Page 13 - SC Annual Report 2018 (ENG)

Securities
Commission
Malaysia
ANNUAL
REPORT
2018

INTRODUCTION

Following greater recognition of the global impact of various economic, social
and environmental issues, the clarion call for more inclusive, sustainable and

equitable economic growth has amplified. There is now a greater need for
companies to consider longer-term interests of society and the environment in
their business models and decisions.

1
The concept of creating shared value outlines that is well-positioned to drive the sustainable finance
both economic and social value growth can be agenda further, given the alignment of principles
achieved as long as companies are willing to underlying Shariah investing with those of
reconceive products and markets to cater to unmet sustainable finance.
needs, redefine productivity in the value chain to
improve resource utilisation and enable community or The SC continues to be guided by its “5i Strategy”
ecosystem development. to develop the SRI ecosystem, leveraging Malaysia’s
leadership in ICM. The introduction of these strategies
Within the context of Malaysian capital market in 2014 allowed greater focus on activities or
development, this requires the industry to (1) consider initiatives that support the United Nations’ Sustainable
societal and environmental needs aligned with Development Goals (SDGs) through the capital market.
Sustainable and Responsible Investment (SRI) and Since then, the SC has seen increased interest by
Islamic capital market (ICM); (2) drive greater investors seeking to integrate environmental factors
inclusiveness for issuers through alternative financing into their investment decision-making, connecting
avenues; (3) facilitate greater investor inclusiveness financial returns with greater good.
through expansion of product offerings; (4) improve
efficiencies across the capital market value chain for
more productive use of capital and market vibrancy; Did you
and (5) enable innovation and growth through know?
international, regional and domestic collaborations.
Recognising the importance of shared value, the SC • A total of RM882.30 million green
has over the years put in place policies and initiatives bonds and sukuk were issued through
to enable shared value growth. the Malaysian capital market for
environmental benefits in 2018.

TOWARDS A CAPITAL MARKET WHICH • The world’s first Environmental, Social and
CATERS TO SOCIETAL AND Governance (ESG) sukuk fund, launched
ENVIRONMENTAL NEEDS THROUGH in 2018 under the SC’s Guidelines on SRI
SRI AND ICM Funds in Malaysia, integrates ESG criteria
together with financial and non-financial
As the largest market in sustainable investment in metrics in its portfolio investment strategy.
2
Asia (ex-Japan) and a global leader in ICM, Malaysia

1 Shared Value Concept was introduced by Michael E Porter and Mark R Kramer in the Harvard Business Review article titled Creating
Shared Value in 2011.
2 As at 2016, Malaysia has 30% of sustainable and responsible investment assets in Asia (ex-Japan) (Global Sustainable Investment
Review 2016).
PART 1 »» ENABLING SHARED VALUE GROWTH | 3

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