ESG

KUALA LUMPUR, AmInvest, in collaboration with Bursa Malaysia Bhd, has launched the FTSE4Good Bursa Malaysia Exchange-Traded Fund (ETF) — the country’s first Sustainable and Responsible Investment (SRI)-qualified ETF — aimed at providing investors with access to companies demonstrating strong environmental, social and governance (ESG) performance. The ETF mirrors the FTSE4Good Bursa Malaysia Index, which assesses listed companies based on transparent ESG criteria. The initiative is designed to promote responsible investing, enhance corporate visibility among ESG leaders, and support Malaysia’s shift toward a low-carbon and sustainable economy. AmFunds Management Bhd chief executive officer Kevin Wong said that improving investor education is key to building awareness and participation in the local ETF market, as many Malaysian investors still prefer selecting individual stocks. “Malaysian investors often believe they can outperform the market by picking stocks they’re familiar with,” Wong said during a press conference on Wednesday. “It will take time and education to show investors that ETFs provide low-cost diversification, market access, and exposure to sustainable, ethical businesses.” Wong highlighted that ETFs with an SRI focus can offer competitive long-term returns, noting that the FTSE4Good Bursa Malaysia Index gained 36.01% over the past five years, outperforming both the FBM KLCI (25.97%) and the FTSE Bursa Malaysia Top 100 Index (26.39%). The ETF offers exposure to more than 100 Malaysian companies across multiple sectors, including finance, utilities, healthcare, and industrials. With a low minimum investment of about RM200 (100 units) and no entry fees, the fund provides investors an affordable gateway into sustainable investing. Currently, 15 ETFs are listed on Bursa Malaysia, comprising seven shariah-compliant and eight conventional ETFs. AmInvest remains the largest ETF provider in Malaysia, managing RM1.8 billion in ETF assets — equivalent to 75.4% of the local market share. It is also a leader in the SRI fund segment, overseeing RM4.3 billion in SRI-qualified assets, or 28.2% of the market, across nine SRI-qualified funds covering diverse asset classes.

KUALA LUMPUR, Wasco Bhd has received shareholder approval for the proposed listing of its renewable energy arm, Wasco Greenergy Bhd, on the Main Market of Bursa Malaysia Securities Bhd, with the debut targeted for mid-December. According to the group’s statement, the company plans to launch Wasco Greenergy’s prospectus later this month. The initial public offering (IPO) will involve up to 37% of Wasco Greenergy’s equity, comprising 75 million new shares and an offer for sale of up to 75 million existing shares by Wasco and its partner, Tema Energy Ventures Sdn Bhd. Post-listing, Wasco will retain a 62.54% stake in the subsidiary, down from 88.87% currently, while Tema Energy Ventures will continue to hold 11.13%. Wasco group chief executive officer Gian Carlo Maccagno said the approval marks a major milestone for the group’s clean energy ambitions. “The listing of Wasco Greenergy represents the evolution of our renewable energy platform — from a biomass and thermal systems specialist to a comprehensive clean energy provider capable of driving industrial decarbonisation, while creating long-term value for shareholders,” he said. He added that investor support reflects confidence in Wasco’s sustainability strategy and its goal of expanding clean energy solutions across Malaysia and the region. Wasco Greenergy focuses on designing and delivering integrated clean energy systems, including biomass and palm oil mill solutions, along with after-sales and maintenance services. Its client base spans palm oil, oleochemicals, paper mills, and industrial parks. CIMB Investment Bank Bhd is the principal adviser for the listing. Wasco’s shares closed half a sen higher at 87 sen on Monday, valuing the company at RM670.28 million.

