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32 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) foR BEttER vALUE DELIvERy

TOWARDS MORE
SUSTAINABLE TOMORROWS

KWAP’s journey with sustainability first started back in Moreover, in 2018, KWAP collaborated with the
2009 when we began practising proactive shareholder World Wide Fund for Nature (WWF) to host the inaugural
activism by monitoring investee companies’ corporate KWAP Inspire: Environmental Conference which provided
governance practices as well as issues related a platform to create awareness of the importance of
to companies’ responsibility towards social and environmental sustainability among the investment
environmental aspects. and business communities. Pride is also taken in being
recognised for its ESG efforts as KWAP emerged as the
Since then, KWAP has embraced and integrated ESG as Asia Pacific ESG Champion at the Asian Investor
part of its business practice by establishing corporate level Institutional Excellence Awards 2018 held in Singapore.
ESG guidelines and gradually introducing specific asset
class ESG guidelines over the years. Within the same year, KWAP conducted the investment
carbon footprint measurement to identify the carbon
At KWAP, companies’ non-financial performance is emissions (CO ) generated based on the existing KWAP
2
used to establish internal ESG ratings where investee domestic equity portfolio and measures that can be taken
companies are scored based on their performance to mitigate climate change risks as well as established ESG
benchmarked against the generally-accepted ESG Tracking Methodology to have a structured process to
principles since 2016. track, monitor and review the ESG performance of KWAP’s
investee companies.
Apart from that, as a responsible investor, KWAP also
engages with investee companies annually, to guide Since 2019, KWAP has also organised ESG engagements
them to continuously improve their ESG practices and with investee companies on an annual basis to deep dive
performance. on ESG focused discussions and address specific areas of
concern.
On top of establishing guidelines, KWAP actively attends
and participates in AGMs and EGMs to exercise shareholder In 2021, KWAP further enhanced ESG integration by
activism and conduct shareholders engagements putting more emphasis on environmental (i.e., climate
with investee companies to discuss both financial and change etc.) and social related matters/issues (i.e., human
non-financial matters. rights, forced labour etc.) into our investment decision
making processes. In the same year, KWAP was rated top
To further strengthen our ESG beliefs, KWAP became a
signatory to the UNPRI in 2018. As a signatory to the PRI, in Malaysia and among the top 100 asset allocators in the
ESG has been integrated into all investment analysis and world for responsible investing under Responsible Asset
decision-making processes and KWAP acts as an active Allocator Initiative (RAAI) 2021 Index.
owner who seek appropriate disclosures from the entities In 2022, KWAP reviewed and published the Voting
that it invests in, and adoption of best industry practices Guidelines for domestic listed equity investment to include
related to ESG. the current ESG best practices in exercising its shareholder
rights in its investee companies.

KWAP has embraced and integrated ESG as part of its business practice by establishing
corporate level ESG guidelines and gradually introducing specific asset class ESG
guidelines over the years.