Maybank and UMW first on Bursa’s centralised sustainability platform 

BURSA Malaysia Bhd will deploy a centralised sustainability platform with UMW Corp Sdn Bhd and Malayan Banking Bhd (Maybank) as its early adopters.

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’ environmental, social and governance (ESG) disclosures.

In a statement today, the market operator said 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.

The platform, it added, 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, facilitate greater transparency and consistency in sustainability disclosures, while providing wider access to green financing products.

“The platform will also offer additional capabilities such as the Task Force on climate-related financial disclosures (TCFD), as well as a carbon emission calculator for corporates and their supply chain,” said Bursa Malaysia CEO Datuk Muhamad Umar Swift.

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, corporate ESG reporting solutions, among other areas.

Commenting on the MoU, Cornelia Andersson, Sustainable Finance and Investment group leader at LSEG pointed out that this step will yield a significant increase in the 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,” Andersson added.

Meanwhile, Bursa said 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 the platform.

“Following the 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 Umar Swift. 

“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,” he said.

Umar Swift said to familiarise themselves with the features and functions of the platform, general awareness and education sessions for the broader listed companies will commence from July onwards.

This, he said, will assist companies with the financial year ending December 2023, in time to meet mandatory disclosure requirements which starts March 2024. – TMR / pic credit: Bursa