Wednesday, Jan 10, 2024
MARC Ratings has assigned a "Gold" Impact Assessment to Malakoff Corporation Berhad’s (Malakoff) Sustainable Finance Framework. The framework has been established to set the guiding principles for Malakoff’s issuance of sustainable financing instruments for specific eligible projects that contribute towards environmental and social benefits.
Malakoff stands as Malaysia's largest independent power producer with a total generation capacity of 6,953 MW and a renewable energy portfolio of 151 MW as of November 2023. Malakoff also provides environmental services through its subsidiary Alam Flora Sdn Bhd, which manages 5,748 tonnes of waste daily. The company has expanded globally, particularly in power generation and water desalination in Saudi Arabia, Bahrain, and Oman. With the rollout of Malakoff’s Sustainability Framework in 2022, the group is committed to achieving net zero emissions by 2050 in alignment with the 1.5°C climate transition scenario.
Proceeds raised from the issuance of sustainable finance instruments will be channelled towards eligible projects and eligible assets falling under the following categories to address the respective United Nations Sustainable Development Goals (UN SDGs):
- Green Category: Renewable Energy (UN SDGs 7, 9 and 11); Energy Efficiency (UN SDGs 7 and 9); Pollution Prevention and Control (UN SDGs 3 and 11); Clean Transportation (UN SDG 11); Sustainable Water and Wastewater Management (UN SDGs 6, 11 and 12); Circular Economy Adapted Products, Production Technologies, and Processes, and/or Certified Eco-Efficient Products (UN SDG 12); and Terrestrial and Aquatic Biodiversity Conservation (UN SDGs 14 and 15).
- Social Category: Access to Essential Services (UN SDGs 1, 3 and 10); Socioeconomic Advancement and Empowerment (UN SDGs 1, 4, 8 and 10); and Employment Generation (UN SDG 8).
- Transition Category: Thermal Power and Plant Efficiency (UN SDGs 7 and 9); and Low-Carbon Alternatives for Thermal Power Generation (UN SDGs 7, 9 and 11).
MARC Ratings has assessed the framework and is satisfied that it is aligned with the core components of the Sustainable and Responsible Investment Sukuk Framework of the Securities Commission Malaysia; the Green Bond Standards, Social Bond Standards, and Sustainability Bond Standards of the ASEAN Capital Markets Forum; and the Green Bond Principles, Social Bond Principles, Sustainability Bond Guidelines, and Climate Transition Finance Handbook of the International Capital Market Association, among others.
In arriving at the framework’s Gold assessment, MARC Ratings opines that the impact of the Use of Proceeds is significant, with clear social and environmental benefits that directly support 12 of the 17 UN SDGs.
The full Sustainable Finance Framework Assessment can be accessed here.
Contact:
+603-2717 2963/ marc@marc.com.my