Standard Chartered and Etika Sign Malaysia’s First FMCG ESG-Linked Derivative Transaction Worth RM251 Million

Standard Chartered Malaysia has entered into an environmental, social, and governance (ESG)-linked derivative transaction worth MYR251 million with Etika Group of Companies, marking the first such transaction executed by a homegrown fast-moving consumer goods (FMCG) corporate in Malaysia.

The structure of the transaction involves a pricing mechanism where a discount or premium will be applied depending on whether Etika achieves the pre-agreed sustainability-related key performance indicators (KPIs) that are tied to the greenhouse gas emissions intensity of the Etika Beverage Plant and Etika Dairy Plant.

Abrar A. Anwar, MD, and CEO of Standard Chartered Malaysia said, “For a leading homegrown player like Etika to take ownership in actively reshaping their group sustainability plans to address today’s pressing environmental and social concerns is a commendable move. It has been such a humbling experience for us to walk alongside them as they journey to being a more sustainable business.