KUALA LUMPUR, Malaysia has achieved another global first in Islamic finance with the launch of the world’s first RMB 200 million Climate Sukuk, a landmark deal that fuses Shariah principles with green finance, digital tokenisation, and carbon credit monetisation.  Jointly issued by Hong Kong-listed Unity Group Holdings International Ltd (Unity Group) and Tek Securities Limited under the Labuan IBFC framework, the sukuk was announced at the Global Islamic Finance Forum (GIFF) 2025 recently, reinforcing Malaysia’s ambition to position Labuan as the Global Hub for Digital Islamic Finance. The issuance is backed by 40,400 tonnes of verified carbon credits derived from the Selangor Government’s Energy Efficiency Initiative: The Green Initiative Program, reflecting tangible carbon reduction outcomes through the deployment of Ultra High-Efficiency ESG Lighting. Proceeds from the issuance will fund green infrastructure and low-carbon projects led by Synergy ESCO, including advanced ESG lighting installations under the Selangor Green Initiative for Strata Properties. The initiative aims to convert six million tubes and generate four million tonnes of carbon credits over the next decade. Unity Group Chairman and CEO Mansfield Wong said the Climate Sukuk serves as a replicable model for sustainable investment and Environmental, Social, and Governance (ESG) integration. “It sets a new standard for Islamic finance to drive climate action and this marks Unity Group’s shift from energy services to sustainable fintech provider, delivering both financial returns and measurable environmental value,” he added. Unity Group also plans to expand its portfolio into other sustainability-driven ventures such as renewable energy and smart farming projects to further support Malaysia’s net-zero transition. This milestone was highlighted by the visit of Prime Minister Datuk Seri Anwar Ibrahim, who toured the Unity Group booth at GIFF 2025 and kickstarted the initiative by signing a commemorative plaque. This innovative bond represents a new generation of Shariah-compliant financial instruments aligned with the Government’s vision for a climate-focused and transparent financial ecosystem under Budget 2026. Using Labuan IBFC’s strong framework to attract investment and drive sustainable, climate-resilient growth, the sukuk exemplifies how Islamic finance can support measurable environmental outcomes.

KUALA LUMPUR, The Port of Tanjung Pelepas (PTP), a leading transshipment hub jointly owned by Malaysia’s MMC Group and Netherlands-based APM Terminals, has successfully completed the issuance of its first-ever green sukuk, underscoring its long-term commitment to sustainable growth and responsible investment practices. Valued at RM500 million, the issuance is structured in two tranches with maturities of three and five years respectively. According to a statement from PTP, the proceeds from the green sukuk will be allocated towards funding the port’s ongoing capacity expansion and infrastructure enhancement initiatives. The issuance is valued at RM500mil and split equally across three-and five-year tenors, PTP said. PTP chairman Tan Sri Che Khalib Mohamad Noh said the financing marks a significant milestone in the company’s efforts to align its development strategy with environmental, social and governance (ESG) principles. The green sukuk will help drive the next phase of PTP’s growth, enabling the terminal to efficiently accommodate increasing export, import, and transshipment volumes from its global clientele. “This issuance supports our broader investment plan to raise PTP’s annual handling capacity to 15.9 million twenty-foot equivalent units (TEUs) in the coming years,” he said. “Our continued expansion not only ensures operational excellence and competitiveness but also reinforces Malaysia’s position as a key maritime gateway in the region.” The green sukuk initiative reflects PTP’s commitment to integrating sustainability into its financial and operational frameworks, aligning with Malaysia’s push for green financing and the transition toward a low-carbon economy.

KUALA LUMPUR, The ASEAN Power Grid (APG) is entering a new phase of growth, with a focus on developing longer regional interconnections essential for delivering renewable energy across Southeast Asia, said Energy Commission chief executive officer Siti Safinah Salleh. She said the key challenge now lies in financing and development risks, as many of the upcoming projects involve subsea power interconnections spanning up to 700 kilometres. According to Siti Safinah, most of these cross-border initiatives are led by private developers rather than system off-takers, which increases the revenue risk and makes securing financial backing more complex. “We need to firm up the off-taking arrangements and strengthen the requirements from off-takers. That is a very crucial part of the ASEAN Power Grid,” she said during a session titled “Accelerating Energy Transition Investment” at the ASEAN Energy Business Forum held here today. She added that the foundational elements of the APG’s governance framework and technical standards have already been established, and efforts are now focused on building upon these frameworks to ensure consistency and long-term viability. Meanwhile, Asian Development Bank (ADB) Southeast Asia Green Finance Hub head Scott Roberts said the region faces a financing gap of around US$200 billion (US$1 = RM4.22) annually to meet its climate and energy transition goals. This highlights the urgent need to scale up sustainable finance and attract more private sector participation. Roberts said ADB’s strategy is to catalyse private capital by developing scalable investment models that enable markets to operate independently. Through its green, social, sustainable, and other thematic bond programmes, ADB has advised approximately US$4 billion in ASEAN local currency issuances, which have subsequently spurred follow-on issuances worth between US$13 billion and US$14 billion. He added that these initiatives have strengthened market confidence and laid the groundwork for greater private sector involvement in funding the region’s energy transition and infrastructure development.

