KUALA LUMPUR (April 21): Permodalan Nasional Bhd (PNB) has plans to invest a total of RM10 billion in green and transition assets by 2030 as part of its commitment to achieve a Net Zero Enterprise by 2025 and Net Zero Portfolio by 2050, according to the fund’s president and group chief executive Ahmad Zulqarnain Onn.
Speaking at a media briefing on Thursday (April 21) during the launch of its new Sustainability Framework, Zulqarnain said as a trusted custodian of Malaysian wealth and assets, PNB has a responsibility to lead and effect change to ensure an orderly and just transition to a sustainable economy.
“At PNB, we will work hand-in-hand with our investee companies to develop value creation plans that will ensure sustainable growth of their operational and financial performance.
“There is tremendous pressure nowadays for companies to not just perform financially, but also to integrate environmental, social and governance (ESG) aspects into their business.
“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,” Zulqarnain said.
Meanwhile, in ensuring a successful implementation of its Sustainability Framework, PNB has established a comprehensive governance structure comprising a dedicated management committee reporting to the board of directors.
It also created two new functions, namely the Investment Stewardship Division and Enterprise Sustainability Department which are responsible for the overall implementation of the framework.
“As one of the country’s largest fund management institutions with approximately 10% invested in domestic companies listed on the local bourse, PNB 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,” according to PNB’s chairman Tun Arifin Zakaria.
He added that Corporate Malaysia has the responsibility to play an important role in meeting the goal outlined in 12th Malaysia Plan, which is to see Malaysia become carbon neutral by 2050.
The Sustainability Framework pulls together all that PNB has done over the years in diverse areas of sustainability into a clear and comprehensive framework.
It outlines 10 commitments for PNB’s own operations as well as for its investments under the three pillars of ESG.