MARCH-APRIL , 2023 | @ green
COVER STORY
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Climate-Related Financial Disclosures ( TCFD ).
“ However , for the Platform to serve this purpose , there are requisites that we must be mindful of – including data quality ( materiality and validity ) and the adopted methodology of the ESG information disclosure frameworks / standards (“ rulebased ” vs “ principle-based ”),” she said .
On how this latest initiative by Bursa would align with the ESG standards currently being reported by listed companies , she noted : “ The current reporting ecosystem had been a work in progress for more than a decade , and there is a broad base of dissatisfaction among investment industry stakeholders with the present position on data and reporting .
“ Going forward , we can expect a greater degree of urgency from the industry to make significant progress , with a stronger framework likely to emerge , albeit slowly .”
She said in January 2019 , the World Economic Forum , in collaboration with Allianz SE and the Boston Consulting Group , suggested the following actions :
• Improved transparency of the entire ecosystem ( such as alleviating duplication of activity and unintentional conflicts )
• Effective and active cross-system interactions ( such as incorporating more of the end user ’ s needs )
• Stricter harmonisation of methodologies for measuring key performance indicators ( KPIs ) related to ESG ( such as enhancing the comparability of KPIs to help the decision-making of investors and others ) “ Steps to adopt this have already been taken by Bursa Malaysia as reflected in the latest Sustainability Reporting Guide published in September 2022 .”
She hoped the efforts to develop the Centralised Sustainability Reporting Platform would consider the constraints that arose in enabling ease of access and review for the quality of data produced , and harmonisation of reporting standards and their requirements .
“ This is to ensure principle-based guidance such as the Integrated Reporting and TCFD ( in part ) are adequately provided for and aligned with the reporting frameworks such as the Global Reporting Initiative ( GRI ),” she said .
A GREENER AND MORE SUSTAINABLE ECONOMIC GROWTH
Besides the reporting platform , Anwar said in his speech that green businesses were crucial to economic sustainability and all life and its attendant qualities .
“ Our country is blessed with some of the world ’ s oldest rainforests , and our seas are recognised as one of the richest reservoirs of biodiversity . They must be protected as they are valued assets blessed by the Almighty .
“ However , as technology and the virtual landscape advance , so do the nation ’ s needs . Since our country is a major trading nation , efforts will be spent on expanding and improving airport capacity in Penang and Subang , which Malaysia Airports Holdings will lead in addition to sea access via Sanglang Port in Perlis .”
In addition to these key infrastructure developments , establishing technology hubs in Penang and Johor and the potential of Sabah and Sarawak in competitive energy costs will also attract much interest and secured investments .
Additionally , financing support will also be available through Bank Negara Malaysia . Funds will be provided to SMEs and other startups to implement green and low-carbon practices . Other forms of help would be via Technology Financing Scheme , Investment Tax Allowance and Income Tax Exemption for eligible activities .
Investments will also be made in green growth areas , including hydrogen technology , bioenergy and electric mobility – enablers of green adoption across sectors and future economic engines .
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 .”
NET ZERO CARBON FOOTPRINT
In his speech , The Prime Minister also said efforts would be focused on lowering the nation ’ s carbon footprint . A key element in this concept will emphasise the development of Technical and Vocational Training ( TVET ).
TVET is being redesigned for further participation in the private sector , while in conventional academia , updates on university syllabi are being developed .
Additionally , Anwar expressed optimism towards projects within this field growing to a point where Malaysia ’ s Voluntary Carbon Market operated by Bursa Malaysia could be used .
The Bursa Carbon Exchange ( BCX ) launched in December last year would spearhead the acceleration towards and net zero future .
To support this national journey , Anwar announced the government was committing a seed fund of RM10 million as an assured demand of Malaysian-generated carbon credits to kickstart the journey .
He said that in this journey to secure the environment ’ s future , it was only natural that further development and support should be through Islamic finance . In this field , Malaysia is recognised as a longstanding global leader .
Therefore , the government was committed to enhancing this field further through the Securities Commission Malaysia , which will extend the Waqf-Featured Fund Framework to include Islamic Real Estate Investment Trusts ( REITs ) and Islamic Exchange Traded Funds ( ETFs ). – @ Green
Phang Oy Cheng
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business strategy , Maybank believed that this Platform would facilitate them to disclose standardised common ESG data in ways that conform to established global standards .
“ We also commend Bursa Malaysia ’ s approach in bringing together relevant companies in the end-to-end sustainability value chain . With UMW from the suppliers ’ perspective and Maybank providing sustainable financial solutions , it demonstrates how each can play its vital role in the entire ecosystem ,” said Khairussaleh .
“ In line with our mission to humanise financial services and driven by our M25 + strategy , we will continue to support our stakeholders on their decarbonisation journey − providing advisory and engaging them on their plans on sustainable and transition financing solutions .”
Ahmad Fuaad applauded Bursa Malaysia ’ s initiative , adding they were honoured to be part of the pilot programme . Sustainability has always been core to UMW ’ s purpose and values , and it continues to stand as one of the main pillars of the CREST @ UMW strategic framework .
“ Our sustainability roadmap is anchored on four key thrusts , including achieving carbon neutrality by 2050 . The
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Group has been disclosing its Scope 1 and Scope 2 carbon emissions in its annual Sustainability Report ,” said Ahmad Fuaad .
“ Furthermore , the UMW Group is continuing with environmental conservation efforts through UMW Green Shoots Initiatives to plant mangrove trees throughout Malaysia and participate in the River of Life programme by producing bamboo shoots .
“ With the introduction of this new platform initiated by Bursa Malaysia , we will be able to work towards ascertaining the Group ’ s Scope 3 carbon emissions . It will enable us to objectively and effectively manage the Group ’ s carbon emissions as we embark on the phased implementation of TCFD from FYE 2024 .”
Muhamad Umar pointed out that Bursa Malaysia and its partners shared the goal of creating a marketplace where listed companies could grow sustainably and still profit .
“ With this Platform , we hope to accelerate the pace of achieving this objective and see improved ESG performances by our listed companies recognised by global investors while enabling the opportunity for them to access capital freely and improving the liquidity of our markets ,” he added .
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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 . It will assist companies with the financial year ending December 2023 in time to meet mandatory disclosure requirements , which start in March 2024 . |
( Left to right ) Datuk Muhamad Umar Swift , Datuk Ahmad Fuaad Kenali , Datuk Khairussaleh Ramli and Tan Sri Abdul Wahid Omar , Chairman of Bursa Malaysia . |