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HOW CSR FRAMEWORK FOR REPORTING HELPS PLCs

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Presentation on theme: "HOW CSR FRAMEWORK FOR REPORTING HELPS PLCs"— Presentation transcript:

1 HOW CSR FRAMEWORK FOR REPORTING HELPS PLCs
HOW CSR FRAMEWORK FOR REPORTING HELPS PLCs? TUN MOHAMED DZAIDDIN BIN HJ ABDULLAH Thursday, 17th April 2014

2 SUSTAINABILITY Sustainability is crucial to ensure the viability and resilience of businesses. It is the time for us to realize that business as usual can no longer be accepted if we are envisaging a prosperous and thriving future.

3 BURSA MALAYSIA AND SUSTAINABILITY
Bursa Malaysia recognises the importance of advocating and fulfilling its sustainability role Upholding stronger sustainability performance and transparency would attract a higher volume of investment funds The communities and the environment will not be compromised Companies are more capable of staying in business through mitigation of their sustainability risks and seeking for opportunities that add value to their businesses. Trading hall at RHB Investment Bank (a Participating Organization of Bursa Malaysia)

4 BURSA’S CSR FRAMEWORK COMMUNITY Refers to invested or donated money, time, products, services, influence, management knowledge and other resources that positively impact deserving local communities ENVIRONMENT Activities aimed at conserving ecosystems and biodiversity and managing the impact of a company’s operations on the environment WORKPLACE Activities aimed at maintaining high standards of recruitment, development and retention of employees MARKETPLACE Activities aimed at encouraging and influencing shareholders, suppliers, vendors and customers to act in a sustainable manner across the value chain to support company’s own sustainability agenda Amended LR in 2007 to require listed companies to disclose their CSR activities

5 BURSA’S FIVE-PRONGED REGULATORY APPROACH
Bursa’s Approach Monitoring & Supervision Enforcement Development EXAMPLE: Business Sustainability Programme to integrate sustainability elements into their business strategies to show companies the relevance of sustainability to their business and how to implement sustainability policies Education Engagement Printing in black and white

6 Sustainability Portal Educational Programmes
BURSA’S INITIATIVES Sustainability Portal Guide Educational Programmes Awards

7 ASSESSED 200 LISTED COMPANIES
BURSA’S INITIATIVES ASSESSED 200 LISTED COMPANIES Many of our top listed companies in terms of market capitalisation are currently reporting in accordance with international reporting practices such as the Global Reporting Initiative (GRI) G4. ASESSMENT OF CSR PRACTICES IN COMPANIES ENGAGEMENT WITH COMPANIES

8 STOCK EXCHANGES’ ROLES IN SUSTAINABILITY
Stock exchanges could play a pivotal role in two aspects: To promote higher corporate sustainability performance To enhance disclosure of non-financial information from listed issuers.

9 SUSTAINABILITY INITIATIVES AT GLOBAL LEVEL
was formed in 2009 by the United Nations to offer a peer-to-peer learning platform for stock exchanges which have voluntarily committed to join as Partner Stock Exchange within the initiative aims to engage stock exchanges with stakeholders including investors and to explore ways to promote sustainable investment and improve sustainability disclosure among their listed companies

10 SUSTAINABILITY INITIATIVES AT GLOBAL LEVEL
It aims to penetrate the importance of ESG factors into the investment decision making and practices among investors It has more than 1,000 signatories associated with US $34 trillion of assets under management

11 ESG INDEX To be launched by end of 2014
Bursa's additional effort to advance sustainability practices for Malaysia capital market The main objective of an ESG index is to increase profile and exposure for Malaysian companies with leading sustainability practices SRI FUNDS IN MALAYSIA The Malaysian government has already established a Socially Responsible Investment Fund through ValueCAP, a government linked Investment Company. Other government linked investment companies will also be setting aside funds for socially responsible investments. To help our listed companies better understand environmentally and socially responsible investment practices and the importance of implementing sound corporate governance To encourage the growth of local SRI Funds in Malaysia.

12 THE WAY FORWARD FOR BURSA?
FUTURE?

13 SUSTAINABILITY WITHIN BURSA
Bursa strives: to promote sustainable business practices not only as a regulator to set exemplary standards and embed responsible and sustainable practices into its total business operations and marketplace

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