PETALING JAYA: KLCCP Stapled Group Bhd has successfully achieved a reduction of 21.5% in greenhouse gas emission versus 2020 based on its proactive measures in minimising carbon footprint.
It also includes the reduction of 27% in water usage contributed by the ongoing water initiatives, equivalent to cost savings of RM0.4mil.
It plans to further strengthen its sustainability agenda by assessing readiness towards reporting its public disclosures aligning with the Task Force on Climate-Related Financial Disclosures recommendation, said Kenanga Research.
There will also be a continuous effort in providing easy access to its environmental, social and governance (ESG) data and disclosures, and this will be updated on a regular basis.,
After a site tour to get first hand information on KLCCP’s ESG initiatives, Kenanga Research has reaffirmed its three-star ESG rating, which is based on an average score of 10 criteria appraised by them.
This is notwithstanding there has been an increase in the overall score.
Hence, there is no adjustment to its target price of RM6.60 a share.
This is derived from a target yield of 5.5% on a financial year 2023 dividend per share. It also maintained a “market perform’’ call on the stock.
The group’s ESG journey began in 2014. Now it is firmly on track to build on the momentum for its ESG initiatives.
Under an ongoing roadmap that runs from 2019 through 2023, the group has achieved steady results with considerable progress made in terms of planning, implementation and reporting.
Moving forward, KLCCP will continue its effort to gear towards a low carbon footprint and enhance ESG data access and disclosures.
In terms of earnings sustainability and quality, the house affirms its three-and-a-half-star rating as the group’s earnings stream is backed by long term, locked-in leases with high quality tenants and high occupancy rates.
For corporate social responsibility, it upped to three-star rating as it felt KLCCP has invested in staff learning and development and wellness programmes while achieving a high safety track record (zero fatalities since 2014).
For management and workforce diversity, it maintained a three-and-a-half-star rating based on the group’s diversified workforce profile (for example, gender breakdown of male (61%) versus female (39%) as well as a good spread across the various age groups.
It keeps its four-star rating in view of the group’s high level of accessibility and transparency of ESG disclosures.
It also maintained at three-star rating as the group has attained the anti-bribery MS ISO 37001 Certification in 2020.