MAYBANK IB UPBEAT ON UMW HOLDING'S ESG AGENDA

KUALA LUMPUR, Jan 20 -- Maybank IB Research has maintained its 'buy' ratings for UMW Holdings Bhd at RM3.95, as the company aims to roll out a comprehensive short-, mid- to long-term environmental, social and governance (ESG) targets or agenda by this year. 

In a research note, the investment bank said UMW's sustainability framework, especially its environmental policy closely adopts to the principal partner's (Toyota) policy and practices. 

The industrial company has in practice, been tracking and disclosing its natural capitals data since 2016. 

The year-on-year rise in its carbon footprint (+2.0 per cent), energy consumption (+3.0 per cent), effluents (+134 per cent), general/scheduled waste (22 per cent/ 40 per cent), water (+22 per cent), and materials (+6.0 per cent) was mainly attributed to the full-year operating impact of its Assembly Services Sdn Bhd Bukit Raja (ASSB BR) in Selangor and Toyota Boshoku-UMW (TBU) plants. 

It said the company's immediate ‘E’ plans are to maintain or minimise carbon emissions and water consumption, increase recycling activities and encourage usage of renewable resources, improve its waste management system and have zero incident accident. 

Under its dynamic workforce pillar, the employment, training and education enhancement, workforce diversity and equal opportunity in employment, are some of its ‘S’ targets.

Meanwhile, the revised policy to allow auto's assembly and manufacturing plants to resume operations during the Movement Control Order (MCO) is positive for UMW's Toyota and Perodua's facilities in Selangor.

Maybank IB Research also maintained the vehicle sales forecasts for Toyota and Perodua at 69,700 units and 248,000 units, respectively, for 2021.

-- BERNAMA