Malaysian credit rating agency RAM Holdings Berhad (RAM) has entered into a commercial partnership with Singapore-based carbon software-as-a-service (SaaS) company MVGX Tech (MVGX) and Malaysian advisory firm Carbon Rating Malaysia Sdn Bhd (CRM) to strengthen RAM’s environmental, social, and corporate governance (ESG) rating capabilities.

In the collaboration, RAM will incorporate MVGX’s decarbonization rating system into its sustainability services offerings, with customizations to suit local needs, the trio said in a statement on Tuesday.

According to the statement, CRM and RAM will also jointly work together for the marketing and support for users of the solution.

The new decarbonization rating solution from RAM, to be deployed online, will enable companies to measure their carbon emissions for Scope 1, 2 and 3, as well as effectively strategize their decarbonization journey.

RAM’s decarbonization rating system leverages a proprietary methodology developed by MVGX, in consultation with TÜV SÜD, an ISO certification body.

Companies will be objectively rated based on emission measurements in addition to other dimensions and are given a ranking along with a detailed rating report, which is then verified by TÜV SÜD.

MVGX’s decarbonization rating system give businesses the assurances that their disclosures are of ISO quality and certified by globally-recognized sustainability standards providers such as the British Standards Institution (BSI) and TÜV-SÜD.

The decarbonization rating system is a core component of MVGX’s Carbon Connect Suite, a holistic, end-to-end suite of products and services that are designed to guide corporations and institutions in their decarbonization journeys.

The Carbon Connect Suite is based on a comprehensive framework anchored in the principles of define, measure, mitigate, offset, certify, and finance.

“Asia has huge potential for low carbon investments and energy transition opportunities,

“Southeast Asia’s green future economy requires $2 trillion in new investments by 2030 and potentially create 5 million new jobs,” said Chris W.K. Lee, Group Chief Executive Officer and Executive Director of RAM Holdings Bhd.

According to him, current reports however suggest that 2050 net-zero carbon emission targets risk being delayed.

While many large and listed corporations have begun reporting and addressing their emissions, he said many companies are still struggling to start their decarbonization journeys, hampered by a lack of knowledge, financial means, or tools.

“Our collaboration with CRM and MVGX aims to bridge these gaps by providing a world-class, proven and affordable solution for companies to measure and track their emissions and in doing so, facilitate their low carbon journey,

“We hope with this solution and our other sustainability services, RAM is able to support the realisation of Malaysia’s moonshot aspirations and net-zero goal by 2050”, he added.

Meanwhile, MVGX Executive Chairman Bo Bai said that its partnership with RAM and CRM is a step in the right direction for local enterprises and they are thrilled to be supporting them with the much-needed tools and advisory as they embark on their decarbonization journeys.

According to him, this is especially critical for businesses amid the government’s concerted push for sustainability under the MADANI Economic Roadmap, crystallized in various masterplans such as the new Industrial Master Plan 2030 and the National Energy Transition Roadmap.

“Sustainability is now increasingly a necessity, rather than a nice-to-have,

“This has led us to choose to partner with RAM, which has under its umbrella, the leading accredited rating agency and a strong proponent of sustainability anchored by deep analytical capabilities,” he added.

CRM Executive Chairman Nor Azamin Salleh also opined that this partnership opens up possibilities for Malaysian companies to look into embarking into their decarbonization journey and to address the issue of their carbon footprint in a more accurate and affordable manner.

“As we strive to harmonize economic growth with environmental stewardship, it becomes imperative to address the carbon emissions conundrum,

“A uniformed and regulated carbon ratings system can serve as the cornerstone of Malaysia’s decarbonization efforts, fostering transparency, accountability, and a resilient green economy,” he said.

RAM and its group of companies is a provider of independent credit ratings, sustainability and ESG analytics, macroeconomic and fixed income research, risk analytics and consulting, as well as bond pricing and information services.

With a deep databank and analytical resources, the firm delivers precise analysis and credible insights that help investors and market participants make better decisions.

MVGX is a carbon Software-as-a-Service (SaaS) company that has developed carbon solutions that empower corporations, governments, and institutions to take action at every stage of their decarbonization journey.

Consolidated under the Carbon Connect Suite, MVGX Tech’s products, services, and software focus on carbon measurement, reporting, and verification as well as decarbonization rating, carbon credit development and issuance, carbon credit listing and registry, and carbon credit trading.

CRM is an advisory firm that specializes in curating and developing innovative environmental technology and solutions to clients.

With a focus on carbon solutions and ESG related topics, CRM provides its customers with bespoke solutions that add innovation and value by partnering with technology partners and solution providers.

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