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ENRICHING tHE FUtURE ENRICHING NAtIoNAL PRoGRESS ENRICHING StAKEHoLDER VALUE ENRICHING SUStAINABLE IMPACt

NAtuRAL CAPItAL

As part of our unwavering dedication to sustainable and ENVIRONMENtAL HIGHLIGHtS
responsible investing, we are committed to combating
climate change with a comprehensive decarbonisation
strategy. Acknowledging the impact of our carbon footprint, Established scope 1, 2 and 3 carbon
we aim to invest responsibly to achieve sustainable returns. emissions baseline
Being a responsible long-term investor, addressing both
current and future climate risk is integral to our operating
model. Commited to increase investment in
transition assets to RM20 billion
ESG GuIDELINES AND FRAMEWORKS
by 2030
We continue to internalise good ESg practices across our
business and operational activities encompassing all the
core areas namely investment, operations and support as Commited to Net Zero Portfolio by 2050
well as retirement services. We embed ESg considerations
across all investment decision-making process via the
following guidelines and frameworks:

• Investment Policy and Investment Guidelines Five out of 21 properties are green certified
in our directly managed real estate portfolio
• KWAP Group Sustainability Guidelines
• ESG Guidelines for Investment
• Voting Guidelines for Domestic Listed Equity We have developed our environmental reporting to include
Investments all gHg emissions from Scope 1, 2, and 3. Utilising gHg
Protocol and Partnership for Carbon Accounting Financials
• ESG Guidelines for Fixed Income Investments (PCAF) calculation methodologies, this has amounted
• ESG Tracking Methodology to an emissions exposure of 6,369,232.09* tCO e. To
2
better manage our emissions portfolio moving forward,
• ESG Guidelines for Private Equity Investments we have set 2022 as our emissions baseline. The baseline
• KWAP Sustainability Roadmap is intended to assist us in determining future targets for
reducing emissions and allow us to monitor progress more
• Sustainability Risk Framework effectively as we continue to decarbonise KWAP and our
investment portfolios. It will be the yardstick for measuring
• Sustainability Risk Policy
the performance of our decarbonisation strategy.
tRANSItIONING tO NEt ZERO
We have assessed the emissions generated by our
Acknowledging the urgency of environmental challenges, investments using the global gHg Accounting and
we have established ambitious targets and adopted a Reporting Standard tailored for the financial industry,
multifaceted approach to reduce carbon emissions across developed by the PCAF.
our investment portfolio.
Asset classes relevant to KWAP:
In 2023, we have initiated a thorough examination of our
emissions to determine our baseline for FY2022. This Listed equity and Business loans and
exercise comprised two components: Enterprise Emissions corporate bonds unlisted equity
and Financed Emissions.

Our commitment to achieving net zero is reflected in Project Sovereign
our holistic approach, which includes setting short-term Finance debt
targets to reduce emissions, investing in climate solutions
and advancing the transition to a net-zero global economy.
* Scopes 1, 2 and 3 carbon emissions baseline was established from
84 KUMPULAN WANG PERSARAAN (DIPERBADANKAN) i INtEGRAtED REPoRt 2023 Financial Year 2022 data