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- Total FTSE4Good Bursa Malaysia Index constituents grew from 34 to 39
- 5 new inclusions
Bursa Malaysia Berhad (“Bursa Malaysia” or “the Exchange”) has announced 5 new additions to the constituents of the FTSE4Good Bursa Malaysia (“F4GBM”) Index.
The F4GBM Index measures the performance of public listed companies (“PLCs”) demonstrating strong Environmental, Social and Governance (“ESG”) practices and was launched in December 2014 with a total of 24 constituents comprising PLCs from across the small, medium and large market capitalisation segments. In December 2015, the first ESG Index Review post launch saw the number of constituents expanding to 34.
For the latest review period of June 2016, there were 5 new additions to the F4GBM Index constituents, bringing the total to an impressive 39. These new ESG constituents were mid cap companies that spanned three sectors (REITS, Industrial Products and Trading/Services), highlighting the quality and strength of the issuers in the marketplace. Bursa Malaysia and FTSE Russell have been conducting outreach programmes to companies to encourage and support them in improving their ESG disclosure and practice; today’s announcement demonstrates the success of this work.
Over the past decade Bursa Malaysia’s sustainability journey has included the introduction of the Bursa Malaysia Corporate Responsibility framework in 2006, followed by the Shariah-based indices and corporate governance guidelines for listed companies in 2007, the launch of the F4GBM Index in 2014 as well as the Sustainability Reporting Guide and Toolkits rolled out to PLCs in 2015. The Prime Minister of Malaysia also launched the FTSE4Good ASEAN Index in April 2016 to coincide with Invest Malaysia Kuala Lumpur 2016.
The increase in the number of constituents is a reflection of the PLCs taking their cue from the Exchange to step up in their commitment towards ESG best practices.
The F4GBM Index constituents are drawn from the 200 shortlisted companies on the FTSE Bursa Malaysia EMAS Index and reviewed in June and December against international benchmarks developed in collaboration with FTSE Russell. The constituents of the FTSE4Good Bursa Malaysia are available at http://www.bursamalaysia.com/market/products-services/indices/ftse-bursa-malaysia-indices/overview/
