For individuals and communities, the impact of a company’s operations can be deeply felt, from the air they breathe to the water they drink. As the world shifts towards a more sustainable future, the actions of corporations can have far-reaching consequences, affecting not just their own employees, but also the broader community. In Malaysia, a new initiative is underway to promote sustainability and transparency among listed companies, with Bursa Malaysia Bhd, UMW Corp Sdn Bhd, and Malayan Banking Bhd (Maybank) joining forces to develop a centralized sustainability platform.
This platform, created in partnership with the London Stock Exchange Group (LSEG), aims to provide a repository for Environmental, Social, and Governance (ESG) disclosures made by listed companies. By using the platform, listed firms will be able to strengthen their sustainability disclosures and hasten the adoption of their supplier chain’s carbon emissions, which also includes non-listed entities. The platform will also assist banks in creating green financing options and services, motivating and promoting corporate sector and supply chain decarbonization.
Enhancing Transparency and Consistency
According to Datuk Muhamad Umar Swift, CEO of Bursa Malaysia, the platform will enable Malaysian corporates to meet regulatory requirements, facilitate greater transparency and consistency in sustainability disclosures, and provide wider access to green financing products. The platform will also provide further features, including TCFD modules and a carbon emission calculator for businesses and their supply chains. This initiative is expected to hasten Corporate Malaysia’s shift to a Green Economy, with UMW and Maybank being the program’s original pioneers.
Participants in the EAP will verify the platform’s value extraction from April to October 2023. Maybank Group President and CEO, Datuk Khairussaleh Ramli, believes that this centralized sustainability platform will make it easier for them to provide common ESG data that is standard and compliant with established international standards. He added that Maybank will continue to help their stakeholders on their decarbonisation journey, providing guidance and engaging them on their plans on sustainable and transition financing solutions.
Supporting Decarbonization Efforts
For companies like UMW, the platform will be instrumental in ascertaining their Scope 3 carbon emissions, enabling more objective and effective management of their carbon emissions. As UMW embarks on the phased implementation of TCFD from FYE 2024, the platform will play a crucial role in supporting their decarbonization efforts. The launch of this new platform is also in line with UMW’s commitment to sustainability, as reflected in their framework, CREST.
The collaboration between Bursa Malaysia, UMW, and Maybank is a significant step towards promoting sustainability and transparency in the corporate sector. By providing a centralized platform for ESG disclosures and green financing options, they are supporting the transition to a more sustainable economy. As the platform is rolled out, it will be interesting to see how it impacts the way companies operate and disclose their sustainability efforts.
Looking Ahead
As the world continues to shift towards a more sustainable future, initiatives like the centralized sustainability platform will play a crucial role in supporting this transition. With the platform’s launch, companies will have access to a range of tools and resources to help them manage their sustainability disclosures and decarbonization efforts. As the program’s original pioneers, UMW and Maybank will be closely watched as they navigate this new platform and work towards a more sustainable future. In the coming months, it will be important to watch how the platform is received by the corporate sector and how it impacts the overall sustainability landscape in Malaysia.
