KUALA LUMPUR: Malaysia's commitment to becoming a nation with net-zero greenhouse gas emissions by 2050 would require RM350 billion to RM400 billion in cumulative investments, mainly in the energy sector, representing 0.8 per cent of the gross domestic product (GDP) every year until 2050.
Bursa Malaysia chairman Tan Sri Abdul Wahid Omar said this shift includes continued investment in public transportation, tax incentives to promote electric vehicles, and the commitment to phase out coal.
This net zero emission commitment is also reinforced by the Malaysia Renewable Energy Roadmap 2022-2035, developed by the Ministry of Energy and Natural Resources.
"Bursa Malaysia continues to play a key role in driving good environmental, social, and governance (ESG) practices and disclosures across all listed companies.
"As far back as 2014, the FTSE4Good Bursa Malaysia Index has recognised public listed companies (PLCs) that have improved their ESG practices and disclosures.
"The number of constituents in the Index has since grown from 24 to 87, based on the last review in June 2022.
"We also have the FTSE4Good Bursa Malaysia Shariah Index, which comprises 65 shariah-compliant constituents from the FTSE4Good Bursa Malaysia Index," he said during his speech at the Invest Malaysia (IMKL) Series 1: Building Resilience Amidst Volatility conference here today.
Abdul Wahid said that following the Sustainability Reporting Framework of 2015, Malaysian PLCs are now disclosing Sustainability Statements and Reports annually - detailing governance structures put in place and the approach to managing material sustainability matters, covering an extensive range of ESG areas.
"The updated Malaysian Code on Corporate Governance 2021 issued by the Securities Commission further provides best practices and guidance to strengthen board oversight, as well as the integration of sustainability considerations into the strategies and operations of companies.
"The case for Malaysian companies to embed ESG factors in their business strategy and operations is clear.
"The global supply chain is now more discerning and will demand sustainable products and reject sources that are unable to comply," he said.
Abdul Wahid added that to enable companies to voluntarily purchase carbon credits from climate-friendly projects and solutions to offset their carbon emission footprint and meet their voluntary climate goals, Bursa Malaysia will launch the Voluntary Carbon Market (VCM) exchange later this year.
"The rules-based VCM exchange will aggregate carbon credits with similar traits and fundamentals, with vintages from 2016 onwards.
"It will also label products to differentiate between carbon credits sourced in Malaysia and globally," he added.