The biggest winner in the PLC category was Vitrox Corporation Bhd (KL:VITROX), which took home two gold awards for being the best performer in the technology sector and for the most improved ESG performance over a three-year period for companies with a market capitalisation of over RM5 billion.
In the funds category, BIMB Investment Management Bhd took home three gold awards in the best E, S and G categories and a silver award for the best allocation fund category.
RHB Islamic Asset Management won two gold awards in the best overall fund and best equity fund categories. RHB Asset Management, meanwhile, took home the gold award in the allocation fund category and the silver award in the best impact resource security category.
This year, 779 PLCs were appraised by FTSE Russell for their ESG performance, making them eligible to be considered for the awards under the PLC category, compared with 356 PLCs last year.
The PLC category is judged based on FTSE4Good’s ESG ratings model, which looks at 14 themes and is underpinned by over 300 indicators. An average of 125 indicators are applied per company.
An exposure level of high, medium, low or negligible to each theme is applied to the business, depending on which sector the company is in.
PLCs are assessed on how well they are mitigating their ESG risks according to the relevant indicators. This assessment is done by FTSE Russell using the PLCs’ publicly disclosed information.
PLCs do not have to apply for the awards, as any company that has an ESG score from FTSE and is listed on the Bursa Malaysia Main Market will automatically qualify.
Under the funds category, the number of funds designated as sustainable and responsible investment (SRI) funds in Malaysia increased from 69 last year to 80 as at July 31, 2024, according to the Securities Commission Malaysia (SC).
“2024 is an exciting year for the ESG Awards because this is the first time almost all Main Board companies on Bursa Malaysia were in the running for a trophy,” said Ho.
With a much bigger universe of PLCs competing this year, a new category — the emerging star — was introduced to recognise the best new performers.
“In the funds category, many of the SRI funds now have at least three years of financial track record, seeing that the majority of Malaysia’s SRI funds were established in 2021. That’s why we are introducing a new category this year that doesn’t just consider the funds’ ESG performance but, also, their financial returns,” Ho said.
The introduction of the new category sends a message that it is essential for the funds to not only adhere to the high standards of ESG compliance but also generate good returns for investors, he added.
For the funds category, only those that are under the SC’s SRI list are considered, and they must be launched the year before the awards.
From this universe, only funds that receive the Morningstar Sustainability Rating of three or more “globes” — which represent ESG risk — are eligible for the awards.
The Edge Malaysia ESG Awards 2024 is organised in partnership with Bursa Malaysia and FTSE Russell, with Morningstar as the knowledge partner for the funds category and Deloitte as the auditor. UOB Malaysia is once again the main partner for this year’s awards.
sourced from: The Edge
