Friday 29 Mar 2024
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KUALA LUMPUR (June 8): Bursa Malaysia Bhd announced that it is adding an additional five constituents into the FTSE4Good Bursa Malaysia Index.

The FTSE4Good index measures the performance of public listed companies (PLC) in demonstrating strong Environmental, Social and Governance (ESG) practices and was launched in December 2014, with a total of 24 constituents.

In a statement today, the exchange said these new ESG constituents were mid cap companies that spanned three sectors, namely real estate investment trusts (REITS), Industrial Products and Trading/Services.

“In December 2015, the first ESG Index Review post launch saw the number of constituents expanding to 34. For the latest review period of June 2016, there were 5 new additions to the F4GBM Index constituents, bringing the total to an impressive 39,” it said.

“Bursa Malaysia and FTSE Russell have been conducting outreach programmes to companies to encourage and support them in improving their ESG disclosure and practice; today’s announcement demonstrates the success of this work,” the local bourse added.

Over the past decade, Bursa Malaysia said its sustainability journey has included the introduction of the Bursa Malaysia Corporate Responsibility framework in 2006, followed by the Shariah-based indices and corporate governance guidelines for listed companies in 2007, the launch of the F4GBM Index in 2014, as well as the Sustainability Reporting Guide and Toolkits rolled out to PLCs in 2015.

“The increase in the number of constituents is a reflection of the PLCs taking their cue from the exchange to step up in their commitment towards ESG best practices,” Bursa Malaysia said, adding that the Prime Minister of Malaysia also launched the FTSE4Good ASEAN Index in April 2016 to coincide with Invest Malaysia Kuala Lumpur 2016.

The FTSE4Good Index constituents are drawn from the 200 shortlisted companies on the FTSE Bursa Malaysia EMAS Index and reviewed in June and December against international benchmarks developed in collaboration with FTSE Russell.

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