KUALA LUMPUR, June 25 – Bursa Malaysia Bhd will be launching the FTSE4Good Bursa Malaysia Shariah Index next month.
Chairman Tan Sri Abdul Wahid Omar said this new index will comprise constituents of the FTSE4Good Bursa Malaysia Index that are Shariah-compliant according to the the Securities Commission Malaysia’s (SC) Shariah Advisory Council’s screening methodology.
“We are expanding collaborative efforts to work with financial institutions to offer sustainable financing products to public limited companies (PLCs) that have shown interest and commitment in improving their environmental, social and corporate governance (ESG) practices,” he said in his keynote address at the Joint Committee on Climate Change (JC3) Flagship Conference today.
Abdul Wahid said the exchange continues to promote sustainability among its listed issuers.
The FTSE4Good Bursa Malaysia Index has played an essential role in recognising PLCs that have taken steps to improve their ESG practices and disclosures.
Since its launch in 2014, the number of constituents in the index has tripled to 76 from 24.
As part of Bursa Malaysia’s continuous efforts to promote and encourage the adoption of ESG practices, the whole methodology and ESG scores of PLCs are now available on its website.
“For a company to be included in the FTSE4Good Bursa Malaysia Index, its ESG scores will be assessed according to the FTSE4Good Rating Model.
“PLCs that score a minimum of 2.9 out of five and can demonstrate that they are applying measures to manage their material ESG risks will be included in the index,” he said, adding that the exchange has been engaging with its stakeholders to determine the need to incorporate more sustainable and responsible investment (SRI) elements in the ESG index that can better suit the local investment landscape.
Apart from ESG-related indices, Abdul Wahid said Bursa Malaysia has also played a pioneering role in compelling PLCs to adopt good ESG practices and disclosures.
In addition, the exchange also assists PLCs along their sustainability journey via the provision of comprehensive guidance and feedback, undertaking various advocacy and training in areas such as climate change and anticorruption.
“Our listed issuers also benefit immensely from our Bursa Sustain portal, a one-stop knowledge repository for corporate governance, sustainability and responsible investment,” he added.