Malaysia Airlines and AirAsia Step Up ESG Adoption in Promoting Sustainability

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KUALA LUMPUR (July 9): Malaysia Airlines Bhd and AirAsia are stepping up their environmental, social and governance (ESG) adoption as investors are placing more emphasis on ESG issues as part of their analysis of risks and opportunities in various companies across different industries.

Malaysia Airlines’ parent company, Malaysia Aviation Group (MAG), said the group’s suppliers must complete the Supplier Profile Questionnaire (SPQ) upon registration.

ESG-related questionnaires are part of a section of the SPQ, MAG said in a statement in response to inquiries from theedgemarkets.com.

“All registered suppliers are required to complete an ESG questionnaire upon registration.

“Currently, the ESG requirements for all suppliers serve to create awareness and form a tool to educate our partners on the importance of adhering to ESG guidelines.

“This is an ongoing process as part of our MAG sourcing policy for all new and existing suppliers,” MAG said.

theedgemarkets.com previously asked Malaysia Airlines and MAG to share more information on the group’s ESG practices and the ESG compliance rate of its suppliers following Malaysia Airlines’ March 3, 2022 statement on its commitment to ESG practices .

“At Malaysia Airlines, we announce our commitment to ESG practices. The five priority areas of our sustainability efforts are governance, economy, environment and social. [besides] Safety and security.

“Please be advised of our preference for potential or existing suppliers/vendors who are committed to adopting ESG in their business processes,” Malaysia Airlines said.

Meanwhile, AirAsia’s parent company, Capital A Bhd, said in its latest corporate governance report that the group’s sustainability strategies, priorities and objectives are part of its strategic plans, as approved by the board of directors of Capital A.

Sustainability issues in Capital A are addressed as part of its overall business strategy, which covers nine material ESG issues, including climate strategy and information security in addition to health and safety, according to Capital A. .

“The Board of Directors has overall responsibility for sustainability and setting the strategic direction of the group, taking into account sustainability considerations, including issues related to climate strategy.

“To further strengthen corporate sustainability governance, the remit of the Board Risk Management Committee has been expanded to include oversight of sustainability matters, and renamed Risk Management and Sustainability Committee” , said Capital A.

In Bursa Malaysia on Friday July 8, Capital A closed unchanged at 62 sen, giving it a market value of around RM2.58 billion.

The latest number of issued shares of Capital A stood at 4.16 billion, according to a Bursa filing on Tuesday.

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