Published on 29 Jan 2019.
Happy New Year!
Sustainability is gaining traction - among corporations as part of good business practice, investors as part of responsible investing, and banks that have adopted sustainable finance.
RAMC, as a provider of sustainability services and ESG (environmental, social and governance) analytics, is pleased to bring you the RAMC Sustainability Bulletin. The publication offers specially curated articles that will keep you abreast with what matters in the world of sustainability – globally, within ASEAN and in Malaysia.
Our inaugural bulletin features the World Bank Group’s new set of climate targets for 2021-2025, which will double its current 5-year investment value to around USD200 billion. This is aimed at supporting countries seeking to undertake ambitious climate action. In 2018, the World Bank Group provided a record-breaking USD20.5 billion of financing for such endeavours.
Recently, the World Wildlife Fund launched the Asia Sustainable Finance Initiative (ASFI) to help shift Asia's financial flows towards sustainable economic, social and environmental outcomes. To support the finance sector in navigating these risks and opportunities, the ASFI is anticipated to expedite the integration of ESG principles into financial decision-making, and to ensure that this leads to measurable and meaningful outcomes aligned with the Paris Agreement and the United Nations’ Sustainable Development Goals. It is also good to observe that green bonds are gaining more momentum in the region.
Notably, Bursa Malaysia has reiterated its support for the Taskforce on Climate-Related Financial Disclosures (TCFD) in the updated version of the bourse’s Sustainability Reporting Guide and Toolkits (or Second Edition Guide and Toolkits). It incorporates TCFD recommendations to encourage listed issuers to assess and disclose material climate-related information in their annual reports. Established by the Financial Stability Board, the TFCD is the first international industry-led initiative. Its main objective is to develop voluntary, consistent climate-related financial risk disclosures for use by companies in providing information to lenders, insurers, investors and other stakeholders.
The trend towards more ESG disclosure is reinforced by The International Organisation of Securities Commissions, in its statement dated 18 January 2019, which sets out the importance of including ESG matters when issuers disclose information deemed material to investors’ decisions.
I hope these articles will spur you further on your sustainability journey.
Chief Executive Officer, RAMC