Kuala Lumpur, 25 February 2025 - Building on the success of their collaboration on the Centralised Sustainability Intelligence (CSI) Solution, Alliance Bank Malaysia Berhad (“Alliance Bank” or the “Bank”) has developed the Sustainability Enhancement Programme (“SEP” or the “Programme”) with the support of Bursa Malaysia Berhad (“Bursa Malaysia” or the “Exchange”).
This initiative will provide sustainability value-added services to Public Listed Companies (PLCs) on the ACE market and newly listed companies that adopt Bursa Malaysia’s CSI Solution. The Programme aims to support and prepare companies for sustainability reporting under the International Financial Reporting Standards (IFRS) - particularly as Scope 3 reporting will become a mandatory requirement.
The SEP Programme is a continuation of the collaboration between the Bank and the Exchange to advance sustainability practices amongst PLCs under the MOU signed in 2021.
SEP offers tailored ESG solutions and financial incentives, aiding PLCs in aligning with global ESG standards. Additionally, it identifies gaps and recommends improvements for PLCs to achieve better FTSE4Good ESG Ratings. By improving their ESG disclosures, participating companies are able to strengthen their competitive positioning and unlock new growth opportunities in both local and global markets.
Additionally, Alliance Bank recently announced the support of RM1 billion in preferential funding for supply chain financing to incentivise sustainability improvements and disclosures of SME suppliers to PLCs that have signed up for the CSI Solution, demonstrating the Bank’s commitment in driving sustainability adoption and supporting business in their transition.
“Alliance Bank is committed to supporting businesses in their sustainability journey. Through this collaboration with Bursa Malaysia, we are proud to offer innovative ESG solutions and financial incentives that empower PLCs to enhance their sustainability performance and contribute to Malaysia’s sustainable development goals,” said Mr. Kellee Kam, Group Chief Executive Officer of Alliance Bank.
Through SEP, participating companies will have access to ESG digital service value-adds to support their adoption, at no additional cost upon fulfilling financing requirements with the Bank. The ESG digital services include a comprehensive FTSE4Good Assessment and Optimisation Report that helps to identify gaps, benchmark performance, and recommend areas for improvement for companies to achieve better FTSE4Good ESG Ratings. In promoting ESG disclosure transparency, the Programme additionally offers an AI-powered solution to generate sustainability reports that align with IFRS and global standards such as GRI and ISSB. Alliance Bank will be working with Sustenyx to deliver the solution.
Beyond reporting, the Programme aims to integrate sustainability practices within participating companies’ supply chains. PLCs will gain access to tools and resources, such as climate assessments, ESG trainings, and enjoy preferential financing rates, to support the development of greener operations. These value propositions are accessible to PLCs that register as adopters of Bursa Malaysia’s CSI Solution and establish a banking relationship with Alliance Bank, with corresponding financing or deposits placement.
The ESG digital services offered under the SEP will support the sustainability journey of the participants of the CSI Solution.
"We are pleased that our collaboration with Alliance Bank has reached another milestone. Established through the MOU in 2021, we envisioned rewarding effective sustainability disclosures with superior financing rates. Alliance Bank’s deployment of preferential funds into supply chain financing for corporates within the CSI ecosystem marks the early realisation of our vision to spur climate action and better sustainability disclosures through attractive financing. We congratulate Alliance Bank for their latest initiative, the SEP, which supports new IPOs and smaller-cap listed companies in embarking on cost-efficient and impactful sustainability reporting aligned with IFRS, leveraging AI and digital innovations," said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.
Alliance Bank’s SEP is set to commence in March 2025, with a series of roadshows and engagement sessions planned to introduce the initiative to targeted companies.
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