KUALA LUMPUR (Oct 16): Retirement Fund Inc has launched Dana Iklim+, Malaysia’s first climate-focused investment fund, aiming to deploy up to RM2 billion across various asset classes.

Dana Iklim+ will channel capital across infrastructure, private equity, real estate, and “nature-based solutions”, the pension fund better known by its Malay acronym KWAP said in a statement. KWAP stressed that Dana Iklim+ seeks both financial returns and measurable environmental outcomes.

“Dana Iklim+ is an integral part of this effort and demonstrates how institutional capital can be mobilised to drive both environmental impact and sustainable economic growth,” KWAP chief investment officer Hazman Hilmi Sallahuddin said on Thursday.

The fund is KWAP’s third investment programme following the launch of Dana Pemacu and Dana Perintis, both of which were launched to catalyse Malaysia’s private markets and strengthen the country’s investment ecosystem.

Dana Iklim+ will be guided by KWAP’s framework that measures impact across six dimensions, including national alignment, climate resilience, and co-benefits indicators aligned with the United Nations Sustainable Development Goals.

Through its investments, the latest fund targets mitigation or reduction of up to one million tonnes of carbon dioxide equivalent, said Hazman.

“This initiative reinforces KWAP’s role as a responsible institution, reflecting its long-term commitment to embedding sustainability into Malaysia’s financial ecosystem,” he added.