KUALA LUMPUR, 6 August 2024 – Kumpulan Wang Persaraan (Diperbadankan) [KWAP] is reinforcing its commitment to sustainable investment by pledging to increase its focus on transition assets to RM20 billion. This move aligns with the MADANI Economy Framework and highlights KWAP’s dedication to fostering a low-carbon economy. The organisation 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.
Chief Executive Officer of KWAP, Datuk Hajah Nik Amlizan Mohamed, stated, “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. 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 programmes within our organisation, such as reducing our carbon footprint and promoting environmental awareness among our employees and stakeholders.”
As Malaysia’s largest pension fund for civil servant retirees, KWAP 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 aims to achieve significant social and environmental impacts alongside financial returns.
At the KWAP Inspire event today, YB Senator Datuk Seri Amir Hamzah Azizan, Minister of Finance II, launched the conference, which is part of KWAP’s support for Malaysia’s National Energy Transition Roadmap (NETR), a plan that highlights net zero commitments, reducing greenhouse gas (GHG) emissions up to 45% by 2030 and achieving net zero by 2050.
The conference, themed Advancing Circular Transformation for a Climate-Smart Malaysia, brought together key stakeholders from the public sector, financial industry, and sustainability experts to explore strategies for building a secure, equitable, inclusive, and sustainable future for all Malaysians by emphasising the importance of Circular Economy.
The conference featured Datu Dr. Muhammad Abdullah Haji Zaidel, Sarawak Deputy State Secretary (Economic Planning and Development), as the notable guest speaker. The event also included an impressive lineup of prominent speakers, including Jason Drew, Chair of Stoak Technologies and an environmental capitalist, and Jacqueline Chang, Ambassador of the Circular Economy Institute and Global Covenant of Mayors for Climate and Energy (GCoM). Dr. R Balasubramanian, Chairman of the SEBI Social Stock Exchange Advisory Committee in India, and Sharifatul Hanizah Said Ali, Executive Director of the Islamic Capital Market (ICM) at the Securities Commission Malaysia, shared their insights.
Further enriching the discussions with their valuable insights were Tan Sri Andrew Sheng, Distinguished Fellow at the Institute for Capital Market Research Malaysia (ICMR), and Dato’ Dr. Hartini Zainudin, Co-Founder of Yayasan Chow Kit. Dato’ Charon Wardini Mokhzani, Chairman of Export-Import Bank of Malaysia (EXIM Bank), and Dato’ Mohd Muazzam Mohamed, Group Chief Executive Officer of Bank Islam, also offering a wealth of knowledge and expertise.
In addition, at the conference today, KWAP unveiled its inaugural 2023 Sustainability Report. The report 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:
- Pledge 1: Advocate of Social Agenda
- Pledge 2: Empower Partnerships for Collective Action
- Pledge 3: Net Zero Portfolio by 2050
- Pledge 4: Increase Investment in Transition Assets to RM20 billion by 2030
- Pledge 5: Enhance 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 Datuk Hajah Nik Amlizan.
For more information about KWAP, please visit www.kwap.gov.my.
—ENDS—
About Kumpulan Wang Persaraan (Diperbadankan)
Kumpulan Wang Persaraan (Diperbadankan) [KWAP] or the Retirement Fund (Incorporated) was established on 1st March 2007 under the Retirement Fund Act 2007 (Act 662) replacing the repealed Pensions Trust Fund Act 1991 (Act 454).
KWAP manages contributions from the Federal Government and relevant agencies made into the Retirement Fund [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 as permitted under the Retirement Fund Act 2007 (Act 662). The Fund shall be applied towards assisting the Federal Government in funding its pension duties. In 2015, KWAP was officially appointed as an agent of the Federal 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 Federal Government and KWAP.
Visit www.kwap.gov.my for more information.
