Global ESG Monitor: FBMKLCI companies lack depth and detail in ESG reporting

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Malaysian index ranked joint fifth alongside Dow Jones among 10 indices surveyed​ TNB and Press Metal Aluminium place joint-first amongt 30 companies surveyed ​Companies on the FTSE Bursa Malaysia KLCI (FBMKLCI) lacked the appropriate content and level of detail needed for optimal transparency in their ESG reporting, a study has found, resulting in a midfield placement among a cohort of 350 companies listed on 10 stock market indexes across four continents. The Global ESG Monitor (GEM) examines ESG transparency in non-financial reporting.

Malaysian index ranked joint fifth alongside Dow Jones among 10 indices surveyed​​Companies on the FTSE Bursa Malaysia KLCI lacked the appropriate content and level of detail needed for optimal transparency in their ESG reporting, a study has found, resulting in a midfield placement among a cohort of 350 companies listed on 10 stock market indexes across four continents.

With an average score of 54 out of 100 points, the Malaysian index ranks joint fifth place alongside the Dow Jones among the ten indices surveyed. This positions the FBMKLCI ahead of the S&P 50 USA , ASX 50 , WIG 20 , and BET 20 . Above FBMKLCI rank S&P Asia , Hang Seng , EURO STOXX and DAX ," said Michael Diegelmann, co-founder of Germany based GEM which launched in 2019.

The GEM approach is premised on the idea that within ESG reporting, positive aspects must not be overemphasised, and negative aspects must not be omitted, and the breach of either is where greenwashing begins. The report found, for example, that 83% of FBMKLCI companies disclose strategies and measures to uphold human rights, but only 30% of these companies specifically disclose discrimination and harassment incidents.

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