• Matrix Concepts Holdings Berhad (“Matrix”) latest sustainability  framework includes 6 ESG pillars, namely: i) Equity & Local Economy, ii)  Upholding Ethical Business Conduct and Corporate Integrity, iii)  Environmental Conservation iv) Employee Work Satisfaction and Well  Being v) Safe and Healthy Work Environments and vi) Culture and  Community.

• The company started reporting its ESG journey since 2015. However, our  assessment of its ESG initiatives period is only from 2020 till the latest  available annual report (2022).

• We have assigned Matrix an overall ESG rating of 3.90 out of 5 which falls  in the rating band of “Good”.

Summary

There has been an increasing global focus on environmental, social, and  governance (ESG) issues by various stakeholders, including investors and  regulators. Matrix has always recognized that maintaining good ESG  performance is vital for creating value. By embracing sustainability,  companies can enhance its financial performance by improving operational  efficiency, productivity, and cost savings in the long term. Moreover, by  engaging in sustainable efforts enables organizations to become more  resilient to external shocks and mitigate the impact of risk factors that could  adversely affect value creation, such as climate change and labor rights issues.

Matrix’s ESG Evolution Journey

For FY2022 Matrix conducted a comprehensive reassessment of its material  topics. The Materiality Assessment Exercise (“MAE”) conducted by Matrix,  involved both internal and external stakeholders towards gaining a more  comprehensive and inclusive assessment on material topics. The MAE process  involved a detailed analysis of potential topics drawn from a universe of best  practice, globally recognised and local sustainability frameworks. These  include the Global Reporting Initiative (GRI), Bursa 2nd Edition of  Sustainability Reporting Guide, FTSE4Good, Task Force on Climate-Related  Financial Disclosures (TCFD) and Sustainability Accounting Standards Board  (SASB). The list of potential material topics was refined after which an online  survey/questionnaire was distributed to invited stakeholders to assess its views. Matrix has also aligned its material topics with its stakeholders including individuals, groups, or entities that can influence or be impacted by  its operations. This includes supply chain and development partners,  customers and communities, investors, employees, and government/industry.

Source: BIMB Securities Research - 12 May 2023