Malaysia and Japan have reaffirmed their shared commitment to a sustainable and low-carbon future by signing seven Memoranda of Understanding (MoUs) during the 3rd Asia Zero Emission Community (AZEC) Ministerial Meeting, held in Kuala Lumpur. The agreements aim to accelerate joint decarbonization initiatives, focusing on biofuels, transition financing, and carbon capture and storage (CCS), in line with both nations’ energy transition strategies. The meeting, co-chaired and jointly hosted by Malaysia and Japan, served as a vital platform to strengthen regional collaboration on clean energy, sustainability, and climate action. Discussions centered on three key pillars — ensuring a just and equitable transition toward a low-carbon economy, advancing clean transportation and green aviation fuel, and promoting transition finance to support Malaysia’s ambitious energy roadmap. Malaysia’s Minister of Science, Technology and Innovation (MOSTI), Chang Lih Kang, highlighted the significance of the collaboration, noting that it marks a critical step in achieving Malaysia’s energy security and resilience goals. “Definitely, cooperation for energy security, affordability, and sustainability is strengthened, which is in line with the energy resilience we aim for in Malaysia,” he said. The event also saw the participation of prominent regional leaders, including Muto Yoji, Japan’s Minister of Economy, Trade and Industry (METI), and Sharon S. Garin, the Philippine Department of Energy Secretary, emphasizing AZEC’s growing role in fostering cross-border cooperation across Asia. Among the seven agreements, one of the most notable was the joint operation framework for Carbon Capture and Storage (CCS) between the Government of Malaysia and Japan’s METI, which will facilitate knowledge-sharing, investment, and the development of large-scale carbon storage solutions in Malaysia. Another significant MoU involves a collaboration between members of the Malaysia Rubber Council and a Japanese cloud technology provider, aimed at integrating advanced digital systems to improve operational efficiency and sustainability practices in the Malaysian rubber sector. Minister Chang further emphasized that Malaysia views net-zero emissions not only as a policy goal but as a lifestyle transformation, underpinned by innovation and affordability. He noted that Malaysia’s participation in AZEC aligns with the ASEAN Vision 2045 and the country’s MADANI principles, which advocate balanced progress across economic, environmental, and social pillars. Malaysia’s National Energy Transition Roadmap (NETR), introduced in 2023, charts a clear path toward achieving 70% renewable energy capacity by 2050, supported by major investments in solar, hydro, green hydrogen, and digital energy grids. Under the 13th Malaysia Plan, the country aims to achieve a 35% renewable energy share by 2030, reflecting a steady and structured transition. To support this shift, Malaysia has introduced several landmark policy measures. The Energy Efficiency and Conservation Act (EECA) 2024 promotes energy-efficient consumption across industrial, commercial, and residential sectors, while the upcoming Carbon Capture, Utilisation and Storage (CCUS) Act 2025 will establish a comprehensive regulatory framework for developing a regional CCS hub. These efforts collectively underscore Malaysia’s readiness to position itself as a leader in sustainable energy and green technology within Southeast Asia. Through the strengthened partnership under AZEC, Malaysia and Japan aim to accelerate regional decarbonization and establish a collaborative model for green growth. The newly signed MoUs not only reflect shared environmental goals but also signal the deepening of bilateral ties — setting the stage for a more integrated, cleaner, and sustainable energy future across the region.

