Malaysian stock exchange to launch ESG index

Bursa Malaysia launches programme to promote ESG integration

The Malaysian Stock Exchange, the Bursa Malaysia, is planning to launch an environmental, social and governance (ESG) index to attract socially responsible investment (SRI) funds.
“It is our aim to be able to construct an Environment, Social and Governance (ESG) Index in the near future. This index will be a catalyst for driving more SRI funds to our market,” said exchange chairman Tun Mohamed Dzaiddin Haji Abdullah.
He was speaking at the launch of the exchange’s inaugural Business Sustainability Programme, which seeks to promote the integration of sustainable practices at listed firms.
The programme was launched by Prime Minister Yang Amat Berhormat Dato’ Sri Najib Tun Razak.

The programme consists of a sustainability guide for directors, a knowledge portal on the exchange’swebsite, a project matching facility and “thought leadership” sessions.

Chairman Tun Dzaiddin said: “We seek to encourage Malaysian companies to be more mindful of their business conduct vis-à-vis their multifarious stakeholders.” The directors’ guide seeks to provide clarity in managing and integrating ESG into business practices. It also looks at corporate reporting, global climate change and community relations. The project matching resource will assist collaboration between listed companies and relevant organisations.

Earlier this year the exchange launched two consultation papers on corporate governance, seeking input on listing requirements and on the proposed Corporate Disclosure Guide.