KUALA LUMPUR (June 17): Petroliam Nasional Bhd (Petronas) has said its exclusion from the JP Morgan ESG Emerging Market Bond Index and the ESG Asia Credit Index does not provide the true representation of its commitment to its environmental, social and good governance (ESG) practices.

In a statement today, the national oil company said JP Morgan's decision effective end of June 2021 is "regrettable".

"In this regard, Petronas views the decision as not in any way an accurate or true representation of our continuing commitment to sustainable and responsible investing, in line with environmental, social and good governance practices."

Petronas said as a business entity, it adheres to prudent corporate governance and strict business practices in accordance with all applicable laws, rules, and regulations wherever it operates.

"We continue to work closely and engage with all relevant authorities and stakeholders in accordance with best practices and good corporate governance.

"Petronas remains firmly committed to respecting internationally recognised human rights. This commitment is closely aligned with the United Nations Guiding Principles on Business and Human Rights.

"Petronas is also determined to progress its sustainability journey, which forms the core essence of our Statement of Purpose, a progressive energy and solutions partner enriching lives for a sustainable future," it added.

On Wednesday, JP Morgan said Petronas and Indonesian state-owned oil firm Pertamina were expected to be removed from the indices. Petronas' activities in "high-risk regions" exposes it to human rights risks, and risk of violation of a United Nations arms embargo, the bank said.