KUALA LUMPUR: Standard Chartered Malaysia has entered right into a RM251 million environmental, social and governance (ESG)-linked derivative transaction with beverage maker, distributor and marketer Etika Group.
In a joint assertion, they mentioned this marks the primary such transaction executed by a homegrown fast-moving client items (FMCG) company in Malaysia.
The transaction entails a pricing mechanism during which a reduction or premium might be utilized relying on whether or not Etika achieves the pre-agreed sustainability-related key efficiency indicators which are tied to the greenhouse fuel emissions depth of its beverage and dairy vegetation.
“The KPIs are in help of Etika’s sustainability commitments to advertise environmentally-conscious practices throughout the FMCG business,” the assertion mentioned.
The Etika group markets and distributes a few of PepsiCo’s international manufacturers in addition to its personal vary of merchandise resembling Wonda Coffee and Goodday Milk.
Standard Chartered Malaysia managing director and chief government officer Abrar A. Anwar mentioned Etika’s transfer to take possession to actively reshape the group’s sustainability plans to handle at present’s urgent environmental and social issues is commendable.
“There is an actual alternative for banks to have a constructive affect because it boils all the way down to transferring capital to the place it issues most and we’re making huge strides within the roll-out of extra revolutionary ESG-related options inside our derivatives providing in Malaysia.
“Essentially, serving to our purchasers of their sustainability aspirations additionally contributes to our personal ESG ambitions. The financial institution goals to attain web zero carbon emissions from our financing by 2050, as a part of our strategic dedication to place the world on a sustainable path to a zero-carbon economic system,” he mentioned.
Etika Malaysia chief government officer (Singapore and Brunei) Khalid AlviMeanwhile, Etika Malaysia chief government officer (Singapore and Brunei) Khalid Alvi mentioned there may be an pressing want for options to fight urgent challenges resembling plastic air pollution, growing emission of greenhouse gases, and waste administration.
“At Etika, we’ve formed our group sustainability initiatives to emerge as a greener enterprise with a deal with implementing higher practices for our customers, communities, and atmosphere.
“As such, we’re comfortable to have the help of companions like Standard Chartered in our journey to reaching our sustainability commitments,” he mentioned. – Bernama
