Islamic Finance

Malaysia’s Islamic fund manager BIMB signs UNPRI to incorporate ESG into investments

Malaysian Islamic fund manager BIMB Investment has become an official signatory of the United Nations-supported Principles for Responsible Investment (UNPRI).

The UNPRI group works to understand the investment implications of environmental, social and governance (ESG) factors and supports its international network of signatories in incorporating these factors into their investment and ownership decisions.

BIMB Investment, a wholly-owned subsidiary of Bank Islam Malaysia, the country’s first standalone Shariah-compliant bank, is the only bank-backed Islamic asset manager in Malaysia to be a UNPRI signatory.

Signatories to the UNPRI gain access to its support and resources. On the public relations side, becoming a signatory allows institutions to show their commitment to responsible investment.

BIMB Investment CEO Najmuddin Mohd Lutfi said in a statement that the company has integrated “more than 250 ESG metrics” in its investment process since 2015.

“ESG offers valuable non-financial information that reflects companies’ management quality which has a strong correlation with sustainable financial performance over time like profitability and stock performance,” he added.

The company currently manages over 1 billion Malaysian ringgit of ESG assets.

There are around 2,300 signatories to the UNPRI, according to its latest available list generated on March 28.

Other signatories from Malaysia include Xeraya Capital, Navis Capital Partners, the national retirement fund KWAP, sovereign wealth fund Khazanah, and Corston-Smith Asset Management.

Signatories from other Islamic countries, that may or may not offer Shariah-compliant products and services, include Indonesia’s PT Bina Investama Infonet, PT Asabri, PT Batavia Prosperindo Aset Manajemen, and Corfina Capital; EFG Hermes in Egypt; Siraj Fund Management Company from Palestine; SEDCO Capital and Al Istithmar Capital from Saudi Arabia; Ithmar Capital from Morocco; TVM Capital Healthcare Partners Neural, Sustainability Excellence Management Consulting, and Hawkamah Institute from the UAE; and Turkey’s Actera Group.


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