Malaysia Airports earns another recognition for its sustainability efforts
Malaysia Airports Holdings Berhad has earned another recognition recently for its continuous efforts in sustainability development. FTSE Group confirmed that Malaysia Airports has been independently assessed according to the FTSE4Good criteria and has satisfied the requirements to become a constituent of the FTSE4Good Bursa Malaysia Index (also known as the Environmental, Social, Governance - ESG Index) for Malaysian Public Listed Companies.
Created by the global index company; FTSE Group, FTSE4Good is an equity index series that is designed to facilitate investment in companies that meet globally-recognised corporate responsibility standards. Companies in the FTSE4Good Bursa Malaysia Index have met stringent environmental, social and governance criteria and are positioned to capitalise on the benefits of responsible business practice.
On 22nd December 2014, Malaysia Airports Holdings Berhad was notified by Bursa Malaysia that it will be included in the new FTSE4Good Bursa Malaysia Index for Malaysian Public Listed Companies. The new ESG Index is designed to measure the performance of companies demonstrating good ESG practices and is aligned with other leading global ESG frameworks such as the Global Reporting Initiative (GRI) and the Carbon Disclosure Project. As a constituent of the FTSE4Good Bursa Malaysia Index, it is clear that Malaysia Airports Holdings Berhad is demonstrating a leading approach within the Malaysian market to address relevant corporate responsibility risks.
The selection process began in mid-2014 where the top 200 companies listed on Bursa Malaysia were assessed for their sustainability performance based on globally recognized standards that looks into indicators within the three main themes - environment, social and governance. Amongst the 200, only a total of 24 listed companies qualified to be included in the index. The growing interest by investors on the management of ESG in their portfolios are increasing, and companies that become members of the FTSE4Good Bursa Malaysia Index sends a clear message about the company’s commitment to responsible business practices.
Recapping on the Prime Minister's announcement at Invest Malaysia 2014, Bursa Malaysia will partner with the Financial Times and the London Stock Exchange (FTSE) to derive and launch a Malaysian ESG index by the end of 2014. The introduction of the ESG index will encourage and support enhanced ESG disclosure and practices for the Malaysian capital market, thus, facilitating greater international investment influx. Companies included in the index will achieve visibility within the investment community for demonstrating good ESG practices and disclosure.
The ESG index will be included in the FTSE Bursa Malaysia Index Family and it will become an additional avenue for investors who are looking to invest in companies that are not only performing well financially but are also demonstrating good ESG practices and ESG disclosure.
The objectives of the index are to (as specified by Bursa):
- Support investors in making ESG investments in Malaysian
- Increase profile and exposure for corporates with leading
- Encourage best practice disclosure
- Support the transition to a lower carbon and more
- Further building and strengthening the FTSE Bursa Malaysia Index Family.
Malaysia Airports is very pleased with this recognition and inclusion into the FTSE4Good Bursa Malaysia Index. Well done to all who have put in their efforts and contributed towards achieving this milestone. Malaysia Airports will definitely continue to enhance its sustainable development efforts and review its sustainability performance in striving towards greater sustainability. Well done!
To read the full list of constituents in 2014 and 2015,
please click on the links below:
For more information on FTSE4Good, please visit http://www.ftse.com/products/indices/FTSE4Good