(YTL Power) is unlikely to diversify aggressively into renewable energy due to the lean returns from such projects, according to Maybank Investment Bank Research (MaybankIB). The research house noted the utility conglomerate’s willingness to participate in greenfield coal-fired plants suggests its environmental, social and governance (ESG) concern. “Given YTL Power’s considerable coal exposure, the company will have to contend with the environmental stigma for the considerable future. “Being family-controlled, the group can maintain its returns-oriented focus even in the face of ESG scrutiny, ” MaybankIB said yesterday. “We thus expect the group to maintain its current strategy of investing in regulated assets with long-term concessions and attractive returns for the foreseeable future. Aggressive renewable diversification appears unlikely in our view given lean project returns in the space, ” it said.