RAM Sustainability opines that UEM Group Berhad’s Sustainability Sukuk Framework enables green financing for national decarbonisation projects and investments

Published on 16 Nov 2023.

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RAM Sustainability has completed the external review (also known as a second opinion) of UEM Group Berhad’s (UEM) Sustainability Sukuk Framework (the Framework) and concluded that it meets recognised green finance standards.

UEM is a wholly owned subsidiary of Khazanah Nasional Berhad (Khazanah) with interests in expressways, township and property development, engineering and construction, asset and facility management, and green industries. Khazanah, Malaysia’s sovereign wealth fund, the champion of a large-scale integrated Renewable Energy Zone under the National Energy Transition Roadmap (NETR), has identified UEM as its green investment vehicle.

RAM Sustainability opines that the green initiatives to be financed under the Framework for renewable energy, energy efficiency, clean transportation, and pollution prevention and control has the potential to contribute towards national decarbonisation targets as defined in the NETR and the 12th Malaysia Plan.

We have assigned the highest Tier-1 Environmental Benefit (EB) rating to the respective renewable energy eligible projects for solar, hydropower and biogas, reflecting their potential contribution towards significant climate and wider environmental benefits. EB ratings for other eligible projects under the Framework range from Tier-2 to Tier-3 (see Table 1).


Table 1: EB ratings assigned to UEM’s eligible projects


RAM Sustainability also concludes that the Framework is aligned with the disclosure requirements of the SRI Sukuk Framework, ASEAN Green Bond Standards, and Green Bond Standards. The Framework is aligned with all core areas, and 10 out of 20 recommendations in the pre-issuance checklist of the Green Bond Principles.

At this juncture, RAM Sustainability’s review is limited to the green bond and sukuk perspectives as the current Framework has yet to exhibit social projects or sustainability-linked components. UEM plans to update the Framework in the future with more eligible projects and sustainability-linked components.

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
Intan Aasyeerin

Amirah Jamil

Media contact
Sakinah Arifin


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 2023 by RAM Sustainability Sdn Bhd

Publication Date Published Category
UEM Group Berhad Sustainability Sukuk Framework 16-Nov-2023 Green Bond/Second Opinion Report View PDF