Bursa Malaysia Inks Sustainability MoU With London Stock Exchange

Bursa Malaysia and the London Stock Exchange Group (LSEG) have signed a Memorandum of Understanding (MoU), to expand the ESG collaboration between the two exchanges as well as exploring new areas of opportunity.

Under the MoU terms, Bursa Malaysia and FTSE Russell, LSEG’s global multi-asset index and benchmark provider, will expand its coverage of ESG scores to include all PLCs listed on the Main and ACE Markets.

The MoU will also see the Bursa Malaysia and LSEG collaborate on ESG educational initiatives, support the implementation of sustainable supply chain finance and transition financing workflows among Financial Institutions (FIs).

In addition, they will explore corporate ESG reporting solutions that are aligned with internationally recognised standards such as the Task Force on Climate-Related Financial Disclosures.

All of these would aid in enhancing PLCs’ ESG practices and disclosures, and address the Malaysian FIs’ climate-related requirements, while also supporting Bursa Malaysia’s goal of being a sustainability catalyst in the Malaysian capital market.

Currently, ESG scores are only available for PLCs that are part of the FTSE Bursa Malaysia EMAS index, which accounts for approximately 30% of total Malaysian PLCs. This expanded coverage will enable more PLCs to better measure their ESG performance.

“We have been working with LSEG to build a stronger suite of ESG products. Following the launch of the FTSE Bursa Malaysia Top 100 ESG Low Carbon Select Index Series in August 2022, this MoU we are signing today is an extension of our partnership, and we hope that it will bring more success to our institutions,” said Datuk Muhamad Umar Swift, Bursa Malaysia’s CEO.

#MalaysianStockExchange #LondonStockExchange

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