KUALA LUMPUR, Bursa Malaysia Bhd through its wholly owned subsidiary Bursa Carbon Exchange (BCX), has signed a memorandum of collaboration with the Natural Resources and Environment Board (NREB) Sarawak to explore the development of a carbon registry in the state. The two-year partnership will involve reviewing the registry’s objectives, conducting capacity-building programmes, holding technical consultations with experts, and designing an action plan for implementation. The proposed registry will align with the Environment (Reduction of Greenhouse Gases Emission) Ordinance 2023, which empowers NREB to regulate greenhouse gas emissions and promote low-carbon strategies in Sarawak. Bursa Malaysia CEO Datuk Fad’l Mohamed said BCX’s experience in operating the voluntary carbon market and working with global carbon registries and renewable energy certificates will help Sarawak unlock economic opportunities from high-quality carbon credits. He added that the collaboration reinforces Bursa Malaysia’s commitment to advancing Malaysia’s sustainability agenda and supporting Sarawak’s climate goals through capacity building and a well-structured carbon market ecosystem. NREB’s controller of environmental quality Datu Jack anak Liam said the partnership aligns with the agency’s mandate to develop and manage the carbon registry under the 2023 ordinance. “Working with BCX and leveraging their international expertise will help Sarawak build a credible and transparent carbon market ecosystem,” he said.

KUALA LUMPUR, The United Kingdom (UK), in collaboration with the United Nations Development Programme (UNDP) Malaysia, has launched new initiatives to bolster Malaysia’s resilience against climate change impacts. UK Minister for the Indo Pacific Seema Malhotra: Our countries have a long history of working together on the climate and the environment, and today, we are taking that partnership further… The initiatives, unveiled by UK Minister for the Indo-Pacific Seema Malhotra on Monday, focus on using innovative financial tools to attract green investments from businesses and banks for climate-related projects. These joint efforts aim to provide practical, community-based solutions to challenges such as flooding and heat stress. “The UK and Malaysia have a long-standing history of collaboration on climate and environmental issues. Today, we are taking this partnership to the next level,” Malhotra said at the launch, according to a statement from the British High Commission on Tuesday. British High Commission, Kuala Lumpur. Additionally, the UK will partner with Monash University Malaysia on a project that helps local leaders in Selangor make informed decisions on water, energy, and food management. The project will employ economic models to evaluate how developments in one sector, such as hydropower, could impact others, including agriculture and wetlands. Representatives from UNDP Malaysia and Monash University Malaysia attended the launch to exchange grant agreements and outline their project plans. The event marks a significant milestone in UK-Malaysia climate cooperation, ahead of COP30, where Malaysia is expected to take a leading role in shaping regional climate strategies.

HCMC, Vietnam, LEGO Manufacturing Vietnam has entered into a Direct Power Purchase Agreement (DPPA) with Vietnam–Singapore Industrial Park (VSIP), formalising its plan to run its newly launched factory entirely on renewable energy. The deal, which combines large-scale rooftop solar generation with an industrial battery storage system, is being positioned as a pioneering model for Vietnam’s manufacturing sector. Prototype for Industrial Energy TransitionAs one of the first agreements of its kind in Vietnam, the DPPA is designed to stabilise renewable energy supply for large-scale industrial use. Under the arrangement, solar power generated by VSIP will be supplied directly to LEGO’s operations, with battery storage ensuring a consistent supply despite fluctuations in generation. Supported by Vietnam’s Ministry of Industry and Trade and local authorities, the framework is seen as a key step towards scaling clean energy adoption across the country’s fast-growing industrial parks. The signing ceremony was attended by Ho Chi Minh City officials, Denmark’s Ambassador Nicolai Prytz, and senior executives from VSIP. “This marks an important milestone in our ambition to operate the factory entirely on renewable energy,” said Jesper Hassellund Mikkelsen, Senior Vice President of Asia Operations and General Manager of LEGO Manufacturing Vietnam. “We are proud to be among the first companies to sign a DPPA and grateful for the strong support from national and provincial authorities in enabling this initiative.” Nguyen Phu Thinh, General Director of VSIP J.V. Co., added that the project highlights the role of industrial parks in accelerating Vietnam’s low-carbon transition. “By combining rooftop solar with battery storage, we are establishing a new benchmark for reliable renewable power in the manufacturing sector,” he said. Scale and Climate ImpactThe project is expected to reduce approximately 15,000 tonnes of CO2e annually once operations begin in early 2026. It builds on the 12,400 solar panels already installed at LEGO’s Vietnam site, which are projected to cover around 75% of the facility’s energy demand for its first five years. Additional off-site renewable energy agreements are also under discussion to secure the remainder of its supply. LEGO’s Vietnam factory, which opened in April 2025, is the company’s sixth globally and its second in Asia. Designed as LEGO’s most sustainable production site to date, the facility plays a key role in the group’s regional growth strategy. Broader SignificanceVietnam has emerged as a critical hub for global manufacturing, but challenges around energy security and emissions reduction persist. LEGO’s adoption of one of the country’s first DPPAs sets an example for other multinationals aiming to meet ESG goals while navigating Vietnam’s regulatory frameworks. For investors, the agreement demonstrates how foreign corporations are integrating renewable infrastructure into emerging markets. For policymakers, it underscores the potential for industrial parks to serve as catalysts for Vietnam’s energy transition, linking commercial investment with national climate objectives.

