KUALA LUMPUR – Bursa Malaysia Berhad and FTSE Russell have announced on August 14 that the FTSE4Good Bursa Malaysia (F4GBM) Environmental, Social and Governance (ESG) scores of Malaysian public listed companies (PLCs) is now available on Bursa Malaysia’s website.
“This is part of the continuous efforts to promote and encourage the adoption of ESG practices in the marketplace. A semi-annual newsletter will also be made available on the website to provide further transparency and information on new developments in the ESG landscape to the public,” said the Exchange in a statement.
Bursa Malaysia launched the F4GBM Index in 2014, in partnership with FTSE Russell. It was a concerted effort by the exchange to offer support to investors who wanted to incorporate ESG elements into their investment decisions while at the same time, encourage best practice disclosures amongst Malaysian PLCs. This has enabled companies with leading ESG practices to enhance their profiling and exposure.
“The number of F4GBM Index constituents has since grown three-fold, increasing from 24 to 73 as of the latest review in June 2020. This is a clear indication the emphasis on ESG is gaining momentum in Malaysian corporates.
“Making the PLCs’ ESG ratings available to the public will offer a good point of reference for investors looking for PLCs with good ESG performance. It also provides PLCs with a view of their peers’ ESG performance. In addition, the ESG ratings can be used as building blocks for integrating ESG into investments in a variety of ways, including active portfolio management, benchmark construction and company engagement,” Bursa Malaysia said.
“Investors and shareholders now expect greater transparency and accountability from their investee companies, as they take greater interest in the social and environmental impact of their investment decisions,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia, “As a frontline regulator and market operator, we want to provide an environment that encourages sustainable practices among our market participants.
The FTSE4Good Bursa Malaysia rating information and the newsletter can be accessed from their website.