KUALA LUMPUR: Bursa Malaysia Bhd and HSBC Amanah Malaysia Bhd has entered into a memorandum of understanding (MoU) to collaborate on an initiative aimed at improving Malaysian public listed companies’ (PLCs) environmental, social and governance (ESG) adoption practices.

       In a statement today, the exchange said under this MoU, Bursa Malaysia would collaborate with HSBC Amanah in developing sustainability-linked Islamic financial products as well as ESG solutions aligned to the FTSE4Good ratings model and datasets for eligible PLCs.

       It said PLCs in the FTSE Bursa Malaysia EMAS index, which made up the FTSE4Good ESG assessment universe, would have the opportunity to tap into HSBC Amanah’s Shariah-compliant ESG offerings while enabling them to accelerate their ESG adoption.

       "This would help improve their ESG ratings for inclusion into the FTSE4Good Bursa Malaysia Index, the Malaysian capital market’s leading ESG index,” it said.

       Additionally, it said it would be an opportunity for Shariah-compliant PLCs to be included into the FTSE4Good Bursa Malaysia Shariah Index, which was introduced in July 2021.

       "As we continue to provide guidance and assistance to PLCs to elevate them as regional leaders in this ESG space, the exchange is pleased to welcome HSBC Amanah on-board this collaboration.

       "Having PLCs that are able to successfully manage their ESG risks and opportunities via Shariah-compliant ESG solutions will certainly reinforce Malaysia’s role as a leader in Islamic finance," Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said.

       Meanwhile, HSBC Amanah CEO Raja Amir Raja Azwa said: "We are pleased to join Bursa Malaysia in developing this important initiative towards enabling PLCs on their sustainability journey through the provision of advisory and Shariah-compliant financial solutions as a practitioner of value-based intermediation.

       "This is very much aligned to our own journey in transforming HSBC Amanah into a leading sustainable bank in line with the triple-bottom line approach of prosperity for people and planet and in support of the Malaysian Government’s National Determined Contribution to the Paris Agreement,” he added.

       PLCs interested in learning more about the initiative or improving their general ESG practices may contact the exchange’s index and sustainable business unit via email at isb@bursamalaysia.com. - Bernama