• Eco World Development Group Berhad ("ECW”) latest sustainability  framework covers 5 ESG pillars, namely: i) People, ii) Planet, iii)  Partnership iv) Prosperity and v) Peace. Based on these key pillars, 13  material topics have been finalized according to ECW’s sustainability  performance and aligned based on 12 Sustainable Development Goals  (SDG) of the United Nations (UN), which is impressive given 17 SDG goals  set by the latter.

• The company started reporting its ESG journey since 2017. However, in  our assessment of its ESG initiatives, the period taken is only from 2020  till the latest available annual report (i.e., 2022).

• We have assigned EcoWorld an overall ESG rating of 4.00 out of 5 which  falls in the rating band of “Best”.

Summary

The issue of climate change is a key focus in real estate industry, and ECW is  committed to tackle it by reducing both operational and embodied carbon  emissions. The building industry is a major contributor to global energy  consumption, waste generation, and water usage, accounting for over 40%,  for the previous two, and 16% for the latter, respectively. To align with global  targets, ECW has established long-term climate change goals based on the  Paris Climate Agreement and United Nations Sustainable Development Goal (Goal 13 - Climate Action). Furthermore, the Malaysian government has  expressed its commitment to achieve a net zero carbon footprint by 2050  through participation in events such as COP26 and the implementation of the  Twelfth Malaysia Plan (RMK-12).

ECW’s ESG Evolution Journey

ECW is dedicated to uphold sustainability initiative in all aspects of business,  from corporate culture and strategy to operations. The company has been on  the pedestal over this since 2017, with a focus on ESG progress and  achievements aligned with their strategic plans - to create long-term value for  stakeholders. As a result, it has been included as a constituent of the  FTSE4Good Bursa Malaysia Index and FTSE4Good Bursa Malaysia Shariah  Index since 2020, indicating their strong ESG performance. It has also  received various awards and recognition for its commitment to sustainability drive within its business. In August 2022, the company was presented with  the 2022 Malaysia Outstanding ESG Impact Corporate Excellence Award at  the Malaysia SDG and ESG Impact Awards. Furthermore, UN Global Compact  Network Malaysia & Brunei (UNGCMYB) awarded ECW the Sustainability  Performance Award, commending their sustainability performance. The 12th  Institutional Investor Corporate Awards, a perception-based poll that covers  various aspects of business, has also recognized ECW. The company was  ranked in the top five for categories such as Most Organized Investor  Relations, Best Senior Management Support, and Strongest Adherence to  Corporate Governance. ECW has also been an active member of UNGCMYB  since April 2021 and participated in various seminars and webinars to build  partnerships nationally and internationally.

Source: BIMB Securities Research - 11 May 2023