CEO Morning Brief

Bursa Malaysia Inks Memorandum of Collaboration for Centralised Sustainability Platform

Publish date: Thu, 23 Mar 2023, 08:49 AM
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TheEdge CEO Morning Brief
(From left) Bursa Malaysia Bhd chief executive officer Datuk Muhammad Umar Swift, UMW Corp Sdn Bhd president and group chief executive officer Datuk Ahmad Fuaad Kenali, Malayan Banking Bhd group president and chief executive officer Datuk Khairussaleh Ramli and Bursa chairman Tan Sri Abdul Wahid Omar. (Picture by Sam Fong/ The Edge)

KUALA LUMPUR (March 22): Bursa Malaysia Bhd on Wednesday (March 22) signed a memorandum of collaboration (MOC) with UMW Corp Sdn Bhd and Malayan Banking Bhd (Maybank) to deploy a centralised sustainability platform, with the aim of assisting the corporate sector to achieve environmental, social and governance (ESG) objectives.

“As a leader in the environmental, social and governance (ESG) space — both domestically and in the region — Malaysia has taken significant steps towards achieving this vision.

“Notable among them is the implementation of mandatory ESG disclosure requirements for all listed companies by Bursa Malaysia to facilitate higher transparency to investors,” Bursa chief executive officer Datuk Muhamad Umar Swift said in his keynote address at the signing ceremony.

To address this, Bursa has collaborated with the London Stock Exchange Group (LSEG) to develop and test the platform that will serve as a repository for listed companies’ ESG disclosures.

“We are pleased to be working with the LSEG to develop this platform which will enable Malaysian corporates to meet regulatory requirements, facilitate greater transparency and consistency in sustainability disclosures, while providing wider access to green financing products,” he said.

The platform will also offer additional capabilities such as the task force on climate-related financial disclosures (TCFD) modules and a carbon emission calculator for corporates as well as their supply chain.

On March 8, Prime Minister Datuk Seri Anwar Ibrahim disclosed that both exchanges — Bursa and LSEG — will be rolling out the centralised sustainability platform in April. He said it had the potential to become a key enabler to Malaysia’s pivot to green and support the country’s sustainable development, while creating high-skilled jobs for progress towards a high-income nation.

Umar said the platform will enable companies, both public-listed companies as well as non-listed small and medium enterprises (SMEs), to calculate their carbon emissions impact.

“The platform will enable listed companies’ to reinforce their sustainability disclosures and accelerate swift adoption of their supply chain’s carbon emissions, which also includes non-listed entities,” he said.

The collaboration with UMW Corp and Maybank will support the local stock exchange’s commitment in creating a sustainable marketplace, where listed companies can grow sustainably and make profits, he said.

“I am very pleased that UMW Corp and Maybank have agreed to pilot the use of sustainability data and standards to support sustainable financing programs, kickstarting our Early Adopters Programme (EAP),” Umar said.

UMW Corp president and group chief executive officer Datuk Ahmad Fuaad Kenali said the platform is set to facilitate the group as it is currently working on Scope 3 disclosure on indirect greenhouse gas (GHG) emissions which occur in its value chain.

“According to the Customer Data Platform, the world’s leading aggregator of corporate carbon emissions data, fewer than half of the companies that disclose such data are currently able to accurately report on Scope 3 emissions.

“The reality is markets and companies, large and small, still need greater clarity and coherence when it comes to calculating emissions and sustainability reports,” he said.

Ahmad Fuaad also shared that UMW Corp is currently working on programmes to ensure that its suppliers, vendors and dealers are up to speed in their sustainability disclosure practices.

Maybank group president and chief executive officer Datuk Khairussaleh Ramli said the collaboration would provide the bank with a first-mover advantage to curate a sustainable financing programme to be offered to the market.

“In tune with this, Maybank will continue to expand our own sustainable products and offerings as guided by our sustainable product framework, which is another first in the industry,” he said.

Khairussaleh said access to supply chain and carbon data would also help the nation chart its decarbonisation strategy, which is aligned with the bank’s commitment to mobilise RM80 billion in sustainable finance by 2025.

“We will continue to provide our clients with timely advisory and engage them on their plans for sustainable and transition financing solutions,” he added.

Source: TheEdge - 23 Mar 2023

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