@ green | MARCH-APRIL , 2023

Bursa Malaysia works with the London Stock Exchange Group to roll out the Centralised Sustainability Reporting platform

BY DANIAL FAUZI

This Platform will give public-listed companies and non-listed SMEs a method to measure their carbon emissions impact .

It will also assist companies in disclosing standardised common ESG data in a way that conforms to established global standards .

This Platform could be a critical factor in enabling the nation ’ s crux to a greener future and supporting sustainable development while simultaneously creating high-skill jobs for the people to progress towards a high-income country .

In his speech when opening Invest Malaysia recently , Prime Minister Datuk

Seri Anwar Ibrahim said Malaysia was open to the demands of ESG .

“ We are open and seek to accelerate the transition and transformation of industries and local players towards ESG adoption , even for SMEs ,” said Anwar .

“ As Malaysia takes on the leadership role in the low carbon journey , a platform to help companies measure , monitor and drive carbon reduction should be implemented .”

Within two weeks of the Prime Minister ’ s announcement , two listed government-linked companies , Malayan Banking Bhd and UMW Corp , signed a Memorandum of Collaboration ( MoC ) with Bursa Malaysia to become pioneers of the Early Adopter Programme ( EAP ) of the Centralised Sustainability Reporting platform .

The MoC was signed On March 22 between Bursa Malaysia CEO Datuk Muhamad Umar Swift , Maybank ’ s Group President & CEO Datuk Khairussaleh Ramli and UMW ’ s Group President & CEO Datuk Ahmad Fuaad Kenali ( see sidebar ).

A GREATER DEGREE OF URGENCY NEEDED

KPMG Malaysia ’ s Head of Sustainability Advisory Services , Phang Oy Cheng , told @ green that developing a Centralised Sustainability Reporting Platform would go a long way in enabling greater transparency for third parties to evaluate the quality of sustainability reports in Malaysia .

It would also enable companies − both public-listed companies and non-listed entities − to calculate their carbon emission impact and disclose standard ESG datasets in a standardised manner that complies with established global standards , such as the Task Force on

MALAYAN Banking Bhd and UMW Corp signed a Memorandum of Collaboration ( MoC ) with Bursa Malaysia to become pioneers of the Centralised Sustainability Reporting Platform ’ s Early Adopter Programme ( EAP ).

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 ’ ESG disclosures . The Platform will enable listed companies to reinforce their sustainability disclosures and accelerate the swift adoption of their supply chain ’ s carbon emissions , including non-listed entities .

The Platform will also help banks develop green financing products and services . It will also encourage the corporate sector ’ s decarbonisation and supply chain .

“ We are pleased to work with the LSEG to develop this Platform to enable Malaysian corporates to meet regulatory requirements and facilitate greater transparency and consistency in sustainability disclosures . It will also provide wider access to green financing products ,” said Datuk Muhamad Umar Swift , CEO of Bursa Malaysia .

“ The Platform will also offer additional capabilities such as TCFD modules and a carbon emission calculator for corporates and their supply chain .”

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 , sustainable supply chain finance implementation , corporate ESG reporting solutions , and other areas .

Commenting on the MoU , Cornelia Andersson , Group Leader , Sustainable Finance and Investment at LSEG , pointed out that this step will significantly increase the environmental , social and governance ( 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 ,” said

Andersson .

The EAP is an initiative to accelerate Corporate Malaysia ’ s transition towards a Green Economy . Running from April to October 2023 , EAP participants will validate this Platform ’ s value extraction .

Muhamad Umar added : “ Following the Prime Minister ’ s call to action at the recent Invest Malaysia event , we commend the leadership stance UMW and Maybank took to take on the first movers ’ advantage and pilot this innovative sustainability initiative .

“ 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 .”

COMMON GOAL OF CREATING A SUSTAINABLE MARKETPLACE

The MoC was signed between Muhamad Umar , Datuk Ahmad Fuaad Kenali , President & Group CEO of UMW and Datuk Khairussaleh Ramli , Group President & CEO of Maybank .

Khairussaleh Ramli said that as corporates are duly expediting the adoption of sustainability as a core component of their