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foR betteR vAlue deliveRy Annual Report 2022 33
HOW WE DELIVER SUSTAINABLE IMPACTS
Investment Beliefs on ESG KWAP’s ESG Policy & Guidelines
KWAP believes that integrating ESG practices KWAP continues to internalise good ESG
into its investment practices can generate practices across its business and operational
sustainable risk-adjusted returns and therefore activities encompassing all the main areas
enhance shareholder value in the long run. The namely investment, operations and pension
proposed amendments were also made to services administration & management.
KWAP Investment Beliefs on ESG in October
2022. KWAP incorporated ESG considerations across
all its operation including investment decision-
making process via KWAP’s Corporate Level
ESG guidelines that were established in 2016.
KWAP’s ESG Screening Among the highlights are as follows:
KWAP believes in the importance of being an • KWAP has incorporated sustainability
active and responsible stakeholder. As part considerations into its investment decision
of our efforts to safeguard our investments making process via:
and protect our assets from financial and i. Investment Policy and Investment
reputational risks, KWAP has avoided Guidelines;
investments in the following industries
through negative screenings based on ethical ii. KWAP’s ESG Guidelines for
considerations: Investment;
iii. ESG -Based Research Methodology;
i. Tobacco;
iv. Corporate Governance Principles and
ii. Alcohol; Voting Guidelines for Listed Equities;
iii. Gambling; v. ESG Guidelines for Fixed Income
iv. Pornography; Investments;
v. Armaments (i.e., Chemical weapons, vi. KWAP’s ESG Tracking Methodology
cluster bombs and etc.); for Listed Equities; and
vi. Countries that have no diplomatic ties with vii. ESG Guidelines for Private Equity.
the Government of Malaysia;
The objectives of the Corporate Level ESG
vii. High-risk Countries (including countries Guidelines are:
identified by United Nations Security
Council Sanctions List); and • Role to Stakeholders:
viii. Corrupt Practices. To enable KWAP to fulfil its roles to
its stakeholders including the future
This was also incorporated in KWAP’s generations in a responsible and
Investment Policy and has been its stance sustainable manner by adopting good ESG
since 2007. practices.
