Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”) today launched the second (“Guidebook 2”) in a series of 5 guidebooks of the PLC Transformation Programme, entitled “Sustainable, Socially Responsible and Ethical PLCs”. At the launch event, the Exchange shared highlights from the Guidebook 2, which emphasises the need for PLCs to develop a well-defined ESG approach including putting in place better governance, more effective management of environmental and social performance through embedding robust ESG practices across key functions of the organisation. The event also featured an interactive panel showcasing two leading companies from different industries sharing their organisations’ ESG aspirations and journey.
“Developing a comprehensive and robust ESG response is becoming increasingly crucial to enhance business resilience, and viewed as an important catalyst for long-term value creation,” said Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia.
Studies have shown that ESG-focused companies outperform their peers in the market, and are more resilient during economic downturns. Investors, lenders and rating agencies are therefore increasingly expecting greater visibility of a company’s non-financial performance. ESG has become a critical component of investment decision making.
“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 Datuk Muhamad Umar Swift, CEO of Bursa Malaysia, who also moderated the panel.
“The Exchange is only as good as the products or companies that are listed on it. These days, investors view the companies beyond its market and intrinsic financial value. Failure to meet ESG compliance results in reputational damage that can be detrimental to a company’s credibility,” observed Datuk Umar Swift.
“Guidebook 2 of the PLC Transformation Programme serves as a useful aid for companies in enhancing ESG best practices across the 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,” urged Tan Sri Abdul Wahid Omar, Chairman of Bursa Malaysia.
Officiated by the Minister of Finance Malaysia in March this year, the objective of the PLC Transformation Programme is to help raise the stature of Corporate Malaysia and increase the attractiveness of public listed companies (PLCs) in Malaysia. The first and second digital guidebooks from the programme are now available for download on the Bursa Malaysia website. For more information about the PLC Transformation Programme, visit www.bursamalaysia.com/reference/public_listed_companies_transformation/overview or email PLCT@bursamalaysia.com.
