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Thriving through turbulence by embracing ESG and sustainability
Integrating environmental, social and governance (ESG) policies into decision-making is more critical than ever amid rising global temperatures and the uncertain global economic outlook.
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ntegrating environmental, social and governance (ESG) policies into decision-making is more critical than ever amid rising global temperatures and the uncertain global economic outlook. It compels companies to assess risks more comprehensively, be more prepared to navigate turbulence and create long-term value, while aligning with changing customer and investor expectations.
Regulators are also driving ESG adoption through mandatory sustainability-related disclosures. The Indonesia Stock Exchange (IDX) supports the Task Force on Climate-related Financial Disclosures (TCFD) while the Financial Services Agency (OJK) has issued requirements regarding sustainability reporting. Enhancing transparency raises accountability and reduces the risk of greenwashing.
The government continues to drive the transition to net zero. Among other programs, it has launched the Indonesia Green Growth Plan, Green Taxonomy, Carbon Trading under the Indonesia Stock Exchange and subsidies for electric vehicles.
Driving sustainable financing
Backed by Maybank Group, a leading bank in ASEAN, Maybank Sekuritas can play a role in supporting the region and Indonesia’s transition.
Since 2021 to end September 2023, Maybank Group has mobilized 53 billion ringgit (Rp 176 trillion) in sustainable financing across the region, surpassing the halfway mark toward our 2025 target of 80 billion ringgit, while improving the lives of 1.05 million households on our journey to reach 2 million by 2025.
Toward this end, Maybank Sekuritas has helped companies and the government access Maybank’s global expertise and network to raise funds. Maybank Sekuritas was for instance the joint lead manager and joint bookrunner for the government's global sukuk issuance, which received the Best Green Sukuk award at the Asset Triple-A Islamic Finance Awards in 2021.
Maybank Sekuritas has actively participated as joint lead underwriter in rupiah green bond issuances such as BRI's rupiah green bond issuance worth Rp 6 trillion; OKI Pulp & Paper Mills' rupiah green bond issuance worth Rp 1.5 trillion in October 2023; and BNI's rupiah green bond issuance worth Rp 5 trillion in 2022. Earlier in 2018, it was involved in the first rupiah green bond issuance in Indonesia, Sarana Multi Infrastruktur's rupiah green bond issuance.
“Leveraging the expertise of Maybank Investment Banking Group [Maybank IBG], we have the capabilities to offer end-to-end structuring advice for green bonds, sustainable bonds and sukuk and sustainability-linked financing facilities. Our regional sustainability financing team is one of the first in ASEAN to be certified by the International Capital Market Association [ICMA],” said Wilianto Ie, president director of Maybank Sekuritas.
In addition, we can tap into Maybank’s global leadership in Islamic finance to structure sukuk bonds and access a broader investor base. Maybank has pioneered groundbreaking sustainability deals, including advising Malaysia’s SME Bank on the world's first sustainability sukuk for a development financial institution; and also MBSB Bank in issuing the first sustainability program by an Islamic bank the Sukuk Wakalah.
“The biggest transition challenge in ASEAN lies in enabling hard-to-abate companies to decarbonize. Maybank Sekuritas is facilitating this journey by advising on transition financing options that provide greater flexibility,” added Wilianto.
Driving ESG investing and thought leadership
In serving investors who are increasingly scrutinizing companies for their ESG practices, Maybank Sekuritas provides ESG analysis tearsheets and scoring for publicly listed companies under its research coverage. The information is available at the ESG Corner on its trading platform, Maybank Trade; Maybank Sekuritas being the first to offer customers such access.
“As a pioneer in ESG equities research for ASEAN, Maybank IBG is known for its in-depth analysis of companies and sectors. We are also deep diving into ESG and sustainability evaluation beyond listed companies to bring a different color to our analysis,” Wilianto said.
“Recently, we completed our annual ESG conference about a greener Indonesia: A Path to Carbon Neutral, bringing together discussions with the IDX, PLN, Hutan Kencana Group, Indonesia Carbon Trade Association and Maybank IBG research team.”
Backed by Maybank Group’s deep expertise, sustainability commitment and regional network, Maybank Sekuritas is well positioned to partner clients on developing decarbonization solutions, and forging a more resilient Indonesia.
Maybank Sekuritas has been ranked as among the top-five brokerage houses by volume in Indonesia in 2022, and Alpha Southeast Asia’s Best Retail Broker in Indonesia for two years in a row (2022-2023).
