IJM Corporation has updated its ESG score to 68 out of 100, reflecting improvements in data collection, governance, and climate strategy implementation. This score is a notable increase from the previous rating of 63 and indicates that IJM is performing above average in its environmental, social, and governance practices.

The company's recent FY24 Annual & Corporate Governance Reports reveal significant strides in sustainability. Notably, IJM has expanded its sustainability reporting to include 130 operational sites and entities across Malaysia and India, up from 126 sites in FY23. Additionally, IJM has refined its emissions reporting by segregating emissions from subcontractors' construction activities under Scope 3, which were previously included under Scope 1 and 2. This adjustment resulted in a minor increase in total emissions by 0.9% year-on-year, with Scope 1 and 2 emissions accounting for 7.7% of the total, down from 10.1% in FY23.

In terms of governance, IJM established the Risk Management & Sustainability Committee in November 2023. This committee is tasked with overseeing the group's Sustainability Framework and directing sustainability initiatives, including climate change matters. The introduction of IJM's Climate Strategy, R2O, in April 2023, demonstrates a commitment to reducing emissions and adapting to climate change. R2O outlines ambitious net-zero targets: Scope 1 by 2050, Scope 2 by 2035, and Scope 3 emissions (operational and embodied) with various deadlines up to 2027.

The Industry Division's notable achievement in FY24 includes reducing cement content in concrete spun piles by 12.8%, which has led to a 5.7% decrease in the group's greenhouse gas emissions. This division remains the largest contributor to IJM's GHG emissions, accounting for 65% of the total in FY24.

Despite these advancements, Maybank Stock Broking House maintained a BUY recommendation on IJM Corporation with a revised RNAV-based target price of MYR3.70. The current share price stands at MYR2.98, suggesting a potential upside of 27% based on the target price.