From L-R: Datuk Muhamad Umar Swift, CEO of Bursa Malaysia; Joel Kornreich, Group Chief Executive Officer of Alliance Bank Malaysia Berhad; Dato’ Ong Eng Bin, Chief Executive Officer of OCBC Bank (Malaysia) Berhad.
Wong Chiun Chiek, SEVP, Bursa Data Business, Bursa Malaysia; Fozia Amanulla, Deputy Group Chief Corporate Banking & Business Development Officer, Alliance Bank Malaysia Berhad; Tan Ai Chin, Managing Director, Senior Banker & Head of Investment Banking, OCBC Bank (Malaysia) Berhad.
Kuala Lumpur, 20 November 2021 – Bursa Malaysia Berhad or (“Bursa Malaysia” or the “Exchange”), Alliance Bank Malaysia Berhad (“Alliance Bank”) and OCBC Bank (Malaysia) Berhad (“OCBC Bank”), today entered into a Memorandum of Understanding (“MoU”) to establish #financing4ESG, an initiative aimed at improving Malaysian Public Listed Companies’ (PLCs) ESG adoption practices.
Under the MoU terms, Bursa Malaysia will collaborate with Alliance Bank and OCBC Bank in developing sustainable financing options that recognise PLCs’ ESG credentials in accordance with the FTSE4Good assessment criteria. This will enable PLCs the opportunity to accelerate their ESG adoption while also improving their ESG ratings for inclusion into the FTSE4Good Bursa Malaysia Index, which is the Malaysian capital market’s leading ESG index.
PLCs eligible for the sustainability financing under this collaboration are those in the FTSE Bursa Malaysia EMAS Index, which forms the FTSE4Good ESG assessment universe. This universe comprises companies of various sizes and industries, ranging from large cap PLCs, GLCs and conglomerates to mid and small SMEs and Shariah-compliant enterprises.
“The signing of the MoU with Alliance Bank and OCBC Bank underscores the Exchange’s commitment towards accelerating ESG adoption among our PLCs, in line with our aspiration to elevate PLCs as regional leaders in this space,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia. “I am optimistic that this collaboration will spur the growth of sustainable finance while also enhancing PLCs’ appeal to investors.”
Mr. Joel Kornreich, Group Chief Executive Officer of Alliance Bank said, “We believe it is important to help business owners adopt environmental, social and governance practices and innovations to reduce carbon footprint. When businesses make sustainable choices, they can be a force for good for the community and environment. Their choices will result in positive climate impact, social outcomes, and business’ profitability in the long term. We
believe our collaboration with Bursa Malaysia enable us help businesses large and small to innovate and grow sustainably.”
Ms. Tan Ai Chin, Managing Director, Senior Banker and Head of Investment Banking of OCBC Bank said, “We will work collaboratively with Bursa Malaysia by synergising OCBC Bank’s leading experience in pioneering various sustainable finance transactions and capitalising on Bursa Malaysia’s ESG database to provide optimal financing solutions for PLCs. We aim to mainstream the adoption of sustainable finance to further accelerate the PLCs’ sustainability agendas, as a means to support Malaysia Government’s commitment towards achieving carbon neutrality by 2050.”
In addition to the competitive financing offered by Alliance Bank and OCBC Bank, PLCs will obtain non-monetary benefits from the collaboration's branding and capacity building exercises. In this regard, the Exchange will provide access to its investor relations engagements and event platforms, as well as the opportunity to participate in specialised technical workshops on climate-related disclosures.
The #financing4ESG initiative sets the foundation for Bursa Malaysia to collaborate with other ecosystem players to advance the nation’s ESG adoption, which is in line with the Exchange’s vision to be a leading sustainable and globally connected marketplace.
PLCs interested in learning more about the initiative or improving their general ESG practices may approach the Exchange’s Index & Sustainable Business unit via email at isb@bursamalaysia.com.
