FBM KLCI LACKS DEPTH, DETAILS IN ESG REPORTING -- GEM

KUALA LUMPUR, March 21 (Bernama) -- The Global ESG Monitor (GEM) revealed that the 30 companies listed on the FTSE Bursa Malaysia KLCI (FBM KLCI) lack depth and detail in environmental, social and governance (ESG) reporting, thus, ranking in the midfield amongst global and regional peers.

In a statement today, GEM co-founder Michael Diegelmann said FBMKLCI inclusion in GEM 2022 reflected the country’s commitment to transparency and sustainable business practices.

“With an average score of 54 out of 100 points, the Malaysian index ranks joint fifth place alongside the Dow Jones among the ten indices surveyed.

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“This positions the FBM KLCI ahead of the S&P 50 USA (53 points), ASX 50 (53 points), WIG 20 (51 points) and BET 20 (41 points),” he said.

Diegelmann said above FBMKLCI were S&P Asia (56 points), Hang Seng (57 points), EUROSTOXX (66 points) and DAX (68 points).

“The FBMKLCI’s ranking showcases progress in sustainability but also highlights the need for deeper, more detailed ESG reporting in Malaysia,” he said.

GEM said the top three positions for transparency based on the Global ESG Monitor were Press Metal Aluminium Holdings Bhd and Tenaga Nasional Bhd, which tied for first place at 72 points, followed by Petronas Chemicals Group Bhd with 71 points and RHB Bank Bhd at 66 points.

GEM co-founder and head of research Ariane Hofstetter said although Malaysian companies excel in adhering to international frameworks, it is crucial if they provide more comprehensive information on ESG  aspects to truly embrace sustainability.

“We must realise that the transparency of our ESG reporting is critical to inform and engage stakeholders.

“After all, sustainability reporting has been mandatory for all Malaysian public-listed companies since 2016,” he said.

GEM is a research initiative that examines ESG transparency in the non-financial reporting of the largest companies in the world.

It analyses the transparency of non-financial ESG data of 625 ESG reports from 350 companies listed on 10 of the world’s largest stock market indices on four continents.

-- BERNAMA