ESG: Prosper thy neighbour

Targets to be carbon neutral by 2030

BAL can pride itself as a sustainability champion. It pledged to make its
operations carbon neutral by 2030. BAL 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 BAL to multiple ESG risks. We maintain
our BUY and TP of SGD0.65 on 12x FY21E PER peg, its 5-yr mean. BAL
trades at single-digit PER with attractive net dividend yields of above 4%.