CEO Morning Brief

Main Market ESG Ratings by Year-end; Ace Market by 2025 — Wahid Omar

Publish date: Thu, 13 Jun 2024, 10:41 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 12): All main market companies will be rated for environmental, social and governance (ESG) by the end of this year, with ACE market companies scheduled for assessment by June 2025, said Bursa Malaysia Bhd chairman Tan Sri Abdul Wahid Omar.

Currently, approximately 1,000 companies are listed, with 19 joining up to May this year. The exchange aims to onboard a total of 42 companies this year.

"The idea is to ensure that companies listed on Bursa Malaysia are worthy of investment. We aim for every company to fully embrace sustainability," he said during the 'Ringgit, Bonds, and Equity Markets' panel at the Bank Negara Malaysia (BNM) Sasana Symposium 2024.

He noted that the exchange began its journey in 2014, collaborating with FTSE Russell to develop the FTSE4Good Bursa Malaysia Index with 24 counters.

"Today, we have 107 counters that make up the FTSE4Good Bursa Malaysia Index, but in my view, that seems small. So, what we have done is to adopt a blanket approach where every single listed company will be rated for sustainability using the FTSE Russell methodology, irrespective of their liquidity.

“Thereafter, we will publish it so that every single investor will now have the ability to check the ESG rating of all listed companies,” he said.

In addition to ESG, he highlighted Bursa Malaysia's commitment to encouraging listed companies to enhance their performance through initiatives such as the public-listed companies (PLC) transformation programme.

Meanwhile, BNM deputy governor Adnan Zaylani Mohamad Zahid noted that many large corporates, with access to international markets, are investing internationally to achieve their sustainability goals and carbon offset strategies.

“We need more investments and products to be available in the country. As an economy, we have to provide these opportunities to our domestic corporates and players, as well as attract foreign investors to our market.

“It concerns us at BNM because if we do not get our act together, there will continue to be pressure in the future from a market-flow perspective,” he said.

Source: TheEdge - 13 Jun 2024

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