Sunway a leader in Malaysian ESG space

Initiatives to propel group to the forefront

“Sunway will also look at reducing Scope 3 emissions through sustainable procurement and supply chain practices.” RHB Research

PETALING JAYA: Sunway Bhd is rated as among the top performers in the environmental, social and governance (ESG) space in Malaysia, based on a recent report.

Supported by a wide range of initiatives, the company has achieved an overall score of 3.4 points out of a possible 4.0, according to a study by RHB Research.

The score was the highest among property stocks under the brokerage’s coverage.

RHB Research maintained its “buy” recommendation on Sunway, with a target price of RM2.06, implying an upside of about 34% from its current share price.

RHB Research, which participated in Sunway’s recent sustainability-themed corporate day event, expects the company’s ongoing initiatives to further strengthen its position at the forefront of ESG action in the real estate sector.

It noted that Sunway was also making good progress towards achieving its goal of reducing residual emissions within its value chain by 45% by 2030 from the 2010 levels, before achieving net-zero carbon emissions by 2050.

“Sunway aims to reduce residual emissions by 45% by 2030 (using 2010 as a base). One of the implementations to achieve this goal is its internal carbon pricing, currently priced at RM15 per tonne of carbon dioxide emitted above a set threshold,” RHB Research noted in its report yesterday.

“Sunway will also look at reducing Scope 3 emissions through sustainable procurement and supply chain practices, as well as green leases, to align the group’s energy efficiency goals with tenants,” the researh house said.

To achieve net-zero carbon emissions by 2050, Sunway will focus on carbon offset technology through carbon capture and large-scale renewable energy, RHB Research added.

It pointed out that 2,700 megawatt hours of solar energy is currently being harvested at Sunway City Kuala Lumpur.

In addition to this, theer is environmentally friendly accessibility to and within the integrated development, such as through an all-electric bus rapid transit system.

This interconnects with the Kelana Jaya light rail transit system and Keretapi Tanah Melayu lines.

RHB Research was also encouraged by the effort taken by Sunway to educate and train its tenants and staff to separate food waste to be used for compost and for landscapers to use around the city.

The group currently has two composting machines, located at Sunway Resort and Sunway Pyramid.

RHB Research also listed Sunway’s initiatives such as urban farming to produce local greens, as well as the development of a water treatment plant at South Quay Lake, as positive steps to help the group achieve its long-term sustainability plan.