Bursa Malaysia and FTSE Russell have announced that the FTSE4Good Bursa Malaysia (F4GBM) Environmental, Social and Governance (ESG) scores of Malaysian public listed companies (PLCs) will now be available on Bursa Malaysia’s website. This is part of the continuous efforts to promote and encourage the adoption of ESG practices in the marketplace. A semi-annual newsletter will also be made available on the website to provide further transparency and information on new developments in the ESG landscape to the public.

Bursa Malaysia launched the F4GBM Index in 2014, in partnership with FTSE Russell. The objectives were to offer support to investors who wanted to incorporate ESG elements into their investment decisions while at the same time, encourage best practice disclosures amongst Malaysian PLCs. Since then, the number of F4GBM Index constituents has since grown three-fold, increasing from 24 to 73 as of the latest review in June 2020. This is a clear indication of the emphasis on ESG is gaining momentum in Malaysian corporates.

Making the PLCs’ ESG ratings available to the public will offer a good point of reference for investors looking for PLCs with good ESG performance. It also provides PLCs with a view of their peers’ ESG performance. In addition, the ESG ratings can be used as building blocks for integrating ESG into investments in a variety of ways, including active portfolio management, benchmark construction and company engagement.

“Investors and shareholders now expect greater transparency and accountability from their investee companies, as they take greater interest in the social and environmental impact of their investment decisions,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, “As a frontline regulator and market operator, we want to provide an environment that encourages sustainable practices among our market participants.

Helena Fung, Head of Sustainable Investment, Asia Pacific, FTSE Russell, said, “Bursa Malaysia has been a valued partner of FTSE Russell since 2006, and we are delighted to collaborate with Bursa on their new ESG Initiative. This is a mark of our ongoing commitment to markets in Malaysia and across the Asia Pacific region. FTSE Russell’s ESG Ratings and data model provide globally recognised standards for market participants and companies to utilise as they incorporate sustainability approaches into their investment strategies.”

The FTSE4Good Bursa Malaysia rating information and the newsletter can be accessed at:
https://www.bursamalaysia.com/trade/our_products_services/indices/ftse_bursa_malaysia_indices/overview

Posted by

Bursa Malaysia