We believe that PAD could boost its ESG compliance in the eyes of investors by developing long-term targets/measures for reducing its landfill waste contribution. Aside from this, the group has identified and addressed other areas of concern (eg. product packaging, energy consumption). Hence, PAD has moderate ESG risks, in our view. Our BUY call, earnings estimates and TP of MYR3.50 (based on 20x CY22 PER) is unchanged.