Bumitama Agri's ESG goals keep it at 'buy'

Maybank Kim Eng is keeping its "buy" call on Bumitama Agri with an unchanged target price of 65 cents, as the group can pride itself as a sustainability champion.

Bumitama Agri has pledged to make its operations carbon neutral by 2030 and has also initiated many community projects to help improve the income and livelihoods of surrounding communities.

"Overall, its ESG credentials appear to be relatively good but its wide geographical land concession of 234,000 ha with over 30,000 workers exposes Bumitama Agri to multiple ESG risks," says analyst Ong Chee Ting.