RAM Sustainability’s external review concludes that Econas Resource to Energy Sdn Bhd’s SRI Sukuk meets green and sustainability guidelines

Published on 17 Nov 2022.

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RAM Sustainability’s external review (also known as a second opinion) concludes that Econas Resource to Energy Sdn Bhd’s (ER2E or the Issuer) ASEAN Sustainability SRI Sukuk Murabahah Framework (the Framework) meets recognised green and sustainability guidelines. ER2E’s proposed integrated waste management facility in Pengerang, Johor, Malaysia will primarily treat waste generated at the nearby Pengerang Integrated Petroleum Complex. ER2E is also involved in the collection, treatment, recycling, recovery and final disposal of scheduled waste.

In formulating its opinion, RAM Sustainability considered the ASEAN Sustainability SRI Sukuk Murabahah’s utilisation proceeds towards essentially pollution prevention and control, circular economy, green buildings, renewable energy, clean transportation, sustainable management of living natural resources and land use – which in aggregate constituted the environmental benefit element. Additionally, the utilisation of proceeds directed for employment generation and access to essential services were examined from the social benefit contribution perspective. 

“We believe ER2E’s ASEAN Sustainability SRI Sukuk Murabahah innovatively brings together sustainable scheduled waste management and elements of social benefit, another Malaysian bond market first,” said Gladys Chua, RAM Sustainability’s head of sustainability services. 

The Sustainability SRI Sukuk is to be issued under ER2E’s RM500 million Islamic Medium Term Notes Programme and incorporates the requirements of Securities Commission Malaysia’s Sustainable & Responsible Investment Sukuk Framework, the ASEAN Green Bond Standards, ASEAN Social Bond Standards, ASEAN Sustainability Bond Standards and the globally recognised Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines. The Framework is aligned with all core areas, 14 out of 18 applicable recommendations and 11 out of 17 applicable recommendations of the pre-issuance GBP and SBP checklists, respectively. We have assigned Environmental Benefit (EB) and Social Benefit (SB) ratings to eligible projects under the Framework (see Table 1).

Table 1: EB and SB ratings assigned to ER2E’s eligible projects


RAM Sustainability is a provider of sustainability services and Environment, Social and Governance analytics. Incorporated on 31 May 2000, it is a wholly owned subsidiary of RAM Holdings Berhad. RAM Sustainability is the first ASEAN-based provider of sustainability ratings and second opinions. It also has the distinction of being the first Registered Observer of the International Capital Market Association’s Green Bond Principles, Social Bond Principles and Sustainability Bond Guidelines in the ASEAN region. On 12 August 2020, we 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, see https://www.ram.com.my/sustainability.  


Analytical contacts
Amirah Jamil

Gladys Chua


This external review or second opinion is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment on the security’s market price or its suitability for an investor, nor does it involve any audit by RAM Sustainability. 

Published by RAM Sustainability Sdn Bhd 

© Copyright 2022 by RAM Sustainability Sdn Bhd

Publication Date Published Category
Econas Resource to Energy Sdn Bhd ASEAN Sustainability SRI Sukuk Murabahah Framework 17-Nov-2022 Green Bond/Second Opinion Report View PDF