L&T Strengthens Sustainable Finance Portfolio with $700M Trade Facility Indian multinational Larsen & Toubro (L&T) has secured a $700 million Sustainability-Linked Trade Facility (SLTF) from Standard Chartered, further enhancing its access to capital linked directly to environmental performance metrics. The transaction follows L&T’s issuance of India’s first listed sustainability-linked bond under the Securities and Exchange Board of India’s ESG Bond Framework in June, reflecting the company’s continued commitment to sustainable financing. Tying finance to environmental outcomesThe SLTF links financing terms to measurable reductions in greenhouse gas (GHG) intensity and freshwater consumption—two key environmental risks for L&T’s heavy industry and infrastructure operations. By embedding these indicators into trade finance, the company aligns with the sustainability-linked loan principles established by the Loan Market Association. Under the SLTF framework, L&T will report annual progress on agreed key performance indicators, with independent third-party verification. Global assurance firm DNV has provided a second-party opinion, validating both the targets and the methodology. This structure mirrors a growing global trend, where corporates are increasingly held accountable for their environmental impact. For investors, third-party verification mitigates reputational risk while transparent reporting strengthens market confidence and addresses concerns over greenwashing. Corporate strategy and ESG goalsL&T has set ambitious targets of achieving carbon neutrality by 2040 and water neutrality by 2035. As a conglomerate with significant energy, construction, and manufacturing exposure, these goals are intended to improve operational efficiency and address regulatory pressures. A spokesperson for L&T stated, “This SLTF underscores our commitment to sustainable business practices. ESG principles are integral to our corporate strategy, guiding investments in low-carbon technologies, resource optimisation, and biodiversity conservation. By demonstrating progress on these metrics, we strengthen investor confidence and ensure long-term value creation.” The company is increasingly linking its financial strategy to ESG performance, recognizing that sustainable finance provides access to lower-cost capital while reinforcing its market reputation. Banking perspective and India’s sustainability agendaFor Standard Chartered, this transaction reflects the expanding role of international banks in supporting India’s corporate sustainability efforts. Shobana Chawla, Head of Sustainable Finance Origination at Standard Chartered India, said, “Through this facility, we are supporting L&T’s decarbonisation journey. Sustainability remains a strategic priority for Standard Chartered, and we aim to facilitate the development of a more sustainable economy in India.” The deal comes amid India’s push for stronger ESG reporting and energy transition policies. With domestic regulators demanding enhanced disclosure and international investors seeking credible sustainability strategies, instruments like the SLTF are becoming increasingly important for bridging capital needs. Implications for investors and corporatesThe $700 million facility positions L&T among the largest issuers of sustainability-linked finance in emerging markets. It demonstrates how corporates can integrate ESG criteria into everyday business operations rather than relying solely on green bonds. For executives and boards, the L&T case highlights that ESG performance is now inseparable from financial strategy. Strong target-setting, independent verification, and transparent reporting can unlock large-scale, lower-cost financing and provide competitive advantages. Global relevanceWhile this is an India-based transaction, its structure aligns with global trends in sustainable finance. Emerging market corporates like L&T play a critical role in global emissions reduction, and access to international capital via sustainability-linked instruments will be crucial for financing large-scale transitions. For policymakers, the deal underscores the importance of robust verification frameworks and consistent disclosure standards. For investors, it provides a concrete example of embedding environmental metrics into financial instruments in high-emissions sectors. As global finance increasingly prioritizes climate-aligned portfolios, L&T’s approach illustrates how ESG credibility is becoming a key determinant of capital access.