RAM Sustainability assigns a R1ESGo™ Entity Rating to Sarawak Petchem

Published on 11 May 2022.

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Sarawak Petchem Sdn Bhd (the Project Company) has been assigned a R1ESGo™ Entity Rating of 11, reflecting its exposure to the petrochemical industry’s environmental, social and governance (ESG) risk. 

R1ESGo™ is an ESG assessment service and benchmarking by RAM Sustainability for industry and entity ESG risks. R1ESGo™ ratings are a risk-focused evaluation of the relevance and impact of an array of ESG factors in economic activities, based on global ESG principles which are further calibrated by RAM’s insights on the domestic market. R1ESGo™ ratings are expressed on a numerical scale of 1 (lowest risk) to 15 (highest risk) and are updated annually or as events demand. 

The elevated ESG risk stem from the industry’s manufacturing process which uses natural gas as a feedstock and fuel source and produces greenhouse gases, waste and effluent. That said, Sarawak Petchem is committed to ESG best practices by developing a Health, Safety and Environmental Management System Framework and adopting an environmentally efficient methanol plant design. The plant’s design will incorporate the 3R (Recovery, Recycle, Reduce) concept, an energy loss management system and an industrial effluent treatment system. 

Overall, the Project Company has demonstrated commitment towards ESG transparency including carrying out a Project Sustainability Rating exercise with RAM Sustainability. It carries a Silver3p (S3p) Project Sustainability Rating, which was published on 29 April 2022. 

Sarawak Petchem is jointly owned by Permodalan Satok Berhad and the Sarawak Economic Development Corporation. The Project Company was established to develop, construct and operate the first methanol plant in Bintulu, Sarawak, aimed at retaining the value chain of the state’s oil and gas downstream activities. Currently under construction, the plant is expected to commence operations only in 1Q 2024. Please refer to Sarawak Petchem’s Project Sustainability Rating and R1ESGo™ reports for details. 

RAM Sustainability Sdn Bhd is a provider of sustainability services and ESG analytics. Incorporated on 31 May 2000, RAM Sustainability is a wholly owned subsidiary of RAM Holdings Berhad. RAM Sustainability is the first ASEAN-based provider of sustainability ratings and second opinions and has the distinction of being the first Registered Observer of the International Capital Market Associations’ (ICMA) Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines in ASEAN. It is a member of ICMA’s Advisory Council to the GBP and SBP Executive Committee for a third consecutive term. On 12 August 2020, RAM Sustainability became an Approved Verifier for the certification of climate bonds under the Climate Bonds Standard & Certification Scheme after having been awarded the status by the Climate Bonds Standards Board. For further details, please refer to https://www.ram.com.my/sustainability. 

Analytical contact
Jean Sau
(603) 3385 2574