Bursa Malaysia First Malaysian PLC to Hit Top FTSE4Good ESG Score

Bursa Malaysia has become the first Malaysian public listed company to achieve the highest possible score of 5.0 under the FTSE4Good ESG assessment framework, placing the national exchange among a select group within a benchmark that assesses more than 12,000 companies worldwide. The result was driven primarily by strong performance on climate change, reflecting the company's enhanced sustainability disclosures. It positions the operator of Malaysia's stock exchange as a domestic frontrunner in a globally recognised ESG rating.

 

The score was attributed largely to improvements in Bursa Malaysia's own ESG reporting, particularly climate-related disclosures aligned with internationally recognised standards including IFRS S2, the global climate-disclosure standard developed by the International Sustainability Standards Board. Aligning with that framework signals that the exchange is measuring and reporting its climate performance against the benchmark increasingly expected by international investors.

 

The achievement carries added weight given the company's role as the national exchange. As the operator that sets listing and disclosure requirements for other companies, Bursa Malaysia's own ESG performance is a test of whether it meets the standards it asks of the market. Chief Executive Dato' Fad'l Mohamed said the standards the exchange encourages across the market should first be reflected in its own practices, framing the top score as proof of progress and a benchmark it intends to maintain.

 

Read more: KPMG Finds Only 19% of Executives Quantify Sustainability's Financial Impact

 

Beyond its own operations, the exchange has moved to raise sustainability reporting across the companies it lists. It has strengthened reporting requirements for listed issuers in line with Malaysia's National Sustainability Reporting Framework and introduced a Centralised Sustainability Intelligence solution designed to make ESG data management easier for listed companies and their suppliers. Together these measures are aimed at improving the quality and comparability of sustainability disclosures across the market.

 

The FTSE4Good benchmark, launched by FTSE Russell in 2001, is one of the longest-standing and most recognised ESG indices, using a transparent, rules-based methodology to serve as a reference for institutional investors seeking companies with strong ESG practices while encouraging continued improvement in disclosure and performance.

 

Source: Bursa Malaysia