Note: The criteria for measuring transparency in the Global ESG Monitor are based on six (6) interdependent dimensions, balance, comparability, accuracy, timeliness, reliability and relevance.

Other key findings of the Global ESG Monitor Malaysia Regional Report include:

• The FBMKLCI demonstrates a commitment to international frameworks, with 90% of companies referencing the Sustainable Development Goals (SDGs), 87% following the Global Reporting Initiative (GRI), and 67% aligning with the Task Force on Climate-Related Financial Disclosures (TCFD).
• The Malaysian Code on Corporate Governance (2021) specifies that there should be at least 30% “women directors” on the boards of Malaysian companies. FBMKLCI is already in a good position in this respect, as mixed boards have already been identified for 80% of the companies surveyed.
• In the reports themselves, however, the companies are more cautious in this respect: only 77% report the total percentage of their employees by gender. The descriptions in the FBMKLCI are also rather restrained when it comes to the topic of age split (67%) or ethnicity (43%).
• Significant transparency gaps exist in Environment, Social, and Governance (ESG) reporting, with scores of 55%, 39%, and 54% in each respective category.
• The top performing companies namely Tenaga Nasional Berhad and Press Metal Aluminium Holdings Berhad tied for first place at 72 points.
• A lack of detail in reporting has resulted in a poor overall ESG transparency score. For example, 90% of Malaysian companies    report that a materiality analysis was completed but only 20% provide background information on the year of data collection and how the data was collected. In addition, 67% of companies list their stakeholders but only 37% provide information on how the stakeholders were determined.

Ariane Hofstetter, the GEM’s Co-Founder and Head of Research and Data Science added, “While Malaysian companies excel in adhering to international frameworks, it’s crucial they provide more comprehensive information on environmental, social, and governance 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. Whilst there are still many hurdles for Malaysian companies to overcome when it comes to transparency, overall, this is good news for investors and other stakeholders as we are moving towards the right direction,” concluded Andy See, Managing Director of Perspective Strategies. Click here to download the Inaugural Global ESG Monitor Malaysia Regional Report 2022 that was unveiled at Sustainability Perspectives earlier today. Ariane Hofstetter, the GEM’s Co-Founder and Head of Research and Data Science added, “While Malaysian companies excel in adhering to international frameworks, it’s crucial they provide more comprehensive information on environmental, social, and governance 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. Whilst there are still many hurdles for Malaysian companies to overcome when it comes to transparency, overall, this is good news for investors and other stakeholders as we are moving towards the right direction,” concluded Andy See, Managing Director of Perspective Strategies.

Click here to download the Inaugural Global ESG Monitor Malaysia Regional Report 2022 that was unveiled at Sustainability Perspectives earlier today.

About Perspective Strategies

Perspective Strategies is a strategic communications and issues management firm with services in public affairs, brand communications and stakeholder engagement. The firm’s expertise is built on years of experience of working in a comprehensive range of industries and businesses. Perspective’s team has strong credentials in corporate reputation, investor relations, brand and marketing communications, as well as communication capabilities building for clients. In line with the current shift towards Sustainability and ESG, the firm established the Strategy and Sustainability Practice to deepen its knowledge and expertise in this core area. Perspective Strategies is the exclusive Malaysia Regional Partner of the Global ESG Monitor (GEM).

About the Global ESG Monitor

The Global ESG Monitor (GEM) is a unique research initiative to examine transparency in non-financial reporting of the largest companies in the world. The GEM monitors, analyses and reports on the transparency of non-financial ESG reporting using the GEM ASSAY™, a proprietary research tool adapted annually in response to evolving conditions and developments.

The operationalisation of transparency underlying the GEM ASSAY™ is based on the relevant guidelines of Global Reporting Initiative (GRI), ISO Standard 26000, World Economic Forum (WEF) and Accountability.

The Global ESG Monitor is headquartered in Wiesbaden (Frankfurt), Germany with partner offices in Washington, DC; Melbourne, Australia; Kuala Lumpur, Malaysia; Hong Kong, China; Warsaw, Poland and Bucharest, Romania.

Contacts:

Michael Diegelmann, michael.diegelmann@globalESGmonitor.com +49 61120585512
Ariane Hofstetter, ariane.hofstetter@globalESGmonitor.com +49 61120585518

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For more information on the Global ESG Monitor 2022 Transparency Report, visit www.globalesgmonitor.com