ESG SCORES GIVEN TO ONLY 18 PCT OF COMPANIES IN 13 SECTORS -- BURSA MALAYSIA

KUALA LUMPUR, July 12 (Bernama) -- Only 18 per cent of total companies in 13 economic sectors including those on the ACE Market were given environmental, social, and governance (ESG) scores by four rating providers, said Bursa Malaysia Bhd.

 The four are MSCI, S&P Global, Bloomberg, and Sustainalytics.

In its ESG market update titled “Taking a look at ESG coverage of Malaysian PLCs” posted on Bursa Malaysia Bhd ‘X’ platform today, the local bourse said companies with larger market capitals receive more ESG coverage.

“The three largest indices, namely utilities, finance and telecommunication, garnered over 50 per cent coverage each while the ACE Market received almost no coverage.

“Out of 181 companies, only two ACE companies had ESG scores,” it said. 

Bursa Malaysia said by embracing sustainability disclosures, public listed companies (PLCs) could boost their overall resilience and competitiveness, and in turn, appeal as attractive investments.

On the other hand, It said rating providers could increase ESG coverage of lower market cap companies.

“Apart from low coverage level, investors are concerned with black box rating methodologies and a lack of transparency.

“Investors also prefer ESG rating firms with an active approach and more robust company engagement compared with passive ESG raters which rely solely on public disclosures,” it added. 

-- BERNAMA