BURSA MALAYSIA WANTS PLCS TO DEVELOP WELL-DEFINED ESG APPROACH

KUALA LUMPUR, June 10 (Bernama) -- Public listed companies (PLCs) need to develop a well-defined environmental, social and governance ESG approach, according to a guidebook launched by Bursa Malaysia Bhd today.

“(This includes) putting in place better governance (as well as) more effective management of environmental and social performance through embedding robust ESG practices across key functions of the organisation,” the stock exchange operator said in a statement.

The guidebook (Guidebook 2), titled “Sustainable, Socially Responsible and Ethical PLCs”, is the second in a series of five guidebooks of the PLC Transformation Programme.

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Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said PLCs need to address critical ESG concerns that materially impact their business operations as well as longer-term prosperity.

“Critical areas of focus include addressing material climate-related risks, and managing key environmental or social impacts such as human rights and labour practices.

“There is a pressing need to also reinforce accountability among senior management and directors,” said Muhamad Umar, who moderated an interactive panel at the guidebook’s launch.

According to him, investors these days view the companies beyond their market and intrinsic financial value.

“Failure to meet ESG compliance results in reputational damage that can be detrimental to a company’s credibility,” he said.

Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said Guidebook 2 of the PLC Transformation Programme serves as a useful aid for companies in enhancing ESG best practices across their organisation.

“The exchange strongly encourages PLCs to reflect upon and step up their adoption of the best practices espoused in the series of guidebooks, which is reflective of the emerging expectations from stakeholders,” he added.

On March 2, 2022, Bursa Malaysia launched the PLC Transformation Programme, at an event officiated by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, with the objective of helping to raise the stature of Corporate Malaysia and increase the attractiveness of PLCs in Malaysia.

Adoption of best practices and information sharing programmes will continue until 2025.

The first and second digital guidebooks of the programme are available for download on the Bursa Malaysia website.

-- BERNAMA