KUALA LUMPUR: RAM Holdings Bhd has entered into a commercial partnership with MVGX Tech and Carbon Rating Malaysia Sdn Bhd (CRM) to strengthen RAM's environmental, social, and corporate governance (ESG) rating capabilities.
In the collaboration, RAM will incorporate MVGX's decarbonisation rating system into its sustainability service offerings, with customisations to suit local needs.
CRM and RAM will work jointly to market and support solution users.
RAM group chief executive officer and executive director Chris W K Lee said Asia has huge potential for low carbon investments and energy transition opportunities.
He said Southeast Asia's green future economy requires US$2 trillion in new investments by 2030, potentially creating 5 million new jobs.
Current reports, however, suggest that 2050 net-zero carbon emission targets risk being delayed, he said.
"While many large and listed corporations have begun reporting and addressing their emissions, many companies still need to start their decarbonisation journeys, hampered by a lack of knowledge, financial means, or tools.
"Our collaboration with CRM and MVGX aims to bridge these gaps by providing a world-class, proven and affordable solution for companies to measure and track their emissions and, in doing so, facilitate their low carbon journey.
"We hope with this solution and our other sustainability services, RAM can support the realisation of Malaysia's moonshot aspirations and net-zero goal by 2050", Lee said in a statement.
RAM is the leading and largest credit rating agency in Malaysia and Southeast Asia, while MVGX is a leading carbon Software-as-a-Service (SaaS) company and has developed carbon solutions that empower corporations, governments, and institutions to take action at every stage of their decarbonisation journey.
CRM is a management services company specialising in carbon management services and solutions for clients.
Moving on, the new decarbonisation rating solution from RAM, to be deployed online, will enable companies to measure their carbon emissions for Scope 1, 2 and 3 and effectively strategise their decarbonisation journey.
RAM's decarbonisation rating system leverages a proprietary methodology developed by MVGX in consultation with TÜV SÜD, a leading ISO certification body.
Companies will be objectively rated based on emission measurements and other dimensions and given a ranking along with a detailed rating report, which TÜV SÜD then verifies.
MVGX's decarbonisation rating system assures businesses that their ISO disclosures are certified by globally recognised sustainability standards providers such as the British Standards Institution (BSI) and TÜV-SÜD.
MVGX executive chairman Bo Bai said the company's partnership with RAM and CRM is a step in the right direction for local enterprises, and MVGX is supporting them with the much-needed tools and advisory as they embark on their decarbonisation journeys.
He said this is especially critical for businesses amid the government's concerted push for sustainability under the Madani Economic Roadmap, crystallised in various masterplans such as the new Industrial Master Plan 2030 and the National Energy Transition Roadmap.
"Sustainability is now increasingly a necessity rather than a nice-to-have. This has led us to choose to partner with RAM, which has under its umbrella, the leading accredited rating agency and is a strong proponent of sustainability anchored by deep analytical capabilities," Bo said.
CRM executive chairman Nor Azamin Salleh said this partnership opens up possibilities for Malaysian companies to embark on their decarbonisation journey and address the issue of their carbon footprint in a more accurate and affordable manner.
"As we strive to harmonise economic growth with environmental stewardship, addressing the carbon emissions conundrum becomes imperative.
"A uniformed and regulated carbon ratings system can serve as the cornerstone of Malaysia's decarbonisation efforts, fostering transparency, accountability, and a resilient green economy," he said.