Malaysia-based retirement fund Kumpulan Wang Persaraan (Diperbadankan) (KWAP) is reinforcing its commitment to sustainable investment by pledging to increase its focus on transition assets to MYR 20 billion ($4.45 billion).
The fund said in a statement on Tuesday that this move aligns with the MADANI Economy Framework and highlights KWAP’s dedication to fostering a low-carbon economy.
It is noted that the organization has been actively championing environmental, social, and governance (ESG) principles within its operations, with a pledge to achieve a net zero portfolio by 2050.
This strategy aims to mitigate the impacts of climate change, safeguard the planet’s habitability, and enhance the long-term value of its investments.
“At KWAP, ESG is not just an aspiration—it is a core operational principle guiding both our community outreach and investment strategies,
“We are dedicated to championing ESG principles with clear targets, including substantial investments in renewable energy projects, sustainable infrastructure, and innovative clean technologies,” said Hajah Nik Amlizan Mohamed, Chief Executive Officer of KWAP.
“Our goal is to drive meaningful changes in the transition to a sustainable economy whilst ensuring strong returns for our stakeholders,
“Beyond investments, we are also implementing comprehensive sustainability programs within our organization, such as reducing our carbon footprint and promoting environmental awareness among our employees and stakeholders,” he added.
As Malaysia’s largest pension fund for civil servant retirees, KWAP said it is mandated to generate optimum sustainable risk-adjusted long-term returns for the Fund.
By actively seeking opportunities to invest in companies and projects that align with specific themes, KWAP said it aims to achieve significant social and environmental impacts alongside financial returns.
KWAP has also on Monday unveiled its inaugural 2023 Sustainability Report, which highlighted KWAP’s commitment to solidify its position as a sustainability thought leader by five (5) key pledges.
These pledges drive its commitment to innovative solutions that benefit all stakeholders. The commitment includes advocating social agenda, empowering partnerships for collective action, achieving net zero portfolio by 2050, increase investment in transition assets to MYR 20 billion ($4.45 billion) by 2030, enhancing sustainability governance
“This commitment reflects our belief that financial success and societal progress are intrinsically linked. As we move forward, KWAP will continue to lead by example, demonstrating that responsible investing is not just ethically sound, but also economically prudent in our rapidly evolving global landscape,” added Hajah Nik Amlizan.
KWAP or the Retirement Fund (Incorporated) was established in 2007.
The fund manages contributions from the Malaysian government and relevant agencies made into the retirement fund to obtain optimum returns on its investments through sound management and investment of the fund in equity, fixed income securities, money market instruments, and other forms of investments.
The fund shall be applied towards assisting the Malaysian government in funding its pension duties.
In 2015, KWAP was officially appointed as an agent of the Malaysian government for the purpose of payment of pension, gratuity, and other benefits granted under any written law from the consolidated fund as agreed between the Malaysian government and KWAP.
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