Transparency Pays Off for Malaysian Plantation Companies

8 hours ago
2 min read

Malaysian plantation companies have recorded the biggest gains in environmental, social and governance (ESG) standards, emerging among the top global performers in the 2025 Sustainability Policy Transparency Toolkit (SPOTT) ranking.

According to CIMB Securities Sdn Bhd, the five companies under its coverage are SD Guthrie Bhd, IOI Corp, Kuala Lumpur Kepong Bhd (KLK), Genting Plantations Bhd and Hap Seng Plantations Bhd.

"All companies improved their environmental performance, reflecting stronger deforestation monitoring, traceability and emissions disclosure ahead of implementation of the European Union Deforestation Regulation and COP30," it said.

CIMB Securities said the social pillar also saw improved performance, supported by greater transparency in labour rights, smallholder engagement and community support initiatives.

"Governance pillar scores remained largely stable, with four companies improving and one (IOI Corp) recording a slight decline."

The research house said SD Guthrie emerged as the top performer globally, securing the highest SPOTT score at 97.5 per cent following enhanced disclosures and the introduction of net-zero targets approved under the Science Based Targets initiative.

It said Hap Seng Plantations (91.2 per cent), IOI Corp (85.1 per cent), KLK (85 per cent) and Genting Plantations (79.8 per cent) were ranked 15th, 20th, 21st and 26th, respectively, out of the 100 companies assessed.

CIMB Securities said this transparency in the sector could help revive foreign investor interest and serve as a potential re-rating catalyst.

"This is especially if renewed foreign inflows return to the currently under-owned sector," it added.

Widely tracked by investors, the SPOTT assessment emphasises transparency and data disclosure, evaluating up to 192 ESG indicators in 10 categories. This makes it a key benchmark for comparing sustainability performance in the palm oil sector

Source: www.nst.com.my