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• KWAP pledges $4.5 billion towards transition assets, focusing on ESG principles.
• Investments in renewable energy, sustainable infrastructure, and clean technologies.
• KWAP aims to achieve a net-zero portfolio by 2050 and lead by example in responsible investing.

RM20 Billion Commitment to ESG

The Retirement Fund Inc (KWAP) has pledged $4.5 billion to increase its focus on transition assets, reinforcing its commitment to sustainable investment.

Driving Meaningful Change

Datuk Nik Amlizan Mohamed, KWAP’s CEO, emphasized that ESG principles are at the core of both the fund’s community outreach and investment strategies. “Our goal is to drive meaningful changes in the transition to a sustainable economy while ensuring strong returns for our stakeholders,” she said during the KWAP Inspire Conference 2024.

Investing in the Future

Nik Amlizan highlighted KWAP’s commitment to substantial investments in renewable energy projects, sustainable infrastructure, and innovative clean technologies. “Beyond investments, we are also implementing comprehensive sustainability programs within our organization, such as reducing our carbon footprint and promoting environmental awareness among our employees and stakeholders,” she added.

Long-term Sustainable Returns

As Malaysia’s largest pension fund for civil servant retirees, KWAP aims to generate optimal, sustainable, risk-adjusted long-term returns. The fund actively seeks opportunities to invest in companies and projects aligned with specific ESG themes, aiming to deliver significant social and environmental impacts alongside financial returns.

Conference Highlights and Sustainability Report

The conference, themed “Advancing Circular Transformation for a Climate-Smart Malaysia,” brought together key stakeholders from various sectors to explore strategies for building a sustainable future. Additionally, KWAP introduced its inaugural 2023 Sustainability Report, which outlined five key pledges, including increasing investment in transition assets to $4.5 billion by 2030 and achieving a net-zero portfolio by 2050.

Leading by Example

“This commitment reflects our belief that financial success and societal progress are intrinsically linked,” said Nik Amlizan. “As we move forward, KWAP will continue to lead by example, demonstrating that responsible investing is not only ethically sound but also economically prudent in our rapidly evolving global landscape.“

Related Article: Singapore Introduces Bill to Advance Energy Transition and Strengthen Power Sector Regulation

Government Collaboration

Finance Minister II Datuk Seri Amir Hamzah Azizan announced a key initiative involving KWAP and other government-linked investment companies, aiming to leverage the collective strength of the country’s institutional investors to build a better Malaysia. “This collaboration will enhance momentum, reduce overlaps and resource wastage, and ultimately strengthen the impact on targeted outcomes,” he said, stressing the urgency of sustainable actions to avoid significant economic losses by 2050.