunities for investors. It follows the launch of a new ESG and low carbon benchmark covering the largest listed issuers on Bursa Malaysia,” Cornelia Andersson added.
UMW and Maybank are pioneers of the Early Adopter Programme (EAP), an initiative to accelerate Corporate Malaysia’s transition towards a Green Economy. Running from April to October 2023, participants of the EAP will validate the value extraction of this Platform. “Following YAB Prime Minister’s call-to-action at the recent Invest Malaysia event, we commend the leadership stance taken by UMW and Maybank to take on the first movers’ advantage and pilot this innovative sustainability initiative,” said Datuk Muhamad Umar Swift, CEO of Bursa Malaysia. “We envisage building a sustainable ecosystem that will be able to address the needs of a multitude of stakeholders, and one that is inter-operable, hence easing the path for acceptance and raising the competitiveness of Malaysian companies in the global supply chain.”
The MOC was signed by Datuk Muhamad Umar Swift; representing UMW was Dato’ Ahmad Fuaad Kenali, President & Group Chief Executive Officer, while Maybank was represented by its Group President & Chief Executive Officer, Dato’ Khairussaleh Ramli.
Dato’ Khairussaleh Ramli said that as corporates are duly expediting the adoption of sustainability as a core component of their business strategy, Maybank believes that this Centralised Sustainability Platform would facilitate them to disclose standardised common ESG data in ways that conform to established global standards.
“We also commend Bursa Malaysia’s approach in bringing together relevant companies in the end-to-end sustainability value chain − with UMW from the suppliers’ perspective and Maybank providing sustainable financial solutions; thereby demonstrating how each can play
its vital role in the entire ecosystem. In line with our mission to Humanise Financial Services and driven by our M25+ strategy, we will continue to support our stakeholders on their decarbonisation journey − providing advisory and engaging them on their plans for sustainable and transition financing solutions,” added Dato’ Khairussaleh Ramli.
“We applaud Bursa Malaysia for this initiative and are honoured to be part of the pilot programme. Sustainability has always been core to UMW’s purpose and values, and it continues to stand as one of the main pillars of our CREST@UMW strategic framework. Our sustainability roadmap is anchored on four key thrusts, including to achieve carbon neutrality by 2050 and the Group has been disclosing its Scope 1 and Scope 2 carbon emissions in its annual Sustainability Report,” said Dato’ Ahmad Fuaad Kenali.