UEM's Sustainability Sukuk Framework conforms to green finance standards - RAM Sustainability

17 Nov 2023 10:26am
UEM Logo
UEM Logo

SHAH ALAM - Following a comprehensive external examination, RAM Sustainability Sdn Bhd has affirmed that UEM Group Bhd's Sustainability Sukuk Framework meets and surpasses recognised green finance requirements, underscoring its commitment to environmental sustainability.

RAM Sustainability is a wholly-owned subsidiary of RAM Holdings Bhd, specialising in sustainability services and environmental, social, and corporate governance (ESG) analytics.

The green initiatives to be financed under the framework of renewable energy (RE), energy efficiency, clean transportation, and pollution prevention and control have the potential to contribute towards national decarbonisation targets as defined in the National Energy Transition Roadmap and the 12th Malaysia Plan, it said.

“We have assigned the highest Tier-1 Environmental Benefit (EB) rating to the respective eligible RE projects for solar, hydropower, and biogas, reflecting their potential contribution towards significant climate and wider environmental benefits.

“The EB ratings for other eligible projects under the framework range from Tier-2 to Tier-3," it said in a statement.

RAM Sustainability added that the framework is aligned with the SRI Sukuk Framework disclosure requirements, ASEAN Green Bond Standards, and Green Bond Standards.

The framework is aligned with all core areas and 10 out of 20 recommendations in the pre-issuance checklist of the Green Bond Principles.

"At this juncture, RAM Sustainability’s review is limited to the green bond and sukuk perspectives, as the current framework has yet to exhibit social projects or sustainability-linked components.

Related Articles:

"UEM plans to update the framework in the future with more eligible projects and sustainability-linked components," it added.