SP Setia upholds ESG policies

KUALA LUMPUR: SP Setia Bhd (SP Setia) poses relatively lower environmental, social and corporate governance (ESG) concerns thanks to its continuous efforts in establishing policies to prevent and mitigate ESG risks.

According to the research team at Maybank Investment Bank Bhd (Maybank IB Research) in a report, “Despite being one of the leading developers in Malaysia with remaining landbank of 8,653 acres worth RM137 billion in gross development value (GDV) spread across Malaysia, London, Singapore, Vietnam and Australia, SP Setia poses relatively lower ESG concerns thanks to its continuous efforts in establishing policies to prevent and mitigate ESG risks.”

It pointed out that the group has integrated sustainability management into its culture, business activities and decisionmaking processes and continues strengthening the practices and existing sustainability governance framework.

“Apart from considering key sustainability matters and standards in accordance with Bursa Malaysia’s Sustainability Listing Requirements and Reporting Guide, SPSB has also adopted the international frameworks and standards such as Global Reporting Initiative (GRI), United Nations Sustainable Development Goals (UNSDG) and Global Real Estate Sustainability Benchmark (GRESB),” it added.

Environmental concerns are also centric in all SP Setia’s property development projects, Maybank IB Research noted.

“Green designs that take into account efficient use of energy and water are taken into consideration throughout the project lifecycle.

“SP Setia’s continuous efforts in building sustainable developments have earned the company numerous awards. These include EdgeProp-ILAM Malaysia’s sustainable Landscape Award Gold Winner (Setia Eco Glades project) and FIABCI World Prix d’Excellence Awards World Gold Winner – Sustainable Development (Setia International Singapore),” it explained.

All in, Maybank IB Research maintained its ‘buy’ recommendation on the stock. It also noted that SP Setia intends to lower its debt level (0.76-folds net gearing as at 3Q20 including RCPS) via the sale of completed inventories and non-strategic land bank.

“SP Setia is currently reviewing its capital structure to leverage on the current low interest rate environment,” it added.