Permodalan Nasional Bhd (PNB) will invest RM10 billion in new green and transition assets by 2030 under its newly launched Sustainability Framework, its president and group chief executive Ahmad Zulqarnain Onn said.
Under the environmental pillar of the framework, PNB sought to align its sustainability efforts to support the transition toward a green economy with three commitments.
PNB recently announced its new Sustainability Framework to define and internalise its goals for a more sustainable future amidst a changing global investment landscape.
“There is tremendous pressure nowadays for companies to not just perform financially, but also to integrate Environment, Social and Governance (ESG) aspects into their business,” Ahmad Zulqarnain said during the virtual launch.
“We believe that, through our collective effort, this new way of doing business will create meaningful benefits for PNB, our investee companies, partners as well as other stakeholders, and ultimately the millions of Malaysians who have entrusted their investments with us,” he added.
Besides environmental, the social pillar under the framework aims to address issues of equity and inclusion.
These include taking a stand on labour rights issues to further strengthen the Stewardship Framework launched in 2020, ensuring all PNB employees earn above the living wage by 2023, and setting a target of 40 percent female participation at the senior management level by 2025.
Under this pillar, the company is also committed to balancing PNB’s profits with social investments to align with its mission of enhancing wealth for Bumiputeras and all Malaysians.
Meanwhile, the governance pillar is for PNB to be strategically more transparent and active in engaging ESG-related and climate change issues.
PNB advocates sound governance practices by way of establishing a Triple Bottom Line Stewardship Model, to drive greater transparency in voting and to ensure the reporting disclosures are aligned with the Task Force on Climate Related Financial Disclosures (TCFDs).
PNB group chairman Tun Ariffin Zakaria said as one of the country’s largest fund management institutions with about 10 percent invested in domestic companies listed on the local bourse, the group has a responsibility to navigate the complexities of the ESG journey.
“We believe that more can be achieved collectively and PNB will play a more active role in advancing knowledge and a deeper understanding of ESG, as well as its application and best practices for sustainability. In 2021, Malaysia announced in its 12th Malaysia Plan, a goal for the country to become carbon neutral by 2050.
“We believe Corporate Malaysia has the responsibility to play an important role and must work together towards meeting this goal. For PNB as a corporation, we aim to be a net-zero enterprise by 2025 with a net-zero portfolio by 2050, working together with our investee companies in support of Malaysia’s carbon-neutral ambition,” said Ariffin.
