Bursa Malaysia signed a Memorandum of Collaboration with PETRONAS to help drive environmental, social, and corporate governance (ESG) adoption and practices through Bursa Malaysia’s Centralised Sustainability Intelligence Platform. Working in collaboration with the London Stock Exchange Group, Bursa Malaysia is developing and testing the Platform which can allow corporates and their listed or non-listed suppliers, both domestically and internationally, to calculate their carbon emissions impact and disclose standardized, common ESG data.
The purpose of this Platform is to ease companies in their sustainability disclosures and encourage effective management of their carbon emissions, including those from their supply chain while facilitating decarbonization through banks’ green financing products and services.
With the formalization, PETRONAS would be participating in the Early Adopter Programme of the Platform to advocate standardized ESG reporting and disclosures while exploring the creation of further value throughout its supply chain. Participation in the Platform is envisaged to further reinforce adoption among Malaysian companies through improved ESG data transparency and interoperability.
PETRONAS will continue to leverage technology and digital to accelerate ESG adoption and readiness across its supply chain to ensure sustainable operational and commercial excellence. These efforts shall be supported by University Teknologi PETRONAS with its fundamental research and academic exchanges.
The MOC was signed by Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, and Datuk Tengku Muhammad Taufik, President and Group Chief Executive Officer of PETRONAS, and witnessed by Wong Chiun Chiek, Director, of Bursa Intelligence and Aadrin Azly, Vice President of Group Technology and Commercialisation, PETRONAS.
Datuk Muhamad Umar Swift said, “I applaud PETRONAS, being the custodian of Malaysia’s natural oil and gas reserves, in raising the bar to promote sustainable practices in the energy sector. The Centralised Sustainability Intelligence Platform deployed for the collaboration is intended to facilitate and ease PETRONAS’ decarbonization efforts across its supply chain. We encourage other industry captains, particularly those with significant stakes in the global supply chain, to also tap into this avenue and take the helm for change within their respective verticals.”
Datuk Tengku Muhammad Taufik said, “PETRONAS strongly believes that a just and responsible energy transition can only be achieved when stakeholders within and across sectors work together. Critically, partnerships with forward-looking entities like Bursa Malaysia will offer a valuable avenue for the entire OGSE sector to further embrace and strengthen ESG compliance for operational improvements. This is increasingly unavoidable to preserve a license to operate in a rapidly transforming energy landscape. Amidst an ever-intensifying push for a lower-carbon future, PETRONAS is determined to continue advocating good governance and transparency among the oil and gas players towards becoming a trusted ESG partner to deliver energy responsibly in a secure, affordable, and sustainable manner.”
Datuk Muhamad Umar Swift added, “Bursa Malaysia is also delighted to have CIMB Group on board for this initiative, continuing our partnership with them under the #financing4ESG programme since May 2022. As part of this collaboration, CIMB Group will offer sustainable supply chain financing solutions to help businesses in PETRONAS’ supply chain adopt low carbon and sustainable practices.”
This follows the recent signing of Bursa Malaysia’s Memorandum of Collaboration with UMW Corporation Sdn Bhd and Malayan Banking Berhad.