Regulation Asia

The availability of ESG ratings will help investors and allow listed companies to benchmark themselves against their peers in terms ESG performance, Bursa Malaysia says.

Bursa Malaysia – in cooperation with FTSE Russell – is publishing ESG scores of Malaysian public listed companies on its website.

ESG and access to capital - oilandgas360“This is part of the continuous efforts to promote and encourage the adoption of ESG practices in the marketplace,” Bursa Malaysia says in a statement. The ESG ratings are aimed at helping investors while also allowing publicly listed companies to benchmark themselves against their peers in terms 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.”

Bursa Malaysia is also publishing a semi-annual newsletter “to provide further transparency and information on new developments in the ESG landscape to the public.”

“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 Bursa Malaysia chief Datuk Muhamad Umar Swift. “As a frontline regulator and market operator, we want to provide an environment that encourages sustainable practices among our market participants.

Bursa Malaysia launched the FTSE4Good Bursa Malaysia (F4GBM) Index in 2014, in partnership with FTSE Russell, to support investors seeking to incorporate ESG elements into their investment decisions, while at the same time encouraging best practice disclosures amongst Malaysia listed companies.

As of its latest review in June 2020, the number of index constituents had grown three-fold from 24 to 73. “This is a clear indication the emphasis on ESG is gaining momentum in Malaysian corporates,” Bursa Malaysia says.

Oil & Gas 360 Publishers Note: This is yet another example of the world financial community placing high value on ESG.  “No well articulated ESG program =No access to capital and no survival” -Stu Turley, Director/Publisher Energy 360

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