Bursa Malaysia launches two ESG-themed indices with FTSE Russell


Bursa Malaysia Bhd chief executive officer Datuk Muhamad Umar Swift

KUALA LUMPUR: Bursa Malaysia Bhd today launched two new environmental, social, and governance (ESG) themed indices under the FTSE Bursa Malaysia Index Series, a statement from the exchange said.

The new indices, the FTSE Bursa Malaysia Top 100 ESG Low Carbon Select Index (FBM100LC) and the FTSE Bursa Malaysia Top 100 ESG Low Carbon Select Shariah Index (FBM100LS), add to the existing FBM Index Series portfolio that the exchange jointly issues with index partner FTSE Russell.

The index methodology addresses ESG and climate change risks from multiple dimensions

based on clear, transparent and targeted objectives, constructed using the FTSE Russell target exposure methodology.

The index aims to achieve a maximum 30 per cent reduction in fossil fuel reserves intensity, 30 per cent reduction in carbon emissions intensity, and 20 per cent uplift in ESG ratings.

Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift said ESG has become a staple of the investment management landscape.

"Clients have started to demand products that make it easier for them to manage their portfolios with better ESG compliance and risk management.

"We are pleased to again partner with a respected name like FTSE Russell to develop new products that emphasise our commitment towards a low carbon economy,” he said.

Meanwhile, FTSE Russell Head of Sustainable Investment, Asia Pacific Helena Fung said: "We are delighted to expand on our strong partnership with Bursa Malaysia to bring these new ESG themed indices to the market.

"As sustainable investing continues to be embraced in Malaysia, the new indices provide a powerful tool for investors to increase company ESG transparency and performance,” she said. - Bernama

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